00:00You and a team have been de-risking. Where and what in?
00:03Good morning, Jonathan. We've been de-risking across the board. We've really been getting
00:08closer to benchmark in our equity positions, closer to benchmark in duration. We've been
00:13bringing down some of the factor risk in the portfolio. And there are a couple of reasons
00:17for that. The obvious one is we don't know how long this is going to go to continue. I think
00:22you used exactly the right word a few moments ago. Persistence. And the longer this persists,
00:28the greater the risk to inflation, the economy. But the other reason for de-risking is that there
00:34really aren't any hedges in this context. In 22, the dollar actually was an effective hedge
00:41against the sell-off on equities. Last decade, treasuries were providing some downside when
00:48there were concerns about growth. In other circumstances, gold has been working. Nothing
00:53is working right now. So really, the only thing you can do within a portfolio, other than making
00:58some adjustments at the stock level, is to bring the risks down.
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