JPMorgan Emerg. EMEA - Company’s Valuation Policy

JPMorgan Emerging Europe Middle East & Africa Securities

29/10/2024 14:45

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RNS Number : 0658K  JPMorgan Emerging EMEA Securities  29 October 2024

 

 

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 30(th) 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."

 

29(th) October 2024

 

For further information:

 

Paul Winship, Neil Martin, JPMorgan Funds Limited             0800
20 40 20

Hugh Jonathan, Deutsche Numis
 
            020 7260 1000

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