Fact sheet: Fidelity Moneybuilder Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
STERLING BONDS
Sector
UT Sterling Corporate Bond
Fund type
OEIC
Primary aim
INCOME
Why Money Observer Rates Fidelity Moneybuilder Income

Rated Fund 2013-14, 2018. Good core bond fund for cautious investors

Fidelity Moneybuilder Income is a defensive corporate bond fund with a reasonable 3 per cent yield. It has returned to our line-up for 2018 because we rate it as a good core bond holding for a cautious investor seeking income. The strategy is designed to generate income, be a long-term equity diversifier and maintain a relatively low level of risk.

Fixed income veteran Ian Spreadbury has managed the fund since its inception in 1995. He was responsible for building Fidelity's fixed-income team and capabilities in the 1990s, and his considerable experience in managing fixed income portfolios underpins our conviction. He was joined by co-manager Sajiv Vaid in 2015.

The investment process is driven by the managers' top-down views, while they rely heavily on Fidelity's well-resourced multidisciplinary research platform for bottom-up ideas.

They have retained a cautious stance during the past few years, based on their expectation of slow global economic growth. Compared with peers, the fund has exhibited an underweight to financials since the 2008 credit crisis, and usually limits high-yield exposure to 5 per cent. Because many peers tend to have higher allocations to high yield, this can hold back returns in environments where the sector rallies.

The fund also tends to hold bonds that are of shorter duration than its benchmark ヨ another factor that has held back returns over the past five years. ムThat said, the fund's long-term record is solid and proof of the tried-and-tested process implemented by Spreadbury through multiple credit cycles,' says Jonathan Miller, director of manager research ratings at Morningstar.

3 Year Performance
Fund Performance10.4%
Average of Rated Funds Group15.5%
Sector Performance11.1%
Fund information
Fund name
Fidelity Moneybuilder Income Y Dis GBP
Fund manager company
Fidelity International (FIL In
Fund type
OEIC
Fund managers
  • Ian Spreadburysince 03/10/1995
  • Sajiv Vaidsince 03/08/2015
Accolades
Fund objective
Aims to provide an attractive level of income. Obtains exposure primarily to sterling denominated (or hedged back to sterling) bonds. Investments may be made in relation to bonds issued in currencies other than the fund’s denominated currency. Exposure to currencies may be hedged, for example with currency forward contracts. Can invest in relation to bonds issued by governments, companies and other bodies. The fund may make use of derivatives which are consistent with achieving the fund’s objective. This may result in “leverage” by which we mean a level of exposure which could expose the fund to the potential of greater gains or losses than would otherwise be the case. The fund has discretion in its choices of investments within its objectives and policies.
Benchmark
  • BofA Merrill Lynch Euro-Sterling
Investment style
None
Investment method
Fixed Interest
Quick stats
1 Year return
-0.4%
1 Year rank in sector
52/94
Sector
UT Sterling Corporate Bond
Yield
3.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.56%
Fund size
£3,930m (£4,067m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
31
Mid price
121.1
Top in this sector
Fund name1 Year
Rathbone Ethical Bond2.7%
Schroder Sterling Corp Bd2.2%
Close Bond Income Portfolio2.1%
Liontrust Mon Inc Bd2.1%
SJP Inv Grade Corp Bd1.9%
...more in UT Sterling Corporate Bond

Performance snapshot

Holdings snapshot

  • UK75.3%
    USA6.8%
    France4.2%
    Germany4.1%
    International1.9%
  • Investment Grade Bonds36.8%
    Financials23.7%
    Asset/Mortgage-Backed Securities13.3%
    Government Bonds11.2%
    Investment Grade Government Bonds7.4%
  • UK Fixed Interest75.3%
    US Fixed Interest6.8%
    French Fixed Interest4.2%
    German Fixed Interest4.1%
    European Fixed Interest3.2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-0.3%-0.5%-1%-0.4%10.4%20%
Sector-0.3%-0.3%-0.9%-0.1%11.1%20%
Rank within sector48 / 9574 / 9561 / 9552 / 9452 / 8346 / 75
Quartile3rd4th3rd3rd3rd3rd
Calendar performance
 YTD - 20182017201620152014
Fund-2.1%4.9%8.7%-0.5%12%
Sector-2%5.1%9.1%-0.3%10.1%
Rank within sector44 / 9558 / 9253 / 8557 / 8318 / 79
Quartile2nd3rd3rd3rd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-0.31
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.01
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
-0
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
5.01
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
0.75
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.36
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.98
Price movement
52 week high126.6
52 week low121
Current bid price-
Current offer price-
Current mid price121.1
Region
1UK75.33%
2USA6.78%
3France4.22%
4Germany4.06%
5International1.88%
6Continental Europe1.76%
7Europe1.4%
8Australasia1.38%
9Canada1.06%
Industry sector
1Investment Grade Bonds36.81%
2Financials23.71%
3Asset/Mortgage-Backed Securities13.26%
4Government Bonds11.16%
5Investment Grade Government Bonds7.44%
6High Yield Bond4.51%
7Others2.4%
8Money Market0.62%
9Index Linked0.06%
Asset type
1UK Fixed Interest75.33%
2US Fixed Interest6.78%
3French Fixed Interest4.22%
4German Fixed Interest4.06%
5European Fixed Interest3.16%
6Global Fixed Interest1.89%
7Asia Pacific Fixed Interest1.38%
8Canadian Fixed Interest1.06%
9Scandinavian Fixed Interest1%
Individual holdings
1(UKT) UK TSY 1.25% 201810.93%
2ELECTRICITE DE FRANCE2.34%
3BARCLAYS BANK PLC2.19%
4(THAMES) THAMES WATER UTIL CAY FI1.72%
5AT&T INC1.72%
6(ANNFND) ANNINGTON FUNDING PLC1.71%
7(LLOYDS) HBOS PLC1.67%
8(BATSLN) BAT INTL FINANCE PLC1.66%
9TRANSPORT FOR LONDON1.62%
Management
Fund manager group
No data available.
Fund manager company
Fidelity International (FIL In
Fund type
OEIC
Fund objective
Aims to provide an attractive level of income. Obtains exposure primarily to sterling denominated (or hedged back to sterling) bonds. Investments may be made in relation to bonds issued in currencies other than the fund’s denominated currency. Exposure to currencies may be hedged, for example with currency forward contracts. Can invest in relation to bonds issued by governments, companies and other bodies. The fund may make use of derivatives which are consistent with achieving the fund’s objective. This may result in “leverage” by which we mean a level of exposure which could expose the fund to the potential of greater gains or losses than would otherwise be the case. The fund has discretion in its choices of investments within its objectives and policies.
Benchmark
  • BofA Merrill Lynch Euro-Sterling
Investment style
None
Investment method
Fixed Interest
Fund managers
NameSinceBiography
Ian Spreadbury03/10/1995Ian Spreadbury is senior portfolio manager and director at Fidelity International. He started his career in investment management in 1978, and joined Fidelity in 1995 as a senior portfolio manager. Previously, he worked at Legal & General from 1985 as a senior portfolio manager. He began his career as an employee benefit consultant at Sedgwick Forbes from 1978 to 1981.
Sajiv Vaid03/08/2015Sajiv Vaid joined Fidelity in 2015 and is co-Manager on the Moneybuilder and Extra Income Funds. After graduation Sajiv joined Gerrard Group (1994-1997) as a trainee bond fund manager, joining Fuji Investments as a fully-fledged bond fund manager in 1997, where he managed global fixed income portfolios. In 2001, he joined Royal London Asset Management where he managed their flagship retail and institutional corporate funds. Sajiv graduated from the University of Hull in 1991 in Economic & Social History and holds an MA in Modern International Studies from University of Leeds.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
France, United Kingdom, Guernsey, Ireland, Jersey
Fidelity Moneybuilder Income A Acc
Initial charge-
Annual charge0.8%
Min single investment£500
Min regular saving£250
Available in ISANo
Ongoing charge (OCF)0.99%
Total expense ratio (TER)1%
Bid price-
Offer price-
Mid price179
CurrencyGBX
Price updated22/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeFSK4
Fidelity Moneybuilder Income A Inc
Initial charge-
Annual charge0.8%
Min single investment£500
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)0.99%
Total expense ratio (TER)1%
Bid price-
Offer price-
Mid price36.2
CurrencyGBX
Price updated22/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeFJ84
Fidelity Moneybuilder Income Y Acc GBP
Initial charge-
Annual charge0.4%
Min single investment£500
Min regular saving£250
Available in ISANo
Ongoing charge (OCF)0.56%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1271
CurrencyGBX
Price updated22/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeJE1R
Fidelity Moneybuilder Income Y Dis GBP
Initial charge-
Annual charge0.4%
Min single investment£500
Min regular saving£250
Available in ISANo
Ongoing charge (OCF)0.56%
Total expense ratio (TER)0.56%
Bid price-
Offer price-
Mid price121.1
CurrencyGBX
Price updated22/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeGQM7
Data provided by

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