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Russian Equity & Debt Exposure in iCM Strategies



The Russia/Ukraine conflict that has been evolving over the last few weeks has injected a high level of volatility into both equity and fixed income markets across the globe. Given these events, we feel it’s important to proactively communicate our strategies’ exposure to the conflict to our advisor partners in anticipation of client questions.

As of today’s market open, direct exposure to Russian equities and bonds was very low across all of iCM’s ETF and mutual fund strategies. In total, our strategies exhibited exposure to Russia of less the 1%, despite overweight positions in broad emerging markets equities and bonds. This may sound surprising given the perceived size of the Russian Federation, but in reality, their economy accounts for less than 2% of global GDP, and Russian equities hold less than a 3% weight in the benchmark MSCI Emerging Markets index.

That being said, we do anticipate some spillover effects as it relates to emerging markets currencies, as well European financial institutions. However, in total, iCM’s strategies have thus far weathered this storm quite well, benefitting from their broad diversification, a focus on value equities across the globe, and positions in broad-basket commodities, which have produced strong positive returns in 2022.

Please feel free to reach out to a member of the iCM Advisor Services team if you have any additional questions or concerns. As always, we thank you for your continued trust and confidence.

Important Disclosures

Integrated Capital Management, Inc. is an SEC Registered Investment Advisor. Registration does not imply any certain level of skill or training. Monthly “Market Flash” is intended solely to report on various investment views held by Integrated Capital Management. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but should not be assumed to be accurate or complete. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer or recommendation to purchase or sell a security.

Past performance is no guarantee of future results. Please note that investments in foreign markets are subject to special currency, political, and economic risks. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Strategy performance results are net of fund expenses, gross of advisory fees and other expenses that would be incurred in the management of client accounts, such as commissions, transaction fees, and/or custodial charges, and reflect the reinvestment of dividends and capital gains. The client’s return will be reduced by the advisory fees Integrated Capital Management, Inc. charges for the management of an account. Individual account performance and investment management fees incurred by clients may vary as fees for smaller accounts are higher on a percentage basis than for larger accounts. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than their original cost. For additional information regarding advisory fees, please review Integrated Capital Management, Inc.'s Form ADV Part 2A.

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