Wealth Shortlist funds update: Fidelity Sustainable MoneyBuilder Income

In January, Fidelity announced that Sajiv Vaid is retiring at the end of 2023. Vaid joined Fidelity in 2015 and took over as the lead manager of the Fidelity Sustainable MoneyBuilder Income fund in 2019.

Vaid retires after a career in bond investing spanning almost 30 years which included around 14 years at Royal London prior to joining Fidelity. He will step away from his fund management responsibilities on 30 September 2023 before leaving the business at the end of December.

Team changes

Kristian Atkinson, current co-manager of the fund, will become lead manager when Vaid steps away at the end of September. Atkinson joined Fidelity in 2000 and worked as a credit analyst until 2013 when he was promoted to fund manager. He became co-manager of this fund in 2019 when Vaid took over as lead manager.

Fidelity have named Shamil Pankhania (who joined the business at the end of January 2023) as co-manager on this fund. He has been in place since the start of March. He joins with around 17 years’ industry experience, having worked at PIMCO, BlackRock and most recently HSBC Global Asset Management, where he was Head of UK Credit Solutions.

Atkinson and Pankhania will continue to manage the fund in the same way going forward, with a focus on the three pillars of providing an income, downside protection and diversification from shares.

Historically, while Vaid was named lead manager, it’s been clear that investment decisions have been the responsibility of both Vaid and Atkinson, with collaboration between the two being key. Going forward we expect Atkinson and Pankhania to operate in a similar way.

Our View

The loss of an experienced investor in Vaid does reduce our conviction in the fund. However, Atkinson and Pankhania are experienced investors in their own right. This is particularly true for Atkinson, who not only has more experience but also has a great understanding of how to make the most of the significant resources available to him at Fidelity, having worked there since 2000.

In Pankhania, Fidelity have appointed a bond investor with experience of managing responsible corporate bond funds, which is well aligned with how this fund is invested.

Vaid’s retirement has been very well managed by Fidelity, with excellent communication throughout and ample notice provided to us. This has given us the chance to meet with the team on a number of occasions. We also like that Vaid and Pankhania will work together for a number of months prior to the former’s retirement, ensuring a smooth handover.

For these reasons we will retain the Fidelity Sustainable MoneyBuilder Income fund on the Wealth Shortlist.

This isn’t a recommendation to make any changes to a portfolio. Investors should make sure any investments match their investment goals, attitude to risk and are held as part of a diversified portfolio. If you're not sure if an investment is suitable for your circumstances, please seek personal advice.

Past performance isn't a guide to the future. Source: Lipper IM to 30/06/2023.

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