After over a year of suspension, BNP Paribas is to liquidate its Europe Emerging Equity Fund amid Russian geopolitical challenges.
In a letter addressed to shareholders, the asset management firm revealed that the liquidation value would be calculated based on the liquid portion of the portfolio as of 4 July. The company stated that no positive future outlook could be anticipated at this stage.
The fund has been on hold since 1 March 2022 due to the Russian invasion of Ukraine and subsequent sanctions imposed on the country. These circumstances have made it impractical to dispose of and accurately value a significant portion of the fund’s assets.
As of 28 February 2022, approximately 26.4% of the fund’s assets were illiquid, as indicated in the shareholder letter.
BNP Paribas Asset Management will assume the costs associated with the liquidation, and shareholders can expect to receive their payments on 6 July.
The company also mentioned the possibility of additional liquidation proceeds in the future, contingent upon the sale of the illiquid portion of the sub-fund’s assets.
In February, HSBC AM closed its last Russian ETF, which it said was “no longer practical nor advisable”.
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