Interest rates influence far more than the cost of borrowing. They shape where capital flows, how investors value future growth and, ultimately, which businesses are best placed to succeed. Yet the impact is rarely uniform. Some companies and sectors are highly exposed to changing rates, while others are built to thrive through shifting economic conditions.
In this video, Head of Impact Investments Jamie Innes explains the two key ways rate movements influence asset prices, why some sustainable investment themes, particularly within the climate transition, can be more sensitive to changing borrowing costs than others, and which types of businesses – and why – tend to be more resilient through different market environments.
Using examples such as semiconductor companies, Jamie highlights the characteristics that can help businesses weather rate cycles, including strong pricing power, robust demand and strategic importance in the global economy.
He also shares how Tribe approaches portfolio construction through changing market cycles, balancing opportunities across asset classes, sectors and geographies to build resilient portfolios that remain focused on long-term returns and positive impact, regardless of the interest rate backdrop.
