On the go: The Parliamentary Contributory Pension Fund has ordered its fund managers to divest from Russian assets where possible, after uncovering a small amount of direct Russian holdings.
The decision to move out of Russia comes as chancellor of the exchequer Rishi Sunak told investors on March 13 to “think very carefully” about any investments that may support Russian president Vladimir Putin’s regime.
Pension schemes have been quick to divest or freeze Russian investments in response to the invasion of Ukraine in February.
The Pensions Regulator has told trustees to consult with their advisers on the matter and ensure that schemes are behaving in line with the UK government’s sanctions on Russia.
Schemes’ efforts to beat a retreat from Russia have been hampered, however, by a lack of liquidity in the market for Russian assets.
On Twitter, pensions minister Guy Opperman acknowledged that "exiting previous investments will in some cases take time, and may have a small negative financial impact for some members".
"We need to isolate Russia in every possible way," he added. "That is our best way to assist the end of this conflict."
According to Opperman, Russian exposure amounts to well below 1 per cent of scheme investments, in most cases sitting beneath 0.1 per cent of portfolios.
The PCPF, which is the scheme for members of parliament in Westminster, previously advised Pensions Expert that it was not aware of any direct holdings its portfolio may have had in Russia.
“The trustees have now been made aware that the PCPF does have some very limited direct and indirect exposure to Russian investments,” a spokesperson said.
“The trustees consider continued investment in Russian assets to be clearly inappropriate. The trustees have therefore instructed their fund managers to divest from Russian assets, wherever possible.”
The PCPF’s actions are likely to be well-received by Sunak, who has also said that “there is no case for new investment in Russia”.
He endorsed recent commitments from companies including BP, Shell, Aviva, M&G and Vanguard to lower or sell their Russian holdings.
“We must collectively go further in our mission to inflict maximum economic pain and to stop further bloodshed,” he said.
