Commercial property along with equities and bonds will not be significantly impacted by the rise in interest rates, says Threadneedle Investments.
Quentin Fitzsimmons, head of government bonds at Threadneedle Investments, admits the markets were surprised by the timing of the latest hike in interest rates.
However, he says that returns from commercial property, unlike residential property, are dependent on a wider range of factors than just interest rates, negating the impact of the hit.
He adds: Looking on the bright side corporate profitability is robust and we believe that this should help equities shrug off any drag from higher interest rates.
“Meanwhile UK bond markets are offering higher yields than seen for sometime.