Fund Objective

Fidelity MoneyBuilder Income Fund is managed to achieve an attractive level of income from a portfolio primarily invested in sterling denominated fixed-interest securities.

View on Past Performance

The fund outperformed its benchmark over the quarter. Issue selection across sectors was the key contributor to performance. A significant underweight in financials, including AIG, GE Capital and Bradford & Bingley, boosted relative performance, as bailouts by governments and takeovers by other financial institutions failed to have an impact on the markets. Exposure to issues such as Welsh Water and Thames Water within the telecommunications and utilities sector aided relative returns.The fund benefited from its long-duration position. Yields fell across the board in light of a deteriorating economic outlook. Moreover, the yield curve steepening strategy in the UK proved beneficial; yields on short-term bonds fell more than those on longer-dated paper. Conversely, an exposure to asset-backed securities impacted performance amid the ongoing de-leveraging in the sector, although the losses were partially mitigated by favourable issue selection within the segment.

Fund Details