Outflow of capital from Russian funds has reached $2 billion over the past five month
The capital outflow from Russian stock oriented funds in July 2017 amounted to $300 million for a total of $2 billion over a period of five months. The data was provided in a survey by Emerging Portfolio Fund Research (EPFR), an organization that tracks the inflow and outflow of capital to investment funds and the distribution of capital.
The outflow of funds in July is comparable to the June figures when the outflow was recorded at $385 million. Net outflow of funds was recorded for five consecutive months, Vesti Finance reports. This became the longest period of decline in 3.5 years. From August 2013 to February 2014, Russian funds lost more than $2.4 billion. Investors preferred the funds of developing countries to the Russian market.
Foreign investors decided on large-scale sales due to the complication of relations between Russia and the United States, and also because of the unsatisfactory level of corporate governance in Russia.
At the same time, a larger outflow of funds was recorded in China: $1.4 billion in a month and $5.4 billion in five months. However, the Chinese market is much larger than Russian market. India became the leader in raising funds: $2.8 billion was invested in this country over five months.