Asset managers freeze funds with significant exposure to Russia as sanctions bite

ASSET management firms have suspended the dealing and valuation of unit trusts with significant exposure to Russia securities, as MSCI and FTSE Russell said they would drop Russia from their widely followed equity indexes.

FTSE Russell said the exclusion will take effect March 7. MSCI said its decision will be implemented "in one step'' across all MSCI indexes at the close of March 9.

Based on Morningstar data, there are 9 funds with exposure to Russia of over 30 per cent, authorised for distribution in Singapore. These include Russia single-country equity funds, as well as funds investing in emerging Europe or emerging Eastern Europe region where the exposure could be as high as 70 per cent.