LONDON (Reuters] – Less than a fifth, according to Copley Fund Research, have decreased their Russian stock exposure to zero. There are also a few funds that cannot sell.

Russia’s financial institutions have been cut off and the bonds and stocks of Russia were removed from all indexes. The sanctions applied by Western nations to Russia for their February 24th invasion in Ukraine has triggered a wave of protests.

Russian countermeasures and sanctions have combined to make the country’s financial market virtually unaccessible for foreign investors.

According to the Copley research, 45 Russian funds were closed between April 2021 and April 22nd according to latest fund filing data. The 253 funds have $450 Billion assets.

Steven Holden from Copley stated that “many funds are in positions they can’t escape so will remain invested for some time.”

Also, weightings are rapidly falling. Russia accounts for less than 2% of the average fund weights now, compared with 4.5% in January.

Holden stated that Russia’s weight was artificially increased because it relies on trading prices before wartime for stocks like Sberbank.

He said, “Russian is sinking down the ranks” and that it would drift to insignificance during the year.

Russia weightings in active EM equity funds https://fingfx.thomsonreuters.com/gfx/mkt/klvyklrklvg/Russia%20weightins%20end-April.PNG

Russian stock were widely owned by emerging market assets managers after 1995’s launch of a dollar denominated index at the Moscow Exchange.

Funds by Morgan Stanley (NYSE:), Lazard, (NYSE:) Asset Management and Templeton. Van Eck was also shown in the data.

Funds cutting Russia exposure https://fingfx.thomsonreuters.com/gfx/mkt/xmvjoywodpr/Funds%20cutting%20Russia%20exposure.PNG