Sweden’s East Capital fund, a major international portfolio investors in Russia, announced the winners of its annual East Capital Awards. Russia’s diamond mining ALROSA received the Best Corporate Governance Award.
“Typically, state-owned companies are not leaders in terms of corporate governance improvements, but we consider ALROSA one of the best examples adhering to the highest standards of corporate governance in emerging markets,” an East Capital representative said.
Founded in Sweden in 1997, East Capital which is an independent asset manager (with a portfolio of EUR 2.8 bln in public and private equity) specializing in emerging and frontier markets, has been awarding East Capital Awards since 2004, highlighting the success of investment and financial companies that achieve the most impressive results and show good potential, in four categories: Best Growth, Best IPO, Discovery of the Year, and Best Corporate Governance.
This year, the Fund noted positive changes in ALROSA’s dividend policy with its annual dividends likely to exceed 100% of free cash flow, along with cost-cutting, disposal of non-core assets and working capital improvements.
“Compliance with high corporate governance standards is currently one of ALROSA’s strategic priorities, so we are grateful to East Capital for the honor. We continue to improve our corporate governance system, strive to meet international standards (including corporate law and anti-corruption legislation), and promptly respond to any changes and external challenges,” Alexey Filippovsky, Deputy CEO of ALROSA, said.
“The Awards highlight some of the most outstanding companies in our portfolios and inspire others. Through our extensive in-depth research and meetings in emerging and frontier markets, we annually identify companies that achieve impressive results and demonstrate great potential,” Peter Elam Håkansson, East Capital Chairman, noted.