We are very close to the end of the rate hike cycle and that gives us a much more constructive outlook for fixed income for the remainder of this year, although we do expect there could be some bumpy months ahead for credit spreads as those evaluations need to react to the weakening and growth environment, but there are certain sectors that will be resilient through this cycle and credit does offer a good source of carry, particularly for a cash plus absolute return portfolio. In terms of potential upside for fixed income, it is quite interesting to see some of the divergence in central bank reaction functions so far this year. Other signals we suggest some bond markets are still expensive and could underperform, for the first time in a while that level of divergence is getting us quite a lot of opportunity to extract value from global fixed income markets.

In the webcast, Luke Copley, Portfolio Manager, will share his views on Global Fixed Income Outlook.