08 March 2022
Sadly, Russia finally decided to “fully” invade the Ukraine on 25 February. This sent shock waves through global capital markets over late February and early March, as highly punitive sanctions were unleashed on the rogue state. Russia’s stock market crashed -35% over February and MSCI announced on 3 March that Russia will be removed from the MSCI EM index effective 9 March 2022. Northcape, the underlying investment manager for the Warakirri Global Emerging Markets Fund, has zero holdings in Russian equities, which has been the case for nearly a decade due to its rigorous approach to assessing EM sovereign risks. The events in Russia should also send a very dire warning to China if it attempts to take over Taiwan.