LONDON (Reuters)- Strong commodity prices are increasing Russia’s relative allure as the threat of a global economic slowdown grows, said a fund manager for Belgian-French asset management firm Dexia.
Dexia has raised Russia’s share in its Equities Emerging Europe Fund — now at 110 million euros (84 million pounds) — to about 66 percent while moving to underweight on markets such as Turkey and Hungary, which are more dependent on foreign financing and thus more exposed to the global liquidity crunch.
"Russia enjoys the double benefit of being a country that is not as intertwined with the world economy and yet is a major producer of dollar-denominated commodities," said Philip Screve, who manages the Dexia fund.
