The Fund gained approximately 15% in the quarter and that concluded Russian equities as among the very best in the world for 2019. Not bad for an economy that remains under sanctions.
We have discussed the strong dividend policy of Russian companies before and now one of the giants in Russia will be even more shareholder friendly in the time to come namely Gazprom. Its new dividend policy for 2020, 21 and 22 will be 30%, 40% and 50% respectively. Where else in the world can we see this?
Russian companies may produce several double digit divindend yield companies going forward which makes them among the most attractive companies globally for investors seeking high dividend yields.
GDP indications for the year is just over 1% and set to increase to 1.6% to 1.9% in 2020 according to the World bank and IMF and the the government plans to $310 billion in 2020 — a 6.5% nominal increase compared to 2019.
Source: Bloomberg LP, IMF, World Bank