Fixed income investors should recognize that bonds often perform better with active management than with indexing because the bond market is inherently fragmented and diverse.

“The way that the bond market works is fundamentally very very different than the way the stock market works. And there are reasons that it makes a lot of sense to use active management sometimes a lot of times depending on what you're doing.”

Fixed income is an attractive component of a portfolio for its carry and role in generating stable core total return, provided the investor is diversified and focused on security selection.

“the fact that we can look across, you know, the swath of fixed income markets and find, you know, interesting areas, you know, it may be more income focused, i.e. if we're not expecting a significant downdraft in interest rates, the total return potential from fixed income might be more muted, but t”

The current economic environment of higher interest rates offers investors a more attractive income-generating opportunity in fixed income than the previous decade of low rates.

“So, I would link this all back to sort of like that we're in this new era for fixed to gum that we've been talking about since the rate reset in 2023. The higher rate environment really continued to set the market up for success that income is back in fixed income.”