After much speculation, the Monetary Policy Committee (MPC) of the Bank of England voted to raise interest rates this month, following an increase in wage growth, which has been on a steady rise for the past six months and continuing record low unemployment rates.
A rise in interest rates has been long mooted but deferred due to an economic environment that was not conducive to a rate increase. Now the Bank of England have taken the first step, many will expect further rate increases to follow.
This poses a challenge for investors and advisers who hold assets that will be adversely affected by rising rates. Though the sector has taken steps to adjust, many will watch the fixed interest market closely to understand the impact of this rate change. We expect to see increased interest in that represent an alternative to fixed interest but shares many of its characteristics.
FP Foresight UK Infrastructure Income Fund (FP FIIF) is an attractive alternative to fixed income and invests in a diversified portfolio of UK listed renewables and infrastructure investment companies. Launched in December 2017, the Fund is an Open-Ended Investment Company (OEIC) and provides diversified access to the attractive cashflows from real infrastructure and renewable energy targeting a 5% annual yield, paid through quarterly dividends.
FP FIIF invests in assets that are conventionally uncorrelated to volatile equity markets offering predictable index-linked income, a desirable characteristic when economic circumstances are so uncertain.
For more information please contact Foresight’s Sales Team at firstname.lastname@example.org or alternatively call: 020 3667 8999
This financial promotion is issued and approved by Foresight Group which is regulated by the Financial Conduct Authority. The value of an investment can fall as well as rise. Investors may not get back the full amount they invest. Past performance is not a reliable indicator of future results. We recommend investors seek professional advice before deciding to invest.