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
30th 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."
29th October
2024
For further information:
Paul Winship, Neil Martin, JPMorgan
Funds
Limited
0800 20 40 20
Hugh Jonathan, Deutsche Numis
020 7260 1000