Tuesday, 22 July 2008

Troika taps into high growth

Financial News

Jason Corcoran in Moscow and Dawn Cowie
21 July 2008

Russian bank Troika Dialog has made hires for its private banking and derivatives sections as it forecasts revenue growth of 35% for its global business in as little as three years.

Troika has recruited Renaissance Investment Management’s head of wealth management Alexey Ischenko as part of big push in private banking.

Pavel Teplukhin, Troika president and chief executive of its asset management arm, said: “Business is booming. We plan to expand our 20-strong private banking sales team by a factor of 10 within four years.”

Troika manages in excess of $10bn (€6.3bn) in institutional, retail and government funds, while rival Russian bank Renaissance manages $6.5bn mainly for high net worth individuals and has recently lost five of its senior fund management executives. Renaissance said it was formulating a strategy to double assets to $12bn next year by focusing on large mandates from corporate accounts.

Troika has also hired Douglass Welch from Citigroup as head of equity derivative sales and will focus on plain vanilla futures and options products.

Jacques Der Megreditchian, head of investment banking and global markets at Troika, expects this market to grow as products such as futures on government debt and commodity futures are introduced. He said Troika has a 15% to 20% share of the Russian futures and options market.

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