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Fixed and variable interest
Fixed and variable interest investments are Bank Deposits and Securities issued by governments, companies or financial institutions where the fund receives a fixed or variable rate of interest. Their value and attractiveness to buyers and sellers may change as market conditions change.
The Fixed Interest and Variable Yield securities held by the fund, including those which we have agreed to repurchase, are as follows:
90:10 Fund as at 31 December 2011 - Unit linked plans, conventional life plans and conventional Esitran plans
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Fixed interest securities guaranteed by the UK government ("Gilts") 1 |
61% |
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Fixed interest securities guaranteed by other governments which are approved securities for the purposes of our regulatory returns 1 |
7% |
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Other fixed interest securities, eg fixed interest Bonds issued by companies 2 |
22% |
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Variable interest securities 3 |
10% |
90:10 Fund as at 31 December 2011 - Conventional pension plans other than Esitran
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Fixed interest securities guaranteed by the UK government ("Gilts") 1 |
71% |
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Fixed interest securities guaranteed by other governments which are approved securities for the purposes of our regulatory returns 1 |
3% |
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Other fixed interest securities, eg fixed interest Bonds issued by companies 2 |
14% |
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Variable interest securities 3 |
12% |
Notes
UK Shares and options
These are shares in companies, most of which are based in the UK. The companies and the amount we invest in them change from time to time as the fund manager aims to maximise returns. The value of company shares can change significantly over short periods. To give this part of the funds some protection, against share prices falling significantly, we may use or buy options that allow us to sell shares at a specified price. In 2011 these options reduced the fund's return by 0.4%. We regularly review the extent of the protection we arrange to take account of the expected cost against the potential gains should markets rise.
At 31 December 2011 the top 10 holdings were:
| £000 |
| Royal Dutch Shell B Shares |
12,904 |
1.03% |
| GlaxoSmithKline |
11,893 |
0.95% |
| BP Amoco |
9,832 |
0.79% |
| British Gas Group |
9,172 |
0.73% |
| Vodaphone Group Ord U |
8,648 |
0.69% |
| Rio Tinto (Reg) |
7,370 |
0.59% |
| British American Tobacco |
6,611 |
0.53% |
| HSBC Holdings |
6,114 |
0.49% |
| Standard Chartered |
5,192 |
0.42% |
| Astrazeneca |
5,105 |
0.41% |
Property
This is investment mostly in commercial property such as offices, factories and retail outlets. Our property portfolio is regularly valued by a market expert. However the value achieved on sale may be different as it depends on market conditions at the time.
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