2026 Second-Half Investment Outlook – Fixed Income

Market trends are constantly changing, and investors are increasingly focusing not only on growth opportunities but also on enhancing the stability and resilience of their investment portfolios.

Fixed-income funds (bond funds), by investing in different types of bond assets and being actively managed by professional investment teams, can serve as an important part of asset allocation, helping to balance risk and potential returns.

The following are extracted from the latest views* on the fixed-income market from several fund companies for your reference:

Fixed Income

About short-term fixed income, Fund House(s) generally favour higher-quality and shorter-duration fixed income as a defensive source of income and portfolio resilience amid elevated inflation, geopolitical uncertainty and interest-rate volatility**:

• Allianz believes that bonds have regained their attractiveness. The Fund House favours actively managing duration exposure and high-quality credit, with a particular emphasis on active management and rigorous credit selection; 

• Fidelity observes that investors are increasingly favouring global short-duration strategies due to their attractive yields, lower interest-rate sensitivity and higher liquidity. Fidelity also highlights short-duration credit as a defensive way to generate carry while preserving portfolio resilience in a structurally higher inflation environment. 

• JPM believes that interest-rate trajectories have been substantially repriced by markets, while policy divergence among major central banks has become increasingly pronounced. At the same time, elevated cash yields have enhanced the attractiveness of income-generating assets across fixed-income markets. 

Means Top 3 Performing HKD Bond Funds under Featured Funds distributed by WeLab Bank as of 30 June 2026. Investment involves risk. For information only and it is not investment advice. Past performance is not indicative of future performance. Click “Investment” > “Featured Funds” to read the fund performance details.

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Remarks

*Based on investment outlook or market analysis document(s) for 2026 published by leading fund houses (“Fund House(s)”) including Allianz Global Investor (“Allianz”), Fidelity International, Invesco, and J.P. Morgan Asset Management (“JPM”), we have compiled and developed the <2026 Second-Half Investment Outlook>. For details and the exact wording adopted by these Fund House(s) on particular investment outlook, please study relevant documents issued by respective fund house as listed out in Section “Source document(s) of 2026 Mid-Year Market Outlook of Fund House(s) “ of this document. The information contained herein is derived from publicly available market information and is for reference only.

**Source: Section “Fixed Income” in <2026 Second-Half Investment Outlook >

- Allianz < House View Q3 2026: Shock absorption > Page 6. 

- Fidelity < Global Outlook: The shock absorbers > Page 6. 

- Invesco < 2026 midyear outlook: A world disrupted? Resilience endures > Page 8，15. 

- JPM < Mid-Year Outlook 2026 | Don’t park the bus > Page 12，14. 

Source document(s) of 2026 Mid-Year Market Outlook of Fund House(s):

- Allianz House View Q3 2026: Shock absorption，as of June 2026 

- Fidelity Global Outlook: The shock absorbers，as of June 2026 

- Invesco 2026 midyear outlook: A world disrupted? Resilience endures，as of June 2026 

- JPM Mid-Year Outlook 2026 | Don’t park the bus，as of June 2026 

*** “Top 3 Performing HKD Bond Funds ” lists the top 3 performing HKD bond funds among all Featured Funds as distributed by WeLab Bank based on the 1-year return. Fund return performance and other information are provided by Morningstar Asia Limited. The information is as of 30 June 2026. We are not responsible for the accuracy of the information. Past performance is not indicative of future results. Please refer to the relevant fund offering documents for details of fund performance information. PIMCO Asia Strategic Interest Bond Fund (HKD) (Monthly Dividend) calendar year performance: 2021: -4.45%, 2022: -10.87%, 2023: 3.71%, 2024: 6.25%, 2025: 8.45%; JPM Global High Yield Bond (HKD)(Monthly Dividend) calendar year performance: 2021: 5.93%, 2022: -10.13%, 2023: 10.71%, 2024: 8.03%, 2025: 8.83%; AB Global High Yield Portfolio AA (HKD) (Monthly Dividend) calendar year performance: 2021: 3.47%, 2022: -12.28%, 2023: 13.00%, 2024: 6.71%, 2025: 7.67%.

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Disclaimer  

This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.

The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.

Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). 

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