Historical Performance
Over the years, FLCO has provided investors with consistent monthly income while maintaining a relatively low level of risk. Its performance is largely determined by the interest rates and the credit quality of its bond holdings. It’s important for investors to consider both the total return (capital gains and dividends) and the NAV performance when evaluating the fund.
Who Should Invest in FLCO?
FLCO is designed for income-focused investors who want to add exposure to fixed-income securities while minimizing interest rate risk. Some of the investors who might benefit from FLCO include:
- Conservative Investors: Those looking for a relatively stable, lower-risk investment with regular income payments. FLCO’s focus on short-duration, investment-grade bonds makes it suitable for risk-averse investors.
- Income Seekers: FLCO is an attractive option for investors who are seeking a monthly income stream, especially retirees or others who depend on regular cash flows.
- Investors in Rising Interest Rate Environments: Since FLCO invests in short-duration bonds, it is less sensitive to rising interest rates compared to long-duration bond funds. Investors expecting a rising interest rate environment may find FLCO a more suitable investment than other bond funds. shutdown123