Fixed interest
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 | 7.2-10.2 years |
| Total expense ratio | 0.15% |
| Dilution levy | 0.05% of unit value |
Dealing dates
1st, 11th, 21st of month
Summary of investments and other assets
as at 29 February 2012
| 1 British Government | 98.7% |
| 2 Cash | 1.3% |
Modified duration of fund 8.7 years
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 issues | 15-45% |
| Cash and bonds under 1 year to maturity | 0-5% |
| Modified duration | 6.0-9.0 years |
| Total expense ratio | 0.32% |
| Dilution levy | 0.45% of unit value |
Dealing dates
1st, 11th, 21st of month
Summary of investments and other assets
as at 29 February 2012
| 1 Debentures | 5.6% |
| 2 Supranational | 16.6% |
| 3 Corporate Unsecured | |
| - Financial | 35.6% |
| 4 Corporate Unsecured | |
| - Non-Financial | 40.2% |
| 5 Cash | 2.0% |
Modified duration of fund 7.5 years
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 | 2.9-5.9 years |
| Total expense ratio | 0.15% |
| Dilution levy | 0.05% of unit value |
Dealing dates
1st, 11th, 21st of month
Summary of investments and other assets
as at 29 February 2012
| 1 British Government | 75.9% |
| 2 Supranational | 4.5% |
| 3 Corporate Unsecured | |
| - Financial | 9.4% |
| 4 Corporate Unsecured | |
| - Non-Financial | 8.6% |
| 5 Cash | 1.6% |
Modified duration of fund 4.4 years
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 | 15.2-18.2 years |
| Total expense ratio | 0.20% |
| Dilution levy | 0.30% of unit value |
Dealing dates
1st, 11th, 21st of month
Summary of investments and other assets
as at 29 February 2012
| 1 British Government | 83.0% |
| 2 Supranational | 4.6% |
| 3 Corporate Unsecured | |
| - Financial | 3.5% |
| 4 Corporate Unsecured | |
| - Non-Financial | 8.6% |
| 5 Cash | 0.3% |
Modified duration of fund 16.7 years
Risk Warning
CFB Funds are designed for long term investors. While we hope that unit values will rise, prices can and do fall. They are not suitable for you to use if you cannot accept the possibility of capital losses