POWERED BY MOMENTUM MEDIA
Global pessimism worsens: PIMCO
PIMCO's global institutional clients have become more pessimistic about the prospects of global growth since the group's last survey in March.
Only 20 per cent of respondents in September's semi-annual survey were optimistic about the outlook for the US - down from 50 per cent who held this view in March. The survey group was also increasingly pessimistic about Europe.
Pessimists rose from 67 per cent to 95 per cent since the March survey, with forecasts that European growth would be -0.5 per cent. Respondents were evenly divided on the outlook for China.
John Wilson, head of PIMCO Australia, said expectations about the Australian outlook had also worsened since March. "Only 30 per cent of respondents were optimistic about the Australian economy, forecasting 4 per cent growth in September versus 58 per cent in March," he said.
Despite more individuals being pessimistic about the Australian growth outlook relative to the March survey results, Wilson said Australia still has flexibility to steer the economy.
"The current monetary and fiscal policy stance, as well a floating currency, gives Australia's policymakers ample flexibility to cut interest rates and provide liquidity support for banks if necessary," he said.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
