Federated Short-Term Sterling Prime Fund
Class 8 Shares - accumulation
31 May 2015
Standard & Poor’s AAAm rated
Fitch AAAmmf rated
Moody’s Aaa-mf rated
CREDIT RATING (%)
INVESTMENT OBJECTIVE AND STRATEGY
The Fund aims to provide capital stability and income through investment in short-term fixed
income and variable rate securities. The Fund will invest in high quality, liquid securities from
both within and outside the UK, aiming to achieve capital preservation with money market
returns. The Fund is a European Securities and Market Authority (“ESMA”) Short-Term
Money Market Fund.
INVESTMENT MANAGER’S REPORT
The Bank of England (BOE) cut its forecast for UK economic growth for both this and next
year. Growth prospects for 2015 were lowered to 2.50% from 2.90%, and the expectations for
2016 fell from 2.90% to 2.40%, Governor Carney said the downgrade was due to the stronger
pound, higher projected bank rates, a poor outlook for housing investment and a forecast for
weaker productivity.
Meanwhile, the UK economy entered deflationary territory for the first time in more than 50
years. This has been widely expected, with lower energy prices, the strength of sterling and
the ongoing supermarket price wars, but it was air and ferry fares that eventually pushed the
annual CPI rate to fall by 0.10%. No one expects a period of outright deflation similar to the
one that lasted for 12 years beginning in 1921 to reoccur as the impact of lower oil prices
fade from the year-on-year measure. Indeed expectations are for a short-lived negative
period. Mr. Carney fully expects inflation to return to the BOE’s 2.00% target next year.
The unemployment rate remained at 5.50%, with 202,000 new jobs created, and real-time
earnings were the best since 2007. However, the BOE cut its wage growth forecast in 2015
from 3.50% to 2.50%.
A-1+ 52.8
A-1, 7 days or less
16.0
A-1, 8 days or
more 31.2
PORTFOLIO COMPOSITION (%)
Govt 0.4
DEPO 18.3
CP 23.2
CD 41.0
FRN 12.6
BOND 2.8
Short-Term MMF
1.7
EFFECTIVE MATURITY SCHEDULE (%)
O/N 20.3
PERFORMANCE
Net Average Annual Total Returns (%) (See Important Legal Information)
1 Week 1.1
1 Month 12.2
Cumulative
3 Month
Year to Date
1 Year
3 Year
0.45
0.45
0.44
0.47
5 Year
Since
Inception
2 Months 13.1
0.62
0.76
6 Months 28.4
3 Months 16.7
1 Year 8.2
Past performance is no guarantee of future performance and the value of investments and income (yield)
from them may fall as well as rise and investors may not get back the amount originally invested. All
returns are shown annualised on an actual/365 day count basis. Fund returns are net of fees and charges
for share class 8.
WEIGHTED AVERAGE MATURITY
TOP PORTFOLIO ISSUERS (excluding overnight deposits)
58.05 days
LIQUIDITY**
Mizuho Bank Ltd.
Toronto Dominion Bank
Metropolitan Life Global Funding I
Daily
Weekly
**Calculated according to the Institutional Money
Market Funds Association (IMMFA) guidelines.
Citibank NA, New York
DZ Bank AG Deutsche Zentral-Genossenschaftbank
Pohjola Bank plc
Citibank NA, New York
Sumitomo Mitsui Banking Corp.
Nordea Bank AB
Sumitomo Mitsui Banking Corp.
These holdings may not be indicative of future portfolio composition. Because this is a managed portfolio,
the investment mix will change.
For Professional Investors Only
20.36%
21.42%
ederated
Federated Short-Term Sterling Prime Fund
31 May 2015
Class 8 Shares - accumulation
SHARE CLASS DETAILS
FUND INFORMATION
Class
ISIN
SEDOL
Dividend
Ongoing
Charges*
8
GB00B2R5TL51
B2R5TL5
Accumulating
11bps
Min Initial
Investment
£30,000,000
*The ongoing charges figure is based on the annual management charge and the running costs of the
fund for the 12 month period ending 31 December 2014. It excludes portfolio transaction costs. The
ongoing charge figure may vary from year to year.
Domicile
UK
Structure
OEIC UCITS
Launch Date
09 January 2009
Dealing Cut Off
1.30pm London Time
Liquidity
Same Day
Currency
GBP
Benchmark
FEDERATED INVESTORS (UK) LLP
Federated Investors (UK) LLP offers liquidity fund products on a wholesale, competitive basis for a variety
of corporate and institutional investors to distribute to their client base or use in the management of their
own liquidity. Originally established in 2007 under the name Prime Rate Capital Management LLP, as an
independent, UK-domiciled specialist provider of AAA-rated liquidity funds (known as Qualifying Money
Market Funds), it was acquired on 13 April 2012 by Federated Investors, Inc., one of the largest investment managers in the US. On 23 September 2013 it was renamed Federated Investors (UK) LLP.
7 Day £ LIBID
Fund Volume
£1.8 billion
PORTFOLIO MANAGERS
Dennis Gepp
Senior Vice President
Chief Investment Officer, Cash
ABOUT FEDERATED
A financial industry pioneer since 1955, Federated is a leading global investment manager known for its
stability. Federated continues to increase its market footprint through both organic growth and strategic
acquisitions to take advantage of global opportunities. As one of the largest US investment managers
with assets under management of approximately US$355 billion, Federated has been managing international investments since 1984, upon the launch of one of the first international equity funds. In 1991,
Federated International Management Limited (“FIML”) was established in Dublin to manage Irish-domiciled UCITS. Federated opened an office in Frankfurt in 1998 and subsequently created Federated Asset
Management GmbH to further concentrate on the German market and the German-speaking countries in
Europe. In 2012, Federated acquired Prime Rate Capital Management LLP, now Federated Investors (UK)
LLP, as a manager of UK-domiciled UCITS. FIML, Federated Asset Management GmbH and Federated
Investors (UK) LLP are part of a highly experienced investment franchise with more than 200 investment
professionals managing products on a truly global basis.
Gary Skedge
Vice President
Senior Portfolio Manager
IMPORTANT LEGAL INFORMATION
This document is issued by Federated Investors (UK) LLP of Nuffield House, 41-46 Piccadilly, London,
W1J 0DS, a limited liability partnership registered in England OC327292 which is authorised and regulated
by the Financial Conduct Authority with FCA reference number 469674. Past performance is no guarantee
of future performance and the value of investments and income (yield) from them may fall as well as rise
and investors may not get back the amount originally invested. Although the fund will attempt to maintain
a stable net asset value per share, there is no assurance it will be able to do so. Shares of money market
funds are not bank deposits and are not guaranteed by any government agency or other entity. For
detailed information on the specific risks of investment, please refer to the fund’s prospectus. Tax assumptions are subject to statutory change and the value of tax reliefs will depend on individual circumstances.
Portfolio holdings are as of the date indicated, are subject to change, are not indicative of future holdings,
and should not be viewed as a recommendation, investment advice or suitability of any investment. Fund
credit ratings are based on an evaluation of several factors, including credit quality, diversification, and
maturity of assets in the portfolio, as well as management strength and operational capabilities. Ratings of
funds and their portfolio holdings are subject to change and do not remove market risks. Applications to
invest must only be made on the basis of the offer document relating to the investment, which is only
available to Eligible Counterparties and Professional Clients.
The Federated Short-Term Sterling Prime Fund is a sub fund of the umbrella fund, Federated Cash
Management Funds which is an OEIC governed by UK law and authorised by the FCA. Any investment in
the funds is made subject to the terms of the Funds’ Prospectus and relevant Key Investor Information
Document, which are available in English free of charge from the Investment Manager, Federated
Investors (UK) LLP, Nuffield House, 41-46 Piccadilly, London, W1J 0DS.
For a copy of the Prospectus, Key Investor Information Document, information on portfolio holdings or
other matters, please contact us on +44 (0) 20 7618 2600, or email us on [email protected].
Alternatively please see the information on our website at FederatedInvestors.co.uk.
FURTHER INFORMATION
Federated Investors (UK) LLP
Nuffield House, 41-46 Piccadilly
London, W1J 0DS
For Professional Investors Only
Federated Investors (UK) LLP
Federated is a registered trademark of Federated Investors, Inc.
G44548-16 (6/15)
2015 ©Federated Investors, Inc.
Phone
Fax
Email
Website
+44 (0) 20 7292 8620
+44 (0) 20 7292 8655
[email protected]
FederatedInvestors.co.uk