We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Fidelity Sustainable MoneyBuilder Income Class W - Accumulation (GBP)

Sell:1,285.00p Buy:1,285.00p Change: No change
Prices as at 23 February 2024
Sell:1,285.00p
Buy:1,285.00p
Change: No change
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 23 February 2024
Sell:1,285.00p
Buy:1,285.00p
Change: No change
Prices as at 23 February 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and 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 is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We like the fund managers' relatively conservative approach. Kris Atkinson and Shamil Pankhania 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 the Responsible Investment sector take a variety of approaches. Some invest in companies that are well-managed and take their commitments to the environment and society seriously, others simply look to avoid the worst offenders. Some even try to invest only in companies making a positive impact in the world, like green energy producers, or companies that clean and reuse water.

Responsible investing offers the possibility of making money in a way that's in line with your views and beliefs. And it's becoming more and more popular. But 'responsible' means different things to different people. An industry that seems abhorrent to one person might seem like a necessary evil to others. That's why you'll need to clarify each fund's approach and make sure it's consistent with your views before you invest.

Performance Analysis

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.

During 2022 this was not the case, with the fund losing more of its value than peers. The biggest cause of this has been bonds that the fund hasn't been invested in. The managers had very little invested in government bonds or quasi sovereign bonds (those issued by companies that are part owned by governments or have significant revenue from government contracts). As the market has sold off, those bonds typically did not lose as much value because of government backing, meaning they are less likely to default on future payments.

While this is disappointing and has impacted longer term returns, we still think that the fund has the potential to outperform peers in future.

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.

The team formalised integration of Environmental, Social and Governance (ESG) analysis in 2022. This means increased levels of engagement and the exclusion of companies involved in controversial areas, such as weapons, tobacco, thermal coal and gambling. The managers will also avoid companies violating the UN Global Compact - a UN pact on human rights, labour, the environment and anti-corruption.

Process and Portfolio Construction

Most bond managers analyse the bigger economic picture and Atkinson and Pankhania are 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. The managers also makes use of their ability to invest in lower-risk government bonds and can invest in high yield bonds and derivatives, both of which can increase risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Royal London Corporate Bond A Inc
  • IA £ Corporate Bond
  • Fidelity Sustainable...
  • IA £ Corporate Bond
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

22/02/19 to 22/02/20 22/02/20 to 22/02/21 22/02/21 to 22/02/22 22/02/22 to 22/02/23 22/02/23 to 22/02/24
Annual return 10.42% 1.68% -3.16% -13.56% 5.50%

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 Name: Shamil Pankhania
Manager start date: 1 March 2023
Manager located in: TBC

TBC

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 a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account