Income: What rising interest rates mean for equities and bonds…

Income: What rising interest rates mean for equities and bonds…

The response to the financial crisis in 2009 was unprecedented. Globally, central banks cut interest rates to record lows and embarked on quantitative easing. As this response unwinds, income investors need to consider how this affects bonds and equities.
In this short animation we explain:

  • How bonds and equities might react
  • Maturity and duration – and why they matter
  • What tools can help mitigate some of the risk

For a full explanation of the concepts discussed please visit our dedicated webpage on the effect of rising interest rates.

THIS INFORMATION IS FOR PROFESSIONAL ADVISERS ONLY. The value of investments will fluctuate. The fund holds bonds, including high yield bonds, which could prove difficult to sell. As a result, the fund may have to lower the selling price, sell other investments or forgo more appealing investment opportunities. The fund may invest in emerging markets and use derivatives for hedging and investment purposes. The fund’s annual management charge is taken from capital. Payment of income is not guaranteed and will fluctuate. Issued by Artemis Fund Managers Limited which is authorised and regulated by the Financial Conduct Authority.

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All figures correct as at 19.11.2018.