Local independent financial adviser, Becky Hammonds of Willow Financial Solutions, looks at whether your money is likely to be invested in Russia.
Are you invested in Russia? Not many UK investors hold Russian stocks. There are few Russia-focused funds, due to lack of demand, and in the wake of the military assault a number of asset managers have suspended theirs.
If you’re invested in global or European equity funds, these are unlikely to have many investments in Russia.
You’re slightly more likely to find Russian stocks in emerging market funds. Your pension may be invested in Russia by holding emerging market funds, sovereign debt or stakes in major Russian companies such as Gazprom.
But more and more pension fund managers are slashing their Russian holdings.
If you hold a defined benefit (DB, or ‘final salary’) pension, it’s up to the trustees to deal with changing market conditions. Your payout should remain the same. If you hold investments, or have a defined contribution company pension or self-invested pension plan, you might find the value has changed.
Many major UK and US companies are affected by the war. The war is also shifting investor appetites, impacting the value of assets that might appear to have nothing to do with Russia and Ukraine.
However, that doesn’t mean you need to take action. If you invest via a financial adviser, they should be your first point of contact, and they will adjust your portfolio if necessary.
If you invest via a fully managed stocks and shares ISA, your portfolio will be reviewed and adjusted on your behalf. Defined contribution pension providers may offer a similar service.
On the level of individual funds, fund managers will adjust their holdings and strategy, though you should consider whether a fund’s overall focus still suits your portfolio.
There’s no guarantee markets will recover as quickly from Russia’s invasion of Ukraine but best advice is to review your investments and check that your portfolio is diversified.
For pensions and investment advice contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk.
