Following Russia’s invasion of Ukraine on 24 February 2022, dealing in the East Capital Russia Sub-Fund has been suspended as of 1 March 2022. This means that investors are currently unable to place subscription or redemption orders in the Sub-Fund until further notice.
For the same reasons, the calculation of the net asset value (NAV) for the East Capital Eastern Europe Sub-Fund has also been suspended as of 1 March 2022.
East Capital continuously monitors developments, always with a focus on acting in the best interests of our clients.
This is done through dialogue with other market participants, advocacy work aimed at enabling the reopening of the Russian stock exchange to foreign investors, and, where possible, carrying out portfolio sales where prices are considered reasonable.
Portfolio Comment Q3 2026 - East Capital Russia Sub-Fund
The Russia fund remains suspended, although the indicative total USD return was 9.4% in the quarter.
As of 30 September 2026, the indicative NAV of the Russia Fund was USD 64 million. Around 25% of this was held in cash, 52% in liquid Kazakh holdings and the remainder in Global Depositary Receipts (GDRs) that have been relisted on the Astana International Exchange. The largest of these positions is Solidcore, a gold mining company with purely Kazakh assets, representing 17% of the portfolio.
Returns were driven by our listed Kazakh stocks. Gold miner Solidcore was the standout performer, returning 60% in USD terms in the quarter on the back of a series of positive catalysts. On 3 July the company secured a USD 600m financing package for its Ertis POX plant in Kazakhstan, enabling it to process its gold ore outside of Russia. This was followed by a USD 100m credit facility from KfW IPEX-Bank in early September. Most significantly, alongside its H1 results the company announced a USD 1.2bn return of capital to shareholders via a tender offer, a clear signal of the strength of its balance sheet and cash generation. With the POX plant funded and excess cash returned, Solidcore is well placed to remove its remaining Russian ties (POX processing, requires an OFAC license) and focus on its Kazakh gold and copper growth strategy. Meanwhile, fintech company Kaspi returned 11% in USD terms, with a modest gain in local currency boosted by a c. 8% appreciation of the tenge against the US dollar. However, uranium producer Kazatomprom was the only decliner, falling 7%.
We remain engaged with a number of potential value realisation options, and in the quarter, we participated in the mandatory sell-out of a very small position in the Ukrainian agricultural company Kernel Holding. We tendered all of our shares at PLN 19.93 each and generating around USD 31k for the fund. The offer price had been revised up from PLN 18.50 following a lengthy appeals process and, with the majority shareholder holding over 95% of the company, we saw this as the best opportunity to exit the position.
As from 1 March 2022 and until further notice, the calculation of the net asset value (NAV) for the East Capital Russia Sub-Fund has been suspended. The latest official net asset value for the Sub-Fund is as of 25 February 2022. An indicative NAV continues to be calculated for information purposes only.
As from 1 March 2022 and until further notice, the calculation of the net asset value (NAV) for the remaining part of the East Capital Eastern Europe Sub-Fund has been suspended. The latest official net asset value for the remaining part of the Sub-Fund is as of 25 February 2022. An indicative NAV continues to be calculated for information purposes only.
Distribution for East Capital Russia Sub-Fund (april 2025)
We continue to work actively in the best interests of our shareholders in the East Capital Russia sub-fund.
Despite challenging market conditions, we received regulatory confirmation to proceed with a capital distribution. Following the consideration of the Board, an initial disbursement of approximately EUR 30 million, representing around 10% of the fund’s last formal NAV (as of 25 February 2022) has now been completed. The disbursement marks an important step in our continued efforts to return value to our investors.
Eligible shareholders should have received a formal notice with further details.
Clients who have invested via ECG Direct will find more information by logging in to the Investment Portal.
Updated 12 June 2025
East Capital Eastern Europe Sub-Fund
Following Russia’s invasion of Ukraine in February 2022, the calculation of the net asset value (NAV) for East Capital Eastern Europe was suspended as of 1 March 2022.
In September 2023, the fund’s assets were reorganised, with Russian assets allocated to separate mirror share classes. The liquid part of the fund was reopened for subscriptions and redemptions, while the illiquid part remains closed.
On 31 March 2025, the liquid part of the fund was merged into East Capital New Europe. The remaining illiquid portion remains suspended.
More information
Reporting of the fund's historical returns does not consider inflation.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by East Capital. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.mscibarra.com)