Emerging market managers have been reducing their allocation to Russia in the wake of the stock market's six-month rally, having seen a hike in share price valuations.
Funds with a significant allocation to Russia enjoyed considerable gains during the market's recent rally when it was the second-best performing stock market after Peru. However, Russia's main index, the RTS, was down 18% at the end of June and with stock valuations now higher, fund mangers are cutting back their exposure. The Dublin-domiciled Hexam Emerging Europe fund returned 49.8% in the second quarter of this year, since which time manager Stuart Richards has been profit taking from his Russian holdings. This move has seen the €17.8m fund's exposure to Russia drop from 66.5% a...
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