After the ongoing conflicts in Europe, global investment manager VanEck has plunged into liquidating its Russia-centric ETFs. This decision of VanEck has enfeebled the Russian market from Western investors.
When the army of Russia invaded Ukraine, it greatly affected Russia’s ETFs to fall suddenly. It also resulted in the short-term termination of Moscow’s stock market. Moreover, as major stocks cannot be traded in the West, it severed the liquidity of the fund.
In a release Wednesday evening, VanEck asserted, “The Funds’ inability to buy, sell, and take or make delivery of Russian securities has made it impossible to manage the Funds consistent with their investment objectives. The Funds will not engage in any business or investment activities except for the purposes of winding up their affairs.”
During the liquidation of the position, the redemption of the funds has been refrained by the firm as directed by the Securities and Exchange Commission. As claimed by VanEck, on 12th January 2023, it is planning on distributing the outcome of the liquidation among investors.
As believed by FactSet, at the beginning of 2022, the RSX fund held approximately $1.3 billion in assets under management.
- Published By Team Hongkong Journalist