Investments in Russian securities

Like everyone, we are concerned about the invasion of Ukraine and understand the questions arising in relation to investments held.

Below we provide you with some information about our funds.

Summer KiwiSaver scheme's investment exposures to Russia, associated with our holdings in Vanguard’s ESG international Stock ETF and Smartshares Global Bond ETF, as at 31 March 2022, are detailed in the tables below.

Our intention is to update our investment exposures to Russia at the end of each quarter, unless there is a material change.

Vanguard ESG International Stock ETF Summer Global Equities Summer Conservative Selection Summer Balanced Selection Summer Growth Selection
AEROFLOT-ROSSIYSKIYE AVIALINII PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
AFK SISTEMA PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
BANK VTB PAO DR 0.00000% 0.00000% 0.00000% 0.00000%
BANK VTB PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
DETSKIY MIR PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
ENEL ROSSIYA PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
FGK RUSGIDRO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
FSK YEES PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
GK SAMOLET PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
GRUPPA CHERKIZOVO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
INTER RAO YEES PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
M.VIDEO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
MAGNIT PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
MOBIL'NYE TELESISTEMY PAO DR 0.00000% 0.00000% 0.00000% 0.00000%
MOBIL'NYE TELESISTEMY PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
MOSENERGO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
MOSKOVSKAYA BIRZHA MMVB-RTS PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
MOSKOVSKIY KREDITNYI BANK PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
NOVOLIPETSK STEEL PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
NOVOROSSIYSKIY MORSKOY TORGOVYI PORT PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
PHOSAGRO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
PUBLIC POLYUS JSC DR 0.00000% 0.00000% 0.00000% 0.00000%
PUBLIC POLYUS JSC ORD 0.00000% 0.00000% 0.00000% 0.00000%
ROSSETI LENENERGO PAO 0.00000% 0.00000% 0.00000% 0.00000%
ROSSETI TSENTR I PRIVOLZH'YE PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
ROSSIYSKIYE SETI PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
ROSTELEKOM PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
RUB CASH 0.00003% 0.00000% 0.00001% 0.00001%
SBERBANK ROSSII PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
TGK-1 PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
VTORAYA GENERIRUYUSHCHAYA KOMPANIYA OPTOVOGO RYNKA ELEKTROENERGII PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
YUNIPRO PAO ORD 0.00000% 0.00000% 0.00000% 0.00000%
Total 0.00003% 0.00000% 0.00001% 0.00001%

 

Smartshares Global Bond ETF Summer Global Fixed Interest Summer Conservative Selection Summer Balanced Selection Summer Growth Selection
Ruble Cash 0.00010% 0.00002% 0.00001% 0.00000%
SBERBANK (SB CAP SA) REGS 0.02382% 0.00423% 0.00175% 0.00092%
Total 0.02392% 0.00425% 0.00176% 0.00092%

The Vanguard ETF is passively managed (market index tracking) and forms part of our strategy to better align the investment performance of these Summer Kiwisaver scheme funds to their international equities’ market index, the MSCI ACWI Net Total Return Index, 50% hedged to the New Zealand dollar.

The manager of the FTSE Global All Cap ex US Choice Index, the market index of the Vanguard ETF, has announced that effective from Monday 7 March 2022, Russia will be deleted from the index. Accordingly, Vanguard as manager of the Vanguard ETF, has advised that it has suspended purchases of Russian securities and is considering options on how best to exit its current Russian investments; all investments currently held, with the exception of a very small amount cash, are recorded and valued at zero

By investing in the  Smartshares Global Bond ETF, we have out-sourced the active investment management of our international fixed interest securities to PIMCO Australia Pty Ltd, which forms part of our strategy to align the investment performance of these Summer Kiwsaaver scheme funds to their international fixed interest market index, the Bloomberg Global Aggregate Total Return Index, 100% hedged to the New Zealand dollar.

PIMCO, the investment manager of the Smartshares Global bond ETF has advised that it has recently consulted with the Office of Foreign Asset Control, the relevant US regulator, and is still considering its firm-wide strategy on managing Russian assets in its client’s investment portfolios. On this basis, the Smartshares Global bond ETF, will continue to hold its Russian investments.