IVZ
#I would say the effort that we started three years ago broadening our fixed income capability, probably almost four years ago now, is really proving to bear real fruit.
And as you say, if you just look across the fixed income performance, it is very strong.
And we are seeing growing demand, all channels, all regions, within fixed income.
And some of that is still not at the level that we anticipate because some of the capabilities do not have three-year track records.
They are getting close, but we are starting to get commitments on them because the performance.
Quite frankly, institutions in particular looking for another high-quality provider of fixed income capabilities.
So not just good performance, but we do think it is ---+ we are not seeing the highest level of contribution yet from the area.
So we are very positive on it.
It is only growing for us.
It is such a big market, and we are so under-penetrated that our opportunity to continue to grow, even if there are some rate impacts I think is significant.
It is a good question, and I think we are all ---+ we are imagining, right.
It's hard to imagine, but what I can say, and this probably gets back to some of these other topics that we talked about, breadth of capability, depth of capability matters a lot.
We think quite frankly high-conviction manager and fundamental investing and factor investing is really important.
We think we're obviously one of very few firms that can do the range of both types of things.
Quite frankly, the other thing that Jemstep does, it is an enabling tool for our advisory clients to get broader, deeper relationships with their clients and serve clients that may---+ individuals that could ultimately be totally disadvantaged by the fiduciary rule that's being put in place.
That is part of what we are thinking of how Jemstep can help us and our clients with a rule that we don't know exactly what it's going to be at the moment.
That's how we've been thinking about it, so hopefully that's helpful.
Nothing more than what we have, quite frankly.
We're just leveraging in many ways capabilities that are in our view not ---+ can scale much more than they are today and taking capabilities that are somewhat focused on a particular region and unlocking them on a global basis.
We can use existing sales people, we can use existing teams, so there is no new infrastructure that we necessarily need to put in place to support that activity.
It is more a matter of coordination, education, and making sure that our team ---+ sales teams in particular ---+ understand these products and can articulate the benefit to their clients.
Is this in particular in the UK.
If you look over the last few years, and let's do Europe first.
It has been ---+ really the independent global asset managers, largely US, that have been continuing to take greater share on accounts.
I know there are some other very good competitors that participate, but that has been the fact for whatever reason.
And over the last number of years as you have seen, we just continue to make stronger and stronger inroads on the continent, and we still think that is the case.
We still have ---+ we think quite a way to go to penetrate the market, and that continues for us.
In the UK, it is really quite different.
It is a really competitive market.
Very few non-UK firms are successful in the UK.
It is really the heritage of our presence in the UK is why we are so strong there.
Again, it just continues to be competitive, but we are very well-placed there, and we think we will continue to do well.
But there would probably be another market that is largely driven by regulatory developments and what's starting to happen here in the United States.
It is very difficult to be a smaller firm, and I think the strong are just going to get stronger in the UK as that will be the case in the United States too.
So Rhode Island would be the highest profile in the United States, I would say.
But again, we are seeing ---+ one of the components of being able to do that, it is really this combination of broad range of capabilities and from our point of view, side conviction factor and fundamentals.
We have both of those, and I think that is actually really important if you're going to be successful in solutions.
And it is continuing to carry on for us in each of the regions, so the US, Asia-Pacific, frankly China in particular and on the continent in particular.
So we will just continue to go down that path.
There is growing opportunity in the area, and again I think it is ---+ you really have to be a broad-gauged set of offerings to be successful.
And that is where we start, and then the overlay of some very talented people who could do the solutions work for the clients.
Hard to ---+ we, probably like you and everybody else, we do our looking forward to try to understand where the strength would come.
It will be a contributor for sure and a growing contributor over the two and three years out from where we are right now.
That is another reason why we have such confidence in the 3% to 5% range.
It has been 100% broad across the asset class, utilizing anything from a factor based capabilities to alternatives.
So it's client dependant, but it has used the full range of capabilities in most cases.
On behalf of <UNK> and myself, thank you very much for your time and we look forward to talking to you next quarter.
Have a good rest of the day.
