Asset manager Carmignac announces plans to scrap Russian investments
French asset management firm Carmignac today ruled out investing in further Russian securities and comitted to dumping its current Russian investments, as asset managers scramble en masse to sever their ties to the country following its invasion of Ukraine.
Carmignac, which manages around 42 billion euro ($45.6 billion) for clients, said in a statement today it has decided “not to purchase any Russian securities until further notice.”
“We are committed to divesting from any remaining Russian securities in our portfolios, considering extra-financial aspects as well as market conditions, in order to preserve the interests of our clients, our primary objective,” the firm said.
The firm’s emerging market fund Carmignac Portfolio EM Debt had the world’s longest Russia debt position in January at over 43 per cent, industry tracker Morningstar data shows.
The move comes after a spate of asset managers severed ties with Russia last week, with Royal London, Aviva and Abrdn all committing to dumping Russian investments as the west tightened its sanctions.
Goldman Sachs Asset Management has also reduced the Russian exposure in its GQG international equity fund to about $222 million, it said last week, down from over $1.7 billion six months ago.
Fidelity, JOHCM and Invesco have cut Russia exposure in emerging market funds in the last few weeks, according to a report by Morningstar on Monday
Over $3bn in funds exposed to Russia were suspended last week while a number of ETFs were similarly frozen.