Time to back a Russian resurgence?

RUSSIA

Global equity managers are buying back into Russia ahead of an expected government boost for state-backed firms, which could see dividend payouts grow.

Despite buoyant equity markets, Russia has had a torrid start to 2013. Its MICEX index is down 8.2% year-to-date, making it one of the world’s worst performing stock markets this year. The country is also struggling over a longer period, lagging the majority of emerging markets as corporate governance, corruption and commodity price fears weigh on investor sentiment. However, speculation the government will seek to attract foreign investment by putting further pressure on state-backed companies to grow their dividends has led some managers to revisit the country. State-owned firms ...