Profitability of Blue Chip Fund goes down 5.24%

According to the National Managers’ League, the profitability of unit investment trusts run by metallurgical enterprises dropped below zero on July 24-31, 2008. For one, the share price of Trubnaya Ploschad – Russian Metallurgy (Bank of Moscow Management Company) went down by 10.44%, that of Rus-Capital-Metallurgy (Rus-Capital Management Company) dropped by 9.18%, and that of BCS Metallurgy Fund (BrokerCreditService Management Company) decreased by 8.5%. At the same time, the share prices of CIT Fortis-Russian Metallurgy and Machine-Building (CIT Fortis Investments Management Company), Troika

Russian metallurgical sector’s unit investment trusts keep falling: according to the National Managers’ League’s profitability ranking of unit investment trusts as of August 4-5, 2008, the share price of Troika Dialog-Metallurgy (Troika Dialog Management Company) dropped by 4.66%, that of Trubnaya Ploschad – Russian Metallurgy (Bank of Moscow Management Company) went down by 4.23%, that of BCS Metallurgy Fund (BrokerCreditService Management Company) decreased by 4.20%, that of Rus-Capital-Metallurgy (Rus-Capital Management Company) dropped by 4.03%, and that of Alfa Capital Metallurgy (Alfa

‘One must admit that investing in unit investment trusts is not a very good idea at the moment. This market is currently not growing at all and is very volatile at the same time, so the trusts’ quotations have recently gone down,’ Otkrytiye Finance Corporation’s CEO Evgeniy Dankevitch said at a press conference devoted to setting up of the company’s office in Yekaterinburg. Otkrytiye actually comprises Otkrytiye Management Company that runs its own unit investment trusts; incidentally, these trusts’ profitability is currently below the inflation rate and some of them are even bringing nothing

According to the ranking of unit investment trusts as of January 25, 2008, the share price of BCS Blue Chip Fund (BrokerCreditService Management Company) went down by 9.15% between January 1, 2008 and January 25, 2008.

‘Frankly speaking, I wouldn’t publish an ad that promises a 195% increase in the share price in three years if I ran BrokerCreditService. This promise is partly true, but it is partly untrue as well. I’m not sure how the company did its calculations, but, in whichever case, any fund has both successful and less successful investors, all of whom invest in different things. BrokerCreditService could claim the figure denotes the profit the most successful investor would manage to make, while the less successful investors would make less or none,’ Director of NAUFOR’s (the National Association of