Fidelity MoneyBuilder Dividend A

A large and mid cap UK equity income fund with a defensive style.

  • 247.40p Price (Inc)
  • 133.20p Price (Acc)
  • 0.00% Initial charge
  • 1.00% Annual management charge
  • 1.20% Ongoing charges
  • 5.00% Yield

Prices as at 06 December 2019, fund data last updated 11 March 2016

This UK equity fund aims to produce sustainable and growing dividends along with lower risk in terms of drawdowns and volatility. To achieve this, manager Michael Clark takes a conservative approach, favouring quality companies with straightforward business models, predictable cashflows, strong balance sheets and good dividend cover. The portfolio consists predominantly of FTSE 100 and FTSE 250 stocks; selected overseas companies may also feature. The fund’s charges are amongst the lowest in the peer group.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched November, 1980
Size £741m
Yield 5.00%
Charging basis Capital
Dividends paid 18 Jan, 18 Apr, 18 Jul, 18 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.20%

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Investment process

The fund’s investment universe is the FTSE All-Share index, but in practice the portfolio consists of FTSE 100 and FTSE 250 stocks plus selected overseas equities. The manager describes his process as “Safety of Income at a Reasonable Price”. At a business level, Clark looks for companies with simple business models that have pricing power and management teams that understand capital allocation. These companies will typically have strong balance sheets with low debt, and produce predictable cashflows. When considering income, as well as current yields the manager also looks for dividend sustainability (including dividend cover) and generally dividend growth. Stocks are valued using an IRR calculation, combining a forecast value in five years time’ with forecast dividends over those five years to create a target annual return. The amount invested in each company is dependent on the ratio of this return to perceived risk. Ideas are sourced from Fidelity’s analyst teams and other fund managers, industry experts and from company meetings. Portfolio turnover is very low.

Michael Clark was a late starter to fund management, but since taking the reins in 2008 he has delivered good returns to investors. He has drawn comparisons to Neil Woodford and Invesco Perpetual’s Mark Barnett because of his defensive style, but Clark benefits from running substantially less money than either. This style means the fund will not perform in all market conditions and it often lags rising markets. However, it makes up for this with lower volatility and a degree of protection from falling markets, and we have confidence that Clark will perform across the market cycle. The low charges are an added attraction.

Manager research

Average monthly relative returns

  • 14/15 0.62%
  • 15/16 -0.22%
  • 16/17 -0.63%
  • 17/18 -0.44%
  • 18/19 -0.08%

Bestinvest MRI

  • 3 years -0.38%
  • 5 years -0.15%
  • Career 0.05%
  • 3 years 3.10%
  • 5 years 27.80%
  • Career 78.50%

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

Michael Clark

Clark joined Fidelity as a Pan European Research Analyst in 2002, covering the Automotive and Mining, Construction and House building and Oil Services sectors. He became a Portfolio Manager in 2007. He was previously a Research Analyst at JP Morgan from 1994-2002, at Enskilda from 1989-1994 and at Morgan Grenfell from 1986-1988. He has an MA in Modern Languages from Cambridge University.

Track record

Michael Clark has 11.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.05%. During the worst period of relative performance (from January 2016 - June 2019) there was a decline of 19% relative to the index. The worst absolute loss has been 21%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 79%.

Periods of worst performance

Absolute -21.00% (August 2008 - March 2009)
Relative -19.00% (January 2016 - June 2019)

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

6.5277% Astrazeneca Plc
6.1318% Royal Dutch Shell
5.3242% Glaxosmithkline
4.9885% Bp
4.3516% Diageo
4.3466% Hsbc Hldgs
4.2964% Unilever
3.4049% Rio Tinto
2.8432% Reckitt Benckiser Group Plc
2.7985% International Consolidated Airl Grp
Source: Trustnet

Sector breakdown

Financials 23.00%
Consumer Goods 19.00%
Health Care 12.00%
Oil & Gas 11.00%
Utilities 10.00%
Consumer Services 8.00%
Basic Materials 5.00%
Telecommunications 5.00%
Industrials 3.00%
Technology 2.00%

Portfolio

60-70 stocks - typically a fairly concentrated top 20 with a long tail.

Constraints

Up to 20% may be invested in overseas stocks. Max 10% in one stock. Max 25% in one sector.

Key Investor Information - Income

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Key Investor Information - Accumulation

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