These Mutual Funds are Vested in Russia – Should You Consider Moving Your Money?

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Russia has been hit with numerous economic sanctions since its invasion of Ukraine, sending the country’s currency tumbling to historic lows and putting investments with heavy exposure to Russia at risk. If some of your investments have heavy exposure to Russia — including mutual funds — this might be a good time to consider moving your money elsewhere.

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A number of popular mutual funds have significant exposure to Russia, Bloomberg reported, including one with nearly 17% of its assets tied to the country.

The U.S.-based equity mutual fund with the highest exposure to Russia in percentage terms is the $8.8 billion GQG Partners Emerging Markets Equity Fund. As of September 2021, it had 16.6% of its assets, or around $1.5 billion, exposed to Russian securities, according to data provided to Bloomberg by Morningstar Direct. One of the fund’s top 10 holdings is Sberbank of Russia PJSC.

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Another major fund with investments in Russia is the $45 billion Invesco Developing Markets. As of Dec. 31, 2021, it had 7.9% of assets exposed to Russia, or about $3.4 billion. 

Here’s a look at equity funds that carry considerable risk right now because of their Russian investments, based on Morningstar Direct data (% of assets exposed to Russia):

  • GQG Partners Emerging Markets Equity: 16.6%
  • JNL/GQG Emerging Markets I: 15.6%
  • Kopernik Global All Cap I: 13.5%
  • GMO Emerging Markets III: 13.3%
  • Invesco Emerging Markets All Cap: 11.6%
  • GMO Resources III: 10.7%
  • Harding Loevner Emerging Markets: 8.7%
  • Harding Loevner Emerging Markets Advisor: 8.6%
  • MFS Emerging Markets Equity: 7.9%
  • Invesco Developing Markets: 7.9%

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The GQG fund has lost 2.5% over the past month and is down 4.4% for the year, Bloomberg noted. But not all of the funds have moved backward. The $1.9 billion GMO Resources II fund, which is heavily invested in the oil/gas and mining sectors, has gained 3.4% over the past month and is up 4% gain for the year.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.
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