After a tough year in 2022, Allspring Global Investments, a US-based asset manager, discusses its outlook and investment opportunities for 2023 at a media round table in London.
After a difficult economic environment in 2022, this week investment managers at Allspring Global Investments highlighted opportunities in fixed income in the first half of 2023, with emerging market equities showing promise towards the end of the year.
At a media event yesterday, with concerns over soaring inflation rates abating, Henrietta Pacquement, senior portfolio manager and head of global fixed income at Allspring, outlined opportunities in the investment grade space in the first half of this year, saying it is in the "sweet" spot.
The asset class provides income and quality, she said, and benefits from the higher interest rates. “The global outlook for bonds is also more positive,” she added.
In the back end of the year, the asset manager believes that there will be increasing opportunities in equities, with the 60:40 equity/bond approach to asset allocation, which suffered last year, potentially making a comeback.
At the event, Alison Shimada, San Francisco-based senior portfolio manager and head of total emerging markets at Allspring, singled out the value of investing in emerging market equities.
With China easing its zero-Covid policy and re-opening its markets faster than expected to reach the 4 per cent growth in 2023, she feels positive about opportunities in the region and in emerging markets in general.
Despite the conflict between China and Taiwan, she doubts that there will be an invasion, believing that the two countries will become closer.