Fitch Ratings warns investors to expect more Russia funds to suspend redemptions

Ten Russia-focused and EM funds suspended so far

clock • 2 min read
Fitch Ratings warns investors to expect more Russia funds to suspend redemptions

The majority of European mutual funds are more likely to be indirectly affected by the Russia-Ukraine conflict through second order market volatility, than directly by the sanctions being imposed on Russian companies, according to Fitch Ratings.

It warned of the risk to investors from Russian-related fund gating, citing the ten Russia-focused and emerging market funds, with combined assets under management (AUM) of €4.2bn, that it said have suspended redemptions so far. Fitch Ratings added that a "surge" in redemption requests from investors "could quickly compound the situation". Asset manager Liontrust announced yesterday (28 February) that it has suspended dealing in its £236.7m Russia fund, which means that investors in the fund will be unable to make any redemptions. Fitch Ratings expects that more funds with a focus ...

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