The net inflow occurred in PIMCO’s Australian and global bond funds, also their emerging markets bond fund, their diversified fixed income fund, and their credit and real return funds.
Harvey Kalman, head of Equity Trustees Limited’s (EQT) corporate fiduciary and financial services business, which is responsible for the distribution of the PIMCO/EQT funds in Australia, said there has been a high demand for the company’s products.
“PIMCO has a long and stable track record of managing quality bond funds and this ensures they remain one of the most attractive offerings for Australian investors,” he stated.
Australia has one of the lowest bond allocations amongst its pension funds relative to other parts of the developed world. However, the recent results show that some investors are acknowledging the positive characteristics that this asset class can add to clients’ portfolios.
“The strong inflows into the funds suggest that Australian investors continue to recognise the valuable long-term role that bonds play in their portfolio,” said Peter Dorrian, head of global wealth management at PIMCO Australia.
“[Bonds are] providing the potential for the preservation of capital, income and growth, relative steadiness and typically low to negative correlations with equities,” he added.
