Staff
Fidelity Investments Canada has launched the Fidelity Floating Rate High Income Fund, managed by Eric Mollenhauer and Kevin Nielsen.
The fund’s mandate is to help to mitigate the impact of rising interest rates, as floating rate coupons tend to move in tandem with short-term interest rates, thereby helping to reduce the impact that rising interest rates may have on a portfolio, says Fidelity.
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It also aims for higher potential yields as it invests in below investment grade floating rate debt, which may have higher yields than investment-grade fixed income securities.
Other benefits include diversification and seniority in the U.S. capital structure, says the firm.