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Fidelity Moneybuilder Income Inclusive - Class A - Income (GBP)

Sell:37.46p Buy:37.46p Change: 0.09p (0.24%)
Prices as at 22 October 2019
Sell:37.46p
Buy:37.46p
Change: 0.09p (0.24%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 22 October 2019
Sell:37.46p
Buy:37.46p
Change: 0.09p (0.24%)
Prices as at 22 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

We like the fund managers' relatively conservative approach. Sajiv Vaid and the team at Fidelity aim to provide a decent level of income, offer some stability in turbulent times, and perform differently to funds focused on shares. This means it could appeal to investors looking for income, and offer some diversification to a portfolio invested mostly in the stock market.

The approach means the fund is unlikely to be the highest-yielding corporate bond fund. But it could help the managers navigate the fund through a variety of market conditions. We think that over the long-term it has the potential to offer a good balance between delivering a good income, achieving some growth, and not taking excessive risk. It's also available to HL clients with low ongoing charges.

Our view on the sector

Funds in this sector invest mainly in 'investment grade bonds'. These are issued by companies that are more likely to be able to repay their debts to bondholders. As such, they tend to offer lower yields than bonds issued by companies that are less likely to be able to pay off their debts. Corporate bonds have generally performed well since the 2008 financial crisis. With interest rates on cash so low, they've appealed to income investors. This has pushed up bond prices, but means their yields have also fallen. Some suggest there is now less value in this area of the market. We think that with interest rates likely to stay lower for longer, a corporate bond fund could be a good addition to a diversified portfolio invested to generate income.

Performance Analysis

We think that analysing the performance of the manager is more important than the historical performance of the fund - managers move jobs and it's their skill that generates the performance.

The chart to the right shows Sajiv Vaid's record since he joined Fidelity and his record managing a corporate bond fund for Royal London. We think he's performed very well, delivering impressive returns for investors over a period that stretches back to 2002.

The fund's managed relatively conservatively. So we think it will lag others during the good times, but could make up for this by providing some shelter when markets fall.

Investment Philosophy

The managers think quite defensively. They use Fidelity's extensive in-house research team to help put together a fund that invests across lots of different bonds and sectors. This means no single area should dominate the fund and have a significant negative effect on performance. They think this will help deliver excellent long-term performance and see the fund through tougher times.

Process and Portfolio Construction

Most bond managers analyse the bigger economic picture and Sajiv Vaid is no different. But we also think a particular strength of the Fidelity team is analysing the companies that issue bonds. It helps them determine which are the most attractively priced.

The fund can invest overseas but you should expect it to retain a strong UK bias. It includes collateralised debt, where borrowers have to post security for a loan in the same way that you might use a house as collateral for a mortgage. The investor has something to rely on if the borrower doesn't pay money owed to bond holders. This differentiates the fund from some others. Vaid also makes use of his ability to invest in lower-risk government bonds and can invest in derivatives which might increase risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Fidelity Moneybuilder Income A Inc
  • Royal London Corporate Bond A Inc
  • IA £ Corporate Bond
  • IA £ Corporate Bond
FROM: TO:


Fund Track Record

22/10/14 to 22/10/15 22/10/15 to 22/10/16 22/10/16 to 22/10/17 22/10/17 to 22/10/18 22/10/18 to 22/10/19
Annual return 2.56% 9.34% 1.93% -1.22% 7.89%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Fidelity was founded in 1969 and established a presence in the UK in 1979. It provides asset management services to investors all over the world, offering investors a solid combination of local expertise and international strength.

Fidelity is privately owned, and its independence allows it to continue focusing on the long-term interests of investors. In the UK, Fidelity manages a range of funds catering to the needs of all types of investors, whether primarily interested in equities or fixed interest.

Information about the fund

Fund manager biography

manager photo
Manager Name: Kristian Atkinson
Manager start date: 1 January 2019
Manager located in: London

TBC

manager photo
Manager Name: Sajiv Vaid
Manager start date: 1 January 2019
Manager located in: TBC

Sajiv Vaid joined Fidelity in 2015 and is co-Portfolio Manager on the MoneyBuilder Income and Extra Income Funds. After graduation, Sajiv joined Gerrard Group (1994-1997) as a trainee bond fund manager, joining Fuji Investments as a fully fledged bond fund manager in 1997, where he managed global fixed income portfolios. In 2001, he joined Royal London Asset Management where he managed their flagship retail and institutional corporate funds. Sajiv graduated from the University of Hull in 1991 in Economic & Social History and holds an MA in Modern International Studies from University of Leeds.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account