JPMAM New Europe fund banks on Russian growth

  • Story by: Oliver Good
  • Magazine: InvestmentAdviser
  • Published Tuesday , June 17, 2008

Commodities, domestic consumption and construction in Russia will lead to a sustainable period of solid growth for JPMorgan Asset Management’s £243.7m New Europe fund, the firm has said.

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Managed by Oleg Biryulyov, the portfolio is primarily invested in Russia, but also holds companies in Turkey, Ukraine, Poland, Kazakhstan and other emerging economies.

Claire Simmonds, client portfolio manager on the JPMorgan New Europe fund, said commodities were one of the region’s greatest drivers for growth.

Russia is the world's largest producer of oil and gas accounting for about 21 per cent of global gas production. It is also the world’s biggest producer of nickel and the eight largest producer of gold.

She said: "Recent positive sentiment in the Russian energy sector has been inspired by the announced tax changes which could equal around 10 per cent of net income for the energy sector."

Construction was another crucial play in the region, she said.

Historic under-investment and urbanisation across the region has created the need for new roads, railways, ports as well as power plants, Simmonds said.

For more information, see next week's Investment Adviser (23 June).

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