Fidelity Cash Sterling Y

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

  • 100.02p Price (Inc)
  • 101.38p Price (Acc)
  • 0.00% Initial charge
  • 0.15% Annual management charge
  • 0.15% Ongoing charges
  • 0.00% Yield

Prices as at 10 December 2019, 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 £811m
Yield 0.00%
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

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 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.

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Top 10 holdings

Data accurate as at 31 July 2019

9.5716% Bred Banque Populaire 01/08/2019
3.314% Bank Of Nova Scotia 0.76% Ct Of Dep 15/10/19 Gbp1
3.3137% Dekabank Deutsche Giro (Ungtd) 05/08/2019
3.1804% Sumitomo Mitsui Trust Bank Ltd 16/08/2019
3.1772% Dz Bank Ag Deut Zent Genosbank 04/10/2019
2.6512% Barclays Bk Plc Var Cmtn 05/09/19 Usd1000
2.6486% Swedbank Ab 09/09/2019
2.2526% Op Corporate Bank Plc 21/08/2019
1.9884% Citibank Na 11/10/2019
1.9884% Hsbc Bank Plc 01/11/2019
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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