BlackRock has suspended the purchase of all Russian securities in its active and index funds as of 28 February, as other asset managers line up to suspend Russia-focused funds.
BlackRock, the world’s largest asset manager, said Russian securities accounted for less than 0.01% of its clients’ assets, mostly in its index portfolios.
In a statement issued by the asset manager, Rich Kushel, head of the portfolio management group for BlackRock, and Salim Ramji, global head of iShares and index investments for BlackRock said they have “proactively advocated with our index providers to remove Russian securities from broad-based indices”.
“A number of our major index providers have since announced removal of Russian securities from their indices, which will begin to take effect next week. We will continue actively consulting with regulators, index providers and other market participants to help ensure our clients can exit their positions in Russian securities, whenever and wherever regulatory and market conditions allow,” Kushel and Ramji said.
The announcement comes as several other asset managers, including Amundi, JPMorgan Asset Management and Liontrust, have recently announced the suspension of Russian-related activity as a result of the war in Ukraine.
In a notice to investors, Amundi announced the suspension of subscriptions and redemptions on all its funds holding more than 10% of locally-listed Russian assets, due to the closure of the Moscow Stock Exchange since 28 February.
The measures will apply to Amundi Funds Russian Equity, Amundi Eastern Europe Stock, Amundi CR Dluhopisovy Plus, effective 28 February and Amundi Funds Emerging Europe and Mediterranean Equity, effective 1 March.
It later announced the suspension of the Lyxor PEA Russie Ucits ETF and the Lyxor MSCI Russia Ucits ETF, effective 4 March.
JP Morgan Asset Management recently announced the suspension of three of its funds, including the JPMorgan Funds – Russia Equity Fund (SICAV), JPMorgan Funds – Emerging Europe Equity Fund (SICAV) and the JPM Emerging Europe Equity Fund (OEIC).
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