Russia and the Impact on Markets

BP has done a good job of getting cash flow out of their asset base,said Matthew Beeseley of Henderson Global Investors.We hold some of it.The company is throwing off lots of cash,but there are risks in their partnership with Russian energy titan Rosneft.*
For now,the markets have thrown off Russia/Ukraine and Syria.We're certainly concerned about the low levels of volatility across the markets.It's not normal,and at some point,one would expect the markets to normalise.The optimism has really been found in the US and the emerging markets.The glass has been half empty in Europe and Japan.*
We're exposed to a company called Epam Systems Inc,a computer outsourcing firm.It has one third of its workers in Ukraine.We want a high level of conviction about our holdings.Across parts of Russia,it's hard to invest because of the lack of a high level of conviction.*
Current sanctions on Russia are on future debt and equity.Sanctions on present debt and equity would have a major impact.*
Investors are being paid to be complacent,and when the Fed raises rates in six months to a year,geopolitical risk will begin to be factored in,Mr.Beeseley cautioned.