Change to Investment Objective and Policies

RNS Number : 7892N

JPMorgan Russian Securities PLC

02 February 2016

 

JPMORGAN RUSSIAN SECURITIES PLC

Proposal to change the Company's Investment Objective and Policies

As announced on 2nd February 2016 in the Chairman's statement of the Company's Annual Report & Accounts for the 12 months ended 31st October 2015, the Board has been increasingly concerned that the investment universe in Russia in which the Company

can invest is becoming limited as there are a reduced number of investable stocks listed on

the Russian market.

The Board have therefore decided that in order to provide greater investment flexibility they should propose to change the Company's investment objective and policies to permit up to 10% of the Company's gross assets to be invested in companies that operate or are located in former Soviet Union Republics. It is the Board's intention that this will allow the investment management team to use their knowledge of companies with links in Russia.

Therefore, a resolution to amend the Company's investment objective and policies to permit investments will be proposed at the forthcoming Annual General Meeting and the Board recommends shareholders vote in favour of this resolution. The change in the Company's investment objective and policies is detailed in an appendix to the Company's Annual Report and Accounts, which will be circulated shortly. The contents of the Appendix in the Company's Annual Report and Accounts are detailed as follows:

Note to the Appendix - Proposed Changes to the Company's

Investment Objective and Policies

The proposed amendments to the Company's investment objective and policies as proposed in resolution 13 on page 59 of this report, are set out below. Changes to the existing investment objective and policies at the time of publication of this document are marked in

black-line with additions underlined and deletions struck through.

Investment Objective

To provide shareholders with capital growth from investing in  quoted Russian securities.

Investment Policies

To maintain a diversified portfolio of investments primarily in quoted Russian securities and Russian pre-IPO stocks or other companies which operate principally in Russia. The Company may  also invest up to 10% of its gross assets in companies that operate  or are located in former Soviet Union Republics.

Investment Limits and Restrictions

The Board seeks to manage some of the Company's risks by imposing various investment limits and restrictions.

•           No more than 10% of the Company's gross assets are to be invested in pre-IPO stocks companies that operate or are located in former Soviet Union Republics.

•           The Company will not normally invest in unlisted securities, apart from pre-IPO stocks.

•           At the time of purchase, the maximum permitted exposure to each individual company is 15% of the Company's gross assets.

•           The Company will not normally invest in derivatives.

•           The Company will utilise liquidity and borrowings in a range of 10% net cash to 15% geared in typical market conditions.

•           No more than 15% of gross assets are to be invested in other UK

listed investment companies (including investment trusts).

Subject to approval of the resolution by shareholders, the intention is that the proposed change in the Company's investment objective and policies to permit such investments will take effect following the AGM on 3rd March 2016.

2nd February 2016

For and on behalf of

JPMorgan Funds Limited, Secretary

For further information, please contact:

Paul Winship Tel. [phone]

 

END

 

 

MSCBBGDDUGGBGLD