The number of investment trusts offering investors exposure to emerging markets is to be further red...
The number of investment trusts offering investors exposure to emerging markets is to be further reduced with the reconstruction of Fleming Russia Securities.
Shareholders in the trust will be offered the choice of rolling over their investment into a new trust, a cash exit or a stock in specie transfer. HSBC analyst Paul Locke said no further details are available regarding the costs of the reconstruction.
The periodic bouts of absolute and relative performance strength make the likely loss of assets from the fund unwelcome, Locke said.
'This is made even more acute as the Russian market increasingly assimilates with the global economy and the equity market offers some signs of diversifying away from its oil and gas base, suggesting the timing of any reconstruction could not, in many respects, be worse,' he added.
'This is merely compounded by Baring Emerging Europe's ongoing reconstruction, the twin effects of which will be to reduce investor choice in investing in the region through a more liquid series of closed-end vehicles.'
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