Summary
Financial markets have been comprehensively dislocated as a result of the CoVid-19 pandemic and the oil price collapse. Meanwhile, forced-selling and limited transparency on the economic outlook have created opportunities, but only for those who are brave enough to take them. Active investing with a flexible and global approach can help investors benefit from this current market environment. At Allianz Global Investors, we have market leading capabilities in Global Fixed Income, with a strong track record in successfully investing in both sovereign and credit markets through many different cycles to date.
Forward-looking indicators
It is hard to overstate the extent and speed of the disruption in economic activity and financial markets that we have witnessed in the first quarter of 2020. A localised outbreak of a new respiratory flu-like disease in one region of China escalated into a global pandemic in the space of a few weeks, showing the extent of our interconnectedness.
The public health measures necessary to contain the spread of the disease have in turn created a twin supply and demand shock, idling a significant share of the world’s productive capacity through mandatory closures and travel restrictions, while swathes of workers have found themselves made redundant or furloughed.
Fixed Income Report
Amidst all the panic and confusion, now is the best time in the last decade to consider active reallocations and acting to take advantage of the market dislocations that have happened.
The uncertainties of the health crisis could last for some time, but we think there is enough value now back in Fixed Income markets to warrant taking the risk, and we don’t want our clients to miss this opportunity.
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Past performance is not a reliable indicator of future results. Investment funds may not be available for sale in all jurisdictions or to certain categories of investors. This communication has not been prepared in accordance with legal requirements designed to ensure the impartiality of investment (strategy) recommendations and is not subject to any prohibition on dealing before publication of such recommendations.
The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Past performance is not a reliable indicator of future results. Investment funds may not be available for sale in all jurisdictions or to certain categories of investors. This communication has not been prepared in accordance with legal requirements designed to ensure the impartiality of investment (strategy) recommendations and is not subject to any prohibition on dealing before publication of such recommendations.
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact the issuer at the address indicated below or www.allianzgi-regulatory.eu. Austrian investors may also contact the Austrian information agent Allianz Investment bank AG, Hietzinger Kai 101-105, A-1130 Vienna. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established branches in the United Kingdom, France, Italy, Spain, Luxembourg and the Netherlands. Contact details and information on the local regulation are available here (www.allianzgi. com/Info).
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Key takeaways
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