Quilter Investors has banned investments in Russia and Belarus across its sub-advised funds in response to the humanitarian crisis in Ukraine.
Third party portfolio managers will not be able initiate fresh positions or add to existing holdings that are listed or located in Russia or Belarus. This includes directly held securities, such as equities and bonds, as well as indirect exposure via American depositary receipts and derivatives.
Managers will not be pressured to ditch their Russia-linked holdings if or when markets re-open, although Quilter stressed these positions were “minimal”.
Its sub-advised funds are a staple in its WealthSelect managed portfolio service run by Stuart Clark.
Quilter told Portfolio Adviser three of its Quilter Investors funds had exposure to Russia. The QI EM Income fund had 0.44% exposure as at 2 March, while the QI Sterling Diversified Bond and QI European (ex UK) Income funds had 0.16% and 0.07%, respectively.
However, all these positions have been written down to nil given current valuations, it said.
Explaining the decision Clark said: “Historically we have given our managers the autonomy to invest as they wish, provided they stick to the investment objective and policy and follow the philosophy and process that they were originally selected for. However, given the seriousness of the situation, we have a responsibility to act as stewards of our client’s capital and as such we have taken the decision to implement a ban on the purchasing of Russian and Belarusian bonds or equities. There is no circumstance or valuation case for these securities to be part of a portfolio.
“Clearly the humanitarian crisis and the fate of the Ukrainian people is what matters most at this stage, but it is important our assets do not help contribute further to the barbaric acts that are being committed. We will keep a close eye on the situation and continue to engage with our managers to ensure client money is invested in a way that is responsible.”
