Future Possibility of Equities for Russian SWFs

Sergei Storchak

Russia’s sovereign wealth funds have conservative allocations mostly to government bonds. In a possible shift in asset allocation strategy, once the Russian Financial Agency is formed, the funds may begin slowly investing in equities. The Russian Financial Agency is slated to be created in the beginning of 2013.

Russian Deputy Finance Minister Sergei Storchak noted that “the agency will be able to buy shares, and the process of very careful entry into stocks will begin.”

On another note, Russian President Vladimir Putin made comments in an annual address to Russian parliament noting that Russia can think about investing a portion of the National Welfare Fund in Eastern Siberia and the Russian Far East.

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