Guardian Group of Funds Ltd. has launched GGOF Floating Rate Income Fund, a mutual fund that provides exposure to short-term interest rates and a high level of Canadian dollar interest income in line with short-term floating rate instruments with a duration of less than 365 days.
GGOF Floating Rate Income Fund will achieve its objectives in three distinct ways:
- entering into interest rate swaps;
- entering into credit default swaps; and
- investing in floating rate bank loans and notes.
”Through direct investments and by using instruments that create floating rate streams of interest income, we’re able to offer Canadian investors a product that offers protection against short-term interest rate risk, while paying a high level of current income,” said Gavin Graham, vice president and director of investments, GGOF.
The fund will be managed by Steve Kearns of Guardian Capital LP (GCLP). Kearns also manages GGOF Canadian High Yield Bond Fund and co-manages GGOF Canadian Diversified Monthly Income Fund, GGOF Resource Fund and GGOF Canadian Balanced Fund. Guardian Capital LP currently manages $15.8 billion in assets and is well known for its fixed income management. GCLP currently manages fixed income mandates for eight other GGOF funds totaling over $4.0 billion in assets.