FidelityConnects: Fixed Income & High Yield: Strategies for the year ahead

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<b>Subtitles are AI Generated</b>

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Hello, and welcome to Fidelity Connects. I'm Glen Davidson.

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AI spending has helped push convertible bond issuance to a 24-year

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high, according to recent reporting.

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That backdrop is shaping how we're thinking about volatility, valuations and

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where flexibility really matters most in portfolios today.

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Where are convertibles, special situations and income strategies creating

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opportunity right now?

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How is our next guest looking at his portfolio for what comes next?

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Joining me now to unpack all this and more is Adam Kramer.

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Adam's portfolio manager on the Fidelity Tactical High Income Fund.

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A reminder that today's webcast features live French audio interpretation.

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Adam, so good to see you from Boston today.

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Great, nice to be here, Glen.

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Adam, you and I spoke last in August so it's a perfect

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time to have an update because there's always lots going on.

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I just want to remind our viewers Tactical High Income Fund is one of the

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best-selling balanced funds in Canada, and it has been for the last several

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years. You've got Lipper awards, you've got A-plus awards, you're a 5-star

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fund. It's very diversified and because of that why don't we go

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through each of the buckets, if you will, within the portfolio today.

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maybe we'll start with the 30-year.

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Great to be back here. I don't know where the time has gone since August.

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It's pretty amazing to be back here.

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Just as a reminder, we are a flexible mandate to invest across the

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full spectrum of income-oriented asset classes and we wanna wiggle around a

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traditional balanced fund, so 50% investment grade bonds, 50%

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stocks. If we're wiggling around that profile

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then 50% of the US investment grade market would be around three years.

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In this strategy we only really

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want to invest in investment grade bonds when there's a real big widening

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of the spread. Think about 2022, 2020 when

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you were able to buy mid-ship investment grade bonds at pretty attractive

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prices but now when you look at the investment grade bond markets we're

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at the top 5% of richness on spreads relative

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to Treasuries going back a number of decades.

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We want to mimic that three years of investment grade duration with

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as little capital as possible given that there's so many other attractive

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areas in the market and we feel as if we're in a mid-cycle type of environment.

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We like to use the 30-year Treasury as a proxy for building

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out that 3-year duration. In our case, as this goes in top 10 holdings

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we've had the 2015 [indecipherable] US Treasuries

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which have an 18-year duration.

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We're able to do the build of that profile with

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maybe only 18% or so of the

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portfolio and then allocated to other areas.

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That allows us to sort of track 50% of that investment grade

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bond index. We don't really own many investment grade

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corporates anymore or fixed floating preferreds which was a top idea many

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years back. We've sort of gone where the puck is and we'll talk about that

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today.

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The focus has been on investment grade on that 30-year and it's a great tool

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for you to have for the portfolio and obviously remains as such today.

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Let's go to high yield and loans next.

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High yield and loans, I've been in the Fidelity's High Income and

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Alternatives group for the last 26 years.

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I'm sitting here right now looking at our 25+ analysts and

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traders and research team.

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I manage and have been picking high yield bonds and loans

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for other portfolios including this one as well.

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What I like about the high yield in the loan market today is that even

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though the spreads at tight relative to Treasuries you're

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still getting a very attractive yield, current yield, relative to the amount of

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duration you're taking on.

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Through security selection, our best ideas from our analysts and our group

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we're able to build profiles, find our best ideas in

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what's called high yield bonds. Generically we can find some best ideas with

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an 8% current yield versus a 3-year duration, or for

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loans which are floating something similar type of

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profile as well. What that means is that if you have an 8% current yield versus

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a 3-year duration that means that interest rates or credit spreads can widen

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hundreds of basis points before your coupon doesn't offset your principal

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decline. While we have a lot less high

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yield than we have in the past it's still an overweight for us relative to

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investment grade bonds. We have lot of different positions as

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disclosed in the portfolio that build out this profile.

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High yield and loans are still an attractive area for us.

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I've got to ask, you mentioned where you sit right now and who you look over,

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with a portfolio that has pretty much every asset class possible

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how did it end up that you're sitting in the area that you are at 245 Summer

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Street?

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I started out as a summer intern back in 1998.

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I started as an analyst here in 2000, covered around 15 different industries

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and then started to manage money in 2008.

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We just have a great team. I'd say that we've just been adding in so many

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different areas of expertise in our group from high yield bonds to loans

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to real estate income to emerging market debt to the special situations.

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We have distressed portfolios here as well, we have convertibles,

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preferreds. All our analysts are trained to look at the entire capital

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structure from the equity all the way up and to find that sweet spot

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in the capital structure. This is sort of the essence, the raison d'etre of

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this fund is to recognize that the market has a tendency to

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rightly or wrongly price in risks well before the events occur,

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only to get adjusted the following year when the actual events occur.

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That's why in our group, the High Income and Alternatives group, a majority of

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the time, if you go back decades it's the majority of time that these asset

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classes that are the best performing asset class and

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it's not always investment grade bonds and S&P 500 stocks.

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Most of our peers are now looking at this on a regular and consistent basis and

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that's how we're able to add alpha and create value

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for you the shareholders.

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It's pretty amazing to think of the amount of inputs that come at you as far as

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the different asset classes that you can be invested in and the exposure you

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have to all that information.

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Let's go to preferred shares. If I'm not mistaken you were underweight last

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time we spoke. I'm not sure where you are today.

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I may be off base.

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Relative to the investment grade bond market the preferred share market is

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mostly the largest US banks and some

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REITs and utilities. That's sort of the US market here.

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I manage with a co-manager Rick Gandhi, who's also co-manager

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on this fund as well, our preferred stock ETF in the

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States and a bunch of other portfolios as well.

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We choose our best ideas from that asset class.

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When you look at the preferred market relative to the

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investment grade market it's still more attractive but on the absolute it's a

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pretty rich market. When I go back to the profile, going

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back to what I was talking about before, let's say probably the market's

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yielding around 6%, you're taking on around 7 or 8 years

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in duration so it's not the best matching if you go back to why I like high

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yield and loans so much.

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It really is a security selector market for the preferreds right

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now.

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For the most part we have really been focused on

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the Strategy perpetual preferreds.

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Strategy is the company that invests in Bitcoin.

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We own the most senior parts of that preferred capital stack.

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This is a preferred that is 6 times covered by

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the amount of Bitcoin that is on their balance sheets, give

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or take. It's yielding around 10% pre-tax

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and after-tax because this is a return on capital dividends.

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And because it's a misunderstood story it trades at a very wide spread relative

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to Treasuries so there's potential principal upside as the market

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gets more comfortable with the name.

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This disclosed holding in the portfolio has actually been a very big

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contributor to doing better than the preferred market.

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This is a good example of how we're trying to find the mispriced securities

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even in preferred shares.

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I think the last time we spoke convertible securities were where you were

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exposing yourself to, what was known as MicroStrategy, now it's Strategy.

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Is that the case and now you're looking at the preferred issues?

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One of the great things about our group is that we're constantly looking

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at value relative to itself and relative to other parts of

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the capital structure. This was a great example of where I was speaking with my

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chief investment officer and saying, is it still as

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attractive as it was before?

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I'm talking about the convertible bond for Strategy.

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Around mid-year last year we made that shift going from the convertibles

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to the preferred. That was a pretty good move.

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The convertible bond market though is probably

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one of my best ideas for 2026 as well.

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In 2025 it was the best performing asset class.

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It even did better than the S&P 500.

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Lastly, I would say that there is a very good technical backdrop

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on the convertible bond market today.

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Close to a third of the market is going to be maturing in the next number of

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years so that means there's going to a lot of pent-up demand for those new

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issues.

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Compared to other fixed income asset classes it's one of the few that

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really is not trading at peak valuations.

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I like to call the convertible bond market only trading at mid-cycle valuations

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and I like the look at it in terms of what's the equity sensitivity of the

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markets. It's around 52%.

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That has ranged from 35% of trough to around 65%

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of peak. It's a very good time to be looking at convertibles

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and we've been continuing to look at it on a consistent

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and regular basis.

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Well, I like your conviction for 2026 that convertibles are going to be the

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leader. As you said, it is a secret sauce of the portfolio.

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Many have said you are the king of convertibles so we'll keep an active eye on

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what happens with that market and that sector this year.

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Let's shift to special situations within the portfolio.

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Maybe if you can define what a special situation is and then we'll

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get into that.

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Special situations in our group, we have a team of

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analysts and lawyers that actually strive to

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be a liquidity provider, solve problems for companies.

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In many cases it means that we can buy securities that

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are quite attractive. There was one good example last

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year, a company called EchoStar.

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Used to be called DISH Net [indecipherable] satellite TV company.

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For many, many decades, as long as I've been in this group, we've always

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had an investment in this company.

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It wasn't as if the business was in secular acceleration but it was a lot of

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spectrum, airwave spectrum that was quite attractive.

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Eventually they issued convertible bonds a number of years ago for which we

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had invested in these convertible bonds.

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Eventually they were due to

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mature and the company approached the major investors

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to seek a solution to refinance that debt.

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That's where our special situation team came in and helped craft

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a solution for the company to take care of their maturities.

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In exchange, we as convertible bondholders,

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exchanged those convertible bonds into a new security.

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What that did was it decreased the strike price for

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the stock, reset it to a lower price where we were able to participate

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in the upside of that stock.

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It also gave us a lien on

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the airwaves which we didn't have before on the spectrum.

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That was very, very important, all of a sudden we moved up in the capital

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structure, and we were also given secure bonds as well.

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That's how the specialty of our special situations

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came to play, liquidity provider, new securities where we

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can invest. We had a good relationship with the

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management team as well.

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Hello, investors. We'll be back to the show in just a moment.

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DialoguesFidelity podcasts available on Apple, Spotify, YouTube, or wherever

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else you get your podcasts. Now back to today's show.

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That's an excellent story related to special situations.

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You mentioned at the outside of that answer the

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number of lawyers. There must be an army of lawyers, the covenants they must

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review, it's good to know there's that sort of backdrop of resources

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for you to draw and to make the right conclusion for the portfolio.

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Why don't we go to emerging market debt, that's in area you've always talked

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about as a component of the portfolio as well.

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Last year emerging market debt actually did quite well.

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If the high yield and loan market were up between 7

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and 8% the emerging market debt market was up around 13 or so per cent last

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year. I'm talking about the markets.

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For the most part we are

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US dollar investors. The emerging market debt is mostly

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US dollars but we can invest in local currency as well if currencies are quite

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attractive. In the past we've owned Petróleos

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Mexicanos, which was a US dollar bond.

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Those were trading widespread relative to the Mexican sovereign.

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Going forward, as disclosed in our holdings

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we had an investment in the low currency debt of

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Brazil. It's an interesting

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way to invest in the potential changes

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in the currency in Brazil.

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A one-year piece of paper, which will be paid

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back at a hundred cents on the dollar, let's call it a few cents below

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par, you're getting 10% in local currency.

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We're waiting for the election to take place there in October '26.

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Right now the Federal Reserve there, or the Bank of Brazil,

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central bank of Brazil has rates very high to regain their credibility.

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Real yields are quite high, they're over 10%. I think what could be

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interesting is if there is a change in the fiscal outlook

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with the candidate that will eventually be announced to run against Lula

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that could really add to the potential return to

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this investment. You're doing so with a one-year piece

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of paper that's actually trading at a discount to par so an

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interesting way to take advantage

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of a episodic opportunity in the currency markets, I would say.

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That's sort of how we can use our flexibility to find extra value

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and income for our investors.

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A very interesting area and not one that many people can explore themselves so

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all the more reason for the fund.

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Now, stock wise that's a big component of Tactical High Income.

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Why don't we talk about oil tankers?

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There's a lot in the news these days about oil tankers but you've talked about

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oil tankers in other presentations that you've done to our audience because

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you've been involved as an investor in oil stocks, in oil tanker stocks

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for a long time. It's even more in the news now, obviously, so we should talk

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about that.

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Yeah, sort of interesting Glen because when I go back to when I started out as

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an analyst in 2000 in our group one of the first

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convertible bonds I looked at was an oil tanker stock.

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That management team is still around today.

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I've had a relationship with a few of those people for decades.

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Also they've issued high yield bonds as well.

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Over time that industry was always known as boom-bust, making

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wrong decisions at the wrong time, buying ships at the peak, taking on too

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much debt, coming close to bankruptcy.

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That's sort of where the market was used to that

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reputation, I guess you could say. Over the last five, six, seven years these

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companies have found religion, paying down debt, paying dividends out, doing

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all the right things, not having orders at the peak of the cycle.

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It's come to a point where most of these companies have paid down their debt

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[indecipherable] value.

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What's interesting about these oil tankers, the ones we own as disclosed

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in the top 10, they pay out 100% of their net income in dividends.

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That adds a very nice twist for an income fund like us.

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They do very well in periods of dislocations, geopolitical bad

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times  because when trade routes for oil tankers, they

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carry oil from point A to point B, when those get disrupted it means there's a

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supply that comes out of the system. They have to go on longer routes.

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That's why it does well in a down market.

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But I always was saying that the ultimate secular theme

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would be if there was peace in the world because around 13% of the world's

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fleet is operating in what they call a shadow fleet.

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These are very old non-compliant fleets that the oil majors would

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not be hiring but they're transporting oil for Venezuela,

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for Iran, for Russia.

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Now all of a sudden we see what happened in Venezuela.

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Potentially something can happen in Iran.

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As sanctions are lifted those older ships, 13% of

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the world fleet, won't be able to get insurance.

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The oil majors will not be transporting oil on those.

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It means it will be going to the compliant fleet, the stocks that we own.

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That could take a lot of supply out of the system.

18:28.207 --> 18:32.878
Of course, OPEC production is a key variable on the demand side

18:32.878 --> 18:37.082
but also strategic petroleum reserves stock in China,

18:37.082 --> 18:39.685
for example, which is continuing, is another thesis too.

18:39.685 --> 18:43.455
We have some very interesting things happening in the world right now and I'm

18:43.455 --> 18:45.491
very excited about these stocks.

18:45.491 --> 18:49.561
So certainly more of a push towards legitimacy when it comes to that fleet and

18:49.561 --> 18:53.699
it's a thesis that's playing out well for you, makes a lot of sense.

18:53.699 --> 18:57.436
Just a reminder to our audience, if you have any questions please do send them

18:57.436 --> 18:59.671
in. Why don't we go to Canada?

18:59.671 --> 19:02.841
What's your sentiment on the Canadian market and some areas that you're focused

19:02.841 --> 19:05.577
on right now?

19:05.577 --> 19:10.082
One of the key themes for the stock part of the portfolio,

19:10.082 --> 19:14.019
we have definitely been adding a lot more small-caps on the US

19:14.019 --> 19:17.189
on the equity side. If you look at it the disclosed holding you'll see some

19:17.189 --> 19:20.125
very interesting ideas in there.

19:20.125 --> 19:24.496
One of our top contributors last year was a small-cap Canadian

19:24.530 --> 19:28.066
retailer that went up six-fold.

19:28.066 --> 19:31.503
I remember just sitting in a store on St. Catharine Street watching my daughter

19:31.503 --> 19:35.107
buy a dress and I was thinking, wow, this is quite interesting, let's look into

19:35.107 --> 19:37.109
the stock.

19:37.109 --> 19:41.079
Finding mispriced opportunities was where I was looking at Canada,

19:41.079 --> 19:43.849
especially after the tariff sell-off.

19:43.849 --> 19:47.619
One of the areas that we've had in the top 10 holdings, a company called

19:47.619 --> 19:51.657
Transalta, everybody's familiar with that company in Alberta, they have

19:51.657 --> 19:54.793
a lot of idle capacity for electricity generation.

19:54.793 --> 19:58.630
We've had this in the fund for quite some time.

19:58.630 --> 20:02.601
Potentially something could happen with regards to

20:02.601 --> 20:06.238
signing a deal for data centres, electricity generation.

20:06.238 --> 20:10.475
I think Alberta is an interesting area because

20:10.509 --> 20:14.780
the Alberta utilities trade at a big discount to the US

20:14.780 --> 20:17.282
utilities which have been signing those type of deals.

20:17.282 --> 20:22.454
We've been focused on Alberta

20:22.454 --> 20:26.358
for Canadian exposure and then, of course, some of those other Canadian

20:26.358 --> 20:29.761
small-cap, mid-cap ideas as well.

20:29.761 --> 20:34.166
Last year the Canadian dollar was up around 4.5%, 5%

20:34.166 --> 20:38.237
relative to the US dollar so that actually hurt our

20:38.237 --> 20:42.207
fund a little bit because we manage all our money in US dollar

20:42.207 --> 20:46.245
to US dollar so if you owned it in the non-currency neutral fund you'll

20:46.245 --> 20:50.849
notice a 4.5% difference or so US to Canada.

20:50.849 --> 20:55.053
We don't look at the Canadian dollar in that regard,

20:55.053 --> 20:59.758
we leave that decision to the investor if you want to buy it in US

20:59.758 --> 21:03.729
or Canadian dollar. We're looking at Canada with regards to mispriced

21:03.729 --> 21:07.766
valuations and if there is an episodic opportunity with the currency,

21:07.766 --> 21:10.202
which I don't think there is right now.

21:10.202 --> 21:13.272
Glad you're looking at Canada, and I love your story about being in Montreal

21:13.272 --> 21:17.509
shopping with your daughter, very reminiscent of a Peter Lynch type story.

21:17.509 --> 21:21.947
Why don't we talk about REITs and where they stand today.

21:21.947 --> 21:24.449
REITs is an interesting area.

21:24.449 --> 21:28.387
We've had a lot less of those REITs in the portfolio over the last

21:28.387 --> 21:32.858
number of years because we looked at those as

21:32.858 --> 21:35.427
very sensitive to interest rates.

21:35.427 --> 21:39.931
Relative to investment grade corporates I always looked at the capitalization

21:39.931 --> 21:42.734
rate of the REITs relative to the investment grade corporates and it was sort

21:42.734 --> 21:46.171
of trading at rich valuations.

21:46.171 --> 21:50.242
Now there's a possibility, we're seeing the inflation numbers coming down, the

21:50.242 --> 21:54.479
economy is remaining strong, we'll eventually have a new Federal Reserve

21:54.479 --> 21:58.417
chairman that could possibly lower rates, these are

21:58.417 --> 22:00.319
the type of things that can help REITs.

22:00.319 --> 22:05.257
Selectively I've been looking at different

22:05.257 --> 22:09.394
REIT ideas. Some of them are in the convertible area, some senior

22:09.394 --> 22:13.065
housing REITs are in there, that's been an interesting area, but I'm looking

22:13.065 --> 22:17.436
for new ideas in the REITs. Are there any areas that are pricing in interest

22:17.436 --> 22:21.973
rates just continuing to move higher on a regular and consistent basis, or

22:21.973 --> 22:26.278
is there too much bad news about real estate prices anywhere.

22:26.278 --> 22:30.515
That's an area that I'm looking for but it's a very small part of the portfolio

22:30.515 --> 22:32.217
still.

22:32.217 --> 22:36.788
Adam, what do you and your team do about geopolitical volatility, geopolitical

22:36.788 --> 22:38.957
risk? Certainly we're seeing lots of it.

22:38.957 --> 22:44.029
How do you assess that and make plans for the future?

22:44.029 --> 22:48.066
Ultimately, this portfolio always wants to have

22:48.100 --> 22:51.870
the proper matching of income for the amount of risk we're taking on in the

22:51.870 --> 22:55.941
bond and the equity market. What I mean by that, if a traditional

22:55.941 --> 23:00.679
50/50 balanced fund has a current yield of 2.5%,

23:00.679 --> 23:04.783
let's say, can we try to get that to 150,

23:04.783 --> 23:06.618
200 basis points higher than that.

23:06.618 --> 23:09.788
I think if you look at the history of this fund we've had a very big premium

23:09.788 --> 23:11.656
yield relative to everything else.

23:11.656 --> 23:15.861
Because we're not 100% equity, because we're not 100% bonds

23:15.861 --> 23:20.031
we can make sure that our profile, our equity sensitivity,

23:20.031 --> 23:24.169
our bond profile, our duration, allows us to

23:24.169 --> 23:28.306
really have that coupon offset the volatility in

23:28.306 --> 23:32.477
the down market. Making sure we have that proper matching is very,

23:32.477 --> 23:36.448
very key. I think that's why this fund has done well for the most

23:36.448 --> 23:40.519
part over different periods of sell-offs in the down market.

23:40.519 --> 23:44.689
The other thing in terms of decreasing the volatility

23:44.689 --> 23:48.627
in down markets but then capturing the upside after the episodic

23:48.627 --> 23:50.962
sell-offs is that flexibility that we have.

23:50.962 --> 23:55.434
We have that flexibility to step in after there's too much bad news priced in,

23:55.434 --> 23:58.837
to be a liquidity provider. That's one of the things we've been doing

23:58.837 --> 24:01.807
consistently through the cycles.

24:01.807 --> 24:03.875
It doesn't mean we're always buying at the bottom.

24:03.875 --> 24:09.014
Sometimes we're buying when things are weaker, as was the case in Q4, but

24:09.014 --> 24:13.084
ultimately, if we're buying these securities right and we're collecting a

24:13.084 --> 24:16.888
coupon and then we can benefit from capital appreciation if it's a stock, if

24:16.888 --> 24:21.092
there's too much bad news priced in, or if it is a bond, a preferred,

24:21.092 --> 24:25.197
any type of bond, those move up like stocks too when the

24:25.197 --> 24:27.933
spread is tightening. That's the other thing.

24:27.933 --> 24:31.870
We were talking about oil tankers, are there areas in the fund

24:31.870 --> 24:36.274
that just have way too much bad news priced in that actually are hedges,

24:36.274 --> 24:40.512
true geopolitical hedges in uncertain

24:40.512 --> 24:44.082
times. I try to look for those as well.

24:44.082 --> 24:47.986
A question's come in connected to management of risk,

24:48.019 --> 24:52.090
if there was a sell-off in US government bonds what would that mean

24:52.090 --> 24:58.363
for high yield and investment grade globally?

24:58.363 --> 25:02.367
One of the things that I was focusing on before, what's

25:02.367 --> 25:06.471
so interesting about the high yield market, the bonds

25:06.471 --> 25:11.109
that we own, for example, if you have a 7 or 8%

25:11.109 --> 25:16.147
current yield versus a 3-year duration that means that interest rates or

25:16.147 --> 25:20.218
credit spreads can go up a couple hundred basis points, 250

25:20.218 --> 25:24.723
basis points, before your coupon doesn't offset the principal

25:24.723 --> 25:29.294
[indecipherable]. What I like about high yield is that it has

25:29.294 --> 25:31.129
that proper matching.

25:31.129 --> 25:35.267
The coupon is so much higher than the duration, 6,

25:35.267 --> 25:41.606
7% versus 3-year duration.

25:41.606 --> 25:45.477
There have been very few down years in high yield over the cycles, ultimately

25:45.477 --> 25:49.347
it really comes down to where we are in the business cycle.

25:49.347 --> 25:53.318
We're starting off with that good matching but there will always be pressure

25:53.318 --> 25:57.022
on spreads if the economic environment deteriorates.

25:57.022 --> 25:59.624
I think you're starting off at a good point.

25:59.624 --> 26:03.628
That's why we have less high yield today but we have that proper matching, that

26:03.628 --> 26:07.098
profile, where I can sleep at night with that profile.

26:07.098 --> 26:11.469
I think that's what's so interesting at this point in time.

26:11.469 --> 26:14.906
We're running tight on time, speaking of time, and we've covered a lot of

26:14.906 --> 26:18.243
ground today. There's a few more areas we could get into but that'll bring you

26:18.243 --> 26:21.646
back, which will be great, for another discussion.

26:21.646 --> 26:25.684
Why don't we wrap with this, you look for mispricing, it's something that

26:25.684 --> 26:27.886
this portfolio's always been designed about.

26:27.886 --> 26:32.157
It's a balance of capital appreciation, it's a balance of income.

26:32.157 --> 26:35.660
There's lot of risk controls in place.

26:35.660 --> 26:39.731
Where does this fit within an investor's portfolio on behalf of their

26:39.731 --> 26:40.932
advisor?

26:40.932 --> 26:43.768
It's an alternative to any balanced

26:43.768 --> 26:48.239
fund that's out there today, any 40/60, 50/50,

26:48.239 --> 26:52.410
60/40. I think our 10, 12 year record proves

26:52.410 --> 26:56.381
that, that our yield contributes to almost half

26:56.381 --> 27:00.251
of the return. It acts as that volatility damper that you were asking about

27:00.251 --> 27:03.688
before.

27:03.688 --> 27:06.291
I think that's probably the way to look at it.

27:06.291 --> 27:09.427
Of course, we can always look at it as a tool as well.

27:09.427 --> 27:13.398
It can be a compliment to a bond fund because you have a very similar

27:13.398 --> 27:15.867
yield to investment grade bonds but a lower duration.

27:15.867 --> 27:18.069
It can be a compliment to an equity fund.

27:18.069 --> 27:21.773
But I like to think of it as a set it and forget it, a total return compounder

27:21.773 --> 27:25.977
with less reversion to the mean of total return because we're trying to

27:25.977 --> 27:30.248
move where the puck is year in, year out, higher turnover

27:30.248 --> 27:34.019
but do so in a tax aware manner.

27:34.019 --> 27:38.657
The portfolio today is different from what it was two years ago,

27:38.657 --> 27:40.458
three years ago.

27:40.458 --> 27:42.193
That is the key.

27:42.193 --> 27:46.398
It's always the right time to be buying this portfolio because there's always

27:46.398 --> 27:49.934
bad news priced into certain markets and we're always going to maintain that

27:49.934 --> 27:53.471
proper matching of income to the amount of risk we're taking on in the bond and

27:53.471 --> 27:55.240
equity markets.

27:55.240 --> 27:58.076
Thanks so much for that summary, Adam. It was wonderful to see you today and I

27:58.076 --> 27:59.611
look forward to seeing you again soon.

27:59.611 --> 28:02.447
Thanks for watching or listening to the Fidelity Connects

28:02.447 --> 28:06.751
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28:06.751 --> 28:10.121
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We'll end today's show with a short disclaimer.

28:36.147 --> 28:39.984
The views and opinions expressed on this podcast are those of the participants,

28:39.984 --> 28:43.922
and do not necessarily reflect those of Fidelity Investments Canada ULC or

28:43.922 --> 28:47.926
its affiliates. This podcast is for informational purposes only, and should not

28:47.926 --> 28:50.462
be construed as investment, tax, or legal advice.

28:50.462 --> 28:52.764
It is not an offer to sell or buy.

28:52.764 --> 28:57.102
Or an endorsement, recommendation, or sponsorship of any entity or securities

28:57.102 --> 29:01.906
cited. Read a fund's prospectus before investing, funds are not guaranteed.

29:01.906 --> 29:05.477
Their values change frequently, and past performance may not be repeated.

29:05.477 --> 29:07.812
Fees, expenses, and commissions are all associated

29:07.812 --> 29:09.614
with fund investments.

29:09.614 --> 29:12.217
Thanks again. We'll see you next time.