All eyes have been on Russia following the collapse of the ruble after a surprise interest rate hike. On Tuesday, the ruble fell to an all time low of 80 per dollar. With this news, we have chosen ING Russia Fund (LETRX) as the fund of the week for December 17.
Inside the Fund
LETRX was launched in 1996 and is managed by Nathan Griffiths and Renat Nadyukov. It currently has about $76 million in assets under management (AUM).
The fund’s largest sector is energy, which has pulled down its performance.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | YTD |
|---|---|---|---|---|
| 27.57% | -29.15% | 16.51% | 4.77% | -37% |
ING Russia Fund’s Largest Holdings
Nearly half of the fund’s portfolio is in the top five holdings. The YTD performance of these holdings are mostly negative, while the fund is down nearly 40% YTD.
| Symbol | Stock | Portfolio Weight | YTD Performance |
|---|---|---|---|
| BCBA: LKOD | OAO Lukoil ADR | 12.5% | -38.82 |
| MCX: SNGSP | Surgutneftegas OJSC | 9.68% | +22.29% |
| MCX: MGNT | Magnit PJSC | 9.39% | +11.60% |
| LON: MNOD | MMC Norilsk Nickel JSC | 9.19% | -5.66% |
| LON: SBER | Sberbank Of Russia | 5.46% | -64.41% |
The Bottom Line
This fund is a great fund to watch while the situation in Russia intensifies. It is a good example of how collapsing stock prices can impact a mutual fund.
