The slide down the performance rankings of Fidelity's Moneybuilder Cash Isa is a result of mistakes ...
The slide down the performance rankings of Fidelity's Moneybuilder Cash Isa is a result of mistakes in the reporting of its numbers rather than any fund management issue.
Fidelity had been supplying Standard & Poor's with gross dividend returns for the portfolio rather than net figures as is the practice in the rest of the fund universe.
As a result, the fund has had its entire past performance history recalculated and its five-star Standard & Poor's rating replaced with a single star.
This has lead to Moneybuilder Cash Isa falling from first place in Standard & Poor's November and December monthly charts of top performing Isable funds to 645 in the January edition. The fund is now ranked 23 out of 35 in its sector money over the three years to 3 January, with a return of 10.77% compared to the 11.32% sector average, offer to bid with net income reinvested.
The portfolio had sat at the top of the money market sector for several months before the reporting mistake was identified. As at 1 November, it was ranked first in its sector, with three-year returns of 13.9%, well above the 11.04% sector average.
Fidelity spokeswoman Jo Roddan said the mistake occurred because the group sent gross figures to Standard & Poor's and the ratings agency mistakenly repeated the grossing up procedure, artificially boosting the fund's performance.
She added Fidelity had notified Standard & Poor's repeatedly of this problem before it was rectified at the end of last year.
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