Pictet - Russian / Eastern European Equities Review & Outlook
Hugo Bain March 2011 Table of contents
1. Where we are ?
2. Outlook
3. Investment Strategy
4. Conclusion
Biographies
Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 2 1. Where we are ? Russia: One of the Cheapest Markets in EM
% OF COMPANIES TRADING BELOW PICTET PV/MEDIAN ! The sell off has pushed Russian valuations 100% to very low levels. 95% 90% 85% 80% 75% ! Three forces will narrow this discount: 70% growth, oil price stability and time. 65% 68% 60%
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 ! Market discount has historically been a
GEM P/E & EPS GROWTH trade-off between the attractions of growth P/E EPS growth and fear of corporate governance. 2010E 2011E 2012E 2010E 2011E 2012E Russia 8.3 7.0 6.7 40.3 19.8 3.2 Turkey 10.3 9.7 9.0 19.4 5.3 8.1 ! Pictet’s proprietary emerging markets Korea 12.0 9.8 8.0 62.3 23.0 2.3 Brazil 13.2 10.9 9.9 31.4 21.5 9.5 database indicates that 68% of Russian Hungary 12.7 10.9 8.9 -1.7 16.5 22.8 stocks look cheap relative to EM peers. China 13.4 11.6 10.0 35.3 15.2 15.8 Poland 14.2 11.6 9.9 12.1 22.4 17.0 Czech Rep 11.1 11.7 10.8 -4.9 -5.0 8.1 Africa 15.5 11.9 11.4 44.9 30.6 4.4 Thailand 13.5 12.0 11.3 42.8 12.4 6.4 Taiwan 16.0 13.3 10.9 87.4 19.8 22.1 India 18.9 15.4 13.3 31.3 23.4 15.5 Mexico 22.5 16.2 14.0 -2.1 39.2 16.0
Source: Pictet Emerging Database, Morgan Stanley/IBES Aggregates estimates Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 4 The Discount of Russia’s PE to EM
RUSSIA’S PE VS EM PE DISCOUNT, %
10%
0%
-10% +1 ST. DEV. -20%
-30% Average: 33%
-40%
-50% -1 ST. DEV.
-60%
-70%
-80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 MSCI Russia 12-m trailing P/E / MSCI EM 12-m trailing P/E discount
! Russia historically trades with a discount to the EM ! The LT average discount is 33%, and in most cases discount fluctuates within 1S.D. ranges from the LT average ! Currently discount comprises 45%, which is close to the lower range 1S.D. band – this crates room for Russia to outperform EM
Source: Deutsche Bank Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 5 Russia Cheap vs its EPS Growth – but Growth Pays Off
Energy Sector
! Low PEs ! Low growth ! No catalyst
Source: Thomson, Renaissance Capital Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 6 Russian Sector Beta Characteristics
3 YEAR BETA TO OIL 3 YEAR BETA TO COPPER
1.4 1.2 1.23 1.04 1.03 1.01 1.2
1.07 1.0 0.88 1.01 1.0 0.76 0.90 0.88 0.8 0.72 0.85 0.70 0.65 0.8 0.75 0.73 0.6
0.6 0.47 0.41 0.48
0.47 0.4 0.4 0.2 0.2 0.0 0.0 MSCI India MSCI MSCI China MSCI MSCI Brazil MSCI MSCI Russia MSCI MSCI India MSCI MSCI Brazil MSCI China MSCI Russia MSCI MSCI Russia Energy Russia MSCI MSCI Russia Utilities MSCI Russia Energy Russia MSCI MSCI Russia Materials Russia MSCI MSCI Russia Telecoms Russia MSCI MSCI RussiaUtilities MSCI Russia Financials MSCI Russia Consumer Consumer Russia MSCI MSCI Russia Materials Russia MSCI MSCI RussiaTelecoms MSCI Russia Financials MSCI Russia Consumer Consumer Russia MSCI
! Russian energy sector shows the lowest beta to moves in global commodity prices
Source: Otkritie Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 7 Pictet Value Ranking Primary process example – Electrical Utilities
Market cap Company name Country name Main industry name PV/Mdn PV (mln $) M RSK Holding s Russia Electric Utilities 5516.77 0.1 0.07 ! Russian utilities still OGK-3 Russia Electric Utilities 2456.87 0.15 0.1 trading at a fraction of OGK-1 Russia Electric Utilities 1562.82 0.28 0.2 OGK-6 Russia Electric Utilities 1362.36 0.3 0.21 replacement cost despite OGK-2 Russia Electric Utilities 1794.87 0.34 0.24 impressive performance Far East Energ y Russia Electric Utilities 563.72 0.42 0.29 Kepco South Korea Electric Utilities 16462.5 0.45 0.31 in 2010 Federal Grid Russia Electric Utilities 14235.31 0.49 0.34 TGK-3 (M osenerg o) Russia Electric Utilities 4136.06 0.58 0.41 Saudi Electricity Co Saudi Arabia Electric Utilities 15443.15 0.6 0.42 ENEA Poland Electric Utilities 3115.34 0.61 0.42 Eletrobras Brazil Electric Utilities 14663.9 0.62 0.43 TGK-1 Russia Electric Utilities 2907.3 0.68 0.48 Copel Brazil Electric Utilities 5754.33 0.69 0.48 RusHydro Russia Electric Utilities 13701.02 0.69 0.48 OGK-5 Russia Electric Utilities 3112.75 0.74 0.51 IN TER RAO Russia Electric Utilities 3474.67 0.86 0.6 Tenaga Malaysia Electric Utilities 12655.3 0.88 0.61 Light (Dist & Gen) Brazil Electric Utilities 2837.85 0.94 0.66 EdB Brazil Electric Utilities 3309.71 0.94 0.66 PGE Poland Electric Utilities 14609.16 0.96 0.67 Huadian Power China Electric Utilities 1762.77 0.98 0.69 OGK-4 Russia Electric Utilities 5576.78 1 0.7 Eletropaulo Brazil Electric Utilities 3228.29 1.02 0.71 Cesp Brazil Electric Utilities 4443.29 1.05 0.73 Cemig Brazil Electric Utilities 9617.75 1.13 0.79 Huaneng Power China Electric Utilities 7721.88 1.17 0.82 Ytl Power Malaysia Electric Utilities 5410.43 1.39 0.97 Datang China Electric Utilities 5251.38 1.4 0.98 Cez Czech Republic Electric Utilities 24016.83 1.7 1.19 Aes Tiete Brazil Electric Utilities 4425.78 1.72 1.2
Source: PAM Emerging Markets Database, utilities sector, September 2010 Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 8 2. Outlook Russia: The Long Term Case
! Russia is a secular growth story thanks to RUSSIA’S PROPORTION OF GLOBAL OUTPUT AND RESOURCES low penetration, large population and a lack 50% of excess debt. 40% 30% ! Large internal market. Russia has the largest 20% population in Europe and is already the 10% 0% largest market for most consumer goods. Oil Gas Gold Coal land Nickel Arable Potash Iron ore Iron
! Russia is home to large proportion of world Platinum Diamonds Palladium commodities. Eventual return to global % of global production % of global reserves growth means that we are likely to return to a period of limited availability and high INFLATION: RUSSIAN CPI (% YEAR-END)
prices. 20 ! Infrastructure investment to be the main focus. Investment remains the top priority 15 for government stimulus spending. ! Strong disinflation trends are still in tact 10
5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F
Source: Troika Research / Bloomberg, Morgan Stanley Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 10 Importance of Oil For Russia
! A 10% change in oil prices adds about OIL & GAS REMAINS KEY FOR STATE BUDGET REVENUES 0.8pp to GDP growth. 70% 60%
50%
! Oil & gas revenues are around 50% of 40% budget revenues. In 2009 the share 30% dropped to 40.8%, reflecting the 20% sharp drop in oil prices. 10% 0% 2004 2005 2006 2007 2008 2009
! Rule of thumb: each USD 10/bbl adds Oil & gas revenues as % of total budget revenues
about USD10bn to the current THE OIL PRICE REQUIRED FOR FISCAL BREAKEVEN $/BBL
account and RUB 20bn to the budget 120 revenues (or 1.3% of GDP), all else being equal. 100 80
! Russia is still geared to commodity 60 prices but can deliver 5-6% GDP 40 growth at current oil/gas price levels. 20
0 2003 2004 2005 2006 2007 2008 2009 2010 2011E
Source: MinFin, VTB Capital Research / Troika estimates, Central Bank Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 11 Russia Oil Sector
RUSSIAN OIL PRODUCTION 12,000 Russian Crude Oil Output, kbpd ! Despite energy production 11,000 reaching pre-crisis levels, next phase of growth depends on tax 10,000 reforms 9,000
8,000
7,000
6,000
5,000 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: Alfa Capital Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 12 Russia Oil Sector cont.
GREEN VS BROWNFIELD RUSSIAN PRODUCTION
Brown Field, kbpd Green Field, kbpd 10.2
10.0
9.8
9.6
9.4
9.2
9.0 Jan-10 Jan-09 Jan-08 Jan-07 Jan-06 Jan-05 Sep-09 Sep-08 Sep-07 Sep-06 Sep-05 May-10 May-09 May-08 May-07 May-06 May-05
Source: Alfa Capital Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 13 Energy Sector
ENERGY SECTOR – HISTORICAL VALUATIONS
28 120 97 92 100 80 23 72 65 62 80 55 60 18 38 29 29 40 24 25
13 11.3 20 9.9 8.7 8.8 8.3 0 7.5 7.6 8 7.1 6.5 -20 4.3 4.9 2.8 -40 3 -60
-2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E -80
Current year P/E Average for the period Dated Brent
! The energy sector is nearly 40% of the MSCI Russia index however valuation rerating and production growth is constrained by punitive taxation systems
Source: Renaissance Capital est. Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 14 Rosneft Greenfield Prospects
Source: ING, Rosneft Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 15 Russia – Never Only a Natural Resource Producer
EMPLOYMENT BY SECTOR
Numbers employed by sector Manufacturing 7,130,152 Education 5,653,878 Retail trade 5,038,521 Healthcare 4,479,300 Real estate services 4,234,924 Government services 3,720,529 Transport 3,643,644 Construction 2,966,610 Agriculture 2,112,459 Other services 1,828,821 Electricity 1,725,367 Financial services 879,786 Hotels and restaurants 699,873 Oil and gas 489,786 Non oil and gas resources 252,048 Total 44,855,698
of which directly employed in resources 1.7%
Source: Renaissance Capital Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 16 Materials Sector
PRODUCTION COSTS IN US$ PET TON (SLAB), 2010 CASH COST OF SLAB/BILLET ($/T) - 2Q10E
Russia $431 $600 Other CIS $472 $500 India $497 Brazil $502 $400 South America w/o Brazil $503 Ukraine $512 $300 Middle East $520 $200 Australia $541 South Africa $551 $100 North Africa $557 China LC $559 $0 USA LC $564 CE E LC $564 MMK Evraz China China NLMK All but All Global
Other Western Europe LC $576 Mechel average
North America w/o USA LC $589 Severstal Other Asia $591 UK $592 North America w/o USA HC $594 USA HC $595 250
South Korea $603 r Impo rts France $605 200 Other Western Europe HC $606 CE E HC $610 150 Japan $614 China HC $622 100 Germany $634 50 $0 $100 $200 $300 $400 $500 $600 $700
requirment (mnt) 0 ! Russian steel producers among the lowest -50 Exports Implied Chinese coking coal impo coking Chinese Implied
cost steel producers globally 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F
Source: Metinvest, BCG, Worldsteel, Renaissance Capital est., / ING, Rosneft Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 17 Reaching the End of Infrastructure Life Expectancy
SPARE CAPACITY IN THE ELECTRICITY SECTOR
25% 50,000
45,000
20% 40,000
35,000
15% 30,000
25,000
10% 20,000
15,000
5% 10,000
5,000
0% - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net available capacity at peak, MW (right axis) Technically acceptable minimum reserve margin of 8%
Source: Renaissance Capital Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 18 Consumer Sector Government & Private Household Debt
MODERN RETAIL SELLING SPACE, MLN M2 PRIVATE HOUSEHOLD DEBT (% GDP)
20 125%
100% 15 75%
10 50%
25% 5 0% UK
0 USA India Chile Israel Brazil China South Japan Korea Russia Turkey Mexico Poland Taiwan Hungary Malaysia Thailand Germany Indonesia 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Philippines
Source: Gemstrat Source: Gemstrat
ANNUAL CONSUMPTION PER PERSON, $ WASHING MACHINE SALES VOLUMES IN RUSSIA, MLN
9,000 7 7,500 6 6,000 5 4,500 4 3,000 3
1,500 2 1 0 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
No m ina l PPP 2011E Source: Troika Diaolg, State Statistics Service Source: Troika Diaolg, Euromonitor Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 19 Underdeveloped Domestic Financial Sector
MORTGAGES, % OF GDP CREDIT AND DEBIT CARDS IN RUSSIA, MLN
150
120
90
60
30
0 2001 2002 2003 2004 2005 2006 2007 2008 2009 10m10 Source: Renaissance Capital Source: Troika Dialog,
LOANS AND DEPOSITS, $ BLN
800 ! Loans and deposits have each grown 12 600 fold over the past decade 400 200 ! Credit cards have grown 13 fold over the 0 same period 2001 2002 2003 2004 2005 2006 2007 2008 2009 10m10 Loans Deposits
Source: Troika Diaolg, Central Bank Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 20 A Note of Caution…
TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTION INDEX – RUSSIA’S GLOBAL RANKING
0
30
60
90
120
150
180 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
! Transparency International data show that Russia has fallen from the 76th position globally in 1998 to the 154th over the last decade
Source: Transparency International Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 21 Turkey
REAL GDP GROWTH (2001=100) ! Consensus GDP for 2010 is 6.5-7.5%
! In current economic environment, 5% GDP growth is sustainable in the medium term
! Food inflation always a concern as food constitutes over 30% of the REAL INTEREST RATES (COMP. ANN. %) inflation basket
! Current unorthodox monetary policy is causing the market some concern
Source: OECD 2009, Nomura Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 22 Turkey
DOMESTIC BORROWING (MONTHS) ! Debt and interest as a percentage 45
40 of GDP are at the lowest levels in 35 a generation 30 25 ! Still one of the most attractive 20 markets from a valuation 15 10 perspective in a GEM context, 5
0 however earnings growth muted in 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011 due to EPS declines in the
INTEREST PAYMENTS / GDP (%) banking sector
16 14.8 14 12.9 12
10 10.1
8 7 6.1 5.8 5.3 6 5.6
4
2
0 2002 2003 2004 2005 2006 2007 2008 2009
Source: Treasury, Nomura / Ministry of Finance, Nomura Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm Turkey – Still Extremely Vulnerable to External Shocks
OIL PRICE SENSITIVITY OF 2011 GDP GROWTH / CAD / CPI ESTIMATES
9% 8.50% 8.00% 8% 7.60% 8.00%
7% 6.50% 7.40% 5.80% 6.90% 6% 6.00% 6.30% 5.90% 5.70% 5% 5.50%
4.80% 4% 4.00%
3% $80 $90 $100 $110 $120 CAD CPI GDP
Average oil price CAD CPI GDP $80 5.80% 6.00% 5.90% $90 6.50% 6.30% 5.70% $100 7.60% 6.90% 5.50% $110 8.00% 7.40% 4.80% $120 8.50% 8.00% 4.00%
Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm Poland
MUTUAL FUNDS AUM PERCENTAGE OF CHEAP COMPANIES
130 AUM PLNbn % of AUM 40% 60% 120 110 35% 50% 100 30% 90 40% 80 25% 70 60 20% 30% Apr-10 Jun-10 Oct-10 Apr-09 Jun-09 Oct-09 20% Feb-10 Feb-09 Aug-10 Dec-10 Aug-09 Dec-09 Dec-08
Mutual Funds AUM (lhs) Equity weightings (rhs) Jul-07 Jul-08 Jul-09 Jul-10 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
Source: Pictet database PENSION FUNDS AUM
240 AUM PLNbn % of AUM 40% ! Pension funds close to historical high 220 35% equity allocations 200 180 30% ! Due to legislation changes pension fund 160 25% 140 inflows maybe reduced in future 20% 120 ! Poland expensive versus Turkey and Russia 100 15% but cheap versus its history Oct-10 Oct-09 Apr-10 Jun-10 Apr-09 Jun-09 Feb-10 Feb-09 Dec-10 Dec-09 Aug-10 Dec-08 Aug-09 Pension Funds AUM (lhs) Equity weightings (rhs)
Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 25 Source: IZFA, Deutsche Bank / KNF, Deutsche Bank Hungary
HUNGARY: SHARE OF FX BORROWING FOR NON-FINANCIAL CORPORATES & HOUSEHOLDS ! Extraordinary budget measures
40 weighing heavily on the equity market 35 30 25 20 ! FX borrowing still a concern for the 15 banking sector 10 5 0 Jul-05 Jul-10 Jan-03 Jun-03 Apr-04 Oct-06 Jan-08 Jun-08 Apr-09 Feb-05 Feb-10 Nov-03 Sep-04 Mar-07 Aug-07 Nov-08 Sep-09 Dec-05 May-06
NFC Households Source: Deutsche Bank, Reuters/CEEMarketWatch
PERCENTAGE OF CHEAP COMPANIES
60% 50% 40%
30%
20% 10% 0% Jul-10 Jul-09 Jul-08 Jul-07 Jan-11 Jan-10 Jan-09 Jan-08 Jan-07
Source: Pictet database Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 26 Czech Republic
CZK APPRECIATION AGAINST THE EUR YTD IS HIGHER THAN THE REST OF CEE PERCENTAGE OF CHEAP COMPANIES
HUF 90% % YTD change vs EUR EGP 80% RON RUB 70% KZT 60% UAH PLN 50% CZK 40% TRY ILS 30% ZAR Jul-07 Jul-08 Jul-09 Jul-10 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 -5.0 0.0 5.0 10.0
Source: Pictet database TRADE SURPLUS CONTINUES TO WIDEN DESPITE AN APPRECIATING REAL EXCHANGE RATE 1000 170 ! Best performing currency in CEE3 800 Trade balance, EUR (lhs) 160 dbREER, Dec 200=100 (rhs) 600 150 400 140 ! However investable universe is extremely 200 130 limited 0 120 -200 110 -400 100 -600 90 -800 80 Jan-01 Jul-02 Jan-04 Jul-05 Jan-07 Jul-08 Jan-10
Source: Bloomberg Finance LP, Deutsche Bank / Haver Analytics, DB Global Markets Research Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 27 3. Investment Strategy Sector Allocation: Pictet – Russian Equities As at 31st January 2011
% ACTIVE WEIGHTS* % WEIGHTINGS
Materials Portfolio Benchmark Weight Weight
Cons Disc Total 100.0% 100.0%
Energy 34.9% 38.9% Utilities
Materials 31.2% 28.4% Telecoms Financials 12.9% 13.3%
Financials Utilities 10.0% 10.1%
Cons Staples 5.2% 5.7% Cons Staples Telecoms 3.5% 3.6%
Energy Cons Disc 1.1% 0.0%
-4% -2% 0% 2% 4% Cash 1.3% 0.0%
Active weight re-balanced to exclude cash Portfolio: Pictet - Russian Equities Benchmark: MSCI Russia 10-40 Source: Pictet/PAMFolio Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 29 Evolution of Relative Sector Weights: Pictet – Russian Equities As at 31st January 2011
6 MONTH EVOLUTION OF RELATIVE SECTOR WEIGHTINGS (%)
6%
4%
2%
0%
-2%
-4%
-6%
-8% Materials Cons. Disc. Utilities Telecoms Financials Cons. Staples Energy
Aug-10 Sep-10 Oct-10 No v-10 Dec-10 Jan-11
Portfolio: Pictet - Russian Equities, rebalanced to exclude cash Benchmark: MSCI Russian 10/40 Source: Pictet/PAMFolio Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 30 Geographical Allocation: Pictet – Eastern Europe As at 31st January 2011
% ACTIVE WEIGHTS % WEIGHTINGS
Portfolio Benchmark Russia Weight Weight
Turkey Total 100.0% 100.0%
Equities 96.9% 100.0% Kazakhstan Russia 63.8% 60.6% Turkmenistan Turkey 14.6% 14.3%
Romania Poland 12.7% 16.9%
Hungary 2.6% 4.2% Ukraine Czech Republic 1.7% 3.7% Hungary Kazakhstan 0.5% 0.0%
Czech Republic Ukraine 0.4% 0.3%
Turkmenistan 0.4% 0.0% Poland Romania 0.2% 0.0% -4% -2% 0% 2% 4% 6% Cash 3.1% 0.0%
Active weights re-balanced to exclude cash Portfolio: Pictet - Eastern Europe Benchmark: MSCI EM Europe 10/40 (NR) Source: Pictet/PAMFolio Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 31 4. Conclusions Conclusions
! Russia is one of the cheapest markets globally
! Valuations are still very cheap in absolute terms and relative to their own history on an asset and earnings basis
! Very solid macroeconomic fundamentals
! Opportunities in the materials and Consumer sector - with a 're-rating' of the energy sector still possible
Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 33 Biographies Emerging Markets Biographies
Hugo Bain Peter Jarvis Klaus Bockstaller Senior Investment Manager Senior Investment Manager Head Global Emerging Markets Emerging Markets Emerging Markets Emerging Markets
Klaus Bockstaller joined Pictet Asset Hugo Bain joined Pictet Asset Management in Peter Jarvis joined Pictet Asset Management in Management in 2009 as Head of EMEA and November 2009. He is a Senior Investment 2006 and is a Senior Investment Manager in the LatAm. In 2011 he assumed responsibility Manager on EMEA mandates. Emerging Markets Equities team, specialising in for all EMEA and Global mandates. the EMEA markets. Hugo previously spent five years with Fleming Before joining Pictet, he spent five years Family & Partners Capital Management LLP (FCM) He began his career in 1993 with INVESCO Asset with Fleming Family & Partners Capital and was a founding partner and co-manager of the Management where he spent 13 years and Management LLP (FCM). He was a founding FCM European Frontier Fund. He began his career managed Global Emerging Markets, Latin partner of the FCM European Frontier Fund American and Eastern European portfolios. in 1997 at ING, where he remained until 2002 as and the FCM Global Opportunities Fund, Head of Russian, Emerging Europe, Africa and both long / short equity funds. Previously, Peter graduated from Oxford University with a BA Latin America Sales. In 2002 he joined Merrill Klaus spent six years at UBS Brinson as (Hons) in Mathematics in 1993. He holds the Lynch as Specialist EMEA sales. Portfolio Manager – Eastern Europe (1994 – Investment Management Certificate and is a Chartered Financial Analyst (CFA) charterholder. 2000) and in 2000 he moved to Baring Hugo has a MA in Modern History from the Asset Management as Head of EMEA. University of St Andrews. Klaus holds a Masters in Macro-economics from the University of Freiburg.
Pictet – Russian / Eastern Europe Equities| February 2011 I LatAm 35 For more information, please contact: Pictet Asset Management Limited Authorised and regulated by the Financial Services Authority Moor House, Level 11 120 London Wall London EC2Y 5ET Tel : +44 20 7847 5000 Fax : +44 20 7847 5300
Pictet Asset Management SA Route des Acacias 60 1211 Geneva 73 Tel : +41 58 323 3333 Fax : +41 58 323 2040
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