PIMCO APAC Investor Sentiment Survey Q4 2020

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How does volatility affect investors in Asia-Pacific markets: not just their portfolios, but their outlook, expectations and confidence in their own decision-making?

This is the second edition of our regular survey of 2,500 investors with liquid assets of US$100,000 or more across five Asia-Pacific markets, to gauge sentiment and outlook in challenging times.

Optimism Surging Among Asia-Pacific Investors

Compared to the previous survey (Q3 2020), investors are much more optimistic about the macroeconomic picture over the next 12 months.

Though there are good reasons to suspect 2021 will be better for most economies than 2020, the volatility of sentiment about the macroeconomic outlook may in some cases reflect biases that might lead investors to overreact to news in the media, such as the rolling out of vaccines or localized surges in virus cases.

APAC Investor Sentiment Indicator

(% expecting growth minus % expecting contraction over next 12 months. Excludes "no change" responses)

Sentiment Indicator Charts

APAC

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
67
78
-12
24
-10
32
-25
12
More Expect Contraction More Expect Growth

Australia

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
67
85
4
58
5
55
-11
26
More Expect Contraction More Expect Growth

Hong Kong

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
67
84
-34
-10
-14
22
-32
-5
More Expect Contraction More Expect Growth

Japan

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
32
44
-50
-20
30
15
-37
4
More Expect Contraction More Expect Growth

Singapore

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
67
84
-12
40
-10
43
-20
25
More Expect Contraction More Expect Growth

Taiwan

Portfolio

Home Market Economy

APAC Economy

Global Economy

-60
-40
-20
0
20
40
60
80
100
90
92
22
45
8
39
-14
14
More Expect Contraction More Expect Growth

Q3 Q4

The indicator is calculated by taking the percentage of those expecting growth and subtracting the percentage expecting contraction over the next 12 months. It excludes “no change” responses.

Questions asked: What are your return expectations over the next 12 months (from today) for your investment portfolio?
How do you expect your home economy/the APAC economy/the global economy to perform over the next 12 months?

Investors View Portfolio Impact of COVID Less Negatively

In the previous survey, many more investors expected the COVID-19 pandemic to have a negative impact on their portfolios over the next 12 months than thought otherwise. In the latest poll, however, almost as many say the pandemic will likely be positive (37%) for their holdings as say it will be negative (38%).

Expected Impact of COVID-19 on Portfolio Over Next 12 Months

(% respondents)

Positive Impact No Impact Negative Impact

100%
80%
60%
40%
20%
0%
26 27 47
Q3
37 25 38
Q4

Question asked: Over the next 12 months, how much of an impact do you think the COVID-19 pandemic will continue to have on your portfolio?

Cash Remains Most Sought-After Asset

While net demand for cash and cash-like assets is down from the previous survey, it remains the most in-demand investment option. According to the Asset Outlook Indicator, multi-asset strategies are the second-most popular asset, followed by emerging markets equities, which have taken over from dedicated ESG assets in third place.

APAC Asset Outlook Indicator: Top Three Most In-Demand Assets

(% expecting to buy minus % expecting to sell in next three months)

Q3 Q4

Cash, Cash-Like Investments, or Savings

18 12

Multi-Asset Strategies

9 10

Dedicated ESG Assets

3 9

The indicator is calculated by taking the percentage of those expecting to buy and subtracting the percentage expecting to sell over the next 3 months. It excludes “no change” and "don't know" responses.

Question asked: Look forward to the next three months. How do you expect your exposure to the following assets to change?

APAC and Regional Summaries

APAC Survey Results Q4

Read more about the key results of our Q4 survey for the entire APAC region.

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Australian Survey Results Q4

What did we discover about investors in Australia in our Q4 survey? Download the summary to find out.

Download get_app

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About the Survey

We surveyed 2,500 investors across five Asia-Pacific markets, 500 in each of Australia, Hong Kong, Japan, Singapore, and Taiwan. "APAC" results refer to responses across all five markets.

Respondents had to have had some experience with investing, and liquid assets (excluding property and mandatory pension funds) of US$100,000 or more. We sought to ensure broadly representative ratios of age and gender were included within each sample.

The survey will be repeated at regular intervals. Respondents in each survey wave have not participated in previous waves.

Disclosures

Sydney
PIMCO Australia Pty Ltd
ABN 54 084 280 508
AFS Licence 246862
Level 19, 5 Martin Place
Sydney, NSW 2000
Australia
612-9279-1771


PIMCO Australia Pty Ltd ABN 54 084 280 508, AFSL 246862 (PIMCO Australia). This publication has been prepared without taking into account the objectives, financial situation or needs of investors. Before making an investment decision, investors should obtain professional advice and consider whether the information contained herein is appropriate having regard to their objectives, financial situation and needs.

Methodology

This survey was conducted online within the Australia, Hong Kong, Singapore, Taiwan and Japan markets from November 27 through December 16, 2020, among 2,500 adults (500 in each market) aged 25 and older. All respondents had over US$100,000 in investable liquid assets and at least some experience with investing beyond their pension and superannuation accounts. This online survey is not based on a probability sample and therefore the theoretical sampling error cannot be calculated.

Charts, graphs and statistical information referenced in this publication are all derived from the result of the survey. Data collected from the participants/ respondents are for the sole purpose of this survey. Charts and graphs represented are for illustrative purposes only.

The survey results contain the opinions of the respondents and not necessarily those of PIMCO. The data contained within the report may not be related to any PIMCO product or strategy and should not be relied upon for any investment decision.

Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value.  This report is provided for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product, nor construed as a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction.

Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2021, PIMCO.

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