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Four-fifths of EM funds still caught in Russian stocks-research


May 8, 2022

LONDON, Might 9 (Reuters) – Less than a fifth of actively handled emerging market equity funds have actually cut their direct exposure to Russian stocks to absolutely no, information from Copley Fund Research study reveals, with a variety of funds not able to offer out.

Russia has actually been severed from international monetary markets, and its stocks and bonds ejected from indexes after Western countries enforced sweeping sanctions to penalize Moscow for its Feb. 24 intrusion of Ukraine.

Sanctions together with Russian counter-measures, consisting of capital controls, have actually made the nation’s monetary markets broadly unattainable for foreign financiers.

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Most current fund filing information covering 253 funds with $450 billion properties under management revealed 45 funds liquidated of all Russia positions in between end-2021 and end-April, the Copley research study discovered.

” Numerous funds are holding positions that they can’t leave so will stay invested for a while,” stated Steven Holden at Copley.

Weightings have actually likewise fallen quickly, with Russia now comprising simply under 2% of typical fund weights compared to 4.5% in January.

Russia’s present weighting was synthetically high due to computations still based upon last trading rates from prior to the war for some stocks such as Sberbank, Holden stated.

” Russia is dropping the ranks and will wander into insignificance throughout the year,” he included.

Russia weightings in active EM equity funds

Russian stocks had actually been extensively held by emerging market possession supervisors, specifically after the Moscow Exchange released a dollar-denominated index in 1995 (. IRTS)

Amongst the financial investment cars that have actually absolutely left Russia are funds by Morgan Stanley, Lazard Property Management, Templeton and Van Eck, the information revealed.

Funds cutting Russia exposure
Funds cutting Russia direct exposure
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Reporting by Karin Strohecker
Modifying by Mark Potter

Our Standards: The Thomson Reuters Trust Concepts.

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