Investment Exposure to Russia

Members of the Western Pension Plan may be interested in understanding their exposure to investment in Russia. Here is a summary at March 1, 2022:

Investment in Russia is a result of four investment managers investing within the global equity and emerging markets equity allocations within the Diversified Equity Fund. The Diversified Equity Fund is a component fund of the Balanced Growth portfolio and Balanced Income portfolio.

  • The total pension plan exposure: 0.13% of total plan assets (approximately $1.7 million of $1.3 billion)
  • Exposure to investment in Russia is only through the following funds:
    • Diversified Equity Fund exposure: 0.26%
    • Balanced Growth Fund exposure: 0.18%
    • Balanced Income Fund exposure: 0.08%
  • No investment option, other than the Diversified Equity Fund, the Balanced Growth Fund or the Balanced Income Fund have exposure to Russia.

As of Monday, February 28, foreign investors were barred from transacting in local Russian equities. And trading was also halted for American Depositary Receipts (ADRs). Securities are valued based on a model (fair valuation process).

Major indices have removed Russia from their index.

Given the economic sanctions, most investment managers are looking to divest as soon as possible. However, since trading is halted, it is not possible to fully eliminate the positions. Western’s investment team and Joint Pension Board are continuing to monitor.

No action is required by plan members, but those with questions and those requiring assistance with account transactions are encouraged to contact Sun Life at 1-866-733-8612.

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