- 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.
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
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