Company’s Valuation Policy

JPMorgan Emerging EMEA Securities

29 October 2024

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EMERGING EUROPE, MIDDLE EAST & AFRICA SECURITIES PLC ('the Company' or 'JEMA')

Legal Entity Identifier: 549300II3MHI98ZLVH37

Company's Valuation Policy re its Russian assets

The Board announces that the Company's Manager has provided the following information regarding the expiry of OFAC licenses (in italics): 

The OFAC General Licenses 99A and 100A, which had authorized the wind down of relationships with Moscow Exchange (MOEX), National Settlement Depository (NSD), and the National Clearing Center (NCC), have expired.  These licenses provided for the divestment of certain Russian securities settled at the NSD to non-US and non-UK buyers.  As a result, after an impact analysis we believe our ability to recover or realise the value of assets has now become even more uncertain.

Since the invasion of Ukraine by The Russian Federation as a result of the Sanctions regime introduced at that time the Company has not been able to buy or sell any Russian Securities under this Licence. The Company's Board therefore confirms that the fair valuation methodology applied to its Russian assets remains unchanged, as detailed in the Company's daily NAV and annual report and financial statements.   

In response to the expiry of the OFAC licences, Eric Sanderson, the Chairman of the Company commented that:

"In the Company's half year report and financial statements to 30^th April 2024 (half year report) I identified that there is much uncertainty about the realisation of the Company's Russian securities and cash held in its 'S' Accounts. It could be argued that this latest development adds even more uncertainty, but the Board believes that the intrinsic value of the Company's Russian assets remains unchanged despite the expiry of the OFAC licences and the provision for valuation of the Russian assets will remain at 99%. The Board will continue to keep this valuation under review.

The value of the Company's Russian securities identified in the Company's half year report were £1.5 million, representing 7.8% of the Company's total investments of £19.3 million and will continue to be reflected in the Company's daily NAV RNS announcements."  

29^th October 2024

For further information:

Paul Winship, Neil Martin, JPMorgan Funds Limited             0800 20 40 20

Hugh Jonathan, Deutsche Numis                                            020 7260 1000

 

END