This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fidelity Investments Launches Fidelity Floating Rate High Income Fund And Two New U.S. Investment Options To Build On Its Industry Leading High Net-worth Offering

TORONTO, Oct. 22, 2013 /CNW/ - Fidelity Investments Canada ULC announces the launch of Fidelity Floating Rate High Income Fund, managed by experienced Fidelity investment professionals Eric Mollenhauer and Kevin Nielsen.

"With widespread uncertainty around how long interest rates can stay at today's historically low levels, more and more Canadians are looking for investment products that can help mitigate the effects of rising interest rates on their portfolios while also seeking income from their investment," said Craig Strachan, Head of Product, Fidelity Investments Canada ULC.  "The Fund can provide Canadians with both. It is a high yield offering that aims to provide a steady flow of income by investing primarily in floating rate debt of non-investment-grade issuers located in the U.S. or whose debt is denominated in U.S. dollars."

The Fidelity Investments organization has over 65 years of experience in managing money on behalf of investors with over 800 investment professionals worldwide. Fidelity has been managing high income solutions since 1977 including floating rate debt, high yield debt and equities and emerging market debt and is a global multi-asset class solutions provider.

A unique asset class with multiple benefits

While floating rate debt funds are relatively new in Canada, Fidelity has been a market leader in managing this asset class in the U.S. for a number of years; including launching the first daily liquidity floating rate debt mutual fund in 2000. Canadian investors can benefit from Fidelity's deep bench of talent and management experience in this unique asset class.  Additional benefits of utilizing Fidelity's offering include:

  • Help to mitigate the impact of rising interest rates: 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.
  • Higher potential yields: The Fund invests in below investment grade floating rate debt, which may have higher yields than investment-grade fixed income securities.
  • Greater diversification: Historically, floating rate debt has exhibited a low correlation of returns to many other asset classes which can potentially improve a portfolio's risk-adjusted returns.
  • Seniority in the U.S. capital structure: Floating rate debt is typically senior and secured in a U.S. company's capital structure.
  • Depth of resources: Fidelity has one of the largest high income investment research and portfolio management teams in the industry with more than 60 dedicated professionals 1. As a firm, Fidelity manages over $90 billion in high income assets and over $17 billion in floating rate debt assets 2.

"Detailed, comprehensive fundamental analysis is critical to investing in this asset class.  Few asset managers globally have the resources, dedicated investment professionals and experience investing in floating rate debt as Fidelity." said Strachan.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs