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
"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.
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
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
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
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
professionals1. As a firm, Fidelity manages over $90 billion in high income assets and
over $17 billion in floating rate debt assets2.
"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.
About Fidelity Investments
Read a fund's prospectus before investing. Mutual funds are not
guaranteed; their values change frequently and past performance may not
be repeated. Investors will pay management fees and expenses, may pay
commissions or trailing commissions and may experience a gain or loss.
Fidelity Investments Canada ULC is part of the Fidelity Investments
organization of Boston, one of the world's largest providers of
financial services. Recipient of the 2012 Morningstar Advisors' Choice
Fund Company of the Year, Fidelity Canada manages a total of $78
billion in mutual fund and institutional assets. This includes $16
billion in assets for institutional clients including public and
corporate defined benefit pension plans, endowments, foundations and
other corporate assets on behalf of clients across Canada.
Fidelity Canada provides Canadian investors a full range of domestic,
international and income oriented mutual funds, as well as asset
allocation and managed solutions and the high net-worth program, the
Fidelity Private Investment Program. Fidelity funds are available
through a number of advice-based distribution channels including
financial planners, investment dealers, banks, and insurance companies.
Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and
we are dedicated to helping young Canadians realize their full
potential as productive, responsible and caring citizens.
1 As of June 30, 2013.
SOURCE: Fidelity Investments Canada ULC
For further information:
Vice-President, Corporate Affairs