Riding the Russian rollercoaster: Where now for equities?

Robert Davis, senior portfolio manager - emerging markets dividend funds at NN Investment Partners, explains why Russia offers fertile hunting ground for investors.

Investors in Russian stocks won't need reminding that the last three years have been a rollercoaster. The passing of the $100-oil era and then the introduction of sanctions crushed returns for dollar-based investors, with most of the damage inflicted by a falling rouble. But the market bottomed with the oil price in January last year and went on to deliver dollar returns of 50% in 2016, being given an extra lift into the year-end by the US elections and hopes that a détente would form between the two countries. Since the start of this year however, Russian equities have been one of...