RUSSIA - JP Morgan Fleming Asset Management has converted its Fleming Russia Securities Fund to a Russia-only investment trust.
The fund, first set up in 1994, is expected to wind up around December 17, 2002 and be replaced by the JPMorgan Fleming Russian Securities trust in a bid to broaden the investor base.
Existing shareholders will be given the opportunity to rollover their shares into the new investment trust.
Shareholders can either continue their investment in Russia under the rollover option without crystallising a capital gain or loss; investing in a company with increased marketability and liquidity through its listing and trading on the London Stock Exchange; realising cash for their investment.
The new investment trust will be managed by JPMorgan Fleming’s global emerging markets team - Oleg Biryulyov, Mark Robinson and David Barron.
David Barron, head of closed ended funds, JPMorgan Fleming, said: “We believe the majority of investors will wish to continue investing in Russia through a closed-ended fund.
“The new investment trust will appeal to investors who are aware of the risks involved in investing in a country like Russia, but who are still attracted by the potential for high returns within a balanced portfolio.
“We expect significant interest to come from the institutional marketplace and other intermediary investors.”
The Fleming Russia Securities Fund is denominated in US dollars, and is currently listed on the Irish Stock Exchange. The Company is incorporated in Jersey and has net assets of US$175m.
At last count, JPMorgan Fleming managed over US$18bn in emerging markets and approximately US$742m in Russian and Eastern and Emerging Europe.
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