BNY Mellon Investment Management has launched the BNY Mellon Floating Rate Credit fund.
The Article 8-classified strategy will be managed by global asset manager Insight Investment and will invest primarily in floating rate debt. It has been designed to provide income while protecting against interest rate volatility by maintaining a low interest rate duration, BNY explained. BNY Mellon IM explained that the rationale behind the fund was that floating rate credit has a "lower sensitivity" to interest rate changes compared with fixed rate debt instruments, meaning it can offer investors a risk and return profile of "loan-like" returns and lower capital volatility in a rising...
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