Since 2020, markets have seen huge swings in volatility. Covid, conflicts in Ukraine and the Middle East, the regional banking crisis in the US, and the interest rate cycle have caused asset prices to gyrate wildly. Numerous strategies have moved in and out of vogue as investors have wrestled with an unclear outlook and hunted for the best places to commit their capital.
The net effect of this uncertainty, combined with the fact that the success or failure of global equity portfolios has essentially hinged on whether or not you hold a handful of US tech stocks, has been that many types of funds found themselves experiencing heavy outflows as investors switched to “risk off” mode.
One corner of the fund universe, conversely, has grown serenely and inexorably during this period. Money market funds, vehicles designed to deliver a small upside to cash by investing in short-term, high-quality bonds and cash equivalents, have…
