Reaction to the latest development in Ukraine
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Reaction to the latest development in Ukraine

As the situation in Ukraine unfolds, we remain focused on our investment process: being active, long-term investors in companies with strong balance sheets and solid fundamentals, employing our research intensity capabilities.
As with other major geopolitical situations we anticipate there will be volatility in markets and while we invest with conviction we do not ignore the impact of globally-driven events on the companies and industries in which we invest, in addition to the impact on economies more broadly. Furthermore, we incorporate these considerations as part of our responsible investment approach, providing stewardship of assets which support the welfare of society.
We are already seeing a risk off sentiment across emerging markets, as the possibility of imposed sanctions increases, although Russia and Ukraine together comprise around 3.5% of the Emerging Market Debt hard currency index.
Our Global Emerging Market equities portfolios have c.4.5% investment in Russian companies1 with minimal exposure to Ruble-denominated names.
From a credit perspective, most Russian companies are at the lower end of Investment Grade ratings and could be downgraded to High Yield as a result of sanction risks.

We expect to see an increase in energy prices and grain prices across emerging markets which is likely to have an impact on commodities globally.

We will continue to monitor the situation and ensure that we actively manage our portfolios responsibly and maintain a global perspective.
24 February 2022
William Davies
William Davies
Global Chief Investment Officer
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Reaction to the latest development in Ukraine

1 Source: Columbia Threadneedle Investments, Bloomberg, as at 24 February 2022

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