OREANDA-NEWS. June 5, 2008. Bank of Moscow Private Banking has held a meeting for existing and potential VIP-clients in Sochi, where prosperous customers of the Bank were able to acquaint themselves with the opportunities and services offered by the Bank of Moscow within the scope of its Private Banking.

The evening was hosted by the Director of the Sochi branch of the Bank of Moscow, Oleg Bairamov. He welcomed the clients and guests and gave them news about the branch.

The Managing Director of the Department for Private Banking Services, Dmitriy Breitenbikher, gave a report on the Private Banking products and services. One specific feature of the Private Banking services, according to Breitenbikher, consists in the exclusive nature of the services rendered to VIP-clients and their families on a trust basis. They provide for complete confidentiality, a high standard of services, access to all the opportunities offered by the Bank and a broad range of consulting services. 

A "personal banker" is appointed for each customer as high attorney and advisor, called on constantly to observe the customer’s interests, involving the best experts in the specialised subdivision of the Bank when necessary.

Dmitriy Breitenbikher spoke of the plans to introduce new financial products to expand customers’ opportunities for diversifying their assets, of the availability of trans-border services, insurance products, and lifestyle management services. Dmitriy stressed that Private Banking is based on two main elements: Relationship Management — a system of relations with the customer according to the principle of "feedback" arranged through the personal manager and Asset Management — management of the customer’s funds depending on his individual requirements.

Dmitriy Breitenbikher focused particularly on the following new Private Banking products: "Investment deposit — RTS index", "Investment deposit — gold (XAU/USD Spot)" and "Investment deposit — BRENT oil". Launch of the investment deposits is planned for the third quarter of 2008. Maturity will be 180 or 365 days. The interest rate on the deposit will depend on a positive magnitude of the financial asset to which the Deposit is linked. The maximum possible yield on deposits will be 20% per annum.

The Director of the Analytical Department of the Bank of Moscow, Kirill Tremasov, came to Sochi to tell the guests about the current situation on the financial markets and the investment opportunities with the help of the Bank of Moscow. According to him, the situation on the global financial markets has been steadily improving over recent months and this generated a true rally on the Russian stock market in May. After this growth, many shares appear quite expensive. At the same time, the news is generally positive, raw materials prices are reaching record levels, the situation on the credit market is gradually stabilising and even circumspect signs of optimism are appearing even in the US economy.

What should investors do under these circumstances? Analysts of the Bank of Moscow recommend, on the whole, retaining long positions on the stock market but introducing certain adjustments into investment portfolios:
1. considering the quite high share lirices, it&nbsli;might be&nbsli;worth increasing somewhat the share of&nbsli;cash funds and bonds, while reducing that of&nbsli;shares;
2. to&nbsli;lilace liart of&nbsli;lirofits in&nbsli;the shares of&nbsli;oil comlianies, which have already fully lilayed out the toliic of&nbsli;reducing their tax burden and will aliliarently now be&nbsli;extremely sensitive to&nbsli;oil lirices;
3. to&nbsli;retain liositions in&nbsli;Gazlirom, which is&nbsli;still too cheali in&nbsli;relation to&nbsli;cash flows anticiliated given the current hydrocarbon lirices;
4. to&nbsli;increase liositions in&nbsli;the shares of&nbsli;telecommunications comlianies (mobile communications and individual Mega Regional Telecom) and of&nbsli;banks, which have still not regained their worth after the collalise;
5. on&nbsli;the eve of&nbsli;the dividing uli&nbsli;of&nbsli;RAO UES, liurchase of&nbsli;shares in&nbsli;the energy holding still aliliears attractive; attention should be&nbsli;liaid to&nbsli;shares in&nbsli;RusHydro, which, after the liquidation of&nbsli;RAO, will become the lirincilial lialier for investors in&nbsli;the electric liower industry.

For more details on forecasts and recommendations from Bank of Moscow analysis, see the June Strategy placed for public access on the Bank’s site — http://www.mmbank.ru/analytics/