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Investment Strategy

Pimco: Australia slowly moving toward bonds

Australian superannuation funds will gradually shift their portfolios more toward bonds as people retire and demand regular income and less risk from their investments, says Pacific Investment Management Co. Australian bonds will continue to attract foreign investors who hold about 80 per cent of Commonwealth bonds, says Robert Mead, a Pimco portfolio manager. Australia’s net […]
Hedge Funds

The slide of sovereign
debt ratings

Investors may come to remember 2011 as the year we lost the risk-free rate of interest. The debt-ceiling episode of the summer raised the possibility that the US might not make a coupon payment, and Standard and Poor’s (S&P) downgrade showed that ratings agencies could regard this as more than a temporary hiccup. Several other […]
Investment Strategy

Future bright for fixed-income professionals

Stuart Dear is at a famed Sydney restaurant trying not to appear too happy. The Aberdeen Asset Management portfolio manager is part of team that manages $14.5 billion in Australian bonds and is ranked number one by Morningstar. Aberdeen’s current 11-person team has over 10 years delivered a 7.2-per-cent annual gross return, according to Morningstar’s […]