Lonsec details Aussie funds Russia exposures

Mike Taylor

Managing Editor and Publisher

17 March 2022

Research and ratings house Lonsec has listed and quantified the impact of Russia investment exposures on Australian fund managers.

In an analysis issued today, Lonsec notes that events in February meant that asset managers who held Russian equity holdings in the middle to latter stages of that month were forced to write them off entirely following a period of them being severely impaired.

It finds that while share price movements had been severe in isolation, losses at an overall fund level had tended to be relatively constrained given Russia made up only a small proportion of the emerging markets universe.

However, it also noted that a small number of managers had a material allocation to Russia through the early parts of 2022.

“While these exposures were progressively paired back in most instances, the write-off of the remaining holdings will however meaningfully impact Fund performance in the short-to-medium term,” the Lonsec analysis said.