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Russia has been hit with numerous economic sanctions since its invasion of Ukraine, driving the country’s currency to historic lows and putting investments with high Russian exposure at risk. If some of your investments have a high exposure to Russia, including mutual funds, now might be a good time to consider moving your money elsewhere.
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A number of popular mutual funds have significant exposure to Russia, Bloomberg reported, including one with nearly 17% of its assets tied to the country.
The US-based equity mutual fund with the highest exposure to Russia by percentage is the $8.8 billion GQG Partners Emerging Markets Equity Fund. As of September 2021, 16.6% of its assets, or about $1.5 billion, were exposed to Russian securities, according to data provided to Bloomberg by Morningstar Direct. One of the fund’s top 10 holdings is Sberbank of Russia PJSC.
Another major fund with investments in Russia is Invesco Developing Markets, worth $45 billion. As of December 31, 2021, 7.9% of assets were exposed to Russia, or approximately $3.4 billion.
Here is an overview of equity funds that currently carry considerable risk due to their investments in Russia, based on Morningstar Direct data (% of assets exposed to Russia):
- GQG Partners Emerging Markets Equities: 16.6%
- JNL/GQG Emerging Markets I: 15.6%
- Kopernik Global All Cap I: 13.5%
- Emerging Markets GMO III: 13.3%
- Invesco Emerging Markets All Cap: 11.6%
- Resources GMO III: 10.7%
- Harding Loevner Emerging Markets: 8.7%
- Harding Loevner Emerging Markets Advisor: 8.6%
- MFS Emerging Markets Equities: 7.9%
- Invesco Developing Markets: 7.9%
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The GQG fund has lost 2.5% in the past month and is down 4.4% for the year, Bloomberg noted. But not all funds have retreated. The $1.9 billion GMO Resources II fund, which is heavily invested in the oil/gas and mining sectors, gained 3.4% in the past month and is up 4% for the year.
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