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

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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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3 more rate cuts in 2025? That is the house view of PIMCO, one of the world's largest fixed-income managers.

PIMCO manages trillions of dollars globally for some of the world's largest institutions, endowments and companies, and they are now making their products more available to Australian investors with 4 listed Active ETFs.

In today's episode we speak to Sam Watkins, head of PIMCO Australia and New Zealand, about his view on the fixed income markets and how these Active ETFs can play a role in investors portfolios.

In our conversation we cover:

Why now is the time for fixed income
How we should think about the active v passive debate in fixed income
PIMCOs view on the current market in both Australia and the US
How we can understand PIMCOs new range of Active ETFs

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This episode has been sponsored by PIMCO. Thank you to PIMCO for helping keep all of our content free.

If you want to learn more about PIMCO's new range of Active ETFs head to: https://www.pimco.com/au/en

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