Aurora Russia, Baring Emerging Europe, closed-end funds, emerging markets, frontier markets, infrastructure, JPMorgan Russian Securities, Mongolia, Origo Partners, Prosperity Voskhod Fund, QE, Renaissance Russia Infrastructure Equities, Russia, Templeton Russia & East European Fund, Vietnam Infrastructure, Vietnam Opportunity Fund
Continued from here: So why the interest in Russia? Well, for me, pretty much any emerging/frontier market’s preferable to those in the developed world these days! Everywhere I look, I see better growth, better demographics, better government finances, lower debt and no currency debasement… And all this for stock market valuations that are similar to/cheaper than Western markets. There are a number of markets I feel are particularly attractive – for example, I’ve highlighted Vinacapital Vietnam Opportunity Fund (VOF:LN) before as a good stock pick for exposure to Vietnam. With my continuing bullish view on oil and other commodities (and the inflation risks posed by global QE), Russia presents a compelling market opportunity.
So how does Russia actually stack up these days? Well, first one needs to realize how far it’s come. In the past 10 years GDP has more than quintupled, Russia’s now a Top 10 global economy, and average GDP per capita (in nominal terms) is around $16,700. This last stat’s v interesting – $17 K goes pretty far in what’s still an emerging market, and it explains the booming Russian middle class, something many investors have under-estimated.