Liontrust Asset Management has suspended dealing in its £236.7 million Russia fund, citing the closure of the Moscow Stock Exchange yesterday (28 February) and the temporary ban on foreign investors selling local Russian securities.
Investors in the Liontrust Russia fund, which has been managed by Tom Smith since 2013, will not be able to make purchases or redemptions “until further notice”.
According to the fund’s factsheet, at least 80% of the portfolio is invested in shares of Russian companies.
In a statement, the asset management firm said: “We have not taken this action lightly but in this case, we believe this is in the best interests of all investors given the events of the past few days and comes after discussions with the fund’s depositary.”
It added: “At the moment, Liontrust is unable to say how long the fund will be suspended for.
“Liontrust will keep the suspension of the Russia Fund under continual review given it is such a rapidly changing situation and we will update investors as soon as we can.”
Liontrust confirmed that the suspension does not affect any of its other funds.
The Moscow Stock Exchange was closed on 28 February by the Central Bank of Russia as the country responded to economic sanctions levelled against it due to the invasion of Ukraine.
Sanctions have already begun to cut off Russian banks and companies from the global financial system, with the rouble tumbling from 77 to the dollar to 100.
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