Jess Chapman: Jess Chapman for Morningstar.ca. I'm here with Daniel Janis from Manulife. He is the winner of Morningstar's Fixed-Income Manager of the Year Award.
Daniel, I want you to look into your crystal ball for a moment here. Tell us where you see the fixed-income market headed in the very near future and how you hope to adapt to that?
Daniel Janis: We've been a little bit more defensive, so a little bit less in high yield, a little bit less in emerging markets. I think that we're going to have volatility from the Fed. So, I think you want to play a little bit more defensive, probably until the end of the year and then in the first and second quarters, once we get a better sense of what the Fed is going to do, then I think you can maybe put risk back on.
Chapman: Do you see any big changes in terms of Canadian monetary policy in the very near future?
Janis: We think they are basically done on the cutting rates. We think they are going to stay in place and do nothing. I think if their economic numbers do improve, they will probably tuck the economy up first and then down the road they will probably raise, but that's probably later this year or early next year.
Chapman: You mentioned the U.S. Federal Reserve. Some economists are predicting that there will be a rate hike next month. How do you see that?
Janis: Yeah, we see in December that they should raise rates. I think the economic numbers basically support that. The question is now what else you say after that; it should be what path will they be on and I think the economic numbers will determine that.
Chapman: Well, we'll make sure to look out for that very closely. Daniel Janis, thank you very much.
Janis: All right. Thank you very much. Thank you.
