We have moved the Fidelity Sustainable MoneyBuilder Income fund to our Recommended list.  The fund previously featured on our Positive Watch list.

Fidelity Sustainable MoneyBuilder Income has been on our Positive Watch list since Sajiv Vaid, previously a senior portfolio manager within the firm’s fixed income team and co-manager of this fund, announced his retirement. Kris Atkinson, who had been a co-manager on the fund since 2019 alongside Mr Vaid, then continued as lead manager, working closely with co-manager, Shamil Gohil, who joined Fidelity in early 2023.

The fund’s investment philosophy is built upon the core pillars of bond investing.  Specifically, the managers aim to strike a balance between delivering an attractive level of income, providing downside protection and offering diversification away from equities.  Under Messrs Atkinson and Gohil’s stewardship, the fund has delivered an outcome that is in keeping with the long-established approach, whereby diligent credit analysis and portfolio diversification are key features.  The fund’s duration exposure is kept within tight parameters and high yield exposures are also limited, such that investment grade credit selection is the primary driver of relative returns.  The fund became part of Fidelity’s “Sustainable Fund Family” in 2022 - please refer to our previous bulletin for further details.

We believe the fund can be used comfortably as a mainstay holding within a corporate bond blend.  Within its sector, the fund features in our ‘Flexible’ category.  You can view our IA Sector Overview here.

To view the full factsheet, please visit the fund page.