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Objective change - Fidelity MoneyBuilder Income Fund

We have been informed by Fidelity that subject to regulatory approval, the MoneyBuilder Income Fund will change its investment objectives from the 16th August 2013.

Impacts on
these products

What are the changes?


The MoneyBuilder Income Fund currently invests in securities that are predominately denominated in sterling. Fidelity proposes to increase the investment flexibility of the fund by allowing the fund manager to invest in corporate bonds that may be denominated in other currencies. This change will not be accompanied by an increase in currency risk since the fund manager will predominantly hedge back the non-sterling exposure to sterling. The IMA sector will also remain unchanged.


As well as providing the fund manager with the opportunity to invest in a more diverse range of securities, allowing exposure to non-sterling denominated investments will also be beneficial to the fund as it will provide additional liquidity and maintain the fund’s potential to deliver consistent performance over the long-term.


Once implemented, clients will potentially benefit from a more diverse range of investment opportunities in the fixed interest securities sector.


Subject to the approval of the Financial Conduct Authority, it is intended that the investment objective of the MoneyBuilder Income Fund will be amended on 16 August 2013. All the costs of this change will be met by Fidelity. The Fidelity MoneyBuilder Income Fund will continue to be managed by Ian Spreadbury.


This change will have no effect on the number of shares held in the fund and it is anticipated that the risk profile will remain unchanged.


The existing and revised investment objectives of the Fidelity MoneyBuilder Income Fund can be read below:


Existing investment objective of the Fidelity MoneyBuilder Income Fund:


The Fund’s investment objective is to achieve an attractive level of income from a portfolio primarily invested in sterling-denominated fixed interest securities.


The revised investment objective of the Fidelity MoneyBuilder Income Fund from 16 August 2013 will be as follows:


The Fund’s investment objective is to achieve an attractive level of income from a portfolio primarily invested in sterling-denominated (or hedged back to Sterling) fixed interest securities.


Letters have been issued to affected Kudos policyholders advising of the proposed changes. A copy has been sent to their servicing adviser for information. The Fidelity notification can be viewed opposite.