The PineBridge Emerging Europe Equity fund is seeking to treble the proportion of its assets it can invest in Russian companies.
Subject to investor approval later this month, PineBridge intends to raise its allocation to Russian shares from 20% to 60%.
PineBridge explained in a statement: ‘Locally listed Russian shares trade at a discount to depositary receipts and there are a number of Russian companies that cannot be accessed through depositary receipts.’
The group added that investing in locally listed businesses would reduce the fund’s costs as well, but would not change its risk profile.
Managed by Catrin Haden, the $46 million fund has returned 17.3% over the past five years compared with 15.6% by its benchmark MSCI EM Europe 10/40 index, according to Lipper.