Derbyshire Pension Fund (the Fund) has around £12m invested in Russian companies out of a portfolio of over £6bn. These investments, representing 0.2% of the Fund’s investment portfolio, are managed through pooled investment vehicles, with a proportion in passive investment products which track stock market indices provided by MSCI and FTSE Russell. The Fund’s investment portfolio remains highly diversified with the majority of its investments in developed markets.
The Fund and its fund managers are continuing to monitor and assess developments in Ukraine and in Russia and to assess the implications of the sanctions being put in place against Russia.
The options for unwinding the Fund’s exposure to investments in Russia are currently being evaluated. This is in line with the Fund’s Responsible Investment Framework which emphasises the importance of taking into account environmental, social and governance considerations when making investment decisions.
As the exposure to Russian investments is via pooled vehicles, the Fund is liaising closely with its underlying managers against a background of very limited market trading and highly restricted liquidity flows. The announcement from both MSCI and FTSE Russell that they are deleting Russian classified equities from their indices is expected to lead to the unwinding of the £7 million of exposure to Russian assets via the Fund’s investments in passive vehicles. Discussions are actively taking place with respect to the remaining £5 million of exposure to Russian investments.