Vanguard has suspended purchases of Russian securities across our actively managed funds and is working to further reduce our exposure to Russia and exit the positions across our index funds. And, of course, Vanguard funds will continue to adhere to sanctions.

Overall, the exposure of Vanguard funds to Russian assets is extremely limited, with Russian securities accounting for less than 0.01% of client assets1.

Russia’s removal from market indices

At least five major sponsors of market indices have announced in recent days that they will drop Russia from various equity and fixed income indices in a matter of days or weeks. Other index sponsors may follow.

Although some index sponsors may continue to track the performance of Russian securities in standalone-country indices, Vanguard index funds track more broadly diversified indices and, as a result, will no longer provide exposure to Russian securities. 

How Vanguard prices securities that are not trading actively

Because market quotes for Russian securities may not be readily available, Vanguard’s internal pricing review committee will use a variety of observable market indicators to adjust the value of these securities appropriately.

The net asset value, or unit price, of our mutual funds and ETFs will reflect these fair-value pricing adjustments. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.

How Vanguard is responding to sanctions on Russia

An enterprise-wide team tracks, analyses, and responds to the latest sanctions and government orders affecting Russia, assesses market conditions and develops solutions to operational challenges.

The team also is in regular contact with industry partners. As Vanguard applies government-imposed sanctions, it continues to ensure that client assets are stewarded effectively during this period of uncertainty and market volatility.

 

1 Note that the holdings of most Vanguard funds as of the end of every month are updated on our websites around the middle of the following month. An exception applies to certain of our exchange-traded funds (ETFs), which disclose their holdings daily.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important information

For professional investors only (as defined under the MiFID II Directive) investing for their own account (including management companies (fund of funds) and professionalclients investing on behalf of their discretionary clients). In Switzerland for professional investors only. Not to be distributed to the public.

The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such anoffer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to doso. The information in this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making anyinvestment decisions.

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Issued in Switzerland by Vanguard Investments Switzerland GmbH.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2022 Vanguard Group (Ireland) Limited. All rights reserved.

© 2022 Vanguard Investments Switzerland GmbH. All rights reserved.

© 2022 Vanguard Asset Management, Limited. All rights reserved.