Best Fund Provider – Global Bond
Heading into 2017, markets were focused on the prospects of a Trump administration leading a global reflation trade. Add in to the mix a policy package that included tax cuts and fiscal boosts, these factors placed additional pressures on fixed income assets.
Even so, Asian HNWIs’ appetite for yield was not dented, especially as many were relatively late to jump into equities in a major way.
While investor conviction waned when it came to picking individual fixed income markets, private banking clients continued to seek unconstrained asset managers to help comb through the wide universe of bonds in order to obtain optimal risk-adjusted returns.
This year, PIMCO upheld its preeminent status as the leader of global bond management with a near-unanimous vote from private banking gatekeepers in Asia. PIMCO’s ability to leverage from a truly global fixed income perspective, especially from US floating rate securities, enabled superior performance in a rising rate environment, while boosting yields.
Perhaps the best proof of the industry’s confidence towards PIMCO funds as part of its core holding was demonstrated in early 2017 when clients expressed concerns about fixed income risk with a focus on downside protection. The industry leveraged asset management expertise to develop fund-linked notes with partial or full principal protection, raising US$3 billion in just a few months in Asia.
Gatekeepers and issuers alike made it clear that the quality of one manager was undeniable. With consistent outperformance backed by both a breadth and depth of coverage of the bond universe – PIMCO emerged as Asian Private Banker’s Best Fund Provider – Global Bond.
“PIMCO utilizes a multi-sector, benchmark-agnostic approach that takes advantage of our global resources to source the best income-generating ideas while emphasizing quality and remaining senior in the capital structure. We seek to balance higher yielding exposures with high quality duration to protect against downside risk over the cyclical horizon. With the potential for interest rates to recalibrate higher, we are focused on tactically adjusting duration exposure globally to the most attractive countries, as well as allocating to securities with floating interest rates in an effort to reduce sensitivity to interest rate volatility and seek to protect principal.”