There is a clear desire from Australian investors for more fixed income products — and emerging market debt (EMD) strategies could help to meet this demand, according to Goldman Sachs Asset Management (GSAM) head of third party distribution (Australia) Jessica Jones.
In its survey of retail clients last year, GSAM found Australians were cautious in their investment approach, had a strong focus on domestic equities and fixed income, and focused on a very narrow group of asset classes.
Despite this, the continued drop in term deposit and cash rates has forced many Australians to consider coming back into the market, and income is still an important part of most retirees' asset allocation strategies, Jones said.
She said providing an opportunity to invest in EMD is well suited to Australian investors because it has a low correlation with Australian equities and fixed income.
There is also a strong desire from local investors to access emerging markets in order to diversify their model portfolios, she said.
