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Central bank portfolio managers fear rising rates

Executives running investment portfolios for state-backed institutions set out plans for diversification

The biggest investment worry for central bankers is the effect of rising interest rates on their portfolios, suggesting that those working at monetary-policy institutions feel the end is in sight for the extended period of low rates.

The finding comes from a survey of 62 executives at central banks and sovereign wealth funds around the world, conducted since the start of this year on behalf of the financial group State Street Corporation.

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