Red Square
BlackRock has barred investors from buying any more Russian securities, adding that Russian securities now account for less than 0.01% of its clients’ assets.
The world's largest asset manager said yesterday (3 March) that it had "suspended the purchase of all Russian securities in [its] active and index funds" and added that the policy had come into effect on Monday.
BlackRock said that it was also pushing index providers to remove Russian securities from broad-based benchmarks. Index providers FTSE Russell and MSCI already announced on 2 March that they were removing Russian equities from all their indexes.
Blue Whale urges investor caution as markets continue to navigate Russian invasion of Ukraine
However, on Friday, a day after the Russian invasion of Ukraine began, BlackRock bought more shares in Polymetal, a Russian goldminer part-owned by Russian oligarch Alexander Nesis.
The asset manager became the company's second biggest investor after spending £12m to increase its stake to 10.1%. "This trade would not be permitted by the policy BlackRock instituted on Monday, which we believe reflects BlackRock's and our clients' values," it said in its statement.
While the shares have lost almost 80% of their value since then, BlackRock will pick up a £35 million dividend in May.
Being the world's biggest asset manager, BlackRock is also the biggest investor in Russian dollar bonds, as well as one of the biggest non-Russian investors in companies like Gazprom, Lukoil, Rosneft and Sberbank.
BlackRock CEO Larry Fink said in a LinkedIn post that the company did not operate out of Ukraine or Russia, but it was working to provide support to colleagues and their families who have been directly impacted by the invasion.
"BlackRock and its people have also rallied to provide financial assistance to Ukrainian refugees on the ground," wrote the chief executive.
