Interest rate hikes create opportunities to for investors

Tuesday 30 May 2023

Rapidly rising interest rates have created opportunities for investors which Ravenscroft is hoping to seize with a new Higher Income Fund.

An income-focused strategy, the Higher Income portfolio consists of bond funds, equity funds, and investment trusts, with a focus on maximising income.

The fund, which has now launched, will be run by Ravenscroft’s multi-manager team and led by Bob Tannahill and Shaun McDade. It is available as an offshore fund in the Channel Islands and Isle of Man. 

“We have been exploring the possibility of launching a higher income strategy for a number of years and are excited that the events of the last 12 months have provided the ideal opportunity to finally bring this product to market,” said Mr Tannahill, who currently manages Ravenscroft’s income fund. 

“With interest rates near zero for over a decade we just didn’t feel investors were being paid enough to take on the additional volatility that comes with higher income assets. That’s all changed over the last year. 

“The aggressive rate hikes we’ve been seeing have changed the investment environment and we’re now seeing some of the best opportunities in income assets that we’ve seen in many years.” 

The Higher Income Fund will sit alongside Ravenscroft’s Income, Balanced, Balanced USD, Growth, Global Blue Chip and Global Solutions funds.