Industry Updates

ITI Funds delists Russia ETFs from London Stock Exchange

Shareholders have blocked efforts to dissolve the ITI Funds ETF platform five times

Jamie Gordon

a red and white ball in a net

ITI Funds has finally delisted its two Russia ETFs from the London Stock Exchange (LSE) as shareholders continue to block the firm’s motions to dissolve its ETF platform.

Effective 20 October, the ITI Funds Russia RTS Equity UCITS ETF and ITI Funds Russia-Focused USD Eurobond UCITS ETF were delisted from the LSE.

In a statement, the firm said: “The board of directors has made such a decision in the scope of a complex situation with available liquidity to reduce ongoing costs and because it is not possible to determine where the company will be able to resume normal activities and exchange trading.”

The delisting comes after shareholders blocked the firm’s fifth attempt to “dissolve” its ETF platform at an extraordinary general meeting (EGM) on 31 July.

ITI Funds said: ”The necessary majority of votes in favour of agenda resolutions had not been reached and thus resolutions were not approved by shareholders.”

The firm attempted to convince shareholders to support the motion to dissolve its platform and issued a statement regarding its Russia ETF four days prior to the EGM.

“The lack of liquidity in this sub-fund causes problem with payments to several service-providers. Although payments can be completed under the regime of liquidation of the company, these issues expose the company to the potential risk of insolvency in situation when no decision is taken on voluntary liquidation of the company.

“In the case of realisation of this risk, the company will face at some point in time a judicial liquidation. As it is not possible to determine when situation with bank and depository restrictions will get better and will allow to resolve issues with payments, the board of directors is considering a reduction of ongoing costs of the company by termination of several agreements with service providers, including listing agreements with exchanges, even before the dissolution of the company.”

The delisting of ITI Funds’ ETFs comes after all other Russia ETFs in Europe closed by March this year, with DWS, Amundi and HSBC Asset Management being the last to terminate their products after MSCI discontinued the underlying indices.

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