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Update on the war in Ukraine

The war is now in its fourth week. Daily, we are encountering images of intense suffering and losses incurred by victims, some of whom have been forced to flee for their lives. It is a disturbing and uncertain situation, which will have far-reaching effects on the global community, to an extent that is not yet fully understood.

Published 25.03.2022 by Storebrand AM

Due to the war in Ukraine, on March 1st, Storebrand decided to freeze all Russian investments and sell out of Russia. We implemented the decision immediately, but as a consequence of closed stock exchanges and suspended trading in Russian companies, currently we have not yet been able to sell off all the relevant holdings in a responsible manner.

Subsequently, we did not have a market price to relate to, and as various index providers at the time of the decision indicated that they would "zero price" their holdings, we at Storebrand chose to do the same. This means that we no longer expect to have any value left in the positions. This situation may change when the relevant stock exchanges are opened for trading again, allowing us to then make a valid assessment of the markets' efficiency. The Moscow Stock Exchange has partially opened up for trading, but does not currently meet the criteria by which we define a well-functioning market.

With zero value indicated by us and the index suppliers, we have virtually no exposure to Russian companies anymore and are thus neither over nor under-exposed. However, we are still legally the owners of a number of shares in the relevant companies. The effect of this in regards to return on our customers' money has been relatively small in relation the benchmark, as we have stayed close to the index.

We are continuing to monitor the situation, and evaluating which measures to take on this issue.

Historisk avkastning er ingen garanti for fremtidig avkastning. Fremtidig avkastning vil blant annet avhenge av markedsutviklingen, forvalters dyktighet, investeringsrisiko og kostnader ved forvaltning. Avkastningen kan bli negativ som følge av kursfall.