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Superannuation
11 July 2025 by Maja Garaca Djurdjevic

Beyond Silicon Valley: How super funds thrived on diversification in 2025

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South Korean exposure pays off as ASX-listed ETF jumps 32%

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Instos anticipate crypto to feature in traditional portfolios by 2030

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US tipped to be ‘the big loser’ of Trump’s expanding trade war: AMP

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Government cements RBA overhaul with new rules

The government has cemented its overhaul of the RBA’s governance with the release of an updated Statement on the Conduct ...

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PIMCO launches index for fixed income sector

  •  
By Christine St Anne
  •  
4 minute read

The global bond manager introduces an index to the fixed income market that is GDP weighted and places a greater emphasis on emerging markets.

PIMCO has launched the Global Advantage Bond Index (GLADI) for the fixed income sector that is GDP weighted rather than market capitalisation weighted.

The benchmark was developed to avoid most of the pitfalls market capitalisation weighted indices inherently reflect, according to PIMCO head of consultant relations Carol Molloy.

"The benchmark is intended to offer investors an improved measure of fixed income market beta that provides a yardstick for performance measurement," Molloy said.

She said global growth is well on the path of reversal from the developed world to the fiscally stable emerging markets.

 
 

"There are a number of transformations taking place such as the change in growth drivers and wealth dynamics. These changes will affect the ability of traditional investment approaches and indices to generate sustainable returns while also managing risk," she said.

The GLADI benchmark will include global investment-grade securities from developed to emerging markets, avoiding a disproportionate weighting to developed markets.

It will include 27.9 per cent of investment-grade credit stocks from the emerging markets, compared with the Barclays Global Aggregate Bond Index's 3 per cent.

The benchmark will also include inflation-linked bonds in addition to nominal bonds, providing a hedge against potential inflationary pressures.

Interest rate swaps will also be used in the benchmark. The benchmark is currently being marketed to the asset consulting sector and PIMCO's clients.

"Clients and asset consultants have been in constant contact with us regarding the need for an alternative benchmark which represents the broader opportunity set," Molloy said.