Low volatility and less exposure to interest rate fluctuations
The strategy
What are the benefits of this strategy?
Ultra-short-term investing is a strategy that focuses on financial instruments with very short maturities, typically less than one year. The goal is to earn a small return while preserving capital and maintaining high liquidity.
It is a defensive strategy, representing a ‘first-step’ out of cash and cash equivalents. Focused on high quality, stable income, and capital preservation, this is a great way to strategically manage risk in portfolios, without fleeing to cash.
Benefits of using this strategy
Defensive
Liquid
Easy to access your money
Income
Provides modest and historically consistent returns
This strategy may be for you if
you are looking for regular income in a short-term option
you are saving for a near-term goal
The fund
Reasons to chose FHIS
A defensive strategy, representing a ‘first-step’ out of cash and cash equivalents. Focused on high quality, stable income, and capital preservation, this is a great way to strategically manage risk in portfolios, without fleeing to cash.
1. History of consistent performance
FHIS has consistently outperformed its benchmark, providing higher returns and demonstrating its effectiveness as a cash enhancement strategy. With a strong performance track record, FHIS stands out as a compelling choice for investors looking to enhance their portfolios with a stable and liquid income solution
2. Low management fee
With a low management feee of 0.10%, more of your money is put to work.
For example a 0.10% fee means it costs you $10 per year on a $10,000 investment.
3. A high quality portfolio
FHIS is a high-quality, ultra-short duration portfolio with an average credit quality of A. 64.38% of the portfolio is allocated to corporate bonds, complemented by 32.05% in cash and cash equivalents, and smaller allocations to federal bonds (0.11%), provincial bonds (3.46%).
Allocations in range of sectors
4. It is ultra-short term
With a duration of 0.81 years (about 9.7 months) offers the potential benefit of low interest rate sensitivity, meaning its value is less likely to fluctuate when interest rates change. This makes it a stable, low-risk option for short-term investors or those looking to earn modest returns while striving to preserve capital. It's especially useful for managing cash without locking them up for long periods.
How to invest
Invest in FHIS through your preferred platform
It is easy to invest in Franklin Canadian Ultra Short Term Bond Fund (FHIS). These platforms offer convenient access to FHIS alongside other Canadian-listed funds. Simply choose your platform below to get started.
The people behind your investments?
An experienced bond investor. The Calgary-based investment team has decades of experience managing fixed income strategies with a Canadian perspective and is a part of the larger Franklin Fixed Income team with over 200 fixed income investment professionals around the world.
Get to know Darcy Briggs, SVP, Portfolio Manager, how he approaches investing and what moves him in his personal and professional live in this short video interview.
Darcy Briggs, CFA, CPA, CGA, FRM
Senior Vice President, Portfolio Manager