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Demand for Cash Jumps From Fund Managers Stressed by Russia

  • Money-market funds see first weekly inflow in a month
  • ‘A lot of negative sentiment out there’: John Hancock’s Roland
Updated on

Investors are rushing into cash as the war in Ukraine roils markets across the globe and erodes demand for riskier assets.

As talk of Russian sanctions grew, investors poured $5 billion into U.S. money-market funds in the week ended Feb. 23, marking the first weekly inflows in a month, according to Investment Company Institute data. A similar phenomenon can be seen in cash-like instruments: Exchange-traded funds holding debt with ultra-short maturities received $2 billion in net new orders last week, Bloomberg data show.