Updated May 16, 2008

   At the Russian assets management market appears soon new large player.

One of the oldest British investment groups – Fleming Family and Partners – establishes own managing company. In terms of the developing market experts name the appearance of the new company rather logic and forecast that in the nearest future such managers as Societe Generale, BNP Paribas and Morgan Stanley start to operate in Russia.

   British investment group Fleming Family and Partners declared about own managing company opening in Russia. New project will be headed by Andrey Uspenskiy, who is director general of PioGlobal Asset Management managing company. As reported Mr.

Uspenskiy, the documents for company registration are currently prepared in Federal Financial Markets Service (FFMS), and it starts operating already in autumn.

Until then Mr. Uspenskiy continues to head PioGlobal Asset Management.

   Fleming Family and Partners is owned by Fleming family, and the group operates more than 135 years on world financial markets, in Russia – since 1992. Fleming Family and Partners business comprises assets management, management of direct investments funds, hedge funds, real estate funds, as well as family trusts management and consulting services concerning operation on local and global financial markets.

Offices of Fleming Family and Partners Group are located in London, Zurich, Liechtenstein, Hong Kong, Singapore and Moscow.

   Fleming Group has already entered Russian market of trust management. So, in July, 1998 the British investment group combined with GUTA Bank established Fleming-GUTA managing company that registered the open mutual investment fund.

However, in terms of the financial crisis the fund was not formed, and companies gave up plans to develop assets management business in Russia,

and confined itself to direct investments only. According to Fleming Family and Partners chief partner Mark Garber, after ten years period "one can say that the Russian market has entered into the civilized growth phase and it is time to bring a skilled financial management to Russia".

   As declared Mr. Uspenskiy, the new company operates both in Russia and

in the CIS countries. "We will register open funds also, however, the project is mainly oriented to trust management and private banking", as explained Mr. Uspenskiy. According to him, the Russian company clients would be offered both its own investment products and those created by parent company, and later investors would have an opportunity to purchase funds of other western managing companies.

   Currently there is a wide range of foreign managing companies at the Russian market, such as DVS Investment (owned by Deutsche Bank), Raiffeisen-Capital (Raiffeisen Group), Allianz ROSNO-Assets management (Allianz), Parex Asset Management (Parex), KIT Fortis Investments (Fortis). Several months ago Pioneer Investment Management (Pioneer Investment) was granted the managing company license.

Experts consider that appearance of another foreign player in Russia is logic.

"Russian market has reached some maturity already, it has enough resources and infrastructure and that permits to operate effectively and profitably", says director general of UFG Asset Management managing company Andrey Podoynitsyn. According to director general of Alfa Capital managing company Mikhail Khabarov, in 2007 the Russian assets management market has upped by 59%, and this year the growth r ates remain

at the same level.

   Competition growth combined with the volumes increase of trust management market take place.

The number of managing companies operating in this segment exceeds 200. In Mr. Khabarov opinion, within the first years of operating in Russia Fleming Family and Partners, as well as most western companies that start

the assets management business in Russia, will hold a place and start to analyze the market. Those players, who want to remain at the Russian trust management market, will start to buy local players, like western banks and insurance companies, as an expert supposes.

   However, director general of Pioneer Investment Management managing company Elena Loginova considers that "competition at the Russian assets management market did not reach the peak yet and it has plenty room for new players". According to a source in FFMS, currently such large players as Societe Generale, BNP Paribas and Morgan Stanley take interest in assets management business.