Review Date: July 2, 2026
The Russia Portfolio holds four positions, all listed on the Moscow Exchange (MOEX). This week, performance was mixed: MD Medical Group (MD) gained 10.81% since its pick, Surgutneftegas (KYIV) rose 4.67%, while X5 Retail Group (DTCR) declined 7.93% and Novolipetsk Steel (STLD) fell 11.81%. All positions remain within their minimum holding periods and no closures are recommended.
Position Updates
- PJSC X5 Corporate Center (DTCR): Down 7.93%. The stock has weakened amid consumer spending concerns. However, the thesis remains intact as a leading food retailer in Russia. No action.
- MD Medical Group IPJSC (MD): Up 10.81%. Strong performance driven by solid earnings and demand for private healthcare. No action.
- Novolipetsk Steel (NLMK) (STLD): Down 11.81%. Steel prices have softened, but the company’s low-cost advantage and domestic focus support the long-term view. No action.
- Surgutneftegas PJSC (KYIV): Up 4.67%. Benefiting from stable oil prices and a defensive dividend profile. No action.
Portfolio Fit & Discipline
All holdings are on the Moscow Exchange, adhering to the portfolio’s main-exchange discipline. The portfolio is concentrated in four sectors: consumer staples, healthcare, energy, and materials. This diversification is appropriate for a country-focused portfolio, though geopolitical risks remain elevated.
Risks to Watch
- Geopolitical tensions and potential new sanctions.
- Currency volatility (RUB/USD) impacting returns.
- Commodity price fluctuations affecting energy and steel holdings.
Outlook
We maintain our positions and will monitor for any fundamental changes. The portfolio remains positioned for Russia’s domestic economy, with a focus on resilient sectors.
Risk Disclaimer: This is not investment advice. Past performance does not guarantee future results. Investing in Russian equities carries significant risks, including geopolitical, currency, and liquidity risks. Consult a financial advisor before making investment decisions.