As June's Federal Open Market Committee (FOMC) meeting approaches in the US, Andrea Iannelli, Fixed Income Investment Director at Fidelity International, outlines why US duration offers welcome protection for investors.

With interest rates likely to remain low for the foreseeable future, investors continue to face the dilemma of how to achieve a good level of income while carefully managing their risk exposure.

With the US abdicating its responsibility, the leadership will be taken up by others. China has already signalled its keenness to take up the mantle. Other countries may also see an opportunity to get ahead in the race to a low-carbon future.

Since Donald Trump was elected, investors have gradually been reassured on their fears on deflation, growth in emerging markets, and uncertainties on the euro area, which had dented appetite for risk between end-October 2015 and mid-February 2016. They therefore played the global reflation theme.

Just as political risk seemed confined to developed markets, Brazil sent a stark reminder yesterday that presidential upheavals are not something buried in Emerging Markets' past.