Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fidelity shortens duration on MoneyBuilder launch for Spreadbury

Fidelity shortens duration on MoneyBuilder launch for Spreadbury

Fidelity Worldwide Investment has launched a fixed income fund for Ian Spreadbury, aimed at reducing the impact of future interest rate rises by shortening duration.

The MoneyBuilder Income Reduced Duration fund, to launch later this month, provides exposure to the existing MoneyBuilder Income strategy, but uses swaps and futures to reduce duration, with a benchmark of two years.

Although Fidelity’s fixed income team believes UK interest rates will remain low for some time, investors are keen to gain exposure to fixed income markets without interest rate risk.

The fund targets two years in the view it is a ‘risk-efficient’ point on the yield curve, balancing a reduction in interest rate risk with cost effectiveness, while allowing Spreadbury the scope for his active duration strategies.

However, Fidelity said the two-year target is not a reflection of Spreadbury’s view on duration and that the fund will diverge from the two-year neutral position, based on Spreadbury’s active strategy.

At the end of December, Fidelity MoneyBuilder Income’s duration was 7.5 years, slightly below its benchmark of 7.8 years.

The fund is an Oeic, targeted at wealth managers with a minimum investment of £1 million.

The Fidelity MoneyBuilder Income fund, a Citywire Selection star pick, has returned 28.1% over three years to 18 January versus the index’s 31.1%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter