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Income Fund Update: Building Resiliency in Volatile Markets
By Advisor Perspectives
- During the fourth quarter of 2018, high quality assets were the key drivers of the Income Fund and helped preserve capital for investors.
- Because we think the markets will remain volatile in the year ahead, the Income Fund is defensively positioned overall but will aim to use any market dislocations to go on offense.
- With high volatility in corporate credit and emerging markets, in particular, we think the environment for expressing relative value and targeted views is better in these sectors today than at any point over the last several years.
As volatility in late 2018 drove the U.S. stock market down nearly 20% from its peak and down 4.4% for the year, based on the S&P 500 Index, high quality bonds had a positive reversal of fortune and rallied in the fourth quarter. Portfolio managers for PIMCO’s Income Fund, Dan Ivascyn and Alfred Murata, discuss how the fund was positioned for the volatility and offer their outlook for 2019.
Read more at Advisor Perspectives.