Board of directors Templeton Russia and East European Fund (TREEF) has made the decision on liquidation and dissolution of the fund specialising on investments into Russia, Ukraine, Kazakhstan and other countries of the former USSR and the Eastern Europe. In message TREEF it is underlined that fund liquidation in the best way will serve interests of its shareholders.
If the decision of board of directors TREEF is approved at the meeting of shareholders planned for September, 24th, 2015, the fund can be is liquidated till the end of 2015.
Created by legendary investor Mark Mobiusom TREEF has been based in 1995. According to specifications of work TREEF, not less than 80 % used by it for investments of means should be enclosed in actives in territory of Russia and countries of Eastern Europe.
The reasons of liquidation of fund - decrease in the size of its actives and falling of interest of investors, is told in company Franklin Templeton message. By data for June, 30th, 2015, total amount of actives TREEF it was estimated in $57,95 million For comparison, still on September, 30th, 2014 fund actives were estimated in $75,47 million Cost of papers of fund at the New York stock exchange (NYSE) for last year has fallen almost to 32 % - from $14,58 to $9,95. For last five years of paper TREEF have fallen in price more than on 60 %.
In message Franklin Templeton it is underlined that investments into emerging markets are now interfaced to the raised risks and can lead to loss by investors of the investments. In particular, the additional sanctions entered concerning Russia, can become the reason of the next devaluation of rouble, fall of credit ratings of the Russian emitters and falling of cost of their papers. Managing directors TREEF also consider the scenario at which it can be forbidden to fund to invest in the companies which have fallen under the sanctions and as a result securities will appear are frozen. «In case of acceptance of retaliatory measures by the Russian government there is a risk of capture of actives of fund», - is told in official press release TREEF.
In earlier let out TREEF the report it was informed that following the results of the fiscal year which has come to the end on March, 31st, 2015, cost of a net wealth of fund was reduced to 23,51 %.
In the report the problems endured recently by economy of Russia because of sharp falling of the world prices for oil, a confrontation in Ukraine and the entered USA and the EU countries on its background of the Antirussian sanctions, and also rouble devaluation were especially underlined.
In the report signed by head TREEF by Mark Mobiusom, admitted that Russia endured by economy of a problem has negatively affected a condition of the companies in which invested fund, including the Savings Bank, "Globaltransa" and "Yandex". As a result of TREEF has sold all actions of "Yandex" earlier belonging to it, and also earlier left "Gazprom" capital.
At the same time Mobius noticed that TREEF has increased the investments in papers of some the Russian companies which actions after falling of the prices became more attractive to investors. Among such companies in the March report of fund were called «Norilsk nickel», Qiwi, "Aeroflot", Mail.Ru Group, "Magnet" and LUKOIL.
By data for June, 30th, 2015, in the Russian actives 67,9 % of all proinvested TREEF means (against 56,8 % for March, 31st, 2015), in Ukrainian - 7,8 % (against 6,4 %) have been enclosed.
As to kompany the greatest volume of means by the end of June, 2015 has been enclosed TREEF in the action Romanian Romgaz (7,7 % from total amount of investments). LUKOIL share in investments TREEF has made 7,4 %, the Savings Bank - 7 %, "Bashnefti" - 4,4 %, Dixy Group - 4,2 %, "Magnet" - 4,1 %, «Norilsk nickel» - 3,6 %, "Fosagro" - 3,5 %. Besides, bakeries have entered into a top-10 »(6,6 %) and the Kazakhstan operator of mobile communication Kcell (3,4 %) the Ukrainian agroholding« Mironovsky.
In the beginning of June, 2015 Mobius declared that recession of intensity of the Ukrainian crisis creates for investors new attractive possibilities in the Russian market.
«Reduction of intensity round Ukraine presumes to pay attention to investors to the attractive and underestimated actives accessible in the Russian market», - has written Mobius in the blog on a site of investment group Franklin Templeton.
In the middle of July it became known that Mobius since October, 1st, 2015 will leave a post of the leading managing director of fund Templeton Emerging Markets Investment Trust (TEMIT).