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Alpcot Launches Active Russian ETF
By Staff | 22 February, 2012

Alpcot Capital Management, an asset management company that focuses on investments in Eastern Europe, has launched an actively managed Russian equity exchange-traded fund.

The Alpcot Active Greater Russia ETF is physically-backed and will invest in the securities of issuers in Russia and other former Soviet Union states.

The fund’s holdings will be split into “disclosed portfolio securities”, which will typically make up about 80 percent of its portfolio, and “non-disclosed portfolio securities”, which will account for the remainder. Details of the former will be released on a daily basis, while the latter will remain secret.

It said the rationale for the partial disclosure was to enable the firm to “employ effective and active investment management and mitigate the risks of being exposed to front running and portfolio replication”.

It added that the high percentage of disclosed funds, along with the provision of an indicative intra-day net asset value (NAV), would ensure the ETF performed well in the secondary market.

Alpcot partner Bjorn Lindstrom said: “Alpcot’s approach captures the best of both worlds of investing, and is one that stays loyal to the original ETF concept by offering investors real-time trade execution and a high degree of transparency, while also allowing for effective active management to take place.”

“From an investment perspective, the current turbulent markets and depressed equity valuations in the greater Russia region offer an excellent opportunity for long-term investors who are seeking an entry point to this fundamentally attractive market. However, it is also a less researched market, and the true value of opportunities in the region can only be exploited by experienced active managers.”

The ETF has been listed on Nasdaq OMX in Stockholm and has a management fee of 1.4 percent.



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