Fidelity Moneybuilder Income A

Invests predominantly in sterling denominated investment grade bonds.

  • 38.74p
    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.

  • 205.20p
    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!

  • 0.80%
    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).

  • 1.00%
    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.

  • 2.50%
    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 27 November 2020, fund data last updated 27 February 2012

Fund manager Ian Spreadbury seeks to add value relative to peer group funds by investing in a diversified portfolio of predominantly quality UK corporate bonds. The fund may also invest up to 25% in gilts or other developed market government securities. Exposure to high yield bonds is limited to 5%, and there are no holdings in convertibles or preference shares. The corporate bonds are predominantly sterling / euro denominated, with all foreign currency exposure hedged back to £. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched September, 1995
Size £3,202m
Yield 2.50%
Charging basis Income
Dividends paid 25th day of each month

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.80%
Ongoing charges figure 1.00%

Allocation

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Investment process

The fund is benchmarked for performance purposes against the peer group, with the aim of providing superior risk adjusted returns. The investment process is split approximately 50/50 between quantitative driven models and traditional fundamental analysis. The manager seeks to add value through asset allocation (gilt or non-gilt), sector and quality allocation (industry and credit rating), yield curve strategy and individual stock selection. The portfolio is structured to provide exposure to diversified sources of alpha to ensure that no particular strategy dominates the risk profile and active trades have as little correlation as possible with each other. Relative duration positions are usually +/-1 year measured against the Merrill Lynch Euro-Sterling index and have historically assumed a lesser role.

This is a core UK quality bond fund run by one of the most respected fund managers in the peer group, with a proven track record across market cycles. The fund is managed with a view to delivering outperformance relative to the sector, consequently its performance is unlikely to deviate substantially from the broader asset class. Historically the manager has been one of the more conservative investors in his peer group, but has still achieved strong risk return credentials.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 -0.04%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.04%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Sajiv Vaid / Kristian Atkinson

Vaid joined Fidelity in 2015. Prior to this he joined Royal London Asset Management in 2001 where he managed their flagship retail and institutional corporate funds. In 1997, he joined Fuji Investments as a bond fund manager. He started his career in 1994 when he joined Gerrard Group as a trainee bond fund manager. Vaid graduated from the University of Hull in 1991 in Economic & Social History and holds an MA in Modern International Studies from University of Leeds. Atkinson looks back on 14 years of investment experience, which since joining Fidelity in 2000 as a credit analyst has acquired. Atkinson is a CFA Accredited and has charter holder an MA from the University of Cambridge.

Track record

The track record of Sajiv Vaid / Kristian Atkinson in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -5.00% (January 2020 - March 2020)
Relative -1.00% (January 2019 - August 2020)

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 June 2020

4.17% Hm Treasury United Kingdom Dmo 5% Gilt 07/03/25 Gbp
2.76% Electricite De France
1.99% (Thames) Thames Water Util Cayman
1.98% Lloyds Banking Group Plc
1.89% Heathrow Funding Ltd.
1.8% Barclays Bank Plc
1.72% (Housfn) Thfc Social Housing Fina
1.45% General Electric Co.
1.36% Western Power Distribution
1.34% (Telsec) Telereal Securitisation
Source: Trustnet

Sector breakdown

BBB 54.00%
A 24.00%
AA 9.00%
BB 6.00%
AAA 5.00%
Non-Rated 3.00%
Money Market 1.00%

Portfolio

Typically around 200 issuers.

Constraints

Max 30% non-sterling assets (all hedged). Max 5% in high yield debt. Max 25% in gilts. Duration collar +/- 1 yr.

Key Investor Information - Income

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Key Investor Information - Accumulation

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