The Russian invasion of Ukraine, which continues to develop as I write this message, has shocked the world. Our hearts go out to the millions of Ukrainians facing the horrific and senseless violence set in motion by Vladimir Putin.

As Russian sanctions are being introduced by the US, UK, Europe and other major nations, many have been asking about their own investments. The portfolios we build for our clients, being globally diversified, include a small exposure to Russian shares.

The Emerging Markets Value Trust, a fund investing in companies from 22 developing nations, includes a 1.54% exposure to Russia as of the 1st of January. The fund itself represents 15% of our portfolio's share exposure, so roughly a quarter of a percent of shares in each portfolio are from Russian companies.

However, yesterday Dimensional released the following statement regarding their investments in Russian securities:

On March 1, 2022, Dimensional’s Investment Committee removed Russia from its list of approved markets for investment. Dimensional’s Investment Committee considers a variety of factors when evaluating a market’s eligibility for investment, which include, among others: government regulation, restrictions on foreign investors in that market, and market liquidity.

If you are interested in how markets reacted to Ukraine's invasion, a recent webcast by Dimensional discusses their interpretations in depth. Another article discusses how flexibility and diversification helps Dimensional manage investments during times of geopolitical uncertainty.