fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Fidelity Cash Sterling W

This is a high quality cash fund, with an aim to maintain capital value whilst producing income.

  • 100.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 101.65p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.15%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.15%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 24 November 2020, fund data last updated 02 November 2011

The investment objective of the fund is to maintain capital value whilst producing income. The manager invests in a diversified range of money market instruments and other short term investments and transferable securities. The fund offers a high level of security and liquidity whilst targeting an increasing NAV in line with 7 day Sterling LIBID (the interest rate at which banks bid to borrow money off other banks).

Fund summary

Sector Short Term Money Market
Structure UNIT TRUST
Launched October, 2016
Size £935m
Yield 0.40%
Charging basis Income
Dividends paid Monthly

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.15%
Ongoing charges figure 0.15%

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Investment process

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.

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.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.01%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 100.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Tim Foster

Foster joined Fidelity International in 2003 as a quantitative analyst. He became a portfolio manager at Fidelity in 2007. He is a CFA charter holder and has a Masters Degree in Natural Sciences and a Certificate in Quantitative Finance.

Track record

Tim Foster has 7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from December 2008 - September 2013) there was a decline of 2% relative to the index. The worst absolute loss has been 0%.

Periods of worst performance

Absolute 0.00% (September 2008 - November 2008)
Relative -2.00% (December 2008 - September 2013)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 30 April 2020

8.1691% Bred Banque Populaire 01/05/2020
8.1682% Mizuho Corpor Bk Limited London Brh 01/05/2020
8.168% Dz Bank Ag Deut Zent Genosbank 01/05/2020
2.3944% Toyota Motor Finance Neth Bv 29/05/2020
2.1781% Dexia Credit Local (Gov Gtd) 22/05/2020
2.1781% Toronto Dominion Bk London Brh 23/10/2020
2.1767% Landeskreditank Baden Wurtemb 22/06/2020
2.1753% Op Corporate Bank Plc 20/07/2020
2.1749% Banque Fed Cred Mutuel Paris 20/07/2020
2.1749% National Westminster Bank Plc 22/07/2020
Source: Trustnet

Sector breakdown

Money Market 100.00%

Portfolio

60-90 holdings. Duration typically 0-60 days. The maximum maturity of any investment is 1 year. At least 50% of the fund's assets must redeem or be repayable within 2 weeks.

Constraints

The maximum Average Weighted Maturity is 60 days. Credit quality is strictly limited to A-1/P-1 which is the equivalent of A+ for the longer term rating. This distinguishes it from IA Money Market funds that are permitted to take more maturity risk.

Key Investor Information - Income

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Key Investor Information - Accumulation

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