Expert RA

RA Expert Awards A+ Rating to VTB Assets Management

April 21th, 2008

The RA Expert rating agency has analyzed the activity of the management company VTB Assets Management and awarded the A+ reliability and service quality rating which means a very high level of reliability and quality of services.

RA Expert analysts have found the quality of services provided to clients by the VTB Assets Management to be of a high standard. Besides, the rating was positively affected by a wide line of investment strategies on offer and a developed network of agents. The experts made a high assessment of the efficacy of the multistage monitoring system of investment decision-making, the results of the company’s strategy management and risk management system, in particular, an integrated approach towards risk management.

The only constraint in the evaluation was the lack of integrated software, which was not in place yet at the time of the rating. In addition, one has to see the practical results to assess the efficacy of the large-scale investment program the company launched in 2007, it aims to secure the company’s faster business development under the conditions of mounting competition.
VTB Assets Management has a big potential for development, which has a positive effect on the level of the rating assessment. The completion of the work to introduce specialized software, and the availability of actual results of the investment program will allow the management company to apply for maximum rating in the near future, said Pavel Mitrofanov, chief of the RA Expert investment ratings section.

Presently VTB Assets Management is planning to build up its presence in all the segments of Russia’s assets management market by attracting nonaffiliated clients on market conditions. The company plans to increase the amount of its managed assets nearly 14 times in the period of 2008-2010. The management company expects to achieve a higher level of asset diversification under its management through providing their clients access to all kinds of investments: portfolio, alternative and direct on both home and foreign markets.

The results of the yearlong monitoring by RA Expert suggest that VTB Assets Management is one of Russia’s top 30 management companies with the volume of assets under its management reaching more than 9.2 billion rubles by the close of 2007. VTB Assets Management’s major operations involve management of unit investment funds which account for 85.3 % of the total amount of its assets as of December 31, 2007 and make up 7.8 billion rubles and individual share management which accounts for 7.2 % in the total assets as of December 31, 2007 and is 664.5 million rubles). The results of the analysis show that the categories Share Management “SM Aggregated” and Pension Accumulation Aggregated are the best strategies to follow.