There has been a change in the fund management team that affects two funds on our Recommended list, Fidelity Sustainable MoneyBuilder Income and Fidelity MoneyBuilder Balanced.  As a result, we are moving Fidelity Sustainable MoneyBuilder Income from the Recommended list to the Positive Watch list.  Fidelity MoneyBuilder Balanced will continue to feature on our Recommended list.

In our bulletin of 7 February 2023, we communicated the news that Sajiv Vaid, senior portfolio manager within Fidelity’s fixed income team, and the lead manager of the Fidelity Sustainable MoneyBuilder Income fund, and co-manager of the Fidelity MoneyBuilder Balanced fund, would be stepping back from fund management responsibilities from 30 September 2023, and retiring at the end of the year.

From 1 October 2023, the funds’ management teams will be as follows:

Fidelity MoneyBuilder Balanced: Kris Atkinson (co-manager), Rupert Gifford (co-manager)

Mr Atkinson will become co-manager, working alongside existing co-manager, Rupert Gifford.  Messrs Atkinson and Gifford will work together on the overall portfolio construction but specialise in their own asset classes.  Mr Gifford manages the equity component of the fund, while Mr Atkinson will take over the responsibility for the fixed income component.   Given its key role as a diversifier, the composition of the bond portion is biased towards UK gilts with a view to offsetting the risks associated with equities.

The fund features around 65% in equities and 35% in bonds and resides in the IA Mixed Investment 40%-85% Shares sector.  The managers are conservative in their approach and focused upon delivering an attractive and regular level of income that is paid monthly.

We have met Messrs Atkinson and Gifford on several occasions as part of our ongoing monitoring of the funds, and, given the continuity of the approach, we are retaining Fidelity MoneyBuilder Balanced on our Recommended list.

Fidelity Sustainable MoneyBuilder Income: Kris Atkinson (lead manager), Shamil Pankhania (co-manager)

Mr Atkinson will take over as lead manager, working closely with Mr Pankhania, who joined Fidelity earlier in 2023 and is co-manager on several sterling investment grade, global investment grade and sustainable bond funds.

We have been reviewing and recommending funds from the Fidelity fixed income suite for many years and, as such, we have a good understanding of the expertise of the broader team.  Given the well-established nature of the approach, and the intention to ensure continuity of outcome, we are constructive about the fund’s prospects.  Nonetheless, Mr Vaid’s departure is a significant change for the fund and the team more broadly.  For this reason, we feel it is appropriate to move the fund to the Positive Watch list while we monitor its progress within a new team structure.