Faulty Towers

So Will, there's a lot of moving parts here.

Why don't you start us off with what are thoughts on and what, if anything, we've been doing in the funds?

Yes.

Okay.

So you're right.

I mean, bond yields have been moving higher again.

We've been on a bit of a roller coaster this year, particularly around what's been happening with Iran and the oil price.

Whilst most government bond yields have risen, so bond prices falling this year, there have been some differentials.

So Japan is by far and away the worst.

The US and the UK and France are sort of following that, not as bad as Japan, but generally quite bad.

And then when you get into areas like Australia, New Zealand, Norway, the sort of bond yield rises haven't been quite as bad.

And what are we looking at here? Well, Japan's up 80 basis points on the 10-year year to date.

So give or take, that's sort of a fall in the bond price of about 8%.

That's 80 basis points from a starting point of where roughly...

Well, so Japanese bond yield is 2.9 today on the 10-year.

So we've gone

from about 2 to nearly 3.

So it means the scale, right? Yeah, so it's pretty important.

80 basis points doesn't sound a lot, but actually in that context, it's significant.

Yeah,

I mean, from a bond price perspective, it's similar moves, but you're right.

The scale has been larger in Japan on absolute and relative, actually.

Yeah, yeah.

Whereas, you know, UK

is up... 50 basis points.

So Will, there's a lot of moving parts here.

Why don't you start us off with what are thoughts on and what, if anything, we've been doing in the funds?

Yes.

Okay.

So you're right.

I mean, bond yields have been moving higher again.

We've been on a bit of a roller coaster this year, particularly around what's been happening with Iran and the oil price.

Whilst most government bond yields have risen, so bond prices falling this year, there have been some differentials.

So Japan is by far and away the worst.

The US and the UK and France are sort of following that, not as bad as Japan, but generally quite bad.

And then when you get into areas like Australia, New Zealand, Norway, the sort of bond yield rises haven't been quite as bad.

And what are we looking at here? Well, Japan's up 80 basis points on the 10-year year to date.

So give or take, that's sort of a fall in the bond price of about 8%.

That's 80 basis points from a starting point of where roughly...

Well, so Japanese bond yield is 2.9 today on the 10-year.

So we've gone

from about 2 to nearly 3.

So it means the scale, right? Yeah, so it's pretty important.

80 basis points doesn't sound a lot, but actually in that context, it's significant.

Yeah,

I mean, from a bond price perspective, it's similar moves, but you're right.

The scale has been larger in Japan on absolute and relative, actually.

Yeah, yeah.

Whereas, you know, UK

is up... 50 basis points.