JP Morgan is rejigging a Russian investment trust into a broader vehicle, allowing it to diversify whilst holding on to assets that presently have severely suppressed valuations.
The London-listed investment trust, JP Morgan Russian Securities PLC, will be relaunched as JPMorgan Emerging Europe, Middle East & Africa Securities PLC as it changes its strategy and geographic horizons.
In a statement, the company noted that its current portfolio was valued at just over £19mln at the end of September and its holdings in 27 investments in Russian companies and companies that operate principally in Russia were worth £1.98mln.
“The proposed new investment objective and policy would enable the company to invest in a diversified portfolio of quoted investments in Central, Eastern and Southern Europe (including Russia), the Middle East and Africa, including those markets that are considered as emerging markets according to the S&P Emerging Europe, Middle East and Africa Index,” it said.
“In the light of the company's existing holdings and the inability to dispose of these under the current sanctions and restrictions, the company also needs the flexibility within its new investment objective and policy to continue to hold Russian securities.”
The company said that Oleg Biryulyov will continue to manage the portfolio. He has managed the portfolio since launch and has co-managed the JP Morgan Middle East and JP Morgan Africa funds since 2017, and has been portfolio manager for JP Morgan Emerging Europe fund since 2004.
Pandora Omaset will be added as co-manager for the company. She is also presently lead portfolio manager for the JP Morgan Africa fund.