(Alliance News) - JPMorgan Russian Securities PLC on Monday confirmed that it has "no plans to issue shares or raise capital", even in the event that sanctions on Russian are lifted.
The Russia-focused investor said it is conscious of existing shareholders's pre-emption rights and its duty "to promote the success of the company for the benefit of the members as a whole".
A pre-emption right is a contractual right to acquire certain property newly coming into existence before it can be offered to any other person.
The investment fund issued Monday's statement in response to shareholder questions following proposals, announced in October, to amend its investment objectives and policies following Russia's invasion of Ukraine.
In the announcement, the company said it supported changing its name and amending its investment policy.
It said a "significant portion of securities held within the company's portfolio have been unable to be traded and the value of such securities has fallen significantly."
Given the illiquidity of the company's existing Russian securities and its inability to invest a significant portion of its funds due to the restrictions impose by its existing investment policy, the board said it supported amending the company's investment policy, subject to shareholder approval.
The proposed new policy would enable the company to invest in a diversified portfolio of quoted investments in Central, Eastern and Southern Europe, including Russia, the Middle East and Africa.
It was also proposed that the company changes it the name to JPMorgan Emerging Europe, Middle East & Africa Securities PLC to be "more reflective of the new strategy".
The meeting will be held on November 23.
Shares in JPMorgan Russian Securities were trading 2.2% lower at 77.26 pence each in London on Monday afternoon.
By Chris Dorrell; chrisdorrell@alliancenews.com
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