Asset manager Carmignac plans to divest from Russian stocks

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LONDON, March 7 (Reuters) – French asset manager Carmignac said on Monday it would not buy Russian stocks and would divest existing assets, following a string of other managers funds that made similar announcements after Russia invaded Ukraine.

Asset managers such as BlackRock (BLK.N) and abrdn (ABDN.L) are suspending purchases of Russian securities or planning to cut existing holdings as Western governments impose tough sanctions on Russia.

But investors’ efforts to reduce their positions have been complicated by Russia’s ban on local brokers from selling securities held by foreigners. Read more

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“We have decided not to buy Russian securities until further notice,” 42 billion euros ($45.6 billion) Carmignac said in a statement.

“We are committed to disposing of all Russian securities remaining in our portfolios, taking into account extra-financial aspects as well as market conditions, in order to preserve the interests of our clients, our primary objective.”

The company’s emerging markets fund, Carmignac Portfolio EM Debt, had the world’s longest Russian debt position in January, at more than 43%, according to data from industry tracker Morningstar. Read more

Several asset managers have reduced their exposure to Russia in recent weeks.

Goldman Sachs Asset Management cut Russian exposure in its international equity fund GQG to about $222 million, it said last week, from more than $1.7 billion six months ago. Read more

Fidelity, JOHCM and Invesco have reduced their exposure to Russia in emerging market funds in recent weeks, according to a Morningstar report on Monday.

More than $3 billion in unlisted funds with exposure to Russia were suspended last week, while several exchange-traded funds (ETFs) were also frozen. Read more

($1 = 0.9206 euros)

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Reporting by Carolyn Cohn; Editing by Saikat Chatterjee, Edmund Blair and Ed Osmond

Our standards: The Thomson Reuters Trust Principles.

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