We understand that you’re concerned about your fixed income investments, especially considering recent market volatility and uncertainty. 

 

Here’s how inflation is impacting your bonds and causing them to fluctuate: 

• The fixed income portion of your portfolio is largely composed of investment funds that hold bonds.   
• When interest rates rise, bond prices fall, resulting in a decrease in the value of your portfolio. 

 

Example 

You own a bond that pays 2% interest. If the market rate is currently 3%, you can expect that your bond will hold less value at the time of sale than one with a price that matches the market.   

 

As a result, this investment will have a negative return even though the bond's principal and interest payments are still guaranteed long-term. 

 

Take a look at the latest major market fluctuations in our Investment Guide. 

 

Do you have questions about your investments? 

Make an appointment with an advisor.