JP Morgan Fleming Asset Management plans to relaunch the Fleming Russia Securities Fund as an inves...
JP Morgan Fleming Asset Management plans to relaunch the Fleming Russia Securities Fund as an investment trust investing exclusively in Russian securities.
The intention is to close the fund on or around 17 December and launch the new investment trust as a successor vehicle with existing shareholders given the option to roll over their shares.
The move, which is intended to attract a broader investor base, will increase the marketability and liquidity of the fund through its listing and trading on the LSE, according to the company.
The global emerging markets team at JP Morgan Fleming will manage the new vehicle.
David Barron, head of closed-ended funds, said: 'We believe the majority of investors will wish to continue investing in Russia through a closed-ended fund.
'The new investment trust will appeal to investors who are aware of the risks involved in investing in a country such as Russia, but who are still attracted by the potential for high returns within a balanced portfolio. We expect significant interest from the institutional market and other intermediary investors.'
Russia has benefited from its government's reform programme which has seen opportunities opening in a range of sectors.
Mark Robinson, an investment manager in the global emerging markets group, added: 'The current reform programme is part of a 20 to 30-year process of transformation from a command-style economy to a free market. Listed firms, through the introduction of Western management techniques, are at the vanguard of the unfolding of capitalism in Europe's largest national market.'
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