BlackRock becomes the first non-negotiable issuer to close Russia’s moneyAfter Moscow’s invasion of Ukraine and the subsequent collapse of the country’s economy.
In an announcement to shareholders, the world’s largest asset manager said it would close iShares MSCI Eastern Europe Capped UCITS ETF (IEER) And iShares MSCI Russia ADR / GDR UCITS ETF (CSRU).
BlackRock had already halted the process of creating and redeeming ETFs shortly after the war began. The secondary market ETFs were then closed on the stock exchange.
As a result, the issuer said it would like to return the proceeds from the ETF’s securities to investors. “If any value can be achieved.”
BlackRock said in a statement: “Due to the Russian invasion of Ukraine, normal trading conditions in the market have deteriorated significantly, and a significant proportion of Russian securities are currently unmarketable to non-Russian foreign investors.
As a result, BlackRock believes it is acting in the best interests of shareholders by closing the IEER and CSRU.
BlackRock wants to protect the value of the funds’ Russian securities holdings by conducting liquidations in an orderly and managed manner in an effort to return income to shareholders if any value can be achieved.
“Russian securities will therefore remain in the funds until it becomes possible, practicable and expedient, in the opinion of the candidate, to liquidate each position in an orderly and managed manner.”
In March, BlackRock said it has waived IEER and CSRU fees due to it ‘Extraordinary market conditions’.
ETFs vary widely in their exposure to Russia, and CSRUs are highly exposed to depository receipts, which are US or European listed securities that represent the company’s underlying stock ownership, many of which have seen trading halted on stock exchanges across Europe.
At the same time, IEER holds securities on the Moscow Stock Exchange (MOEX), which has been closed since February 25.
Earlier this month remember United kingdom The status of MOEX as a recognized exchange, which has imposed restrictions on foreign investors since February 28.
In April, Larry Fink, CEO of BlackRock, said the Russian invasion of Ukraine put an end to the globalization we’ve seen over the past three decades.