Fund managers adjust portfolios for "Super El Niño" impact on global markets
Fund managers are preparing their portfolios for the possibility of a stronger El Niño than previously recorded, according to Bloomberg. The phenomenon causes droughts and floods that damage crops, push up food prices and lead economists to revise inflation and deficit forecasts. Man Group warned that power grid infrastructure, metals and fertilizers could be exposed; T. Rowe Price uses custom models to protect its US$165 billion portfolio in emerging-market debt and equities. The Anthropocene Fixed Income Institute identified Indonesia, Brazil and Colombia as the most vulnerable countries.
In 45 seconds
- Managers such as Pictet, Man Group and T. Rowe Price are adjusting portfolios for what they see as the most extreme El Niño on record
- The phenomenon damages crops, pressures food prices and forces revisions to inflation and deficit forecasts
- The Anthropocene Fixed Income Institute named Indonesia, Brazil and Colombia as the most vulnerable countries, with possible global spillover effects
Read the full story at Bloomberg Línea
IASummary generated by artificial intelligence from a story by Bloomberg Línea. It may contain errors: the original source prevails.
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