Fixed interest funds

Risk warning

These CFB Funds are designed for long term investors. While we hope that unit prices will rise, prices can and do fall. They are not suitable for you if you cannot accept the possibility of capital losses.

Gilt
Fund

Investment objective

Over rolling five year periods, to achieve mainly through a portfolio of sterling denominated UK Government securities with an income yield close to the redemption yield prevailing on UK Government securities, a total return equal to or in excess of the UK Government fixed interest market.

Investment parameters

(reviewed annually)

Government Securities95-100%
Cash0-5%
Modified duration6.7-9.7
years
Total expense ratio0.15%
Dealing surcharge0.05%
of unit value

Summary of investments and other assets

as at 28 February 2011

1 British Government98.4%
2 Cash1.6%

Modified duration of fund 8.5 years

Dealing dates

1st, 11th, 21st of month

Corporate Bond
Fund

Investment objective

Over rolling five year periods, to achieve mainly through a portfolio of sterling denominated corporate and sub-sovereign fixed interest securities, a total return equal to or in excess of the UK corporate bond market.

Investment parameters

(reviewed annually)

Credit rating AAA and AA55-85%
Other investment grade or secured issies15-45%
Cash and bonds under 1 year to maturity 0-5%
Modified duration5.8-8.8 years
Total expense ratio0.265%
Dealing surcharge0.45%
of unit value

Summary of investments and other assets

as at 28 February 2011

1 Debentures3.5%
2 Supranational15.4%
3 Corporate Unsecured 
   - Financial42.3%
4 Corporate Unsecured 
   - Non-Financial36.4%
5 Cash2.4%

Modified duration of fund 7.5 years

Dealing dates

1st, 11th, 21st of month

Short Fixed Interest
Fund

Investment objective

Over rolling five year periods, to achieve mainly through a portfolio of short-dated sterling denominated fixed interest securities with an income yield close to the redemption yield prevailing on short-dated UK Government securities, a total return equal or in excess of the short-dated UK Government fixed interest market.

Investment parameters

(reviewed annually)

Government securities70-90%
Debentures & Unsecured Loans10-30%
Cash0-5%
Modified duration3.0-6.0 years
Total expense ratio0.15%
Dealing surcharge0.05%
of unit value

Summary of investments and other assets

as at 28 February 2011

1 British Government74.2%
2 Supranational5.2%
3 Corporate Unsecured 
  - Financial13.6%
4 Corporate Unsecured 
  - Non-Financial5.1%
5 Cash1.8%

Modified duration of fund 4.7 years

Dealing dates

1st, 11th, 21st of month

Inflation Linked
Fund

Investment objective

Over rolling five year periods, to achieve mainly through a portfolio of sterling denominated securities linked to the Retail Price Index or similar measure of inflation, a total return equal to or in excess of the UK Government Index-linked market.

Investment parameters

(reviewed annually)

Government Securities80-100%
Debentures & Unsecured Loans0-20%
Cash0-5%
Modified duration13.1-16.1
years
Total expense ratio0.17%
Dealing surcharge0.30%
of unit value

Summary of investments and other assets

as at 28 February 2011

1 British Government84.0%
2 Supranational7.8%
3 Corporate Unsecured
   - Financial2.0%
4 Corporate Unsecured
   - Non-Financial5.8%
5 Cash0.4%

Modified duration of fund 14.1 years

Dealing dates

1st, 11th, 21st of month

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