Bonds, bouncebacks and big opportunities
As we move deeper into the final quarter of 2025, it’s hard not to feel that markets are entering a new phase, one defined as much by recalibration as by opportunity. After a decade where equities and alternatives ruled the roost, in this edition we explore why the spotlight is shifting firmly back onto fixed income – and why wealth managers may want to take a long, hard look at their portfolio allocations.
Fixed income’s comeback story is gathering momentum
Our cover feature this month, Fixed income’s resurgence: why wealth managers should rethink allocations with PIMCO’s global lens, captures a fundamental shift underway. With inflation cooling, interest rates edging down and yields sitting at far more attractive levels than we’ve seen in years, bonds are back in favour – not as mere portfolio ballast, but as genuine drivers of income and capital growth.
In an exclusive interview, Wealth DFM’s Jenny Hunter speaks with Rupert Harrison, Senior Advisor to PIMCO’s UK Portfolio Management Team, and Simon Hillenbrand, Head of UK Wealth Management at PIMCO. Together, they outline why the fixed income opportunity today is one of the most compelling in over a decade, and how PIMCO’s global reach and growing UK presence are helping wealth managers to harness it.
Active fund managers take centre stage again
Meanwhile, equity investors have plenty to celebrate too. AJ Bell’s feature, UK active fund managers bounce back in historic year for the stock market, looks at how 2025 has marked a return to form for active management. Their latest research reveals how stock pickers have been outperforming benchmarks across the board.
Yet, as Dan Coatsworth points out, not everyone has kept up with the rally. For some high-profile names, this “year of highs” has also brought sharp lessons in discipline, diversification and timing.
A ‘gilty’ obsession – or a growing concern?
Elsewhere, we delve into a fascinating debate unfolding in the fixed income space. Is the growing trend towards a ‘gilty’ pleasure becoming unhealthy? sees Artemis’s Stephen Snowden question whether investors’ appetite for long-dated gilts may be turning into a risk rather than a refuge. His piece challenges the conventional wisdom around government bonds, making the case for corporate credit as a potentially more rewarding – and healthier – income option for client portfolios.
Asia’s long-term investment case strengthens
Finally, global diversification is firmly on the agenda in Invesco Asia Dragon Trust: Why Asia may be the next big opportunity for global investors. In a thought-provoking Q&A, Fiona Yang shares her perspective on Asia’s improving fundamentals, powerful demographic trends, and why the region’s long-standing valuation discount versus the US might not last much longer.
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Sue Whitbread
Editor | Wealth DFM Magazine
