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March 7, 2022updated 23 Mar 2022 1:09pm

Global investors may have to shed value on $170bn Russian exposure

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

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Investors, including major asset managers, hedge funds and pensions plans, are seeing their loss on their Russia-linked assets widens in the wake of Russia’s invasion on Ukraine and an array of subsequent sanctions announced by the US and its allies.

At the end of 2021, investors held Russian assets worth around $170bn, according to a report by Financial Times.

The sanctions that followed Russia’s ‘special operation’ in Ukraine led to the suspension of Moscow’s equity markets. In addition, trading in several foreign-listed Russian companies has been halted.

Russia’s dollar debt is said to be trading at about 20 cents on the dollar and an MSCI index tracking London and New York-traded Russian stocks plummeted to over 95% this year.

Around 26 asset managers, including Amundi, UBS, BlackRock, BNP Paribas, Schroders, Pictet and Abrdn have frozen their funds with considerable exposure to Russia.

According to Moscow Exchange data, foreign holdings of Russian equities amounted to $86bn at the end of 2021.

The central bank data shows that foreign investors also held Russia’s dollar debt worth $20bn and $41bn of rouble-denominated sovereign bonds.

According to the report, Fidelity International last week marked down Russian securities linked to funds that were affected.

Prosperity Capital Management suspended investor redemptions and net asset value calculations after its Russian Prosperity fund plummeted 51% this year to February 24.

Prosperity is said to be one of the oldest and largest hedge fund investors in Russia with approximately $3bn in assets.

US public pension fund Calpers’s $478bn portfolio had about $900m of exposure to Russia.

The UK’s largest pension plan, The Universities Superannuation Scheme (USS), had approximately 0.5% of the scheme’s £90bn portfolio linked to Russia.

Free Report
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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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