Bestinvest says
The fund is very defensively positioned and focuses on capital preservation as its primary objective. This product is not designed for significant capital growth. The manager, Tim Foster, also runs the Fidelity Moneybuilder Cash ISA Trust, with both portfolios being run in a very similar way. The credit team at Fidelity is cautious about the banks in which they will invest and have very few bonds in their fund that mature in over 9 months.
The objective of the fund is to maintain capital value whilst producing income through investing in cash or short term cash equivalents including Commercial Paper, Certificates of Deposits, Time deposit, Floating Rate Notes and Medium Term Deposits. The investment process is a detailed bottom up team approach which includes credit and quantitative research. The internal research includes company meetings, stress tests and scenario testing and relative value analysis versus peer groups and sectors. Issuer ratings and maturity limits are assigned by Fidelity analysts who implement their own “M-score” credit rating for each issuer. The process prioritises safety, liquidity and return and Fidelity believes that its in house research generates diversified sources of added value. The Fidelity Money Market funds have never had any defaults in the paper they have purchased and the minimum S&P rating for short term investments is A-1.