F&C: Low interest rates could become commonplace

F&C: Low interest rates could become commonplace  30 Jul 2010 - 10:26	<< Back

Low interest rates may become commonplace for fund managers and investment trusts following the Bank of England's recent indication that its Monetary Policy Committee (MPC) is in no hurry to raise the base rate, F&C experts have said.

Earlier this month, the MPC opted to maintain the country's base interest rate at 0.5 per cent for the 16th month in succession as it seeks to keep the UK's financial markets stable in the aftermath of the global economic downturn in order to help accelerate the nation's period of recovery.

And, according to Fatima Luis and Rebecca Seabrook, the fund managers of F&C's strategic bond fund, this has come as no surprise to many investors who have been outlaying funds recently on the basis that this would be the case.

Meanwhile, F&C has taken advantage of the worldwide effects of the eurozone fiscal crisis by investing in some of the attractive opportunities it has yielded, such as US hospitals organisation Vanguard.