Equity Mates Investing Podcast

3 more rate cuts in 2025? - Sam Watkins | PIMCO

20 snips
Apr 3, 2025
Sam Watkins, Managing Director and Head of PIMCO Australia and New Zealand, shares insights into the evolving fixed income landscape. He discusses PIMCO's expectation of three rate cuts in 2025 and the significance of this for investors. The conversation delves into the active versus passive debate in fixed income, explaining how new Active ETFs can enhance accessibility for retail investors. Watkins emphasizes why now is critical for fixed income investments and the unique strategies behind PIMCO's latest fund offerings.
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INSIGHT

PIMCO's size and recognition

  • PIMCO, the world's largest active fixed-income manager, manages about $3 trillion.
  • While well-known among institutions, PIMCO isn't as recognized by the general public.
ADVICE

Fixed income's appeal

  • Consider fixed income for its defensive qualities and attractive returns in the current rate environment.
  • PIMCO's strategies offer yields to maturity in the 6-7% range, exceeding term deposit rates.
ADVICE

Portfolio Allocation

  • Use a 60/40 portfolio split as a midpoint for equity/fixed income allocation.
  • Adjust this based on individual circumstances, age, and investment goals (20-70% fixed income).
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