Alfa Capital asset management plans to increase AUM 30% this year
By Vladimir Kuznetsov and Ksenia Galouchko March 28 (Bloomberg) — Alfa Capital asset management plans to increase AUM 30% this yr, targeting high net worth individuals, taking advantage of pension system reform, Alfa Capital’s CEO Irina Krivosheeva says in interview in Moscow.
- HNW clients still possess «ample liquidity», present opportunity for sustainable growth.
- Russia has 12,000 individuals with investable savings of $>5m; ~1.6m potential clients in total with savings >$10,000.
- «Even if you target only 1% of this sum, it gives you inexhaustable growth prospects».
- NOTE: Alfa Capital’s AUM rose 11% in 2013 to RU97.2b; 8th largest local asset manager, according to Expert Rating Agency.
- Saw $40m net inflow into funds in March, mostly in fixed income, esp. in Eurobonds of Russian banks; clients were «absolutely consciously» buying as markets fell.
- «Comparing current situation to what was happening in 2008, at that time uncertainty was deeper and outflows were stronger».
- Retail mutual funds still may face outlows in 2014; Alfa targets increasing mkt share to 9% from 8.8% in 2013.
- Outflows from mutual funds continue, abated compared to peak in Jan.-Feb., when people converted money into cash FX.
- Alfa, with 75% of assets coming from retail clients, sees opportunity to gain new clients among non-state pension funds (NPF) as industry is reformed.
- «NPFs will be gradually picking dependable and market-oriented asset managers, hence our role in this process can increase».
- NOTE: Euroclear Bond Pop Seen Unlikely on Pension Jam: Russia Credit NSN MXLI196S9729<GO>.
- NOTE: Putin Pension Plan Opens $5 Billion Company Hole: Russia Credit NSN MU5F8B6KLVTW<GO>.
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