Go global or go home

It’s no secret Australians tend to stay local when investing. And, compared to our offshore counterparts, our investment portfolios are significantly underexposed to bonds and interest rate securities which play an important part in offering steady, reliable income while hedging against riskier assets.

In this low interest rate environment, we spoke to Adam Bowe, Portfolio Manager at PIMCO about the opportunity to secure quality, fixed income offshore. Adam said you have to look globally: “One example would be global financials… yielding around 4% versus an inflation rate of about 1.5%; there are still plenty of opportunities”. Watch the video for the full picture.