Following the invasion of Ukraine, NFU Mutual is divesting from all Russian holdings as soon as is practically possible.
NFU Mutual has very limited exposure to Russian assets. Therefore, impact on customers and portfolio performance will be small, but we have produced these Questions & Answers to help with any queries customers may have.
Market values have fallen significantly in recent weeks and exposures have been reduced, so current exposure at the start of March 2022 is close to zero across all funds.
At the start of 2022 the exposure was as follows:
- If you are invested in our Global Growth or International Equity Fund, less than 1% of your fund was invested in Russia.
- If you are invested in any of our Mixed Portfolio Funds or With Profits, less than 0.5% of your fund was invested in Russia.
Russian assets represented a small part of our overall portfolios, and therefore the impact of withdrawing from these assets on the performance of the funds will be small.
Yes - due to the invasion of Ukraine, we are removing all Russian holdings as soon as is practically possible.
Yes – NFU Mutual supports and is complying with all sanctions made by the UK government and other relevant bodies.
In the short term, we might expect to see increased volatility in markets as events unfold.
Looking to the longer term, as Russia is a major provider of several commodities, including natural gas, oil, and fertiliser, and the Ukraine is a major food producer, ongoing disruptions to such commodities could have an impact on the global economy. We could, as a direct result, see rises in energy and food inflation. We might also expect to see further times of market volatility.
In addition to our commitment to divest from Russia we will continue to monitor the situation and will be actively assessing the impact of events on our portfolios, including any sanctions. We will take the necessary actions to ensure we comply with these sanctions.
As a long-term investor, we have experienced many market shocks. Our approach is to look for long-term value which we believe will give good returns for our customers. To do this, we balance our portfolios by diversifying across regions and asset classes, looking for good quality companies that will provide value over the longer term.