The board of the fund said the proposals reflects the change in market conditions and circumstances since the investment company was first listed on the London Stock Exchange in July last year.
Chairman, David Clark, said: "We think that there remains significant potential for Russian infrastructure investment to deliver superior returns. However, it has been clear for some time that in the current market conditions, the existing structure does not provide the best vehicle for ensuring shareholders benefit fully from the value creation we are seeing and expect to continue to see.
"The proposed structure will, in the view of the board, and the investment manager, provide an effective means of tackling the discount in the short term, while providing an opportunity for investors with the appropriate time horizon to continue to access the Russian infrastructure story over the longer term."
Illiquidity is often a concern cited by advisers when it comes to assessing the suitability of holding closed-end funds in their clients’ portfolios and this example of a fund launched as an investment trust changing into an Oeic structure because of liquidity issues is unlikely to increase confidence in the closed-end structure.
The proposed restructuring will result in the transfer of the majority of the fund’s portfolio to a open ended Ucits scheme, with an investment objective and policy consistent with the current investment objective and policy of the fund.
Those assets that are not liquid enough will be retained in the fund and will be disposed of over time to ensure maximum value is obtained.
Renaissance predicted in light of current market conditions this process should be completed by about June 2013 at which point the board of the fund will look to wind it up, converting shareholders into unit holders in the process.
