Boost fixed interest allocations: Dorrian
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.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.