A major reset in bond yields has improved the outlook for the embattled “60:40” portfolio. But the active management that multi asset strategies can add on top of that baseline will be key to taking advantage of a diverging global economic outlook which will bring greater differences in asset performance.
With favourable growth and inflation dynamics, relative value against developed markets and potentially some big alpha opportunities emerging in China, we believe the outlook for Asia fixed income is strong in 2024.
Increasing divergence in the performance of different regions, asset classes and sectors is broadening the opportunity set for multi asset strategies. The dynamic approach inherent in such strategies can make them an essential part of investors’ toolkit in what remains an environment of high macro uncertainty.
A new investment environment is emerging with opportunities that may not have existed in years. Uncertainty remains high, but the good news is, in 2024, investors may be rewarded for taking risk again.
Until the macroeconomic outlook becomes clearer, the favourable supply-demand dynamic in fixed income is enabling investors to diversify portfolios and prepare for all eventualities in the next rate-cutting cycle – be it fast or slow.
Allianz Global Investors is a leading active asset manager with over 650 investment professionals in 20 offices worldwide and managing EUR 533 billion in assets for individuals, families and institutions.*
By being active and investing for the long term, our goal is to elevate the investment experience for our clients and generate value every step of the way.
*Data as at 31 December 2023. Source: Allianz Global Investors
Discover our investable themes
To stay focused on their goals, investors may need to reposition portfolios to factor in rising interest rates, shifting inflation expectations, and fluctuating exchange rates. Geopolitical turbulence is creating new flash points. Volatility is set to be a hallmark of the coming period, with countries and regions on different paths in terms of growth and monetary policy. Investors may struggle to find safe havens and, with only limited visibility of how markets will develop, expectations could be upended. But we are also confident this environment will create opportunities. Diversification is key – across public and private markets – and we have the ideas and expertise to help you navigate the complexity.
We think it’s time to disrupt traditional definitions of “disruption”. Once a story for the tech sector, disruption is now all-encompassing. And while technology and AI may be driving many of the changes, this new wave of disruption could shape every aspect our daily lives. The implications will be profound and exponential – and many of the themes arising from Covid-19 will likely be permanent fixtures.
Sustainable investing is at an inflection point. Interest in sustainability has turned into significant investments, and these inflows rightly come with increased expectations about impact and measurement. Investors are at different stages of their sustainability journey and have different ambitions. We’re focused on bringing sustainable investing into the real world, with a focus on pragmatic approaches and the pathways that support real progress.
China is changing. Its economic growth is increasingly driven by innovations in technology, data and science. Its capital markets are developing with a similar energy, on their way to becoming an integrated part of the global financial system. Understanding the country’s unique political context and strategy is essential to grasp the opportunities as an investor and participate in this unique investment story.