As for Russia, today we have a twofold picture. On the one hand there are decreasing in business activity in Russian manufacturing industry (PMI fell from 49.1 to 46.3 in September), reduction in export orders and decline in domestic demand but on the other hand a prudent monetary policy, reducing of dependence of Russian currency and the budget from oil prices allowed Fitch to increase its country’s rating from BBB- to BBB in August with a stable outlook.

Today Russia has worthy of attention macroeconomic figures such as the lowest level of public debt among countries with the same rating, large gold and forex reserves (growth by 2.8% to $532bn in 3Q), low unemployment rate (4.3%) and inflation (4%).

In the times of low and negative rates the Russian assets provide deserving yield, that’s why one of the largest Russian company Lukoil has announced a new round of buyback program (approx 5% shares) and will spend $3bn for this purpose.

Domicile: Bermud
Source: Bloomberg LP, AP Asset Management Ltd

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