It’s Official – The New Neutral Arrives Down Under

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It was way back in May 2013 when PIMCO first uttered the phrase “The New Neutral” in relation to Australia’s cash rate. At that time, we estimated the “New Neutral” rate for Australia to be about 3%. We stand by that view. Today, over 4 years later, the RBA explicitly referenced 3.5% as their estimate […]

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Australia’s long-term outlook is less rosy: PIMCO

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After 25 years of steady economic growth, Australia is on the verge of wresting bragging rights from the Netherlands for the longest period on record without a recession. While this historic event should be celebrated, the future may not be as rosy. PIMCO’s base case calls for Australia to keep growing moderately over the next […]

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Trump’s First 100 Days: Should Investors Take Notice?

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Looking at several metrics – legislative achievements, staffing in key areas and executive orders – President Trump’s first-100-day track record has been mixed. U.S. President Donald Trump is close to completing his first 100 days in office, a somewhat arbitrary marker that entered the American lexicon during President Franklin D. Roosevelt’s time. While many believe […]

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PIMCO Australia Launches ESG Global Bond Fund

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PIMCO, a leading global investment management firm, has launched a dedicated Environmental, Social and Governance (ESG) investment platform globally, offering fixed income solutions to investors seeking attractive returns while making a positive social impact. As part of this platform, the PIMCO ESG Global Bond Fund has been launched in Australia. The Fund, which marks PIMCO’s […]

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PIMCO wins Morningstar Australia Fixed Interest Fund Manager of the Year Award for the third consecutive year

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PIMCO is the winner of the Australian Morningstar Fixed Interest Fund Manager of the Year Award for the third consecutive year as it continues to achieve “excellent results across several different capabilities” in volatile market conditions and “showed it can deliver when it really matters.” Morningstar Australia said: “PIMCO’s wide-ranging expertise in fixed income investing […]

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Trump’s first year: What’s realistic?

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With the inauguration of the 45th president imminent and the market’s high expectations for policymaking, what is realistic for investors to expect from Washington in 2017? We think the bottom line is that governing is harder than campaigning. Many of the items that President-elect Trump and congressional Republicans are looking to tackle in 2017 – […]

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What lies beneath: PIMCO’s September 2016 cylical outlook

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Our cyclical baseline forecast through 2017 is for a continuous expansion, mostly supportive monetary and fiscal policies and broadly range-bound markets. However we are concerned about risks lurking beneath the surface, especially in the context of asset prices that in many cases appear stretched. The recent bout of market volatility that followed sedated summer trading […]

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Fed Statement: Let the dots – and the dissents – do the talking

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Going into yesterday’s Federal Open Market Committee (FOMC) meeting, the question was in what way – or ways – the statement and the accompanying Summary of Economic Projections (SEP) would signal the committee’s conviction that it expects to hike rates later this year. In July, the Fed statement acknowledged that “near-term risks to the economic outlook […]

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Regulation and demographics: Two factors behind the rise of sustainable investing

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Investors globally are becoming more engaged with the environmental, social and governance (ESG) factors that affect the well-being and smooth functioning of the global economy and markets. The widespread endorsement of the United Nations Principles for Responsible Investing initiative, which has over 1,500 signatories from over 50 countries, is a key example. Two primary drivers […]

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King, Keynes and Knight: Insights into an uncertain economy

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One small footnote to the Brexit controversy: It has invigorated my interest in Lord Mervyn King’s concept of radical uncertainty. As the former governor of the Bank of England laid out so eloquently at PIMCO’s investment forum in May and in his recent book The End of Alchemy, “radical uncertainty” refers to uncertainty so profound […]

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