The Russian Fixed Income Fund will invest in a portfolio of ruble-denominated sovereign, municipal and corporate bonds with medium- to long-term duration and high credit quality.
It will focus on issuers with expected improvement in credit quality and or ratings upgrades and follow a similar strategy to Troika Dialog’s flagship fixed income fund launched in 1996.
Meanwhile, The Russian Long Term Capital Appreciation Fund will invest in Russian equities across the market cap spectrum and source best ideas from the firm’s existing equities strategies, with the earliest dating back to 1997.
Each fund will be seeded with $50m and Russia’s largest bank, Sberbank, will be the key initial investor, which committed money because "it believes in the first class asset investment expertise and quality of the merged asset management team as well as long-term growth prospects of the Russian market", Troika Dialog said.
Anton Rakhmanov, head of the company, said: "Troika Dialog Asset Management has long been a pioneer of the Russian fund market and today we find ourselves leading the way again as we invite international investors to take advantage of Russian growth opportunities.
"We are confident that our insight and experience of the Russian market offered alongside the regulatory and capital security benefits of the UCITS platform will entice international investors looking to diversify their current holdings. With US$3.3bn of assets currently under management, our disciplined investment approach and robust risk management will enable us to optimise these opportunities for our clients."
