Non cash ISA for short-term safety

The best that you can do is to invest in a short-dated Gilt (but not less than 5 years to go to redemption) which is standing below par. You will get the interest on the nominal value, and stand to make a capital gain if interest rates fall. If Fidelity will not let you invest directly in gilts, then transfer to a self-select ISA with low or zero changes, and invest there. Alliance Trust might suit you.

Terry

Thanks for the suggestion. I'm not that familiar with Gilts, having always invested in shares and share-based vehicles to date. The following item is available via the Fidelity FundsNetwork. Does it fit your description? One thing it doesn't seem to specify is whether it's short-dated...

TIA Jeremy

Both of those are funds which invest in gilts. They charge for the privilege. If you click on "Share Dealing" under "Research Funds and Shares", it will lead you to a "ShareNetwork ISA" which seems to be what you need. That will let you invest in gilts direct. If you read the FAQs, it tells you that it is separate from the Funds ISA:

Can I hold my Fidelity funds in the same ISA as my shares? No, the fund ISA is administered by Fidelity and the ShareNetwork ISA is administered by Charles Stanley, so from an HM Revenue and Customs perspective they are separate ISAs. You cannot hold more than one stocks and shares ISA in the same tax year with more than one company.

That means you would have to transfer your ISA to use it. In that case one of the gilt funds may be a better choice. The M&G fund has lower charges.

possible

Thanks again Terry. On the subject of: -

As I am into my second year of investing in this fund on a monthly basis, presumably I could transfer the 2006-07 investment into one of the funds you suggest, leaving this year's where it is for the time being? At least that would reduce my exposure to China by a reasonably amount...?

TIA Jeremy

I believe that it is possible, but you should ask Fidelity. They may consider it to be a single ISA.