Germany's asset management firm DWS suspends investments in Russian securities

In the midst of Russian aggression in Ukraine, a German asset management firm, DWS Group has decided to suspend its investments in Russian security. In its financial results report for the first quarter of 2022, the corporation declared that until further notice they have decided that funds managed by DWS will no longer invest in Russian securities, as per the reports of Pravda. The firm also stated that in light of the current extremely tense geopolitical situation in Ukraine, which has resulted in a high level of uncertainty and insecurity in the markets, as well as a sharp rise in inflation, they have re-intensified their contacts and dialogue with their customers to help them with their assessment and expertise.

The corporation also announced that it has donated 250,000 euros to humanitarian relief to help reduce the effects of the conflict in Ukraine, which has resulted in a huge number of Ukrainian people moving out of the country. Furthermore, the Group stated that its employees at various locations conducted relief efforts and contributed donations for Ukrainians affected by the current crisis.

DWS Group concerned about the situation

Last week, David Bianco, who is chief investment officer for the Americas at DWS Group said that Russia attacking Ukraine should be their major fear as the inflation is at a four-decade high due to the war. He further said that they are concerned about all of these dangers caused by the war. He went on to say that they prioritize their concerns in this order, firstly they are concerned about the intensifying war, second, the European recession, third, non-commodity wage-spiral inflation, and fourth excessive valuation, according to the Insider.

DWS is keeping an eye on the conflict

The firm claimed that DWS is keeping an eye on the conflict as it has the potential to escalate even more, which will result in another spike in oil prices and ultimately, a recession. Following Russia's invasion of Ukraine in late February, Brent crude and West Texas Intermediate petroleum prices soared to levels not seen since 2008, according to Insider. Gas prices in the United States immediately rose to near-record highs of more than $4 per gallon as a result of the rise.

Image: @DWS_Group/Twitter/ AP