Boost fixed interest allocations: Dorrian

30 September 2010
| By Milana Pokrajac |

Financial advisers should consider increasing allocations to fixed interest in a post global financial crisis world, according to PIMCO’s head of global wealth management, Peter Dorrian.

Dorrian, who will deliver his message at the Association of Independently Owned Financial Planners conference, said risk is still prevalent in global markets, with evidence showing Australian investors have reaped higher returns from lower risk assets like bonds than from higher risk assets like shares.

His call for higher fixed interest allocations also comes as PIMCO’s outlook continues to predict ‘new normal’ themes, including slow economic growth across developed nations, lower equities returns and higher market volatility.

“Advisers should consider a larger role for actively managed bonds to improve income focused investors’ returns and to shockproof their clients’ portfolios,” Dorrian said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 2 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 4 days ago