At CCLA we manage the CBF Church of England Deposit Fund, the COIF Charities Deposit Fund and the Public Sector Deposit Fund on behalf of our clients. These funds’ aim to generate income and provide capital security.
Cash funds offer security and immediate access, however, returns are typically modest and may not keep pace with inflation.
They primarily invest in certificates of deposit, but also utilise term deposits and notice accounts, all of which offer an interest rate in exchange for a predetermined holding period. The investments are allocated to banks and building societies that have undergone a thorough evaluation, resulting in their inclusion on CCLA’s approved list of financial institutions.
Investing in bonds is considered safer than investing in company shares. Bonds are generally lower risk than company shares but are not risk-free. Bonds, whether issued by governments, companies or other organisations, usually provide a regular income stream and can act to diversify and help to reduce risk in an investment portfolio.
Our Short Duration Bond Funds aim to generate a total return (income plus capital growth) of cash (represented by SONIA) plus 1.75% per annum (net of fees and expenses) when measured over a rolling three year period. The funds will be managed to ensure that the duration is less than 3.5 years, with the aim of reducing the effect of changes in interest rates on the funds’ value.
Our cash and bonds funds
The Public Sector Deposit Fund
The PSDF is a low volatility net asset value money market fund (LVNAV MMF) which is a short term MMF.
COIF Charities Deposit Fund
A short-term fund, which aims to provide a high level of capital security and a competitive yield.
COIF Charities Short Duration Bond Fund
An actively managed fund invested in a range of fixed and floating rate debt and debt-related instruments issued by corporates and governments including loans, inflation-linked securities, money market instruments and asset backed or other securitised products.
The CBF Church of England Deposit Fund
A short-term fund, which aims to provide a high level of capital security and competitive level of income.
The CBF Church of England Short Duration Bond Fund
An actively managed fund invested in a range of fixed and floating rate debt and debt-related instruments issued by corporates and governments including loans, inflation-linked securities, money market instruments and asset backed or other securitised products.