Russia Ukraine Conflict

The information in this Newsflash applies to active members, deferred pensioners and living annuitants of the Defined Contribution (DC) section only. Defined Benefit (DB) section active members, deferred pensioners and life annuitants will not be affected directly by the shortterm investment market fluctuations caused by the conflict.



While expressing our sorrow for the humanitarian impact and loss of human life, we (as the Board of Trustees) are comfortable that the Fund is largely insulated against the impact of the conflict, other than in terms of some short-term fluctuations.


The recent Russian invasion of Ukraine has understandably created uncertainty and apprehension around the world, also in terms of the financial impact that this conflict may have.

The economies of Russia and Ukraine are, however, not particularly material in the global economy. The only concern at this stage is that Russia’s role in supplying fuel and gas may result in rising inflation.


From a Fund perspective, the Fund has no direct investment holdings in Russia, while the indirect offshore exposure to Russia through the BlackRock Funds the Fund is less than 0.6% of the DC section investments and less than 0.3% of the Fund’s total investments.

The Fund’s South African based asset managers have however noted that the Fund’s exposure to certain listed companies could be negatively impacted, but nowhere near the magnitude we have seen during previous crises, such as Covid-19 and the 2008 Global Financial Crisis. It is important to mention that there is no need to panic as your investments are continuously monitored.


At present, it is not expected that the West will become directly involved in a war with Russia, choosing instead to impose sanctions. However, should the conflict escalate dramatically, the extent of its spill-over into Europe, the US and China, might be more significant. We will continue to update members in this regard.

Stanley Mathonzi