Ukraine Update | Assessing the Impact for Pension Schemes with Fiduciary Managers
Ukraine Update | Assessing the Impact for Pension Schemes with Fiduciary Managers
08 Mar 2022
Fiduciary Management Implications
There is no escaping the ever-evolving and saddening situation in Ukraine – the humanitarian impact is huge and, for most, incomprehensible. We have now seen the impact of the Ukraine crisis hitting financial markets with significant increases in volatility.
Where trustees have delegated the day-to-day management of their pension scheme’s assets to a fiduciary manager, the trustees are still responsible for the investment strategy and monitoring of their investments. With the increasing sanctions on Russian assets and accelerating numbers of investors disinvesting from them, do trustees that use fiduciary management really understand how their scheme’s assets are invested and the implications that the current crisis has for their portfolios?
The XPS Fiduciary Management Oversight Team suggests all trustees in this situation give consideration to the following:
Ultimately, the crisis in Ukraine highlights the importance of trustees understanding how their scheme’s assets are invested, irrespective of the chosen governance model, and how the approach taken aligns with their investment beliefs and that of the sponsor.
For further information, please get in touch with Andre Kerr or Guy Plater.