COIF Charity Funds - CCLA

COIF Charity FundsStructure of the FundsInvestment PolicyInvestmentsThe Fund invests only in Sterling denominatedgovernment and corporate fixed interestsecurities (including convertibles and preferenceshares). A significant proportion of the Fund, atleast 60%, is invested in gilt-edged securities inorder to achieve a high level of liquidity andlow overall credit risk. The balance of the Fund isinvested in good quality corporate bonds. Theaverage duration of the Fund’s investments isbroadly similar to that of the FTSE UKGovernment All Stocks Index in order to secure alevel of income for the longer term. The Fundonly invests in securities which are quoted on theleading eligible securities markets.Balance between different kinds of InvestmentThe minimum proportion of the Fund to beinvested in gilt-edged securities is reviewedperiodically both by the Manager and the Board.The asset allocation between the other fixedinterest asset classes is varied according to theManager’s judgement of risk and the futureincome and capital returns likely to be obtainedon each asset class. Apart from exceptionalcircumstances, the liquidity of the Fund remainswithin the range 0% to 5%, as set out in theInvestment and Borrowing Powers section of theScheme Particulars.COIF Charities Deposit FundObjective and Benchmark of the FundCOIF Charities Deposit Fund is designed toenable a charity to obtain, even on smallamounts of money, the higher rates of interestusually available on large sums in the LondonMoney Market. The Fund aims to earn acompetitive rate of interest while retaining its AaaMoney Market rating, the highest available,awarded by Moody’s Investors Service. TheFund’s benchmark, before expenses, is the 7-dayLondon Inter-Bank Bid Rate (LIBID) as measuredby the British Bankers’ Association.Investment PolicyThe Fund may invest cash only on short-termdeposits in Sterling with Banks, Building Societiesand Local Authorities in the United Kingdom.The Fund must maintain at least 25% of theinvestments of the Fund in deposits repayablewithin five business days and the remainder ofthe investments must be repayable within aperiod not exceeding one year. The assets of theFund are placed with a list of approvedcounterparties regularly reviewed by the Trustees.Risk WarningThe value of COIF Charities Investment and FixedInterest Funds’ units and the income from themcan fall as well as rise and an investor may not getback the amount originally invested. TheInvestment Fund’s unit value will reflectfluctuations in share prices and currencyexchange rates. The Fixed Interest Fund’s incomeyield is an indication of the expected level ofincome. The corresponding gross redemptionyield is an estimate of total return over the longterm. The Fixed Interest Fund’s income and grossredemption yields are not guaranteed and willchange over time, due to changes in interest ratesand the average maturity date of the securitiesheld by the Fund. When the Fund’s income yieldis higher than the gross redemption yield, incomeis being paid at the expense of capital. The unitsare intended only for long-term investment andare not suitable for money liable to be needed inthe near future. They are realisable only on eachweekly dealing date.The Trustees of COIF Charities Deposit Fundcannot give guarantees regarding repayment ofdeposits in the Fund but undertake to exercisereasonable care in supervising the placing ofdeposits. The daily deposit rate will fluctuate.Past performance is no guarantee of futurereturns.3