War in Ukraine prompts investors to exit Russia as they reconsider ESG approach

Bfinance poll shows asset allocation shift

Nearly half of investors had direct exposure to Russia coming into the first quarter of the year, but geopolitical developments have prompted institutional investors to re-evaluate their holdings and their ESG approach, according to new research.

The poll by investment consultancy bfinance found that of those with Russian investments ahead of the first quarter, 45% have fully exited or are in the process of doing so, because of illiquidity issues. Among the 418 institutional investors surveyed, 39% of investors, including 41% of pension funds, said recent geopolitical developments "will lead or have already led" to a re-evaluation of their ESG approach, either internally or via their external asset managers. The snap poll revealed four in five investors are concerned inflation and rising rates will "impair" their ability to ac...