RWM Capital, a joint stock management company, was founded in 2005. Its major beneficiaries are JSC Investment Group Rosvagonmash (81.1%) and Non-State Pension Fund Blagosostoyaniye (19.9%). IG Rosvagonmash was established to raise long-term investment in large-scale projects in different sectors of the Russian economy, including the transportation sector. The Group was created by financial institutions of JSC Russian Railways, Russia’s largest transportation company.
Core business of RWM Capital involves CEF asset management. CEF’s assets are invested into projects in different sectors of the Russian economy, including transport, logistics, machine building, finance, real estate and engineering. The company has several closed-end mutual trusts under management. The company has recently registered the trust management rules for Stolichnaya Nedvizhimost No. 1, a new real estate fund which assets will be invested in business real estate projects in Moscow and St. Petersburg. There are two major patterns for making CEF asset investments: private equity investment in project and private equity investment in real estate. The company has successfully implemented such projects as JSC Baltic Container Terminal, JSC Mostotrest and JSC VElNII. The real estate assets of the funds are mostly located in Moscow. All facilities have been commissioned; and the company has no projects under construction.
The agency highlighted a well-established control and risk assessment procedure. RWM Capital has a highly qualified management team and is pursues a strong corporate governance practice. The company’s strategic focus is to strengthen its current positions and attract new market customers. We are bent on joining the list of top three CEF management companies by net asset value.
The company generates good profit, with a high sector-based net profit ratio. According the business specifics, our asset-under-management portfolio is characterized with medium risk and medium to low liquidity performance.
“Company’s rating reveals a strong structure, high operating standards, experienced management team and well-established competence in the selected sector. Rating positive drivers include good asset quality, high profit margin, a reliable system for risk management and assessment consistent with company’s business. Negative drivers include high business concentration, low rate of capital adequacy to assets under management and downward movements seen during the year,” Yelena Fiveyskaya, an analyst at National Rating Agency, says. The agency understands that some negative asset and capital performance resulted from the implementation of a 5-year growth strategy of the company and dividend payment. Company will continue to grow its capital; and a 16% reduction in assets under management resulted from the transfer of CEFs and payment of intermediate returns.
Closed joint stock company 2K Udit – Business Consulting/Morrison International is company’s auditor. RWM Capital online address: http://www.rwmcapital.ru/
The National Rating Agency was established in 2000 and is one of the leading independent rating agencies in Russia. Currently, the Agency has assigned ratings to over 250 of its clients. More than 800 banks and corporations are listed as part of other information projects undertaken by the Agency, materials on which are regularly published in the media, on the Agency’s website and on social networks.
The Agency is included in the register of accredited agencies of the Ministry of Finance of the Russian Federation. The Agency’s ratings are officially recognised by the Central Bank of the Russian Federation, Vnesheconombank, the Federal Financial Markets Service, Rosnano, Ministry of Agriculture of the Russian Federation, Mortgage and Home Loan Agency, RTS and MICEX stock exchanges, National Association of Stock Market Participants, National Securities Market Association, National Managers’ League and the Association of Russian Banks. The Agency has a subsidiary partner agency in the Ukraine (Independent Rating Agency) and has been a member of the European Association of Credit Ratings Agencies (EACRA) since 2011. In 2008, the Agency has adopted the Russian Ratings Agencies Professional Ethics Code published by the National Securities Association.
