During the week until April 2, Russia-oriented funds attracted $120 million, and turned out to be in the first place among all funds dealing with emerging markets, Reuters reported, citing the EPFR Global. The second place was taken by funds investing in Brazil (67 million dollars).
Thus, the influx of capital into the Russian stock market from the outside continues for the second week in a row. During the week before March 26, these funds received $ 220 million.
On the whole, the funds operating on emerging markets saw their first inflows totaling $2.5 billion which amount to 0.32% of asset under management. Previously, equities were snapping a 22-week losing streak, EPFR Global said.
Increasing investment in Russia can be explained by the stabilization of the political crisis in Ukraine and Crimea, and the growth rate of the ruble over the last few days. In late March, the ruble rebounded from the historical lows gaining over 5% against the U.S. dollar and euro.
Meanwhile, exchange-traded funds are considered a major mechanism to invest in Russia. Market Vectors Russia is the key player with its net inflows equaling $84 million.