Mwalimu-G
Elder Lister
...as conditions get tough in this stabilized economy...
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Blow to Nairobi bourse as US firm announces exit
SATURDAY JUNE 15 2024
Blackrock headquarters in New York. PHOTO | POOL
By JAMES ANYANZWA
More by this Author
American fund management firm BlackRock Inc is selling off its equity investments in emerging and frontier markets -- including Kenya and Nigeria -- citing liquidity challenges in these markets and difficulty in repatriating funds in dollars.
The announcement potentially deals a major blow to Nairobi’s efforts to cement its position as East Africa’s financial and investment hub.
Blackrock is shutting down its emerging and frontier markets-focused fund, iShares Frontier and Select EM ETF.
In a notice dated June 7, BlackRock said the “Fund will enter into an extended liquidation period,” during which it will not be managed in accordance with its investment objective and policies, “as the Fund will sell down its assets, as determined by BlackRock Fund Advisers, where possible and hold the proceeds of such sales in cash and cash equivalents.”
According to the notice, the fund will depart from its policy of holding at least 80 percent of the value of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of issuers economically tied to frontier markets during the liquidation period.
This news comes after it emerged in March that BlackRock, one of the world’s largest asset management companies — with a market capitalisation of over $114 billion as of June 13 and $9.1 trillion in assets — had made an investment in the NSE after a four-year break, marking a major win for the struggling exchange.
Blow to Nairobi bourse as US firm announces exit
BlackRock is liquidating its investments, an exercise expected to be completed on August 12.
www.theeastafrican.co.ke
Blow to Nairobi bourse as US firm announces exit
SATURDAY JUNE 15 2024
Blackrock headquarters in New York. PHOTO | POOL
By JAMES ANYANZWA
More by this Author
American fund management firm BlackRock Inc is selling off its equity investments in emerging and frontier markets -- including Kenya and Nigeria -- citing liquidity challenges in these markets and difficulty in repatriating funds in dollars.
The announcement potentially deals a major blow to Nairobi’s efforts to cement its position as East Africa’s financial and investment hub.
Blackrock is shutting down its emerging and frontier markets-focused fund, iShares Frontier and Select EM ETF.
In a notice dated June 7, BlackRock said the “Fund will enter into an extended liquidation period,” during which it will not be managed in accordance with its investment objective and policies, “as the Fund will sell down its assets, as determined by BlackRock Fund Advisers, where possible and hold the proceeds of such sales in cash and cash equivalents.”
According to the notice, the fund will depart from its policy of holding at least 80 percent of the value of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of issuers economically tied to frontier markets during the liquidation period.
This news comes after it emerged in March that BlackRock, one of the world’s largest asset management companies — with a market capitalisation of over $114 billion as of June 13 and $9.1 trillion in assets — had made an investment in the NSE after a four-year break, marking a major win for the struggling exchange.
