Investors in Liontrust’s Russia Fund will not pay an annual management charge and administration fee while it remains gated.
The freeze is being backdated to 1 March 2022, which is the day after Liontrust announced the dealing suspension.
Holders will not pay the ongoing charges figure (OCF) for any of the share classes in the Russia Fund until dealing is resumed.
The OCF ranges from 0.75% to 1.9% across the range.
Franklin Templeton also waives management fee
Liontrust is by not the only firm to suspend funds following Russia’s invasion of Ukraine on 24 February.
Few, however, have so far publicly announced they are waiving fees and charges.
On 4 March, Franklin Templeton waived the management fee on its Templeton Eastern Europe Fund.
“Effective Monday 28 February 2022, and in line with a decision by the FTIF board of directors, the calculation of the NAV on Templeton Eastern Europe Fund was suspended,” the firm said.
“In this regard, the board has also decided to temporarily waive the investment management fee whilst the fund is suspended.”
See also: Pictet latest to suspend Russia fund
Right decision while shareholders cannot buy/redeem
“We believe this is the right decision while shareholders cannot make purchases and redemptions in the fund,” Liontrust said.
Dealing was suspended on 28 February following the closure of the Moscow stock exchange and ban on foreign investors trading in local Russian securities.
The firm added that the decision was not taken lightly. “We appreciate the ongoing suspension is very disappointing for shareholders. This was necessary due to the exceptional circumstances and events beyond Liontrust’s control.”
The suspension will be under continual review.
See also: Schroders joins Fidelity and Abrdn in halting investments Russian equities
