Necessary fund gatings 'disastrous' for Eastern European funds 

Suspensions expected

Lauren Mason
clock • 4 min read

All Russian equity funds of funds with heavy exposure to Russia will have no choice but to suspend trading “in line with rules governing open-ended funds”, according to several investment professionals, who warn this will likely remain the case for “a long time” and will be “disastrous” for such mandates.

Since the Ukraine crisis began less than two weeks ago, the Russian stockmarket has remained closed to trading, Russian ETFs have sold off by more than 95% and MSCI has reclassified its Russia indices from emerging markets to standalone market status.    More than a dozen Russian-focused funds have already suspended trading globally at time of writing (3 March), while Russian stocks listed on the London Stock Exchange have fallen in value by an average of 98%.  "It is impossible to sell Russian securities at the moment," said Ryan Lightfoot-Aminoff, senior research analyst at Chelsea ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

JPMAM's Nandini Ramakrishnan: Emerging markets show strength in a choppy world

JPMAM's Nandini Ramakrishnan: Emerging markets show strength in a choppy world

Valuable hedge against global uncertainties

Nandini Ramakrishnan
clock 01 July 2025 • 4 min read
China's monetary stimulus plan not enough to offset Trump's tariff onslaught

China's monetary stimulus plan not enough to offset Trump's tariff onslaught

‘Marginal’ 10bps cut to benchmark rate

Sorin Dojan
clock 08 May 2025 • 3 min read
SMT's Tom Slater: China remains a relevant player amid global market tumult

SMT's Tom Slater: China remains a relevant player amid global market tumult

18% share of the world economy

Sorin Dojan
clock 02 May 2025 • 3 min read
Trustpilot