PineBridge Investments

The answer to the long-running debate between growth and value, is not either or, but in using both inputs to navigate shifts and volatility across market cycles, says Rob Hinchliffe, portfolio manager, head of global sector cluster research at PineBridge Investments.

Portfolio managers and investment specialists at PineBridge Investments outline key themes, opportunities and considerations for investors in the region’s fixed income and equities markets next year.

With the long-term opportunities in global emerging markets being the best they have been in years, an active, differentiated, style-neutral portfolio is best placed to generate alpha, say Anik Sen, global head of equities, and Robert Hinchliffe, CFA, portfolio manager and head of global sector cluster research at PineBridge Investments.

PineBridge Investments’ Elizabeth Soon, head of Asia ex-Japan equity, Cynthia Chen, equity portfolio manager, and Arthur Lau, head of Asia ex-Japan fixed income make a case for the region offering investors stability that may be lacking elsewhere amid global tumult.

Arthur Lau, head of Asia ex-Japan fixed income, and Emily Lam, client portfolio manager, at PineBridge Investments, highlight the continued appeal of Asia investment grade (IG) as well as high yield (HY) bonds for their relatively stable and attractive source of yield and diversification.

Over the next 12 months, investors in Asia will likely contend with a fast-moving investment landscape shaped by China’s increasing focus on sustainability alongside the tenor of macroeconomic policies and the path of inflation. PineBridge Investments’ specialists offer their views on what investors can expect in 2022 and the opportunities arising from this confluence of changes.

The age of Asia will soon arrive as the world is shifting towards multipolarity. What are the key trends that investors and business leaders should be aware of?

Massive structural changes are underway in Asia. Which industries will stay ahead of the game after the pandemic and how can investors maximise the compelling opportunities?

EM corporate debt offers positive real yields while Japan stocks are increasingly attractive as a proxy for global growth. Moreover, Asia is set to benefit from the global upturn in the next phase of the cycle.

PineBridge Investments’ Asia ex Japan fixed income team, led by Arthur Lau, co-head of emerging markets fixed income and head of Asia ex Japan fixed income, explains why China’s $17.5 trillion onshore bond market can no longer be overlooked – and why navigating its unique features is key.

Beyond the pandemic and trade tensions, underlying developments in China may have transformative implications on companies in Asia and frame how investors look at Asian equities going forward, including up and coming small caps.

Asian US dollar bonds have not only withstood the worst of the Covid-19 volatility so far but have come out as attractive as ever – offering investors opportunities to pick value at various points of the yield curve.