FE Alpha Manager Ian Spreadbury has announced that he is to retire from asset manager Fidelity International at the end of the year, after 40 years in the investment management industry.
Spreadbury (pictured) – who currently oversees the flagship £3.7bn Fidelity Moneybuilder Income fund – joined Fidelity in 1995 and has contributed to the growth of the firm’s fixed income assets to £65bn during that time.
“When I started at Fidelity back in 1995, the fixed income team consisted of me, a trader and an assistant manager,” said Spreadbury.
“Today, it’s a very different business with an array of experienced investment professionals and multiple portfolio managers.”
Since 2000, Spreadbury has delivered a total return of 189.14 per cent compared with a 146.65 per cent gain for his average peer, according to data from FE Analytics.
Performance of manager since 2000
Source: FE Analytics
Spreadbury added: “I once said in an interview that the day you think you understand markets is the day you should retire.
“I’m not sure I can say I fully understand markets, but having managed money for more than 30 years, of which many have been here at Fidelity, I have decided that now is the right time to retire from fund management.”
Spreadbury’s retirement will see Sajiv Vaid take over as lead manager on the Fidelity Moneybuilder Income fund, as well as the £629.5m Fidelity Extra Income strategy.
He will be supported by Kristian Atkinson as co-manager on Fidelity Moneybuilder Income and the £128m Fidelity Short Dated Corporate Bond. Peter Khan will support Vaid as co-manager of the Fidelity Extra Income fund.
Meanwhile, Tim Foster and Claudio Ferrarese will assume joint responsibility for the £1.7bn Fidelity Strategic Bond fund and £265.9m offshore Fidelity Flexible Bond strategy.
Since launch, the Fidelity Moneybuilder Income fund has delivered a total return of 269.81 per cent, compared with a 334.23 per cent gain for the ICE BofAML Euro-Sterling benchmark index and a 208.98 per cent return for the average IA Sterling Corporate Bond fund, as the below chart shows.
Performance of fund vs sector & benchmark since launch
Source: FE Analytics
During Vaid’s time on the fund, it has returned 11.15 per cent, however, compared with a 12.07 per cent gain for the average sector peer, and a 13.45 per cent return for the benchmark.
Yet, the succession planning involved in replacing Spreadbury across his fund range has been ongoing for some time and has been welcomed by fund pickers.
Indeed, while Spreadbury has developed a well-regarded track record as a fund manager and is highly thought-of in the fixed income space, his retirement was not unexpected.
“Ian's retirement is not a surprise,” said Chelsea Financial Services managing director Darius McDermott. “He has had a successful career in fixed income for four decades now and although his experience will be missed, Fidelity's fixed income team is very strong and his succession planning has been well flagged for a number of years.”
Indeed, Ryan Hughes, head of active portfolios at AJ Bell, said the move had been well-flagged by Fidelity for several years.
“Spreadbury has proven to be one of the most consistent fixed interest managers in the market and his calm and considered approach has seen the fund become a firm favourite for users of the AJ Bell platform,” he said.
“Succession planning clearly started three years ago with the recruitment of Vaid from Royal London to co-manage the flagship Moneybuilder Income fund and we have been hugely impressed at how Fidelity have handled this.”