But Whose Money Evaporated when JP Morgan, BlackRock, Pimco, Calpers, Others Report Huge Losses on Russian Assets? | Wolf Street

BlackRock, with about $10 trillion in funds under management, said on March 11 through a spokesperson, cited by the Financial Times, that Russian assets in its funds on February 28 were down to about $1 billion, from $18.2 billion a month earlier, and that the $17-billion plunge was from markdowns of asset values, rather than asset sales. BlackRock didn’t provide details as in which funds these losses occurred.

BlackRock’s Ishares Msci Russia ETF [ERUS] collapsed from $41.26 on February 16 to $8.06 on March 3, when trading was halted. The fund’s top holdings were Gazprom (19.7%), Lukoil (14.2%), Sberbank (12.1%), and Norilsk Nickel (5.1%). BlackRock suspended trading of all of its Russian ETFs and of an Emerging Europe fund that is heavily exposed to Russia.

BlackRock CEO Larry Fink said on LinkedIn: “This has been a highly complex and fluid situation, and BlackRock will continue actively consulting with regulators, index providers and other market participants to help ensure our clients can exit their positions in Russian securities, whenever and wherever regulatory and market conditions allow.”

Those funds with exposure to Russian assets have been heavily marketed to retail investors not in Russia, but in the US and Europe. “Emerging Europe” funds and Russia funds were supposed to be part of the strategy to increase returns and diversify assets. This is mostly the money of American and European retail investors.

But Whose Money Evaporated when JP Morgan, BlackRock, Pimco, Calpers, Others Report Huge Losses on Russian Assets? | Wolf Street