PIMCO sees potential for reallocation away from US market- CIO
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HarryWu,journalistforSouthernFinanceOmnimediaCorp(SFC)
AfteryearsofleadingperformanceintheUSmarket,someinvestorsareflockingtoothermarketssuchasChina.
AndrewBalls,PIMCO’schiefinvestmentofficerforglobalfixedincome,saidinaninterviewwithSFCthatinrecentyears,theUSequitymarketshaveoutperformedanditsshareoftheglobalmarkethascontinuedtogrow.Butatthesametime,theglobaltradewarhasalsobroughtchallenges,andinvestorshavethepotentialforreallocationawayfromtheUSmarket.
AndrewBallsanalyzedthatglobalinvestorswanttosomewhatreducetheirUSexposureeitherbycurrenciesorviareallocationofflowstoothermarkets.Inthiscontext,otherpartsoftheworldhavethepotentialtooutperformtheUSequitymarkets.
Lookingahead,AndrewBallssaidthathighqualityfixedincomeassetsmayoutperformtheequitymarketoverthecomingyears.Forinvestorsunderweightfixedincomeorholdingexcesscash,nowisagoodtimetoinvestinhighqualityfixedincomewithyieldsof5%to7%inUSdollars.
BasedintheLondonoffice,AndrewBallsoverseesPIMCO’sEuropean,Asia-Pacific,emergingmarketsandglobalspecialistinvestmentteams.HemanagesarangeofglobalportfoliosandisamemberoftheInvestmentCommittee.Hehas25yearsofinvestmentandeconomics/financialmarketsexperienceandholdsabachelor'sdegreefromOxfordandamaster'sdegreefromHarvardUniversity.