UK-based funds affected by the closure of the US markets are expected to re-open on 18 September, th...
UK-based funds affected by the closure of the US markets are expected to re-open on 18 September, the day after the US markets, writes Kira Nickerson.
Groups will need to wait until the close of the first day of trading before portfolios can be accurately valued. With US markets closed, some 30% of all UK-based unit trusts and Oeics have been suspended since the terrorist attacks in New York and Washington on 11 September.
Most bond and Far East funds are available once more for valuation as the markets for these areas were re-opened last week, having temporarily suspended trading in the aftermath of last week. All portfolios with a significant exposure to the US market have been suspended in the UK, according to Autif.
In many cases, a significant exposure has meant all those with 5% or more in the US markets, causing all North America, global, specialist, managed and technology funds to be closed.
On portfolios, such as global funds, where only a portion of the funds is invested in affected markets, trading has continued in the portion invested in open markets.
Investment Week found five UK fund management firms that suspended dealing on their entire fund range on the 12 September, reopening their UK and European portfolios on the 13 September.
These were: Artemis, Edinburgh Fund Managers, Scottish Widows, AMP and Deutsche. Artemis, Edinburgh and Deutsche all use the Royal Bank of Scotland as a trustee, however so do groups such as JP Morgan Fleming, which had kept its UK and European funds open.
An FSA spokesperson said: 'We would expect that it is business as usual. Some UK funds had been closed but we believe they were probably being overcautious.'
A spokesperson for the Royal Bank of Scotland said a number of firms decided for various reasons to suspend dealing in their funds. As trustees for the funds, the group did not object.
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