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Barings Emerging EMEA Opportunities updates on Russian exposure

Barings Emerging EMEA Opportunities (BEMO) has announced that its board has further refined the fair value of all the remaining Russian investments held in BEMO’s portfolio in line with the evolving market situation. In calculating BEMO’s NAV as at 2 March 2022, the Board has reassessed its policy announced on 1 March 2022 to mark to market all traded ADRs, GDRs and other stocks listed on exchanges other than the Moscow Stock Exchange. Key takeaways are as follows:

  • Russian depositary receipts traded on the London Stock Exchange have been valued at zero following their suspension from trading.
  • Holdings in US listed Russian stocks that have been halted from trading have also been valued at zero.
  • BEMO has provided for all of the value of any unsettled trades that have fallen past their due date.
  • In line with the policy announced on 1 March 2022, holdings listed on the Moscow Stock Exchange continue to be valued at zero.
  • BEMO’s Board will continue to follow this policy and make further adjustments as necessary.

NAV impact

Since the 25 February 2022 NAV, calculated at close of business 25 February 2022, when the value of Russian Instruments was last carried at full market value and amounted to 17.60% of NAV the following adjustments have been made: (based on 25 February 2022 valuations)

  • a total of £2,694,180 (as at 25 February 2022) of stocks listed on the Moscow Stock Exchange have been valued at £ zero;
  • other instruments valued at £13,220,847 (as at 25 February 2022), have either been sold or are now valued at zero. A total of £12,139,575 (at 25 February 2022) have now been valued at zero due to markets for these stocks being suspended;
  • the Company has realised £1,747,075 from disposals during the period. At 2 March 2022, a further £26,303 remains unsettled and a full provision has made against this balance.

The value of Russian related instruments included within the NAV is now 0%.

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