JP Morgan Russian Securities plc is a UK-based investment trust that focuses on diversified portfolio of listed companies in Russia or other companies which operates principally in Russia, with the motive to maximise the total return and value for its shareholders. It was launched in 2002 and is the successor company to the Fleming Russia Securities Fund Limited, a closed ended company. It adopted its present name in 2006. The company invests across the range of sectors such as Energy, Materials, Communication Services, Financials, Consumer Staples, Information technology, Consumer Discretionary, Real Estate, Healthcare, Utilities and Industrials. The company’s shares are listed on the London Stock Exchange as LON: JRS.
The company compares its performance with its benchmark, the RTS Index in sterling terms (RTS) and it is the member of the Association of Investment Companies. The company’s board has outsourced its investment activities to JP Morgan Funds Limited, which act as its Alternative Investment Fund Manager, and it has further delegated the company’s portfolio management activities to JP Morgan Asset Management (UK) Limited. The portfolio manager believes that the various sectors in the Russian Market is inefficient and is demonstrated by the high and variable volatility, which gives the company to exploit the opportunities. The investment manager uses bottom-up approach to identify the high-quality companies that are managed by strong management team and can deliver long-term sustainable returns for the company and its shareholders.
To diversify the risk and generate high return the company’s board has imposed some restrictions and limits on its portfolio, like: it will invest 10% of its gross assets in the companies that operates or are located in the former Soviet Union Republic and to enhance the portfolio return in the normal market condition; it may borrow within the range of 10% net cash to 15% gearing. In normal conditions it can’t invest in the unlisted securities and derivative instruments. At the time of purchase maximum of 15% of its gross assets can be invested in one individual security. Further, it can only invest maximum of 15% of gross assets in other UK Listed Investment companies and trust.
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