Finam Management to Launch Three New Mutual Funds
OREANDA-NEWS. On February 1, 2008 management company Finam Management, part of Finam Investment Holding, is to launch three new mutual funds: Finam Oil&Gas, Finam Power Utilities and Finam Metals. These mutual funds will be sector-focused, broadening the range of products offered by the management company to investors.
The formation of the new funds is scheduled for completion on April 30 or earlier when the assets of each fund equal RUB 10 mn. These mutual funds target the largest possible group of investors. RUB 3,000 is enough to become a unit holder. At a later time the minimum amount for investors who already purchased fund units of respective funds will be reduced to RUB 1,000.
Intends to invest client resources primarily in common and preferred shares of Russian businesses that engage in oil and gas extraction, processing and transportation activities. It is expected to add to the fund's portfolio not only blue chips, but also the most promising second-tiers, i.e. shares in petrochemical concerns.
Open-ended mutual fund Finam Metals will be parking investors' cash mainly into the securities of companies that extract and process ferrous and non-ferrous metals, coal, produce steel and also manufacturing equipment, automobiles, aircraft, etc. Thus, the fund will be able to pursue quite a flexible strategy, investing only in metal stocks when market conditions deteriorate and picking up engineering shares when metal product prices are in decline.
Finam Power Utilities is to target securities of Russian concerns that generate, transmit, distribute and sell electric and thermal power. Among the most attractive stocks of the sector that are to be added to the portfolio of Finam's new mutual fund are assets that represent the thermal power generation sector, whose performance is to a large extent related to the keen interest of strategic investors in the relevant companies and also distribution grids.
Representatives of Finam Management believe that sector-focused mutual funds will be of interest to investors both in and of themselves and as an instrument to diversify their investment portfolios. Specialized funds make it possible to invest funds in one industry or another as a whole, which lowers the risk of losses when one or several stocks of a relevant sector are picked. Investors will also have the opportunity to convert free of charge fund units of the new funds, including by means of a special online service.
"By launching sector-focused mutual funds we'll bring the total number of our mutual funds to 11, with 8 of them classifiable as open-ended. This means that the mix of the investment products offered by Finam Management will be able to meet demands of virtually any investor. All innovations made by Finam's analysts will be used when forming the new funds, which gives reason to expect dynamic growth in the value of fund units" – Finam Management's executive director Andrey Shulga says.
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