Fidelity MoneyBuilder Income Net Y
Sterling Bonds
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 � another factor that has held back returns over the past five years. �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.
Narrative and ratings content all as of 01 January 2018.
See all Money Observer rated funds| Holding | % |
|---|---|
| Long Gilt Future Sep18 G U8 | 6.75 % |
| United Kingdom of Great Britain and Northern Ireland 1.5% | 2.62 % |
| Us 10yr Note Fut (Cbt)sep18 Tyu8 | 2.02 % |
| United Kingdom of Great Britain and Northern Ireland 6% | 1.81 % |
| Us 10yr Ultra Fut Sep18 Uxyu8 | 1.74 % |
| Network Rail Infrastructure Finance Plc 4.75% | 1.72 % |
| Mscs Swap Itxes520 12/20/18b | 1.50 % |
| United Kingdom of Great Britain and Northern Ireland 1.25% | 1.34 % |
| Us Long Bond(Cbt) Fut Sep18 Usu8 | 1.34 % |
| United Kingdom of Great Britain and Northern Ireland 4.75% | 1.28 % |
| Region | % |
|---|
| Sector | % |
|---|
Managers
Sajiv Vaid
Joined 08/03/2015
Sajiv is a fund manager on the fixed income team and has ten years experience working in global government and credit markets. He was appointed in 2000 and is responsible for managing corporate bond portfolios for institutional and retail clients.prior to joining RLAM he worked for Fuji Bank. Sajiv graduated from the University of Hull in 1991 in Economic & Social History and holds a MA in Modern International Studies from the University of Leeds.
Ian Spreadbury
Joined 10/03/1995
Ian has more than 30 years of investment experience, making him one of the most experienced managers in the industry. He joined Fidelity in 1995. Prior to joining us, Ian worked at Legal & General, Sedgwick Forbes and at Duncan C Fraser. His most recent accolade was being awarded the OBSR ‘Outstanding Investor’ honour. Ian holds an MSc in Mathematical Statistics from the University of Sussex and a BSc in Pure & Applied Mathematics from the University College of North Wales. He is a Fellow of the Institute of Actuaries. Ian manages the Fidelity MoneyBuilder Income, Strategic Bond and Extra Income Funds.
Data provided by Morningstar.
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