Taiwan's $115 billion state pension manager is considering how to raise its foreign smart-beta exposure and will review its emerging-market allocation this year after taking losses on EM debt.
Being flexible and selective will be key to success in fixed income investment this year, say debt specialists. They tip high yield and, later in the year, emerging-market debt to do well.
The Taiwanese insurer plans to overweight emerging-market government debt and foreign corporate bonds this quarter, amid heavy outflows from fixed income and EM assets globally.
The French asset manager points to opportunities in emerging market fixed income, with low volatility and signs of a sustained trend of stronger returns.
Emerging-market equities still have room to rise, but EM bonds face potential problems that could scupper their rally, says Tai Hui, the fund house’s chief market strategist for Asia.
Richard House of Standard Life Investments expects Asian asset owners, notably Taiwanese life insurers, to raise allocations to emerging-market bonds as they strive to boost yields.