Asset manager Fidelity International will not be investing in Russia and Belarus for the foreseeable future.
This decision comes as a result of the ongoing conflict in Ukraine.
The company made the announcement yesterday (2 February) in the late afternoon via its LinkedIn account.
The company stated: “We have implemented a firm-wide prohibition on any new or additional purchases of Russian and Belarusian securities.”
“We are addressing our existing exposure and, where it is possible and appropriate, we will look at options to reduce it in a thoughtful way which protects the interests of our clients and mitigates unintended consequences.
“We will monitor events closely and continue to review our decision in the event of a significant change in the prevailing circumstances.”
According to data from Morningstar, Fidelity International manages two funds accessible to UK investors with an equity exposure to Russia of at least 30%.
The two funds are “Emerging Europe Middle East and Africa Fund A-ACC-USD” and “Emerging Europe Middle East and Africa Fund A – ACC Shares”.
Earlier this week, Abrdn announced a similar decision.
On its LinkedIn profile, the company published on 1 March 2022: “abrdn has concluded that we will not be investing in Russia or Belarus for the foreseeable future, on ESG grounds.
“We have already taken action to reduce our exposure to these regions in a disciplined manner, protecting our clients’ interests.
“We will continue to follow developments very closely and take whatever steps are necessary in the interests of our clients, shareholders and other stakeholders in the business.”
Abrdn manages two funds with an equity exposure to Russia of at least 30%.
They are the ASI Eastern European Equity fund and the Aberdeen Standard SICAV I – Eastern European Equity fund.
Fidelity International and abrdn funds available to UK investors with an equity exposure to Russia of at least 30% (as of 31 December 2021)
| Name | Investment type | Morningstar category | Domicile | Branding name | Fund size in GBP | Equity exposure to Russia in % (Net) |
| ASI Eastern European Equity I Acc | Open-End Fund | EAA Fund Emerging Europe Equity | United Kingdom | abrdn | 18,393,226 | 61.98 |
| abrdn Eastern Eurp Eq S Acc EUR | Open-End Fund | EAA Fund Emerging Europe Equity | Luxembourg | abrdn | 13,702,587 | 57.27 |
| Fidelity Em Eurp Mdl Est&Afr A-Acc-USD | Open-End Fund | EAA Fund Other Equity | Luxembourg | Fidelity | 251,252,587 | 34.90 |
| Fidelity Emerg Eur Middle East & Africa | Open-End Fund | EAA Fund Other Equity | United Kingdom | Fidelity | 67,652,789 | 34.24 |
Source: Morningstar
Other asset managers have also taken actions in reaction to the conflict in Ukraine. Both BNP Paribas Asset Management and Liontrust have recently suspended their Russia funds.
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