Jupiter closes Russia-exposed emerging Europe fund

·1-min read

LONDON (Reuters) - British asset manager Jupiter has decided to close its Emerging European Opportunities Fund, a company spokesperson told Reuters on Tuesday, as the fund management sector contends with knock-on effects from Russia's invasion of Ukraine.

The fund was suspended in early March along with a number of other funds with exposure to Russian securities. A total of $6 billion in assets under management has been frozen in Russian or emerging market funds with Russia exposure, Morningstar data shows.

Asset managers have said that sanctions, countermeasures by Russia and ethical considerations have made Russia uninvestable and many fund firms have marked Russian assets down to zero.

The fund suspensions shortly after the invasion, which Russia calls a "special military operation", were aimed at preventing a disorderly scramble for the exits with some investors forced to sell out at rock-bottom prices.

The suspensions meant existing investors could not withdraw their money and new investors could not put money in, but Jupiter is one of the first managers to say it plans to close its suspended fund.

"We have taken the decision to close this fund, subject to FCA (Financial Conduct Authority) approval," the Jupiter spokesperson said.

The Jupiter fund had 59 million euros ($62.11 million) in assets under management, according to Morningstar.

There have been a number of high-profile fund closures for various reasons in recent years.

British veteran money manager Neil Woodford's flagship fund closed in Oct 2019 after months of suspension.

British commercial property funds also froze after Britain's vote to leave the European Union in June 2016 and again after COVID-19 lockdowns in March 2020. Some never reopened.

($1 = 0.9499 euros)

(Reporting by Carolyn Cohn; Editing by David Goodman)

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