For investor seeking to capitalise on the relative safety of high-grade fixed income investing, recent years have been disappointing. Government bonds, mortgage bonds and investment grade corporates sold off dramatically in 2022 and have so far failed to fully recover. In contrast to this, the challenging conditions have provided opportunities for active managers. As illustrated in the Exhibit, our Global Fixed Income Opportunities (GFO) mandates have provided solid risk-adjusted returns. This is here illustrated by the live performance of our Euro 50m+ sustainable bonds GFO mandate’s live track record. Since its inception in Q3 2022, this mandate has outperformed its Euro Agg reference benchmark by more than 10% while experiencing lower volatility and smaller drawdowns. The key to this performance has been an active management of both duration and credit exposure.