OREANDA-NEWS. January 25, 2011. CJSC Troika Dialog AM announces the launch of open-ended equity fund “Troika Dialog – Infrastructure”1. Formation of the new fund began on January 24, 2011. The investment strategy for the fund is based on equity holdings in companies where growth depends upon infrastructure development in Russia and in other emerging-market economies.

The investment strategy for the fund “Troika Dialog – Infrastructure” primarily emphasizes the fast-growing infrastructure sector of the Russian economy, which received a new impetus due to the realization of several large-scale projects – the 2012 APEC Summit, the 2013 Universiade in Kazan, the 2014 Winter Olympics in Sochi, the FIFA World Cup in 2018; as well as major projects for infrastructure upgrades in various economic sectors.

The investment portfolio of open-ended equity fund “Troika Dialog – Infrastructure” is comprised of shares in companies whose operations relate to drafting, engineering, building and servicing infrastructure projects. The term ‘infrastructure’ is used in its broadest sense, including equity stakes in companies in such sectors as electric power generation and distribution, machine building, transport manufacturing, freight transport, social infrastructure development, high-tech manufacturing, construction and real estate, as well as shares in companies performing infrastructure servicing in the commodities sector. The investment strategy is geared toward investors with a mid- (from one year) to long-term investment horizon. To ensure optimal liquidity, the portfolio share of highly-liquid, first-tier issuers will total at least 30% of net asset value (NAV).
The fund rules stipulate the investment of fund assets in not only Russian but foreign companies. Within foreign asset holdings emphasis will be made on emerging-market economies undergoing similarly large-scale infrastructure upgrades, such as Brazil, China, India and several countries in South-East Asia.

Open-ended equity fund “Troika Dialog – Infrastructure” is a retail fund. Applications to acquire, exchange, or redeem investment shares will be accepted every workday. The minimum sum of initial investment is R30,000.

According to Portfolio Manager at CJSC Troika Dialog AM Evgeny Linchik, “In terms of capital output, the infrastructure sector is unlike any other in the Russian economy: its growth rates for years to come will be considerable due to the realization of international projects as well as the country’s outdated infrastructure. We aim to deliver the infrastructure sector’s dynamic growth to our shareholders, while also ensuring a broadly-diversified portfolio including approximately 20-30 issuers from various economic sectors. All of this, together with a high liquidity level, will ensure proper risk control.”

According to Managing Director at Troika Dialog AM Anton Rakhmanov, “Troika Dialog – Infrastructure” is the next step by Troika Dialog AM aimed at broadening the company’s product line and providing clients with new and promising investment ideas and solutions. In recent months Troika Dialog AM has made several important steps towards developing its mutual funds product line. By switching equity fund “Troika Dialog – Potential” and bond fund “Troika Dialog – High-Yielding Bonds” from the interval to the open-ended type, we provided a high liquidity level on these products for our clients’ benefit. By re-registering open-ended fund “Troika Dialog – Sadko” as a money market fund, we provided our shareholders with a low-volatility and reliable investment instrument that will serve as a ‘quiet haven’ during unsettled weather on equity platforms.”