2nd Feb 2016 14:08
LONDON (Alliance News) - JPMorgan Russian Securities PLC, a London-listed investment trust, on Tuesday proposed changing its objective and policies so it can invest up to 10% of its gross assets in companies that operate or are located in former Soviet Union Republics.
Previously, the trust's policy was to invest primarily in quoted Russian securities and Russian pre-IPO stocks or other companies which operate principally in Russia.
The changes come after increasing concern that "the investment universe in Russia in which the company can invest is becoming limited as there are a reduced number of investable stocks listed on the Russian market".
The update came as the trust reported a total return on net assets of negative 14.2% in the financial year ended October 31, versus the negative 13.4% of the MSCI 10/40 benchmark.
"In the two months to December 31, 2015 the benchmark index fell -4.2% and the company's NAV fell -2.8%. There is still plenty of cause for concern including uncertainty regarding the long term direction of the price of oil and the potential for deterioration in relations with Turkey and other countries arising from Russia's continuing involvement in Ukraine and Crimea, and more recently its activities in Syria," Chairman Gill Nott said.
Shares in JPMorgan Russian Securities were down 1.1% at 294.11 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
JRS.L