Two fund houses have suspended funds exposed to Russia after the country invaded Ukraine.
JP Morgan has halted dealing in its JPM Emerging Europe Equity Fund, Russia Equity Fund and Europe Equity Fund with immediate effect.
The funds total around £900mn in size.
A spokesperson for JP Morgan said the decision was taken in order to protect the interests of shareholders.
They said: “We are closely monitoring the risks and remain focused on acting in the best interests of our clients and shareholders, at all times, as part of our fiduciary duty.”
The suspension will be reviewed on an ongoing basis.
Liontrust has also suspended dealing in its Russia fund.
The company announced yesterday (February 28) that investors will not be able to make purchases or redemptions in the £235mn fund until further notice.
A spokesperson for Liontrust said the firm had not taken the decision lightly.
They said: “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.”
The company said it is unable to say for how long the fund will be suspended, and the decision will be under “continual review” given the rapidly changing situation.
The fund is managed by Thomas Smith, and since January has posted a 44.99 per cent return, compared with the IA specialist sector returning -3.6 per cent.
Yesterday, the Moscow Stock Exchange was closed. A temporary ban on foreign investors selling local Russian securities had also been implemented.
Global equity markets crashed last Thursday (February 24) after President Putin of Russia announced the invasion into Ukraine, with the Euro Stoxx 50 falling 5.08 per cent and the German Dax dropping 5.10 per cent.
Since then, a number of financial and economic sanctions have been imposed on Russia, which has in turn banned all Russian residents from transferring foreign currency abroad, including to service overseas debts, according to the Financial Times.
Before it was closed, the Moex Russia index lost 45 per cent of its value in a single day of trading.
sally.hickey@ft.com
