OREANDA-NEWS. RusRating has assigned a reliability rating to OOO MDM Asset Management. The rating is "BBB" on the national scale and "BB" on the international scale, in both cases with a stable outlook.

The rating is based on substantial capital, high transparency, a high level of transparency, good corporate governance and a solid client base.

Constraining factors include an asset portfolio that consists mainly of relatively illiquid closed real estate mutual funds and modest returns on most assets under management.

OOO MDM Asset Management Company was set up in November 2000 and is a subsidiary of MDM Bank. The Company manages mutual investment funds, pension savings and pension reserves, as well as both personal and corporate investment accounts. It is licensed to manage securities portfolios, investment funds, mutual funds and non-state pension funds.

As of 30 June 2014 the Company had R12.9bn under management. Most of this (97%) was in three closed mutual real estate funds (Trade Capital, MDM-Golden City and MDM-Regional Real Estate); funding is therefore highly concentrated and most of the associated property assets are illiquid. The Company also manages pension savings for the Russian Pension Fund, pension reserves for a private-sector pension fund and open mutual investment funds that invest in Russian bonds and shares, plus mutual funds that work with both retail and corporate investors. The return on assets under management is low. Most of the Company's own funds have been invested in illiquid securities issued by affiliated parties.