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
Name
Fidelity MoneyBuilder Income Net Y
Manager
Fidelity (FIL Investment SVCS (UK) Ltd)
Type
Open Ended Investment Company
ISIN
GB00B3Z9PT62
Sector
£ Corporate Bond
Launched
05/10/2009
OCF
0.56 %
Risk Rating
3
3 Year Sharpe
0.81
3 Year Alpha
0.13
Yield
3.3 %
Benchmark
ICE BofAML Euro-Sterling TR GBP
The fund aims to achieve an attractive level of return while keeping risk firmly under control from a richly diversified portfolio primarily invested in sterling-denominated (or hedged back to sterling) bonds issued by companies, all of which are regarded as investment-grade by ratings agencies such as Moody's and Standard & Poor's. Emphasis is put on bottom up issuer selection and ensuring adequate diversity due to the asymmetric nature of corporate bond returns.
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 %
Name
Fidelity (FIL Investment SVCS (UK) Ltd)
Address
TN11 9DZ, Hildenborough Kent, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

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.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.