Four Fidelity funds receive fresh ratings from OBSR

Fidelity International has announced that OBSR has awarded fresh ratings to four of its UK retail funds.

Following meetings with the portfolio managers, OBSR has awarded an A rating to FIF Special Situations, FIF Global Special Situations and FIF Sterling Bond. OBSR has also raised its rating on the FIF MoneyBuilder Income from AA to AAA, its highest grade.

Richard Romer-Lee, Research Director at OBSR, said: "Having met with Sanjeev Shah and Jorma Korhonen on a number of occasions both before and after the official handover from Anthony Bolton, our overall conviction in the managers and their approach has led us to award both Special Situations and Global Special Situations funds an A rating.

"We are also introducing new ratings for 2 of Fidelity's fixed income funds. The Fidelity Moneybuilder Income fund has had its rating increased from AA to AAA and Sterling Bond Fund has been awarded an A rating. Fund manager Ian Spreadbury has a great deal of experience and is supported by Fidelity's team of portfolio managers and sector analysts based around the world. The new ratings recognise that Ian has demonstrated the effectiveness of his approach over the cycle."

These are the first ratings for Global Special Situations and Sterling Bond, both of which are fairly new funds. Global Special Situations has top quartile performance over all periods since its launch in September 2006, while Sterling bond is also top quartile since launch three years ago, over two years, one year and year-to-date*.

FIF Special Situations has been re-graded by OBSR following a change of manager. Sanjeev Shah took over the portfolio at the beginning of 2008 after its long-standing former manager Anthony Bolton stepped back from day-to-day fund management to take on a new investment leadership and mentoring role at Fidelity International.

Peter Hicks, Executive Director of Fidelity International, said: "We are delighted with these ratings from OBSR. An A rating for these new funds is a particularly strong sign of approval from a highly respected and independent agency. The new funds have delivered extremely strong performance since launch, while MoneyBuilder Income - long a favourite with advisers - has an enviable long-term track record under the management of Ian Spreadbury."

About the funds:

FIF Special Situations

Sanjeev Shah took on the management of Special Situations in January this year. He is a contrarian investor, often preferring to go against the prevailing trend, and is looking for significant valuation anomalies. His picks generally fall under one or more of the following four "key areas of interest": Turnarounds or recovery situations, unrecognised growth, hidden jewels and corporate activity potential. The manager assesses the franchise value and business economics of a company to determine if it is significantly mis-valued, and makes use of screens and technical analysis to help in his decision making.

FIF Global Special Situations

Since its launch in September 2006, the Fidelity Global Special Situations Fund has returned 11% for investors compared with a benchmark return of 1.2%. The fund is run with a contrarian approach, investing in stocks which the manager believes offer value that is unrecognised by the market. Stocks selected by the manager will fall into one or more of the following categories: A company going through a restructuring phase, whose growth potential is unappreciated, whose value is substantially below its asset replacement value Industries undergoing structural change or cyclical turns within specific industries.

FIF Sterling Bond Fund

The FIF Sterling Bond Fund aims to provide an attractive income, with the potential for capital growth. Asset allocation is also used to provide an extra source of return. The fund has a flexible mandate and can invest up to 20% in high-yield bonds, including emerging market issues, 100% in corporate bonds and up to 90% in government issues, depending on market conditions. The fund is a first quartile performer since launch and over 1, 2 and 3 years.

FIF MoneyBuilder Income

FIF MoneyBuilder Income has returned first quartile performance since its launch in 1995 and over 10 years. It is second quartile over all other periods. The fund is mostly invested in bonds issued by companies, all of which are regarded as at least ‘investment-grade' by ratings agencies such as Moody's and Standard & Poors. The manager employs a variety of key strategies which seek to ensure no single decision has a dominant impact on the fund relative to other active decisions. These include, but are not limited to: Credit analysis, sector strategies and yield curve strategies.