Delaware Investments, a member of Macquarie Group, has launched a mutual fund in the US: the Delaware Diversified Floating Rate Fund.
The fund is available to both individual and institutional investors and leverages Delaware’s experience managing assets across the fixed income investments spectrum in an option for investors seeking exposure to floating rate securities.
The fund, which seeks to provide total return, is an actively managed portfolio that, under normal circumstances, invests at least 80 per cent of its net assets in floating rate securities including, but not limited to, investment grade corporate bonds, bank loans, high yield bonds, non-agency mortgage-backed securities, asset-backed securities, securities issued or guaranteed by the US government, municipal bonds, securities of foreign issuers in both developed and emerging markets.
It may include derivative instruments that attempt to achieve a floating rate of income for the fund when combined with a group of fixed rate securities.
"In this economic environment when investors are seeking hedges against inflation, a floating-rate fund may be a strong addition to a portfolio," says J. Scott Coleman (pictured), executive vice president and head of distribution and marketing at Delaware Investments. "We believe the flexibility and diversification built into Delaware Diversified Floating Rate Fund, where investors gain exposure to floating-rate instruments with differing credit qualities across a variety of fixed income asset classes, is a timely solution."