B&CE Global Investments (up to 60% shares) Fund as at 31 March

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