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Statement on the Embark Horizon Funds and the situation in Ukraine

Statement from Embark Investments

18 March 2022

We continue to be saddened by the ongoing conflict in the Ukraine and hope there can be a resolution as soon as possible.

The Horizon Multi-Asset funds have seen their already small holding in Russian stocks significantly reduced. These small positions were held indirectly through investments in the Threadneedle Global Emerging Market Fund by each Horizon fund. As a result of fair value pricing, the Russian equity and RUB exposure has being taken to nil across all the Horizon funds.

Points of note:

  • The Embark Horizon Multi-Asset Funds are diversified portfolios, invested across a wide range of equity and fixed income asset classes. This gives the funds exposures to equities across the globe, as well as UK and Developed Markets Government Bonds, UK Corporate Bonds and a limited allocation to Euro-denominated High Yield Bonds.
  • For each of those asset classes, the Funds invest their assets in a series of funds, managed by Columbia Threadneedle Investments, which in turn deploy their assets in a range of liquid securities. This results in very liquid asset exposure within the Horizon Funds.
  • The Embark Horizon Multi-Asset Funds invest in funds which are actively managed, giving exposure to a diverse range of investment styles from the different portfolio managers.
  • The exposure to Russian equities and RUB have been taken to nil across all the Horizon funds.
  • The portfolios continue to be managed within their expected risk profiles.
  • The portfolios are built to adapt to changing markets with a long-term focus. Risk profiles are established around long-term expected volatility, rather than day to day market shifts. The asset allocation considers both the long-term strategic asset allocation as well as the tactical positioning that Columbia Threadneedle Investments takes within a 6-18-month view.
  • We believe that, by staying the course and not disinvesting when markets are volatile, Financial Advisers and Retail Clients are more likely to benefit from the long-term investment opportunities the funds encapsulate.
  • Embark Investments, as the ACD, continues to monitor the situation on an ongoing basis.