OREANDA-NEWS. RusRating has assigned a reliability rating to ZAO VTB Capital Asset Management. The rating is "AAA" on the national scale and "A" on the international scale, in both cases with a stable outlook.

The rating is based on unconditional backing from the financially-solid state-owned VTB group, a solid client base, a positive reputation on the Russian financial market, strong assessments of risk management and organisation, and solid market positions.

Constraining factors include systemic risks.

VTB Capital Asset Management is a management company that has operated in the Russian market since 1996. Its principal lines of business are managing non-state pension funds, insurance companies, endowment funds, pension savings, mutual funds and individual investment portfolios (for both corporate entitites and private individuals).

As of 30 July 2015 the Company had R270bn under management, of which 49.3% was in closed mutual investment funds for qualified investors only. Most of these funds’ assets were invested in real estate. Pension savings (accessed via both the Russian Pension Fund and non-state pension funds) make up 39.6% of the total. Closed mutual investment funds and private pension funds account for the bulk of the client base. Concentration by individual client is high but the client base appears solid. Asset quality is judged healthy, but investments are exposed to significant market risks under current macro-economic conditions. Concentration by asset type is low. Returns on closed mutual investment funds have been negative, which pension savings generate strong returns that exceed inflation; overall investment performance is therefore moderate. Sensitivity to financial risks is judged low.