B&CE Global Investments (up to 60% shares) Fund as at 31 March 2015 EasyBuild Series This fund forms the core of the ‘Cautious’ investment profile (page 1 of 2) Fund Aim/Objective Market Review – LGIM The B&CE Global Investments (up to 60% shares) Fund is a medium to lower risk fund that invests in a combination of equities and bonds. Market background The fund aims to produce moderate growth over the long term. It caters for members who are prepared to accept some degree of risk, but who look for investments which won’t go up or down a lot. Fund Manager Contributions are currently invested on B&CE’s behalf by Legal & General Investment Management (LGIM) in a series of its index tracker funds. Annual Management Charges (AMC) Overall results were positive for global equities despite bouts of volatility and some divergence in major markets. Oil supply surged and prices fell throughout 2014. They stabilised in the first quarter of 2015 but the effects continued to boost personal income and reduce global inflation. Europe encountered negative inflation for the first time in decades. The UK Consumer Prices Index (CPI) fell to zero. The EU and Chinese central banks used various mechanisms to stimulate growth. Europe and Japan outperformed other regions. The US, UK and Emerging Markets lagged behind. Over £25,000 0.6% of total fund value £5,000 to £25,000 0.8% of total fund value Under £5,000 0.95% of total fund value US equities reached all-time highs in early March, having risen for nine consecutive quarters. The UK FTSE 100 index exceeded the previous high set in late 1999. Fund Performance (% growth rate) Fund Oil prices, inflation and central bank activity dominated global economic news. 3 Mths to 31 Mar 2015 1 Yr to 31 Mar 2012 1 Yr to 31 Mar 2013 1 Yr to 31 Mar 2014 1 Yr to 31 Mar 2015 3 Yrs to 31 Mar 2015 Since inception* to 31 Mar 2015 5.97 4.66 13.56 4.31 14.54 35.66 45.43 The above fund performance figures are provided after deduction of charges (based on AMC of 0.8%). * Monies were first invested in this Fund on 1 February 2011. Fund Facts Launch Date February 2011 Fund Size (£m) 2.7 Fund Type Unit linked life insurance Pricing Basis Single price Valuation and Dealing Frequency Each working day (excludes weekends and UK bank holidays) Base Currency GBP Domicile United Kingdom US corporate bonds also delivered solid positive returns across the credit spectrum, despite muted equity markets and the end of quantitative easing by the US Federal Reserve last year. Spreads narrowed only slightly however, again as US governments also railed over the quarter after US Federal Reserve signaled that a rate rise would probably not happen in June. Euro-denominated bonds lagged US dollar and sterling equivalents but issuance of euro corporate bonds reached record levels, particularly from non-euro companies. Borrowers took advantage of low funding levels. Subordinated Financials outperformed senior paper. Oil & Gas were very weak in January but recovered over the remainder of the quarter. The US investment grade and high yield markets were particularly affected as Oil & Gas is a larger sector. Government bonds broadly performed well in spite of volatility owing to election uncertainty, speculation over central bank actions and the ongoing Greek crisis. In January, European Central Bank policymakers announced the start of a larger broad-based monetary stimulus package than analysts had predicted, causing Euro government bonds to rally. Japanese government bonds marginally improved as Japan emerged from recession in late 2014 albeit with feeble growth and sluggish business investment. Lower oil prices and muted demand caused inflation to dip to a 10 month low of 2.2%. continued overleaf Important Notes This document is provided for the purpose of information only and should not be construed in any way as giving investment advice. Past performance should not be seen as an indication of future performance as the value of the units may go up or down and any return is not guaranteed. The price of the units can be monitored on our website at www.bandce.co.uk/resources/daily-unit-prices Registered in England and Wales No. 3093365. To help us improve our service, we may record your call. Provider of life assurance, pensions and accident insurance. B&CE Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Ref: 177791. WINNER 2374/0515 B & C E Insurance Limited Manor Royal, Crawley, West Sussex, RH10 9QP. Tel 0300 2000 555 Fax 01293 586801 www.bandce.co.uk B&CE Global Investments (up to 60% shares) Fund as at 31 March 2015 EasyBuild Series This fund forms the core of the ‘Cautious’ investment profile (page 2 of 2) Global Equity Fixed Weights (50:50) Index Fund • LGIM manages the Fund to maintain asset distribution close to the benchmark and within prescribed control ranges through the application of cash flows and (where necessary) switches between investment sector funds. Asset Allocation (%) in various LGIM tracker funds 29.5 UK Equity Index 10.5 North American Equity • The cashflow was applied to move the distribution of the Fund towards the benchmark and was sufficient to maintain its asset allocation within tolerances throughout the quarter. 10.6 Europe (exc UK) 5.3 Japan 3.8 Asia Pacific (exc Japan) • There were no changes to the benchmark during the quarter. 20.1 AAA-AA-A Bonds Over 15 Year Index The AAA-AA-A Bonds Over 15 Year Index Fund 10.1 Over 15 Year Gilts Index • AT&T left the benchmark following a downgrade to BBB rating. • New South Wales Treasury Corporation left following a tender issue. • The only other issuers to leave the benchmark index were those with an average life under 15 years. • Aspire Defence Finance joined the index following an upgrade to A rating. 10.1 Cash Sector Breakdown (%) Fund Financials Fund 14.4 Technology Consumer Goods 3.2 9.1 Telecommunications 2.5 Industrials 7.3 Utilities Consumer Services 6.4 AAA-AA-A Bonds Over 15Y 20.1 • At the end of the quarter the Fund held 202 bonds from 124 issuers. The Index comprised 196 bonds from 122 issuers. Health Care 5.9 Over 15y Gilts 10.1 Oil & Gas 5.0 Cash 10.1 • The Fund’s redemption yield was 3.20%, matching the Index. Basic Materials 3.9 Total 100.0 • The Fund participated in three new issues, one additional issuance and two corporate action events. • The Fund’s modified duration was 14.78 years, against 14.76 years for the Index. • The fund’s credit-rating exposure was 14.2% AAA, 28.9% AA (including 1.2% in gilts), 55.5% A and 1.4% BBB. The Over 15 Year Gilts Index • UK 2014 Q4 GDP confirmed at 3.0% on a year-on-year basis in March. 2.0 Return (%) by fund % Return over the quarter Fund name Fund Index difference between Fund and Index returns UK Equity Index 5.5 5.5 0 • RPI inflation fell to 1.0% in February 2015. North America Equity Index 6.1 6.1 0 • The UK base rate remained at 0.5% for the 73rd consecutive month. Europe (ex UK) Equity Index 11.0 11.0 0 • Consumer confidence reached a 15 year high. Asia Pacific ex Japan Equity Index 8.4 8.4 0 • Three single auctions of 2034, 2045 and 2068 gilts raised £6.9bn for government funding. Japan Equity Index 16.3 16.3 0 AAA-AA-A Bonds-Over 15 Year Index 5.3 5.3 0 Over 15 Year Gilts Index 3.8 3.8 0 • The Fund held all 16 stocks held within the benchmark index. Both the Fund and Index had a modified duration of 18.03 years at the end of the quarter. The redemption yield was 2.23% on a yield curve basis. Registered in England and Wales No. 3093365. To help us improve our service, we may record your call. Provider of life assurance, pensions and accident insurance. B&CE Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Ref: 177791. WINNER 2374/0515 B & C E Insurance Limited Manor Royal, Crawley, West Sussex, RH10 9QP. Tel 0300 2000 555 Fax 01293 586801 www.bandce.co.uk
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