Russian country funds lose USD 171mn last week.

By bne IntelliNews April 28, 2013

Investment funds oriented on buying Russian shares lost USD 171mn (1.45% of assets) on the week of April 22-April 24 vs. USD 130mn in the previous week, Reuters and gazeta.ru reported citing Emerging Portfolio Fund Research statistics. The outflow is recorded for the tenth week in a row.

April was the worst month for country funds since the massive sales in Aug-Sep 2011, Reuters cited the analysts of Uralsib Capital as saying. The highest outflow in the past 1.5 years was on the back of EconMin cutting the GDP forecast for 2013 from 3.6% to 2.4% and warning of recession in H2/13. The situation is expected to improve once the signs that recession this year might be avoided appear. However, intensified outflow might also indicate lack of faith in authorities’ ability to overcome the economic slowdown.

The outflow from Russian county funds overall since the beginning of 2013 is estimated at USD 1.483bn. BRIC funds also showed negative dynamics: Brazilian, Indian and Chinese funds saw outflow of USD 114mn, USD 50mn, and USD 570mn, respectively, on the reporting week.

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