After most fixed income markets closed 2015 flat or deeply negative (emerging market local debt shed nearly 15%), the asset class rebounded in 2016, with Barclays Global Aggregate benchmark resiliently climbing 2.65% in a year that saw no shortage of risk events. Critical geopolitical events, US rate normalisation and widespread calls of an end to the bond bull market end did not stop the asset class from rounding out the year positively.
Regardless of how hawkish the Fed could become in 2017 or what the economic effects of deglobalisation could be, fixed income will still play a dominant role in Asian HNWIs’ investment portfolios, with yield-seeking remaining the dominant theme for private banks. Factor in the demand for aggressive leveraging and the onus is evermore on active managers to help subdue portfolio volatility in times of elevated risk.
In the realm of global bonds, PIMCO is staple provider of fixed income investments for Asia’s private banks, which in turn make up an increasingly significant portion of the firm’s regional assets. PIMCO boasts a global staff of 2,200, including more than 650 investment professionals, 230 portfolio managers and 50 credit analysts. For the third time in five years, fund selectors in the region have chosen PIMCO as the Best Fund Provider – Global Bond.