Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1109240

The funds hit hardest by Russia's stock market rout

The UK's only open-ended Russia-focused fund is down by more than 15% over the last two days, but the damage doesn't end there.

 
The funds hit hardest by Russia's stock market rout
 

The scale of the sell-off in Russian stocks following the announcement of US sanctions late on Friday has exposed how investors were caught off guard by the move.

While a clampdown on Russian oligarchs had been expected, few had anticipated the US would directly target the quoted companies controlled by those on its sanctions list.

Investors in funds with Russian exposure have been hit with heavy losses. While shares in investment trusts focused on the country and the wider emerging Europe region immediately slumped, daily-priced open-ended funds are now showing the impact of yesterday's fall.

Unsurprisingly, the hardest hit was the UK's only fund focused solely on Russian stocks, the £211.1 million Neptune Russia and Greater Russia fund, down 15.6% over the last two days, according to the fund group's latest pricing.

Data from Lipper meanwhile shows the hit taken by funds focused on emerging Europe over the last two days.

Fund Russia exposure (%) Fall over last two days (%)
JPM Emerging Europe Equity 54.4 -10.4
Jupiter Emerging European Opportunities 49.9 -8.6
Aberdeen Eastern European Equity 46.5 -7.7
Fidelity Emerging Europe, Middle East and Africa 22.3 -5.6

Source: Lipper, fund factsheets

But the hit has not been limited to small band of managers running Russia or emerging Europe mandates.

Emerging markets managers have been hit too, with Russia's state-owned bank Sberbank (SBER.MM) in particular a popular holding among some. 

Shares in the bank are down 16.3% over the last two days, while the Russian rouble's 7.8% slide against the pound over the same period has added to losses for UK investors.

The bank is the top holding for Nick Price, manager of the Fidelity Emerging Markets fund and the second largest holding in the JPMorgan Emerging Markets Income and Lazard Emerging Markets fund.

It is meanwhile a top five position for the Somerset Emerging Markets Dividend Growth, Neptune Emerging Markets and Invesco Perpetual Global Emerging Markets funds.

All of those funds have been among the worst hit in the Investment Association's Global Emerging Markets sector over the last two days.

Fund Russia exposure (%) Fall over last two days (%)
Man GLG Unconstrained Emerging Market Equity 7 -2.9
Lazard Emerging Markets n/a -2.8
Somerset Emerging Markets Dividend Growth 9.8 -2.7
JPM Emerging Markets Income 9.2 -2.5
Neptune Emerging Markets 13.2 -2.4
Invesco Perpetual Global Emerging Markets 7 -2.4
Fidelity Emerging Markets 6.7 -2.4

Source: Lipper, fund factsheets

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the funds

  • Neptune Russia & Greater Russia
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JPM Emerging Europe Equity A Net Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Jupiter Emerging European Opportunities
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aberdeen Eastern European Equity A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Fidelity Emerging Europe Middle East Africa Fund
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Man GLG Unconstrained Emer Market Eq Prof Acc C
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Lazard Emerging Markets
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Somerset Emerging Markets Dividend Growth A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JPM Emerging Markets Income A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Neptune Emerging Markets C Acc GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Invesco Perpetual Global Emerging Mkts Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Fidelity Emerging Markets Fund
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Nick Price
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

The Accumulator: oil's rally sparks Trump anger

by Daniel Grote on Apr 20, 2018 at 16:31

Sorry, this link is not
quite ready yet