The Russian invasion of Ukraine is clearly a humanitarian tragedy.
It will also have widespread economic consequences.
We have been working with our advisers to try to make an early assessment of the likely impacts on the Fund.
Initial conclusions are:
Stock specific exposure
SPF owns shares in 2 Russian companies within one of its global equity portfolios. These holdings have reduced over recent weeks as a result of sales activity and market movements and as at close on 28th February, the combined value of these two positions was less than £1m.
The Fund invests globally across a range of asset classes and investment markets. This diversification spreads risk, but it also creates a complex network of commercial and economic exposures which will all be affected by these events to a greater or lesser extent. SPF is liaising with its investment managers as they assess the impact of macroeconomic pressures as well as potential second order ramifications and outcomes on companies and assets within the Fund's portfolios.
None of this will have any impact on our ability to pay pensions. It might reduce investment returns for a period, but SPF is a long-term investor and remains very well funded (126.5% at 31st December 2021).