When my kids were younger, I was able to amuse and astound them with my great sense of humor, my fearlessness in the face, that danger and my ability to open really tightly closed jars. But now that they're older and I am too, it feels like my dad jokes just embarrassing and I worry more than they do when we have to walk home late at night. I'm not even the tallest anymore. Have I become obsolete? Well, that's the question. The fixed income market might be asking itself to in the current lower, for longer and longer environment, where we forecast the yields will stay structurally pinned down way past 2022, due to forces such as demographics, fixed incomes potential to provide income seems really limited. Nothing to shout about. Should it just hang up its boots and go home? Well for us, fixed income has not always been just about the income for a start there's diversification. You get particularly in long duration bonds and in particular us treasuries, they provide great balance still for any portfolio and have the handy addition that they free up risk budget that you can use for the growth assets that you really need to get the returns that are sorely lacking in other parts of the market. And we do still think that tight and improving fundamentals are still going to help. Uh, investment grade spreads remain as tight as they are, and the presence of rising stars, which were falling angels before in high yield is going to keep that sector buoyant as well. Now, emerging market debt, a bit like me, has had a tough time recently, but we think it's going to stay supported by the hunt for yield and a particular on the local currency side, the undervaluation in effects should close, and that will provide a huge bounce for that sector of emerging market debt. So for us fixed income is still very relevant, but you'd have to look outside developed market government bonds for yield and diversification separately. Now, as for me, it feels a lot more relevant to the family, still hangs in the balance, and I'm always worried that they're going to invent itself opening jars.
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