It’s Not the Same Old Fixed Income Selling Landscape
Feb 20, 2024
Rob Hall of PGIM Investments and former fund selector Esther Gilbert sat down with Citywire Amplify to explain why asset managers need to understand their clients’ fixed income needs better than ever.
Bonds may be back, but as PGIM Investments’ Head of UK Wholesale Rob Hall sees it, the fixed income selling landscape has shifted dramatically.
Back in the day—before nearly two years of interest-rate hikes—wealth managers often combined a handful of strategic bond funds with 50 to 60 equity funds in their portfolios. That philosophy has flipped in this elevated yield environment, with managers now taking a more thoughtful and substantial ‘building block’ approach to their fixed income selections.
‘Instead of thinking about their products in isolation, asset managers must consider how fund selectors might use a fixed income product as a portfolio construction tool,’ Hall said. ‘A generation of sales teams have not seen this before.’
Modify the traditional mindset
Gilbert encouraged investors to view fixed income as a diverse range of sub-sectors that can offer value throughout market cycles instead of a homogenous asset class.
‘Debt markets are much more exciting and varied than you might think,’ said Gilbert, founder of Esther Gilbert Consulting.
Develop deeper client relationships
This transition requires a new working relationship between asset managers and their clients, Hall said. While asset managers need deep knowledge of the capital markets, they also must understand adjustments in the strategic allocation of their clients’ portfolios and offer a diverse product line-up to meet these changing needs.
“We have put a ton of work into building a product range that allows clients to choose the solution that is most appropriate for them,’ Hall said.
Rob Hall
PGIM Investments’ Head of UK Wholesale
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