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Any investors hoping to find a High Yield - Bonds fund could think about starting with Fidelity Series Floating Rate Hgh Income (FFHCX). FFHCX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FFHCX is classified in the High Yield - Bonds segment by Zacks, an area full of investment possibilities. High Yield - Bonds funds come in below investment grade, and are referred to as " junk " bonds for this reason. Compared to their investment grade peers, these funds are at a higher default risk, but typically pay out higher yields while posing similar interest rate risks.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FFHCX. Fidelity Series Floating Rate Hgh Income made its debut in October of 2011, and since then, FFHCX has accumulated about $253.20 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 6.71%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 7.65%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FFHCX over the past three years is 3.67% compared to the category average of 3.93%. Looking at the past 5 years, the fund's standard deviation is 6.36% compared to the category average of 6.92%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of -0.17, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FFHCX has a positive alpha of 4.95, which measures performance on a risk-adjusted basis.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FFHCX is a no load fund. It has an expense ratio of 0.03% compared to the category average of 1.07%. Looking at the fund from a cost perspective, FFHCX is actually cheaper than its peers.