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I bought shares in JRS late February. If JRS were to give out special dividends would I be able to receive these?
RNS out- anyone have any idea why JRS would sell all their Kazakhstan investments?
Thanks Soleman. You are basically endorsing my thoughts? I see Sanctions continuing beyond any war cessation because of the stupidity of the self-harming West (in particular the Yanks and their lapdogs, the Brits).
But as Warren Buffett once said.... "I don't care if the Stockmarket shuts down for ten years". (To be fair, he also said he wouldn't touch Russia after seeing Gangster Capitalism at work during his Chairmanship of Saloman). As someone commented earlier, the cash dividend surplus will build up.
That is basically how I see things Soleman
I myself for months have been wondering what the catch is. I haven't been able to think of a plausible downside outcome, its worth remembering jpm are a huge American firm with a UK listing and mainly Russian stocks.
I'm extremely doubtful of risk from the Russians as they require future investment, stealing assets would be suicide and thus far they have made no indication of this and intact criticised the west. Jpm are well established within Russia and still hold a highly coveted banking license so in truth could probably release the funds from assets if they wanted to.
Jpm themselves could only shut the fund by making us a big offer so no risk there.
The US and UK don't want any new investment ATM in Russia but that is irrelevant. They can't force sale of stock that can't be sold and when it can this war is over so there's no motivation to sanction.
Having already shown my ignorance to wiser heads, I would appreciate comments/views on my assessment of the risks entailed or this Fund.
As I see it, the Shareholders have approved a 5 year extension, so it won't be wound up. JPM may feel the reputational risk does not warrant association with Russian Investments, so may look to transferring management to someone else. But who would take this on? Russia is deemed uninvesable.
The risks lie in the UK Govt/Regulators forcing the Trust to sell its Russian holdings (when allowed to do so by the Russians), but where will they put their liquid funds? In former Soviet satellites.
The real risk to me is that o the Russians simply expropriating foreigner' hholdings (nationalisation) in the Communist way. But if they were so inclined, they would already have done so, surely? Otherwise they would have defaulted on the foreign debt, which as far as I am aware, they have not done so far.
The risk of JPM buying out the Trust (hence the low Nav?) at the stated Nav of 40 something pence rather than 400 something pence would. I hope, be rejected by the Shareholders and an Independent Board.
Tbh the war is getting dropped from most main media outlets and ficus moved elsewhere that I doubt it will be a big problem
Yes I know that. I mean once restrictions on foreigners are lifted on the Russian side. There will be a short term stampede for the door as the big Institutions try to cover their behinds from a legal and regulatory/govt viewpoint. Would be a bad time to sell.
You can’t be forced to sell something that currently cannot be sold
Oh ok thanks. I'll take your word for it. If so, that's a massive relief. I couldn't find any (latest) commentary on their web page.
I just hope The Sleepy One doesn't force them to sell the Russan holdings.
If you download the holdings list you will see that they have not changed, just the value that they attribute to them has changed
Now efectively a Kazakh fund.
(Top 10 Holdings )
Halyk Savings Bank of Kazakhstan JSC GDR 37.00%
Kaspi.kz JSC GDR 21.48%
United Co RUSAL International PJSC 11.57%
National Atomic Co Kazatomprom JSC ADR 8.91%
JPM USD Liquidity LVNAV X (dist.) 8.15%
GAZPROM PJSC COMMON STOCK RUB 1.12%
Sberbank of Russia PJSC Participating Preferred 1.01%
MMC NORILSK NICKEL PJSC COMMON STOCK RUB 1 0.76%
LUKOIL PJSC COMMON STOCK RUB 0.72%
ROSNEFT OIL CO PJSC COMMON STOCK RUB 0.01 0.33
I’m not sure where you are getting that idea from? Nothing had changed much
I'm afraid JPM Russia have gone and changed the Portolio composition dramatically. So any dramatic uptick in Russian share prices (or the "rubble" - already up significantly) will go to someone else. What id.io.ts.
Ahhhh Fair enough. Now that is a good ruse, thanks soleman for the insight!
I like both investments equally for value however simply as poly is one company vs the basket here I see this as slightly lower risk, splitting hairs really.
It's crazily low to give the appearance that jrs have pretty much lost everything, this keeps lawmakers and the woke at bay, when the war ends as if by magic things return to normal and you wonder why you didn't remortgage the house.
Thanks for the summary FairAnalyst! I am in both but mostly POLY :)
Ah I see, but why the low valuation? (Obviously I understand we have a war and there various different immense risks that follow these stocks but the valuation done by JP seems to excessively low)
The Russian holdings are valued at 1% of the value on moex. Eg 14 million Gazprom GDR are currently worth over £100 million on Moex but valued much lower by JRS
I don't understand sorry. Are you saying the russian oil holding percentage was intentionally diluted out in the portfolio by kazakhstan financial & oil holdings in the portfolio to make it look like it barely has any Russian holdings?
Ah ok thanks Soleman, does anyone have an opinion which is safer long term? JRS or POLY?
Hsbc, poly was shut off for a while when the war started but came back. Jr's though is only a sell most days and has been for a few weeks it's frustrating with the price down here.
What platform are you using? Not had a problem buying with Halifax