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 Securities | 95-100% |
| Cash | 0-5% |
| Modified duration | 6.7-9.7 years |
| Total expense ratio | 0.15% |
| Dealing surcharge | 0.05% of unit value |
Summary of investments and other assets
as at 28 February 2011
| 1 British Government | 98.4% |
| 2 Cash | 1.6% |
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 AA | 55-85% |
| Other investment grade or secured issies | 15-45% |
| Cash and bonds under 1 year to maturity | 0-5% |
| Modified duration | 5.8-8.8 years |
| Total expense ratio | 0.265% |
| Dealing surcharge | 0.45% of unit value |
Summary of investments and other assets
as at 28 February 2011
| 1 Debentures | 3.5% |
| 2 Supranational | 15.4% |
| 3 Corporate Unsecured | |
| - Financial | 42.3% |
| 4 Corporate Unsecured | |
| - Non-Financial | 36.4% |
| 5 Cash | 2.4% |
Modified duration of fund 7.5 years
Dealing dates
1st, 11th, 21st of month
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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 securities | 70-90% |
| Debentures & Unsecured Loans | 10-30% |
| Cash | 0-5% |
| Modified duration | 3.0-6.0 years |
| Total expense ratio | 0.15% |
| Dealing surcharge | 0.05% of unit value |
Summary of investments and other assets
as at 28 February 2011
| 1 British Government | 74.2% |
| 2 Supranational | 5.2% |
| 3 Corporate Unsecured | |
| - Financial | 13.6% |
| 4 Corporate Unsecured | |
| - Non-Financial | 5.1% |
| 5 Cash | 1.8% |
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 Securities | 80-100% |
| Debentures & Unsecured Loans | 0-20% |
| Cash | 0-5% |
| Modified duration | 13.1-16.1 years |
| Total expense ratio | 0.17% |
| Dealing surcharge | 0.30% of unit value |
Summary of investments and other assets
as at 28 February 2011
| 1 British Government | 84.0% |
| 2 Supranational | 7.8% |
| 3 Corporate Unsecured | |
| - Financial | 2.0% |
| 4 Corporate Unsecured | |
| - Non-Financial | 5.8% |
| 5 Cash | 0.4% |
Modified duration of fund 14.1 years
Dealing dates
1st, 11th, 21st of month