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KIT Finance Makes Money on Foreign Risk
KIT Finance Bank has begun to sell shares in 15 open Western investment funds under the management of the Dutch-Belgian Fortis Investments Co. The bank thus expects to earn money on commissions for brokerage services, while providing investors with the opportunity to diversify in the midst of the current instability. The minimum investment is 100,000 rubles, twice as high as the average minimum for involvement in Russian mutual funds. KIT will obtain the shares it sells through Kit Finance Europe, registered in Estonia.
According to Dengi financial weekly, KIT Finance occupied 35th place among Russian banks by net assets (59.57 billion rubles) and 33rd place by its own capital (7.86 billion rubles), as of April 1 of this year. It has offices in 51 Russian cities. Fortis Investments is an independent international management company, part of the Fortis Group. It manages about ˆ131 billion in more than 100 investment funds.
Investors will pay a 3.5-percent commission to KIT for brokerage operations and 1-1.15 percent to Fortis for management. Russian management companies usually take a 1-3 percent commission. The Fortis L Fund Equity Asia has gained 7.37 percent and the Fortis L Fund Latin America 2.49 percent in the last month, while the average income from Russian mutual funds in July was 1.5 percent. Besides KIT, only Allianz ROSNO Asset Management offers Western shares in Western mutual funds. The minimum investment there is $10 million.
www.kommersant.com
All the Article in Russian as of Aug. 25, 2007
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