Pension fund executives across the globe are turning a serious eye to the crisis that is rumbling on in Eastern Europe, as its effect on investment performance starts to hit home.
But while some are adjusting their portfolios, others are only keeping watch on the situation that continues to unfold across Russia and Ukraine.
The effects of the annexation of Crimea by Russia and other political decisions made by Russia have shown up in the MSCI World and MSCI Emerging Market indexes, which have fluctuated since mid-March, when the issues started to take hold.
The MSCI World has gained 1.4% since March 1, while the MSCI Emerging Market index gained 4.9%.
Add to that Standard & Poor's Financial Services LLC lowering of Russia's long- and short-term foreign currency sovereign rating to BBB- status — which the ratings agency attributed in part to “the tense geopolitical situation between Russia and Ukraine, (which could lead to) additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects.”