Russia / Ukraine conflict – impact on markets and investments
We are seeing increased volatility across markets as they react to the news of the conflict in Ukraine. The invasion is causing a significant human toll, and our thoughts are with the Ukrainian people and all who are impacted.
While volatility can create an urge among investors to act, our guide continues to be to stay invested and focused on long-term goals. We are focused on understanding the economic and financial market impacts, both within the affected region and more broadly on a global basis and across regions, sectors and companies. Specifically, we are monitoring the expected impacts on energy, global growth, inflation, and central bank actions.
Fund exposure to Russia, Ukraine and Belarus
The vast majority of our funds and strategies have no direct exposure to Russia, Ukraine or Belarus. Our only strategies and funds with direct exposure to these countries are within Emerging Market Equities and Emerging Market Debt, including the Emerging Equity sleeves of our multi-asset strategies. Exposure was low in these strategies prior to the write downs we have recently seen in the market. We have valued Russian equity positions in our portfolios at zero.
Due to the increased uncertainty and market volatility impacting trading conditions for bonds, we are monitoring the liquidity of funds and applying dilution levy adjustments, on a daily basis, as appropriate. Details of dilution adjustments can be found on each share class’s page on our website.
Adhering to sanctions
Financial and economic sanctions issued against the Russian Federation and supporters of incursions into the Ukraine are changing on a rapid and constant basis at present. We remain vigilant regarding the changes to these programmes and will continue to comply with relevant sanctions imposed.
As part of Ameriprise Financial, we are long-standing supporters of the International Red Cross’ disaster relief programme and our partnership is directly supporting efforts in Ukraine. As a result of this crisis, we are again increasing our funding for humanitarian relief. We also match employee charity donations and have provided information to help our people easily contribute to targeted relief efforts.