10.07.2015 09:00

Anatoly Gavrilenko bought TKB BNP Paribas Investment Partners

Having parted ways with both previous owners, the management company will change its name to TKB Investment Partners, but will retain the strategy and team.

One hundred percent control of TKB BNP Paribas Investment Partners passed to Anatoly Gavrilenko, chairman of the supervisory board of Alora and beneficiary of the pension funds KIT Finance NPF, Promagrofond and Heritage. “The new shareholder fully supports the goals of the company, positively assesses the results of its development and the achievements of management,” the management company emphasizes in its message.

Previously, the company was owned on a parity basis by BNP Paribas Investment Partners (a division of the French group BNP Paribas) and structures of Russian Railways. The parties did not disclose the amount of the transaction, but according to Kommersant sources close to one of them, the figure is comparable to the capital of TKB BNP Paribas Investment Partners.

As of May 31, the company's own funds amounted to 655 million rubles, and the volume of net assets under management and consulting, according to its data, was 136 billion rubles. According to the calculations of the National Rating Agency, over the year the assets under management of the company decreased sharply - by 43% to 115 billion rubles (at the end of March). At the same time, the volume of equity capital over the same period increased by 2% to 674 million rubles.

General Director of TKB BNP Paribas Investment Partners Vladimir Kirillov expects that his company will continue to remain profitable

According to an RBC source, one of the reasons for the sale of its stake by the BNP Paribas group was the reluctance of Western investors to do business in Russia after the extension of sanctions. At the same time, Russian Railways no longer needed to own its own management company after part of its pension empire was acquired by Boris Mints’ O1 group.

Having changed its name to TKB Investment Partners, the company will remain an investment center for Russian securities for domestic and foreign clients. “Such a purchase is a unique chance on the market! The company employs excellent professionals who are able to follow the plan and develop it independently, as they have done in all previous years,” Gavrilenko is quoted as saying in the message.

“I am glad that the new shareholder fully shares the management’s view on further development,” commented the company’s general director Vladimir Kirillov on the deal, especially noting that his management company is “independent and autonomous” and conducts operating activities exclusively at the expense of its own profits.

Partner of UniCredit Bank, management company TKB BNP Paribas Investment Partners (OJSC), decided to merge mutual investment funds.

The merger of funds is carried out to optimize the line of funds based on a thorough analysis of market trends, preferences of shareholders and more than 10 years of experience of the management company. The purpose of the merger is also to improve the efficiency of fund management, and shareholders will be able to take advantage of more promising investment products.

In this regard, from November 25, 2014, the acceptance of applications for transactions with investment units of all funds participating in the merger procedure will be suspended. Also, applications for the exchange of investment shares of other funds managed by TKB BNP Paribas Investment Partners (OJSC) for investment shares of the merged funds will not be temporarily accepted.

No later than December 1, 2014, the conversion (exchange) of investment units will be carried out and the acceptance of applications for transactions with investment units of the funds to which the merger has been carried out will be resumed.

After the merger, premiums and discounts will apply in accordance with the rules of trust management of the fund to which the merger was carried out. In this case, the amount of the discount on the redemption of shares of the fund to which the merger was carried out will be determined based on the period of time from the date of conversion of the shares to the date of their redemption.

Joining fund	Fund to be joined
Open mutual fund of shares "TKB BNP Paribas - Russian metallurgy and mechanical engineering" Open mutual fund of shares "TKB BNP Paribas - Russian Electric Power Industry" Open mutual fund of shares "TKB BNP Paribas - Russian consumer sector" Open-end mutual fund of shares "TKB BNP Paribas - Share Fund" Open mutual fund of shares "TKB BNP Paribas - Share Fund 2" Index open investment fund "TKB BNP Paribas - RTS Index" Open-end mutual fund "TKB BNP Paribas - MICEX Index"	Open mutual fund of shares “TKB BNP Paribas – Premium. Equity Fund"
Open-end mutual investment fund "TKB BNP Paribas - Mixed investment fund 2" Open mutual fund of shares "TKB BNP Paribas - Russian Oil"	Open-end mutual investment fund "TKB BNP Paribas - Balanced Conservative Fund"
Open mutual fund of shares "TKB BNP Paribas - Prospective investments"	Open mutual fund of shares "TKB BNP Paribas - Telecommunications and Innovations"
Open-end mutual fund of the money market "TKB BNP Paribas - Money Market Fund"	Open mutual fund of bonds "TKB BNP Paribas - Bond Fund"

TKB BNP Paribas Investment Partners (OJSC) (License to carry out activities for managing investment funds, mutual funds and non-state pension funds, issued by the Federal Financial Markets Service of Russia on June 17, 2002 under No. 21-000-1-00069, the validity period of the License is unlimited; License of a professional participant in the securities market to carry out securities management activities, issued by the Federal Financial Markets Service of Russia on April 11, 2006 under No. 078-09042-001000, the validity period of the License is unlimited).

Open mutual fund of bonds "TKB BNP Paribas - Bond Fund" (Rules for trust management of the fund were registered by the Federal Commission for the Securities Market of Russia on December 24, 2002 under No. 0081-58233855); Open-end investment fund of mixed investments "TKB BNP Paribas - Balanced Conservative Fund" (Rules for trust management of the fund were registered by the Federal Commission for the Securities Market of Russia on December 24, 2002 under No. 0078-58234010); Open-end investment fund of shares “TKB BNP Paribas – Share Fund” (Rules for trust management of the fund were registered by the Federal Securities Commission of Russia on July 16, 2003 under No. 0122-58234576); Open-end investment fund of shares "TKB BNP Paribas - Russian Oil" (Rules for trust management of the fund were registered by the Federal Securities Commission of Russia on December 24, 2002 under No. 0080-58233938); Open-end investment fund of shares "TKB BNP Paribas - Russian Electric Power Industry" (Rules for trust management of the fund were registered by the Federal Securities Commission of Russia on December 24, 2002 under No. 0079-58233772); Open mutual fund of shares "TKB BNP Paribas - Telecommunications and Innovations" (Rules for trust management of the fund were registered by the Federal Commission for Securities of Russia on March 21, 2003 under No. 0096-58227323); Open-end investment fund of the money market “TKB BNP Paribas - Money Market Fund” (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on October 27, 2004 under No. 0273–58234047); Open-end mutual fund index "TKB BNP Paribas - MICEX Index" (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on November 11, 2004 under No. 0276-58234367); Open-end investment fund of shares “TKB BNP Paribas – Prospective Investments” (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on June 30, 2004 under No. 0224-58234352); Open-end mutual fund index “TKB BNP Paribas - RTS Index” (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on December 29, 2005 under No. 0455-75409706); Open mutual fund of shares "TKB BNP Paribas - Russian metallurgy and mechanical engineering" (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on September 13, 2005 under No. 0404-75408026); Open mutual fund of shares “TKB BNP Paribas – Premium. Equity Fund" (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on February 28, 2006 under No. 0478-75408434); Open mutual fund of shares "TKB BNP Paribas - Russian Consumer Sector" (Rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on November 8, 2007 under No. 1074-58228736); Open mutual fund of shares “TKB BNP Paribas – Share Fund 2” (Rules of trust management of the Fund are registered by the Federal Financial Markets Service of Russia dated September 20, 2007 under No. 0989-94131910); Open-end mutual investment fund of mixed investments "TKB BNP Paribas - Mixed investment fund 2" (Rules of trust management of the Fund were registered by the Federal Financial Markets Service of Russia dated September 20, 2007 under No. 0990-94131837).

The company directs funds of various categories of investors in the amount of over 200 billion rubles both to the real sector of the economy and to the purchase of securities with varying degrees of risk. The owners of the company are the BNP Paribas group, as well as the financial management of Russian Railways OJSC. Ex. The company has been assigned a reliability rating of A++ according to Expert Ra and the maximum rating of NRA.

Stock market operations

The TKB BNP Paribas Investment Partners management family includes the following funds:

1. Paribas Premium is a fund offering investors financial injections into shares of national and foreign corporations with a total volume of shares in the amount of over 184 million rubles;
2. Paribas Index RTS is a fund offering investors financial injections into shares of national corporations that influence the formation of the stock exchange index, with a total volume of shares in the amount of over 164 million rubles;
3. Paribas - Russian metallurgy and mechanical engineering - a fund offering investors financial injections into shares of metallurgical companies, with a total volume of shares in the amount of over 44 million rubles;
4. Paribas - Russian Oil - a fund offering investors financial injections into shares of oil companies, with a total volume of shares in the amount of over 119 million rubles;
5. Paribas - Russian Electric Power Industry - fund of the management company BNP Paribas Investment Partners, offering investors financial injections into shares of energy companies, with a total volume of shares in the amount of over 190 million rubles;
6. Paribas - Russian consumer sector - a fund offering investors financial injections into shares of the largest retailers, with a total volume of shares in the amount of over 27 million. rubles;
7. Paribas - Share Fund - a fund offering investors financial injections into shares of the largest retailers, with a total volume of shares in the amount of over 126 million rubles;
8. Paribas Money Market Fund is a fund focused on actively using the potential of short-term financial instruments with a total volume of shares of over 146 million rubles.
9. Paribas Bond Fund guarantees its shareholders profit from transactions with securities issued by state and municipal authorities with a total volume of shares exceeding 483 million rubles.
10. Paribas - Balanced conservative fund of the management company TKB BNP Paribas Investment Partners offers its investors passive investment tactics, the main instrument of which is bonds. The fund accumulates funds from shareholders in the amount of 155 million rubles.
11. Paribas – The foreign currency bond fund is aimed at making income-generating transactions with bonds. The fund's monetary potential varies within 300 million rubles.

In addition, TKB BNP Paribas Investment Partners management company integrates smaller mutual funds, mainly open-ended, under its leadership. Most financial institutions make money by buying stocks and bonds and making other transactions in the stock market.

Closed institutions

The group's closed-end funds provide for the allocation of financial resources for the acquisition of property, bills of exchange, and a certain share in the authorized capital of stable corporations. Services that provide expert assessment of capital and development of investment strategies are also being actively promoted.

Pension money management

Ex. the company illustrates high profitability in the field of pension financial management. For 2013, the profitability was 8.55 percent per annum, which is an excellent indicator for the Russian market. Investors can transfer their savings to the company either by contacting the pension fund or through agents of the financial group.

Open joint stock company TKB BNP Paribas Investment Partners creates various services that allow clients to feel maximum comfort when transferring financial assets under the management of the company. Consulting services and an investment calculator allow you to navigate a variety of financial products and choose the desired strategy for earning capital.

Buying Alternative Funds

In 2013, as a result of the consolidation of assets, the company merged with the financial institutions of the Keith Fortis Investment group. As a result, the collective investment segment was significantly expanded. After integration, the company partially borrowed the investment tactics of its competitors and partially promoted its own ideas. The result was good profitability of almost all funds at the end of 2013 and the beginning of 2014.

The largest management company with foreign capital, TKB BNP Paribas Investment Partners, has changed owners. Financial structures of Russian Railways and the French BNP Paribas Investment Partners sold their shares to the head of the Alor group of companies, Anatoly Gavrilenko, one of the consolidators of non-state pension funds (NPF). Experts assess the changes that have occurred as negative: one of the last market companies went to closed structures.

One of the largest transactions on the Russian trust management market has been completed. Financial structures of Russian Railways and the management company BNP Paribas Investment Partners (part of the international financial group BNP Paribas) sold their shares in the management company TKB BNP Paribas Investment Partners to the structures of the head of the Alor group of companies, Anatoly Gavrilenko. “The company is completely coming under the control of the Russian shareholder Anatoly Gavrilenko, the transaction has already been completed,” confirmed the information by the general director of TKB BNP Paribas Investment Partners Vladimir Kirillov. Mr. Gavrilenko assesses the acquisition as a good company “with effective management and a large amount of funds,” which he hopes “will be useful for the Russian economy.” Control over the management company was transferred about a week ago, Kommersant's sources in the market clarified.

TKB BNP Paribas Investment Partners (originally KIT Finance, then KIT Fortis Investments) has been operating in the trust management market since 2002 and is among the top 10 largest Russian management companies. According to the company, as of April 30, 2015, the total volume of net assets under management and consulting exceeded RUB 153 billion. According to Kommersant, at the beginning of the year, a third of the investment portfolio consisted of funds from foreign investors. Revenue from trust management services for 2014 exceeded RUB 562 million.

The reason for the sale of the stake in the management company, executive director of NPF Blagosostoyanie (controlled by Russian Railways), Yuri Novozhilov, cited the fund’s decision to focus on managing pension reserves (pension savings were allocated to a separate fund, Blagosostoyanie OPS, and sold to Boris Mints’ investment company O1 Group at the end of last year) . “To manage them, we have companies with which we have historically cooperated. TKB BNP Paribas worked with pension savings and concentrated on managing market assets, and the leaders of the pension savings market made us a good offer,” he explained. A request to the BNP Paribas group remained unanswered yesterday.

The participants did not disclose the price of the transaction, but, according to sources close to one of the parties, it was set at the level of the company’s capital (about 800 million rubles). Experts note that this is not much, only 0.5% of assets under management, while on average management companies estimate 1-2% of assets. “It is very likely that foreigners will withdraw most of the assets simultaneously with the sale of the company,” says a Kommersant source familiar with the situation.

However, according to Vladimir Kirillov, the company will continue to develop the same areas as before - managing funds of institutional investors and consulting on the management of foreign funds. “The staff will be retained after the change of shareholders, and the company will operate autonomously,” noted Mr. Kirillov. Anatoly Gavrilenko, who is a shareholder of three large non-state pension funds (KIT Finance, Heritage, Promagrofond), admits that the acquired management company will be involved in the management of pension savings.

Market participants assess the sale of the company negatively. “This was one of the last companies with foreign capital and an interesting operating model in which the Russian team managed the money of BNP Paribas. It is also important that it was one of several market companies, and the transition to the control of new structures is an obvious step towards captivity , work with non-state pension fund assets,” complains Alfa Capital CEO Irina Krivosheeva. “TKB BNP Paribas is one of the few honest and market players with whom it is interesting to compete, but now it has been sold to a closed structure, and it is not clear how it will develop further,” says Anton Rakhmanov, general director of Sberbank Asset Management. In his opinion, the geopolitical factor and the desire of the foreign company to “wind up business in Russia” played a key role in the deal.

Maria Yakovleva, Yulia Lokshina, Kirill Sarkhanyants

(Photo: from personal archive)

Managing Director for Investments of TKB Investment Partners Vladimir Tsuprov is responsible for an investment portfolio of almost 300 billion rubles. Under his leadership, the volume of the company's assets in 2015 increased by 128%, which brought it to fourth place among the largest Russian management companies, and the mutual fund of foreign currency bonds became the second most profitable fund on the Russian market in five years. Tsuprov told RBC about how to manage big money, why it is better to do it from St. Petersburg and what will happen to the Russian economy.

“Moscow is too noisy”

• My path to the financial industry was very short: I graduated from the St. Petersburg University of Economics and Finance, where I studied at the Department of Securities, and then quickly went through all the steps of the career ladder - from equity analyst to managing director of investments.
• When I started my career in 1998, I had to learn from my mistakes and the mistakes of the people around me. I have no authority in the investment field, but I pay attention to any interesting experience.
• I have been managing assets for over ten years, being in St. Petersburg, as well as my team, which does not in any way affect the efficiency of the process. Moreover, it eliminates the unnecessary noise that constantly surrounds the manager. The investment space in Moscow, seething and full of rumors, clouds perception and can distract from work. It's healthier to stay away from it.
• I'm a trustee, which means I work within strict limits set by the client and current legislation. I have two main tasks: the first is to ensure high-quality work of the team in the chosen market, the second is to refuse to work in a market for which I have no expertise. For some reason, the latter is usually ignored in Russia.
• The manager has unique abilities— he quickly makes decisions in conditions when little is clear to others. We can easily place millions of dollars in bets under conditions of complete uncertainty. But I must know when to stop: even if the potential income from a transaction is huge, I do not have the right to invest more money in it than the risks allow. Those who do not follow this rule always end up the same way - bankruptcy.

Vladimir Tsuprov

Born in 1976 in Leningrad. Graduated from the St. Petersburg State University of Economics and Finance with a degree in finance and credit. Has been working in the investment business since 1998. In 2000, he headed the analytical department at Web-Invest Bank, and in 2002 he took the position of Deputy General Director of Management Company KIT Finance. In 2003-2005, Tsuprov held senior positions at the National Development Bank. In 2005, he returned to KIT Finance Management Company as director of the asset management department. Today he is the managing director for investments at TKB Investment Partners.

• The main principle of the manager— understand what needs to be done, why and what risks arise. The golden combination of these factors, coupled with the ability to obtain the information necessary to make a decision, is the key to success. You can improve in this matter forever.
• In our company The investment process is constantly evolving, and now there are even two approaches competing with each other. One is based on calculating the sustainability of a company’s future cash flow when assessing the value of its shares, the other is based on value investment methods, when the company’s value is estimated based on historical data.
• We see a crisis of confidence to the managers. People don’t want to give money to other people who, as it seems to them, put their savings in some kind of black box, cut coupons from it themselves, and the investor gets it “as it happens.”

“The economy will not return to stable growth”

• Obvious investment ideas can not be. Billions of rubles and billions of dollars are circulating on the market, so all the ideas that were once on the surface have long been bought out. If it were obvious where to invest money now, these assets would immediately become very expensive.
• In 2015, Russian Eurobonds received profitability both from the devaluation of the ruble and from the rise in dollar prices for these securities. There is no great merit to the managers in this, because those who managed such funds “ridden away” from the fall of the ruble and the growth of the American currency. So, if you want to praise a Eurobond portfolio manager, then you should look not at the profitability, but at how he performed in comparison with competitors or the benchmark.
• Eurobonds are unlikely to be issued this year just as attractive as in 2015. Bonds have already risen very well in price. For this growth to continue, they must reach zero profitability, but this is impossible. Therefore, now we are not talking about getting excess profits, but about how to show profitability that significantly exceeds deposits.

"TKB Investment Partners - Currency Bond Fund"

The value of net assets (as of May 30, 2016) is 439.2 million rubles, the share is 27.3 thousand rubles. Invests in government and corporate Eurobonds of issuers from Russia and the CIS countries available on international markets, as well as in currency bonds, for which companies from Russia and the CIS countries act as guarantors. According to Investfunds, it has become the most profitable mutual fund on the Russian market (among those actively traded) for five years. His result (as of December 31, 2015) is 150.84%. At the same time, in 2015 the fund showed a return of 38.03%.

• Eurobond mutual funds incur significant costs compared to deposits - more than 2% per year. In order to outperform a deposit with a rate of 2% per annum in foreign currency in terms of profitability, a manager needs to earn 5% per annum “dirty”. Then, minus the costs, this will be a good result for the client. Now the manager has to think about this, and not about how to repeat the result of 2015.
• A few years ago At one of the client presentations, I said that I did not see any opportunities for a significant growth of the MICEX index and did not understand what could be the reason for it. And then it “arrived from where we didn’t expect it”: a more than two-fold devaluation of the ruble pushed the ruble index to new heights. Today, the main factors that will influence Russian stock prices are the ruble exchange rate and the dynamics of interest rates.
• What matters now is not whether the Russian economy has a chance to bounce off the bottom. The important thing is that there is nowhere to bounce: the force of gravity will pull us back. The Russian economy may stabilize and grow by 1-2%, but this will not be a sustainable upward movement. The economy will not return to stable growth, and in the long term it may continue to decline. It is quite difficult to prove this, since it is already felt at the level of intuition.

Managing Director for Investments of TKB Investment Partners Vladimir Tsuprov (Photo: from personal archive)

"Learn how to clean up trash"

• We live in conditions littered information space. The investment industry, as one of the most complex, is littered to the limit. Even at Sony, Nikon and Canon corporations, decisions about what technical characteristics new digital cameras should have are made by marketing departments. Learn to clear away this information garbage. If this is difficult, then invest in bank deposits.
• The first question to answer is- this is what currency you will invest in. You also need to understand for what period the investment portfolio is being formed. Having answered these two questions, you can already think about the assets in which you will invest money.
• If you want foreign currency savings, but not in the form of a bank deposit, then you should pay attention to mutual funds investing in foreign exchange instruments. They are good because you don’t have to pay income tax on currency revaluation. This compares shares in such mutual funds favorably with purchasing Eurobonds on a brokerage account. And if additional taxes are introduced on foreign currency deposits, then this instrument will turn out to be the best way to save money in foreign currency
• Remember that with 1st of January 2015, you have the opportunity to receive a tax deduction (not pay 13% personal income tax) in the future if you invest in any mutual funds for more than three years. This is a very serious advantage that significantly increases the attractiveness of mutual funds as investment instruments.

"TKB Investment Partners"

Previously - TKB BNP Paribas Investment Partners, KIT Finance and KIT Fortis Investments. Operating in the trust management market since 2002. Until 2015, it was the largest management company with foreign capital in Russia, the owners were the French BNP Paribas Investment Partners and the financial structures of Russian Railways. In July 2015, they sold their shares to the head of the Alor group of companies, Anatoly Gavrilenko.