Nearly half of Asia Pacific investors claimed that the pandemic dented the trust in their own decision-making capabilities, though market-timing was still cited as the stop strategy.
43 percent of APAC respondents claimed their confidence was dented by the pandemic, according to a PIMCO survey gauging investor sentiment and outlook, with 51 percent saying that portfolios faced damage of which 10 percent claimed major negative impact.
55 percent of respondents’ portfolios were actively managed with 46 percent claiming to allocate more.
«The next few years will be an incredibly important time for active management as we expect markets to remain volatile,» said Adrian Stewart, APC ex-Japan head of client management. «We firmly believe active management plays a key role in delivering alpha and long-term outperformance for investors.»
Timing the Markets
Despite concerns about market uncertainty and desire for delegation, market-timing was still cited as the top strategy in the current environment, according to 48 percent of respondents.
Furthering counter-intuition, cash and cash-like assets topped the list, indicating limited activity on their part despite the responses.
«At PIMCO, we have long believed that a deeper understanding of cognitive and emotional biases helps mitigate their effects and should help our clients make better investment decisions,» said Kimberley Stafford, PIMCO’s APAC head. «This regional survey is an integral part of the firm’s long-term efforts to support diverse and robust research around behavioral science.»
