The devastating Southern California wildfire will go down in history as one of the most costly and damaging natural disasters in the region. While the fire has subsided, alerts remain in place, and after eight days, at least 25 people have lost their lives, and approximately 6.5 million people have remained on alert. Additionally, the fire has damaged or destroyed more than 12,000 homes and other structures, displacing 200,000 people.
In this context, asset managers and banks have expressed concern for those displaced, including some of their employees, and have also thanked supporters for their assistance in recent hours. Specifically, this article includes statements from Capital Group, iMGP, and UBS.
“We cannot thank you enough for the incredible show of support in the face of the tragic wildfires still burning in Los Angeles. The damage to our communities is heartbreaking,” Capital Group said in a statement sent to clients and the press.
The asset manager, with offices in Los Angeles, added that its focus has been to join forces with colleagues and neighbors “to support them in every way possible” and emphasized that the most important thing is that its associates “are safe.” Additionally, the company’s statement noted that some have lost their homes, and others have been evacuated.
Finally, the asset manager, which clarified that its business is operating normally, said it is “donating to the California Community Foundation, the Los Angeles Regional Food Bank, and the American Red Cross.”
iM Global Partner, for its part, expressed deep sorrow and concern about the situation in California. “The devastation caused by the fires in Los Angeles, California, is immense and truly heartbreaking. Our thoughts are with those affected by this terrible tragedy, and we are very grateful that most are safe,” the asset manager said in a statement accessed by Funds Society.
iMGP, which has offices in Los Angeles, noted that some of its team members have had to leave their homes, while others “are opening their doors to help those in need,” the statement added.
The firm committed to contributing to the rebuilding of the affected areas and supporting the people of Los Angeles in the future.
Finally, the Swiss bank UBS, which also has a presence on the West Coast, expressed its “condolences to those who have suffered losses” and prepared a report on how the wildfires could affect the municipal bond industry.
“It is too early to fully assess the impact on municipal issuers, but we do not expect defaults among the seven major issuers we cover in the region, given federal support, state aid, insurance payouts, and strong credit fundamentals,” said Solita Marcelli, Chief Investment Officer for the U.S. at UBS Global Wealth Management, in a LinkedIn post.
Additionally, the UBS executive noted that experts observed that “California has a proven track record of assisting its local governments with disaster recovery efforts.”
Finally, she warned investors “that widespread destruction will create credit pressures across all sectors, which will likely lead to actions by rating agencies.”
For Funds Society, Madrid