Note fund return vs interest rate

[Allison T.]

Hi I am looking to invest in note fund, but have a general question on how interest rate might impact the future return of a similar note fund. Assuming the current note fund I am looking to invest has x% return and has three year term, should I be expecting a higher or lower return in the next tranche if the interest rate rises in the coming years? I know the return lies greatly on each fund's management and strategy, but would like to have a high level understanding on how interest rate might impact the yield of a note fund. Thank you!