FLF Equity Russia reaches USD 1 billion AUM

FLF Equity Russia is managed by Vladimir Tsuprov and Kirill Bagachenko of TKB BNP Paribas Investment Partners, formerly known as KIT Fortis Investments. It offers investors strong risk-adjusted return potential within a disciplined investment process and, when used within a broader portfolio, enhanced diversification opportunities. Up to 40% of the portfolio may be invested in off-benchmark stocks reflecting our strong growth conviction for the asset class.

We expect continued demand for emerging market assets due to sufficient support for commodity prices and expectations the world's central banks will keep interest rates low in the near term. Russia is particularly attractive due to its wealth in commodities, metals/mining exports and strong domestic consumer demand, with consumer spending again boosting GDP growth in the second quarter to 5.4%. Looking at consensus full year growth forecasts of 5-7%, up from -7.8% last year, the country may demonstrate one of the strongest y-on-y GDP acceleration rates of any global economy.