The expert stressed that the shares of most Russian companies were still cheap enough to make them worth buying.
In Jonathan Anderson's opinion, high incomes of foreign investors are largely due to a lack of liquidity on the Russian market and difficulties of doing business in Russia.
There is still a shortage of money in Russia today. The total amount of all bank deposits in the country equals just 30% of Russia's GDP, whereas in China this figure reaches 200%, the Swiss expert stressed. He also added that in this situation foreigners could get very high incomes on their investments.
Mr Anderson believes that a high profitability rate is also connected with a low level of competition on the Russian market, unlike China with its fierce competition in nearly all economic spheres open for foreign capital.
In the expert's opinion, there is a great amount of money in China, it is easy to launch a business or take a loan. As a result, the yield per investment unit is extremely low. Meanwhile, in Russia the situation is just opposite:: it is extremely difficult to start a business because of corruption and democratic barriers, therefore, the profit margin is high enough.
Jonathan Anderson believes that investments in the Russian stock market are most reliable and guarantee a 10-20% annual income rate.
In his words, an increase in the volume of investments will be accompanied with a fall in their profitability rate.
Jonathan Anderson is regarded as one of the world's most reputable experts in the sphere of international economy. Before taking a job at the IMF's Moscow office where he worked from 1998 to 2001, he headed the IMF's Chinese office in Beijing for three years. At present, Jonathan Anderson is in charge of UBS investment research in the Asia-Pacific region.
