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 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.
2 Ibid

SOURCE: Fidelity Investments Canada ULC

For further information:

Chris Pepper
Vice-President, Corporate Affairs
Office: 416-307-5388
Mobile: 416-795-7762


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