Risk Top of Mind as Global Conflict Impacts Industry

The asset management industry is observing and reacting to the conflict between Russia and Ukraine. In a statement, Goldman Sachs Asset Management wrote: “Our thoughts are with the people of Ukraine and everyone who is impacted by the war, whether in Ukraine, in Russia or in neighboring countries.” Goldman added that it has implemented a suspension of purchases of Russian securities in client funds and accounts and reduced exposure where possible in the best interest of clients. Vanguard also issued a statement, expressing its concern for the humanitarian crisis and its support of global sanctions on Russia. “We have suspended purchases of Russian securities across our internally and externally managed active funds and are actively working to further reduce our exposure to Russia and exit the positions across our index funds.”  Other asset managers have cut back on their Russia investments, and some index providers, including MSCI and FTSE Russell, have removed Russian equities and debt, according to Reuters. Additionally, investors seemed to have moved towards caution as money market funds see inflows. U.S. money market funds drew a net $43.21 billion in net buying, the biggest weekly inflow since Sept. 22, reported Reuters. Fund managers are advising caution while informing investors about opportunities and threats. The emerging markets team at Eaton Vance, for instance asserted that the conflict leaves the immediate future hard to predict and analyze.