Careers Contact Us Our firm Insights Capabilities Press centre SEARCH Don’t downsize your goals. Invest for tomorrow when yields are low. Protecting and enhancing your wealth If today’s low-yield environment is giving you that shrinking feeling, we can help. With interest rates near historic lows and inflation a growing concern, how can you protect and enhance your wealth? Even if rates and yields may rise somewhat in the near term, major trends are keeping them lower for even longer. At Allianz Global Investors, we believe it’s critical to rethink portfolios to account for this outlook. Our investment expertise can help you explore new opportunities. So you can keep your expectations high – even when yields are low. Lunch Break with the experts Panel discussion: Asset managers and banks alike must help their clients adjust to the current interest rate and inflation environment. How are they approaching this challenge? What’s their analysis of today’s environment – and what advice do they have? Our quarterly panel series explores the solutions from multiple perspectives. Watch the first session now. External Video Content This video is loaded through YouTube. Google is collecting information about your interaction with this video by using cookies and may use this for targeting their offers. Please accept cookies in order to show the video. MANAGE MY COOKIE PREFERENCES Why are rates and yields set to stay low for even longer? Rates and yields have been dropping for decades For more than 40 years, there has been a bull market in government bonds, with prices rising and yields falling. Along the way, we’ve seen a drop in developed-world interest rates. We believe that several powerful forces – including slow economic growth and low inflation expectations – will keep rates and yields low compared with their long-term averages. Changes in the global economy are contributing to a lower-for-even-longer environment When more money is chasing fewer investment opportunities, prices go up and yields down. So you need to find ways to make your money work harder. More savings available to invest The world’s steadily ageing population has more savings to invest, but fewer places to invest it... Shift towards service-based industries ...partly because the shift towards service industries requires less capital investment… Impact of slower productivity growth ...and because slower productivity growth means less economic expansion. Explore opportunities in the low-yield environment over a cup of coffee with our experts Lower for even longer explained Lower for longer refers to the weakness of bond yields in developed countries and highlights the fact that this low interest rate environment is expected to last. In this context, investors must protect their portfolios to counter the erosion of their purchasing power. WATCH HERE Keep your dreams on track In today’s low-yield world, many investors need to generate reliable income while preserving their purchasing power amid rising inflation. Venturing beyond traditional assets in search of extra yield may be critical – but how should you diversify and manage risk? Here are three ideas. Think of your portfolio as a barbell Stay active and agile Consider permanent portfolio changes Global resources. Local delivery. Allianz Global Investors is a leading active asset manager with over 700 investment professionals* in 23 offices worldwide and managing EUR 647 billion in assets for individuals, families and institutions. Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs. Active is: Allianz Global Investors *Data as at 30 September 2021. €647bn Assets under management 705 Investment professionals 23 Locations worldwide View location specific content What does today's "lower for even longer" era mean for you? The forces that have driven interest rates steadily towards zero over the past four decades show no signs of fading. At Allianz Global Investors, we’re well-positioned to help investors rethink their portfolios amid this new outlook – so you don’t need to downsize your dreams. READ MORE Why inflation matters: explore our latest thinking When yields are low, inflation can have an outsized impact on your investments. Our economists believe that inflation could continue to surprise the markets for some time. That’s why it’s critical to consider how you can combat it. 04/11/2021 | Inflation insights Using inflation-linked bonds and floating-rate notes to guard against rising inflation READ MORE 4/11/2021 | Inflation insights How investors can guard against lasting inflation READ MORE 1 of 7 Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Equities have tended to be volatile, and do not offer a fixed rate of return. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bond prices will normally decline as interest rates rise. The impact may be greater with longer-duration bonds. Credit risk reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. 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