BNP Paribas Asset Management is set to liquidate the firm's Europe Emerging Equity fund on 3 July, following more than a year of suspension.
In a shareholder letter seen by International Investment's sister brand Investment Week, BNP Paribas AM said the liquidation value would be calculated based on the liquid portion of the portfolio as 4 July, adding that "no positive future perspectives… can be foreseen at this stage".
The fund has been suspended since 1 March 2022, due to the Russian invasion of Ukraine and subsequent sanctions on the country making the disposal and valuation of much of the fund's assets "impracticable".
As of 28 February 2022, 26.4% of the fund's assets were illiquid, the letter said. The fund had €25.5m in assets under management when it was suspended, according to data from Morningstar.
Liquidation costs will be borne by the asset manager, with shareholders to be paid on 6 July.
"Additional liquidation proceeds may be paid in the future if and when the illiquid portion of the sub-fund's assets can be sold," the firm added.
