A SUPPLEMENT TO EUROMONEY - APRIL 1997Russia's equity market is opening up to a wider range of investors as an infrastructure emerges for its once shaky stock market. A year ago the market was dominated by New York-based hedge funds, dedicated Russia funds and high-net-worth individuals. Now, a variety of US pension funds, emerging-market mutual funds and index funds, European and US insurance companies, wealthy retirees and Russians are entering for the first time. Trading volumes have doubled, and share prices were up more than 60% in dollar terms in the first quarter of this year after a 130% gain last year. The arrival of new capital reflects recent improvements to the securities market infrastructure: share trading is more efficient, the securities commission has ministry status, there is a better legal framework, more protection of shareholder rights, and custody and registry services have been expanded. Depository receipts and other derivative products have helped a wide range of regulated institutional investors acquire a taste for Russian equity. "The new investors in Russia are of the buy-and-hold variety," says Vladimir Bril, head of Russian equity sales in New York for the Scandinavian investment firm Alfred Berg. |