The real value of equity income

FEATURE

The noise about real interest rate rises is set to increase over the next 12 months. But what will be the impact on company valuations? Ian Mortimer, co-manager of Guinness Global Equity Income fund, explains all.

2014 has seen a marked change to the benign equity markets witnessed over the latter part of 2013, with emerging markets the standout poor performer. Last summer saw a swift sell-off in emerging market equities and bonds. Investors were worried about the consequences for emerging markets following reduced quantitative easing by the Federal Reserve. Over-leveraged emerging market countries saw their currencies weaken, which put further pressure on their economies and governments. There was some hope at the beginning of 2014 that the Federal Reserve would acknowledge these issues in eme...