MONTHLY INVESTMENT COMMENTARY - Lloyds TSB Offshore Fund Managers Limited. JULY 2011 - The International Stock ...
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MONTHLY INVESTMENT COMMENTARY. Lloyds TSB Offshore Fund Managers Limited. JULY 2011.
MONTHLY INVESTMENT COMMENTARY.
WELCOME.
Lloyds TSB Offshore Fund Managers Limited would like to
welcome our intermediaries and private investors to our
Offshore Investment Commentary for July 2011.
The Offshore Investment Commentary includes market
commentary compiled by our Investment Managers,
Scottish Widows Investment Partnership (“SWIP”), fund facts
and our latest performance figures. Electronic versions can
be downloaded from our website lloydstsb-offshore.com
Please note that any opinions expressed in this document
are the opinions of the Fund Manager and the Investment
Manager and should not be construed as investment
advice.
Nigel Jeacock-Fewtrell
Director
Lloyds TSB Offshore Funds
HOW TO CONTACT US.
Banks and Institutions in the UK, Channel Islands and the
Isle of Man, please contact:
Bron Lysiak
Manager, Intermediary Sales
Tel: +44 (0) 1534 845703
Email:
bron.lysiak@lloydstsb-offshore.com
Institutions in UK and Channel Islands, please contact:
Alex Nardone
Intermediary Development Manager
Tel: +44 (0) 1534 845707
Email:
alex.nardone@lloydstsb-offshore.com
All individual investors and intermediaries in other areas of
the world, please contact:
Tel: +44 (0) 1534 845555
Fax: +44 (0) 1534 845556
Email: funds@lloydstsb-offshore.com
2
CONTENTS.
WORLD MARKET SUMMARY. 4-7 LLOYDS TSB OFFSHORE GILT FUND
LIMITED. 14
LLOYDS TSB OFFSHORE MULTI • Gilt Fund
STRATEGY FUND LIMITED. 8-9
• Conservative Strategy LLOYDS TSB FUNDS LIMITED. 15
• Growth Strategy
• Absolute Return Bond Fund
• Aggressive Strategy
• Global US$ Conservative Strategy
LLOYDS TSB MONEY FUND
LIMITED. 16-18
LLOYDS TSB OFFSHORE FUNDS
LIMITED. 10-13 • Sterling Class
• Australian Dollar Class
• Capital Growth Fund
• Euro Class
• European Fund
• New Zealand Dollar Class
• International Fund
• US Dollar Class
• North American Fund
• UK Fund
• Euro High Income Fund
INVESTMENT PERFORMANCE
FIGURES. 19-20
• High Income Fund
• Sterling Bond Fund • 30th June 2011
3
WORLD MARKET VIEWS SUMMARY.
The following is a brief review of world markets up to 30th June UK.
2011 provided by Scottish Widows Investment Partnership. It is
not intended as investment advice, but we hope that you will find Fears over the outlook for global economic growth and Europe’s
it makes interesting reading. Scottish Widows Investment sovereign debt difficulties held back the UK equity market in June.
Partnership are Investment Allocation Adviser to Lloyds TSB The FTSE All-Share index fell 0.4%, though it rallied toward the end
Offshore Multi Strategy Fund Limited, Investment Manager to of the month amid expectations that Greece would introduce a
Lloyds TSB Offshore Fund Managers Limited, Lloyds TSB Offshore fresh round of austerity measures to stave off bankruptcy. Over the
Funds Limited and Lloyds TSB Offshore Gilt Fund Limited. first six months of 2011, the All-Share was ahead nearly 3%.
June was a month of few winners. Mining stocks rebounded
BONDS. modestly after two successive months of share-price
Bond prices rose and yields fell in “core” government bond markets underperformance. But general retailers ended their recent strong
for most of June. However, this trend reversed sharply in the final run as the gloom deepened on the UK high street. The banking
three days of the month. sector also lost ground, affected by concerns over the
government’s proposal to ring-fence retail bank operations as well
Once more, nervousness over the parlous financial state of as by the sovereign debt crisis.
peripheral eurozone nations had attracted investors into the safe
haven economies of the US, Germany and the UK. But after the Economic data again proved largely uninspiring, and the Bank of
Greek parliament agreed to further austerity measures, a England continued to struggle with inflation. Although the
prerequisite for EU financial assistance, investors were once more Consumer Price Index figure remained at 4.5% and in line with
willing to invest in riskier asset classes. expectations, Scottish Power announced it was increasing its prices
for gas and electricity by 19% and 10% respectively. The other
Meanwhile, continued uncertainty about Greece’s fiscal outlook major energy suppliers are likely to follow suit. Interest rates were
helped widen its yield spread against the German Bund for most of left unchanged for the 27th consecutive month, with the minutes
the month. The cost of insuring against sovereign default by from the bank’s monetary policy committee meeting noting that
Greece, Portugal and Ireland, as measured by five year Credit economic weakness in the UK “may persist for longer than
Default Swaps ("CDS"), reached record levels. expected”.
In the latter half of June, some signs of contagion appeared On the corporate front, the London Stock Exchange withdrew its
elsewhere. Spanish bond yields and CDS began to reflect merger plan with Canada’s TMX Group; and bid approaches for the
increasing fears of contagion. Italy’s CDS spread began to widen likes of Charter, Laird Group and Misys kept the merger and activity
sharply after Moody’s warned that the country’s credit rating could pot boiling.
be downgraded.
• Equities retreat.
Risk aversion also resulted in another month of relatively weak • Sovereign debt issues weigh on sentiment.
performance for corporate bonds. Yield spreads widened sharply • The UK economy remains fragile.
to levels not seen since this time last year. Nonetheless, total
returns were generally positive over the month.
4WORLD MARKET VIEWS SUMMARY.
PROPERTY. US.
UK commercial property took another breather during June, Despite a rally in the final days of June, US equity markets fell short
providing the market with little in the way of direction. Data of a positive performance over the final month of the second
released during the month showed a total return of 0.7%, with quarter. The S&P 500 index was down 1.7% in dollar terms, with
capital growth of just 0.1% and the rest coming entirely from each of its ten core sectors reporting a loss. Consumer staples and
income. financials were June’s biggest losers, both dropped 2.9%. In
contrast, consumer discretionary stocks (down 0.3%) were relative
The biggest differences remain between regions rather than winners.
between sectors. Growth in the buoyant central London market is
skewing returns and masking declines elsewhere. At an all property Early in the month, weak employment figures heightened fears
level, values have risen by 0.9% from the start of the year to the end over an economic “soft patch”. The unemployment rate rose to
of May; but while City offices have risen by 5.5%, regional offices 9.1% after only 54,000 jobs were created in May, significantly less
have fallen by 2.2%. And while standard retail in central London than analysts had forecast. The political impasse over the US debt
produced a 3.0% rise, the value of retail assets in the regions fell by limit (the amount the government can borrow to help finance its
0.3%. operations) also added to the gloom. The US reached its current
borrowing threshold of $14.3 trillion in May. Should it fail to raise
A similar pattern is occurring in the occupational market: rents have the limit by 2 August, it is at risk of defaulting on its debt. So far,
remained flat at an all property level but only because the central Democrats and Republicans have failed to agree on a plan to
London market has been so strong. In many other areas, rents are increase it. Moody’s, the ratings agency, warned that it could
still declining. downgrade US debt if the stalemate is not resolved.
The International Monetary Fund ("IMF") also sounded a note of
caution on the situation, pointing out that the country’s debt
burden is on an “unsustainable trajectory”. In addition, the IMF
reduced its forecast for US economic growth, leaving its projection
for next year below that of the Federal Reserve Bank. As expected,
Ben Bernanke, the central bank’s chairman, formally confirmed the
end of its $600 billion bond purchase scheme. He also indicated
that a third round of monetary stimulus would be very unlikely.
In corporate news, the financial sector regained some lost ground
in the final days of the month. It was boosted by the news that the
Basel Committee for Banking Supervision’s new rules on global
capital for banks were less severe than some had feared.
• Fears grow over an economic “soft patch” for the US.
• Congress fails to reach agreement on raising the national debt
ceiling.
• Second round of quantative easing ("QE2") comes to an end.
5WORLD MARKET VIEWS SUMMARY.
EUROPE. EMERGING MARKETS.
After much political mudslinging and horse-trading, the Greek Emerging market equities fell in June, and the asset class
government passed a further round of austerity measures on 29 underperformed developed markets for the third successive
June to stave off default. The new programmes, said to total some month. Emerging markets have been adversely affected by worries
€25 billion, mean the debt ridden nation will now receive the next over inflation, tighter central bank monetary policies and concerns
tranche of its bail-out fund. This will allow it to pay its creditors in over a likely slowdown in Chinese economic growth.
July. Traders were jittery for most of the month; images of
incendiary protests on the streets of Athens did little to assuage Although all geographical regions were down in June, Latin
their fears. Riskier assets remained firmly off the table. America was least affected. Argentina recorded healthy gains,
partially reversing a recent run of poor performance. Of the
As Greece floundered, Italy was next to be dragged into the milieu. region’s two largest markets, Mexico was slightly ahead in US dollar
Yields on Italian credit default swaps, a form of insurance against a terms, boosted by a strong performance from the consumer
country going bust, widened against their German equivalents, discretionary sector. Meanwhile, Brazil was slightly down, in line
briefly hitting a euro era high. Italy has so far been sheltered from with the fall in the MSCI EM Latin America Index.
the storms raging elsewhere, but markets were jolted by fears that
Moody’s would downgrade the nation’s credit rating. Spreads on Performances from Asian equities were mixed. While Malaysia,
Irish and Portuguese bonds also widened as the month drew to a India and Indonesia were ahead, Chinese equities fell significantly.
close. Disappointing economic data from the US further weighed During the month, the People’s Bank of China raised banks’ reserve
on investor sentiment. requirements by 0.5 percentage points. The move was designed to
combat the acceleration in inflation.
But news of the last-minute deal from Athens spurred traders back
into equities, and markets enjoyed their best day in over two Looking ahead, higher inflation and tighter policy from central
months. The euro also regained some of its lustre. There was banks will continue to hold emerging market equities back over the
further good news on the economic front. The IMF gave its backing next few months.
to the eurozone, upping its growth projection for the 17-country
• Emerging markets lag developed markets for the third month in
bloc to 2%, a 0.4 percentage point improvement on April’s forecast.
a row.
The IMF said a stronger than expected showing from France and
Germany was behind its more upbeat appraisal. With these nations • Rising inflation and fears over China’s economy trigger the
accounting for nearly half of the eurozone’s Gross Domestic underperformance.
Product, it appears core Europe is doing its best to prop up the • China moves to combat inflation.
struggling periphery.
Another month of high drama, then, that saw the FTSE Europe ex-
UK index shed around 2.1% in local currency terms.
• Greece agrees to a fresh round of austerity measures.
• Italy draws nearer to the sovereign debt whirlpool.
• The economic climate remains supportive.
6WORLD MARKET VIEWS SUMMARY.
JAPAN. DEVELOPED ASIA.
Japan’s equity indices managed a positive return over June, Equity markets in the Asia Pacific region were down over June. The
outperforming other developed markets. The Topix index was up MSCI Asia Pacific (ex Japan) index fell 2.2% in local currency terms.
1.4% in yen terms.
At its June 2011 policy meeting, the Reserve Bank of Australia
Political uncertainty was rife early in the month as Naoto Kan, the decided to leave interest rates unchanged, alluding to the
prime minister, faced mounting criticism over his leadership. He problems being faced by the country’s manufacturing sector.
has offered to step down, but outlined three conditions for his
resignation. These amount to: the passage of three bills with the In Hong Kong, persistently high inflation continues to trouble the
aims of securing a second extra budget; promoting renewable economy, accelerating in May to a 34-month high of 5.2%. Equity
energy; and allowing the government to issue deficit covering markets were also in the doldrums: the MSCI Hong Kong index fell
bonds. Mr Kan has already survived two votes of no confidence. 3.9% in local currency terms. Telecommunications was the best
performing sector, consumer discretionaries the worst. Inflation is
In corporate news, Toyota announced that it expects its operating also being stoked in Singapore. The consumer price index jumped
profit for this financial year to fall 35%, to ¥300 billion. Along with 4.5% in May, outpacing estimates of 4.1%.
other car manufacturers, it was forced to cut output at home and
abroad following the March earthquake. Late June brought better South Korea’s central bank raised its benchmark interest rate by
news from Nissan and Suzuki, however. Nissan said that this year’s 0.25 percentage points. Equity indices in the country performed in
sales are likely to be significantly higher than last year’s, while line with the wider Asia Pacific region.
Suzuki projected a better than expected full year operating profit.
Tokyo Electric Power, the beleaguered nuclear plant operator, had
a volatile June. Its share price fell sharply early in the month, after a
newspaper report indicated that the firm would reveal a full-year
loss of ¥570 billion. But the price recovered as the Japanese
government approved a bill to help the company to offer
compensation to victims of the post earthquake nuclear disaster.
Meanwhile, the Bank of Japan fine tuned its economic assessment.
It made reference to continued “downward pressure” faced by
Japan’s economy, but also said that it was “showing some signs of
picking up”. The bank also voted to keep interest rates close to zero
and outlined a ¥500 billion investment plan to support business in
the country.
• The Topix gains.
• Political uncertainty continues.
• The Bank of Japan says the economy may be improving.
7LLOYDS TSB OFFSHORE MULTI STRATEGY
FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
CONSERVATIVE STRATEGY.
PORTFOLIO BREAKDOWN (%). OBJECTIVE.
Gilt Funds 33.28 Seek to provide a moderate return achieved through
Bond Funds 33.09 investment in corporate bond and gilt funds with a limited
High Yield Bond Funds 16.46 exposure to UK equity and property funds. Much of the
growth in value achieved by this Strategy will be through the
UK Equity Funds 8.37
generation of income, which will be distributed to
Property Funds 7.58 shareholders and reinvested. Investment in this Strategy
Cash 1.22 carries a modest risk of loss to capital value and return.
LLOYDS TSB OFFSHORE MULTI
STRATEGY FUND LIMITED -
CONSERVATIVE STRATEGY.
Launch Date 14/09/2004
Minimum Investment £10,000 or currency equivalent
Subsequent Investment £1,000 or currency equivalent
Fund Value 30/06/2011 £24.20m
Initial Charge 4%
Annual Charge 1.25%
Total Holdings 7
GROWTH STRATEGY.
PORTFOLIO BREAKDOWN (%). OBJECTIVE.
UK Equity Funds 33.87 Seek to provide growth achieved through investment in UK
Gilt Funds 20.01 equity, gilt, international equity and corporate bond funds
High Yield Bond Funds 12.20 with a limited exposure to property funds. This Strategy
contains a higher UK equity fund content and an exposure to
US Equity Funds 11.81
international funds is introduced, adding to the
Property Funds 10.09 diversification of investment by medium, currency and
Continental European country. The exposure to corporate bond and gilt funds is
Equity Funds 4.04 reduced. This results in a greater risk of loss to capital value
Pacific Basin Equity Funds 3.03 and return in the short to medium term, but increases the
Japanese Equity Funds 2.06 potential for growth over the medium to long term.
Emerging Market Equity
Funds 2.04 LLOYDS TSB OFFSHORE MULTI
Cash 0.85 STRATEGY FUND LIMITED - GROWTH
STRATEGY.
Launch Date 14/09/2004
Minimum Investment £10,000 or currency equivalent
Subsequent Investment £1,000 or currency equivalent
Fund Value 30/06/2011 £68.62m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 11
8LLOYDS TSB OFFSHORE MULTI STRATEGY
FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
AGGRESSIVE STRATEGY.
PORTFOLIO BREAKDOWN (%). OBJECTIVE.
UK Equity Funds 34.94 Seek to provide adventurous growth achieved through
US Equity Funds 32.84 investment in international equity and UK equity funds. There
Continental European is no exposure to cash, gilt, corporate bond or property
Equity Funds 11.40 funds. This Strategy carries a higher risk of loss to capital
value and return, particularly in the short to medium term but
Pacific Basin Equity Funds 8.37
with the potential for good growth over the medium to long
Japanese Equity Funds 6.20 term.
Emerging Market Equity
Funds 4.95
LLOYDS TSB OFFSHORE MULTI
Cash 1.30
STRATEGY FUND LIMITED -
AGGRESSIVE STRATEGY.
Launch Date 14/09/2004
Minimum Investment £10,000 or currency equivalent
Subsequent Investment £1,000 or currency equivalent
Fund Value 30/06/2011 £11.62m
Initial Charge 5%
Annual Charge 1.75%
Total Holdings 9
GLOBAL US$ GROWTH STRATEGY.
PORTFOLIO BREAKDOWN (%). OBJECTIVE.
US$ Equity Funds 53.27 Seek to provide capital growth for US dollar based investors
Continental European primarily through investment in a range of international
Equity Funds 12.66 equity funds and a limited exposure to UK equity funds.
UK Equity Funds 11.34 There is no exposure to bond funds or cash funds. This
Strategy carries a higher risk of loss to capital value and
Pacific Basin Equity Funds 9.19
return in the short to medium term than Strategies containing
Japanese Equity Funds 6.90 bond or cash funds; however there is greater potential for
Emerging Market Equity growth over the medium to long term.
Funds 5.67
Cash 0.97 LLOYDS TSB OFFSHORE MULTI
STRATEGY FUND LIMITED - GLOBAL
US$ GROWTH STRATEGY.
Launch Date 14/10/2005
Minimum Investment $20,000 or currency equivalent
Subsequent Investment $2,000 or currency equivalent
Fund Value 30/06/2011 $11.35m
Initial Charge 5%
Annual Charge 1.75%
Total Holdings 8
9LLOYDS TSB OFFSHORE FUNDS LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
CAPITAL GROWTH FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek long term capital appreciation through BP 4.00
investment in international equity and fixed interest securities with a focus on Rio Tinto 3.58
United Kingdom securities. Treasury 5% 2012 3.15
Royal Dutch Shell 3.05
GEOGRAPHICAL BREAKDOWN (%). Vodafone Group 2.93
United Kingdom 67.45 BG Group 2.83
HSBC 2.27
United States 13.05
AstraZeneca 2.25
Europe 8.55
GlaxoSmithKline 2.15
Cash 5.89
Xstrata 2.14
Far East 3.98
Others 1.08
LLOYDS TSB OFFSHORE FUNDS
LIMITED - CAPITAL GROWTH FUND.
Launch Date 10/01/1995
Minimum Investment £1,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £14.65m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 122
EUROPEAN FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek long term capital appreciation through Nestle 4.05
investment in European securities. BNP Paribas 3.46
Schneider Electric 3.41
GEOGRAPHICAL BREAKDOWN (%). Total 3.00
Essilor International 2.98
France 31.88
Sanofi 2.73
Germany 16.78
Andritz AG 2.70
Switzerland 16.77
Zurich Financial Services 2.68
Netherlands 8.84
Fresenius Medical Care 2.66
Others 5.64 Swedish Match 2.56
Italy 5.61
Sweden 4.10 LLOYDS TSB OFFSHORE FUNDS
Belgium 4.09 LIMITED - EUROPEAN FUND.
Norway 3.59
Launch Date 01/05/1990
Austria 2.70
Minimum Investment £1,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £20.64m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 49
10LLOYDS TSB OFFSHORE FUNDS LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
INTERNATIONAL FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek long term capital appreciation through Halliburton 3.51
investment in securities world-wide. Vodafone Group 3.30
Royal Dutch Shell 3.02
GEOGRAPHICAL BREAKDOWN (%). Nestle 2.87
Occidental Petroleum Corporation 2.82
United States 44.23
IBM 2.77
Europe 20.79
Goldcorp New 2.64
Far East 17.73
OAO Gazprom 2.53
United Kingdom 7.77
Lorillard 2.47
Others 6.97 Metso Corporation 2.47
Cash 2.51
LLOYDS TSB OFFSHORE FUNDS
LIMITED - INTERNATIONAL FUND.
Launch Date 01/05/1990
Minimum Investment £1,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £25.81m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 48
NORTH AMERICAN FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek long term capital appreciation through CME E-Mini S&P 500 Sep 2011 7.42
investment in North American securities. Exxon Mobil 3.07
Apple 2.14
SECTOR BREAKDOWN (%). Microsoft 1.71
IBM 1.58
Others 24.91
AT & T 1.56
Technology 15.78
Coca-Cola 1.45
Healthcare 11.47
General Electric 1.40
Oil & Gas 10.20
Johnson & Johnson 1.30
Industrial Goods & JPMorgan Chase 1.25
Services 9.39
Futures 7.42
LLOYDS TSB OFFSHORE FUNDS
Retail 6.06
LIMITED - NORTH AMERICAN FUND.
Banks 5.08
Launch Date 01/05/1990
Personal & Household
Goods 4.91 Minimum Investment £1,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Food & Beverage 4.78
Fund Value 30/06/2011 £12.05m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 190
11LLOYDS TSB OFFSHORE FUNDS LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
UK FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek long term capital appreciation through BP 6.38
investment in United Kingdom securities. Rio Tinto 6.05
Royal Dutch Shell 5.03
SECTOR BREAKDOWN (%). Vodafone Group 4.87
BG Group 4.56
Oil & Gas 21.06
HSBC 3.78
Others 17.49
AstraZeneca 3.72
Basic Resources 14.99
Xstrata 3.54
Industrial Goods &
GlaxoSmithKline 3.50
Services 9.85
Resolution 2.49
Banks 8.56
Healthcare 7.83
LLOYDS TSB OFFSHORE FUNDS
Insurance 6.09
LIMITED - UK FUND.
Telecommunications 4.87
Launch Date 01/05/1990
Media 4.69
Minimum Investment £1,000 or currency equivalent
Personal & Household
Subsequent Investment £50 or currency equivalent
Goods 4.57
Fund Value 30/06/2011 £41.62m
Initial Charge 5%
Annual Charge 1.5%
Total Holdings 56
EURO HIGH INCOME FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to maintain a high income, through investment in a Royal Bank of Scotland 6.934% 2018 2.16
spread of fixed interest securities denominated predominantly in euro. RWE Finance 6.5% 2021 2.14
France Telecommunication 8.125% 2033 1.92
SECTOR BREAKDOWN (%). Barclays Bank 6% 2018 1.88
Elte de France 4.625% 2030 1.70
Corporate bonds 98.49
GE Capital Trust 4.625% (F/R) 2066 1.64
Government bonds 1.00
Deutsche Bank 5.125% 2017 1.56
Cash 0.51
Lloyds TSB Bank 6.375% 2016 1.54
HSBC 6% 2019 1.53
UBS 8.836% (F/R) Perpetual 1.53
LLOYDS TSB OFFSHORE FUNDS
LIMITED - EURO HIGH INCOME FUND.
Launch Date 02/10/2006
Minimum Investment €5,000 or currency equivalent
Subsequent Investment €100 or currency equivalent
Fund Value 30/06/2011 €14.05m
Initial Charge 4%
Annual Charge 0.875%
Total Holdings 106
12LLOYDS TSB OFFSHORE FUNDS LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
HIGH INCOME FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek a high income from a spread of fixed interest GE Capital UK Funding 5.125% 2023 1.86
securities. Credit Foncier 10.25% 2014 1.64
Treasury 4.5% 2042 1.60
SECTOR BREAKDOWN (%). Societe Generale 8.875% (F/R) Perpetual 1.54
HSBC 6% 2040 1.43
Corporate bonds 93.75
Southern Gas Networks 2029 1.23
Government bonds 2.63
Tesco 6.125% 2022 1.22
Public authorities 2.06
Unicredit Bank Austria 8.375% 2011 1.12
Cash 1.10
Citigroup 6.80% 2038 1.09
Corporate convertibles 0.46 Credit Suisse International 10.25% (F/R) Perpetual 1.08
LLOYDS TSB OFFSHORE FUNDS
LIMITED - HIGH INCOME FUND.
Launch Date 01/07/1995
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £322.18m
Initial Charge 4%
Annual Charge 0.875%
Total Holdings 197
STERLING BOND FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek to provide a regular income from a managed Northern Rock 6.375% 2019 2.86
portfolio of sterling fixed interest securities with a particular emphasis on SLM Student Loan 5.45% 2038 2.77
those securities on which interest is paid gross to non-residents of the United Egg Plc 6.875% 2021 2.44
Kingdom. GE Capital UK Funding 6.75% 2018 2.37
Tesco 6.125% 2022 2.29
SECTOR BREAKDOWN (%). BL Superstores Finance 4.482% 2030 2.11
Corporate bonds 92.96 Mitchells & Butlers Plc 5.965% 2025 1.94
Government bonds 3.46 Barclays Bank 10% 2021 1.87
Public authorities 3.35 Treasury 4.25% 2055 1.68
SL Finance Plc 6.75% (F/R) Perpetual 1.66
Cash 0.23
LLOYDS TSB OFFSHORE FUNDS
LIMITED - STERLING BOND FUND.
Launch Date 27/07/2001
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £28.18m
Initial Charge 4%
Annual Charge 0.875%
Total Holdings 130
13LLOYDS TSB OFFSHORE GILT FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
GILT FUND.
OBJECTIVE. LARGEST INVESTMENTS (%).
The aim of the Fund is to seek to provide a regular income through Treasury 8% 2013 21.53
investment in sterling denominated government and other public securities, Treasury 5% 2012 16.40
principally those issued by the British Government and those which pay Treasury 4.5% 2034 13.88
interest without deduction of tax to non-residents of the country of issuer. Treasury 4.25% 2040 7.28
Treasury 5% 2025 6.77
SECTOR BREAKDOWN (%). Treasury 2.5% index linked 2016 5.42
Government bonds 90.88 Treasury 2% 2016 4.10
Government Index-linked 8.72 Treasury 4.25% 2036 3.75
Cash 0.40 Treasury 4.25% 2049 3.72
Treasury 4% 2060 3.24
LLOYDS TSB OFFSHORE GILT FUND
LIMITED.
Launch Date Monthly 12/03/1988
Launch Date Quarterly 26/10/1978
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £50 or currency equivalent
Fund Value 30/06/2011 £86.97m
Initial Charge 3.5%
Annual Charge 0.85%
Total Holdings 20
14LLOYDS TSB FUNDS LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
ABSOLUTE RETURN BOND FUND.
OBJECTIVE. LLOYDS TSB FUNDS LIMITED.
The objective is to invest in an underlying Fund* which aims to Launch Date 17/09/2008
achieve a positive capital return, over the long term, regardless of Minimum Investment £10,000 or currency equivalent
the market conditions, through investment and disinvestment Subsequent Investment £1,000 or currency equivalent
(directly and indirectly) in a portfolio predominantly consisting of Fund Value 30/06/2011 £5.65m
fixed interest securities, money market instruments, cash, deposits,
Initial Charge 4%
index linked securities and related derivative contracts.
Annual Charge 1%
LARGEST INVESTMENTS OF UNDERLYING This product is not available for general distribution in, from or into
FUND* (%). the United Kingdom because the Company is an unregulated
United Kingdom Government 2.5% index linked 2016 9.13 collective investment scheme whose promotion is restricted by
sections 238 and 240 of the Financial Services and Markets Act
Royal Bank of Scotland 1.44% 2011 4.95
2000. See important information.
Merrill Lynch FRN 2012 2.44
Hartford Life 5.375% 2012 2.41 * The Lloyds TSB Funds Limited Absolute Return Bond Fund is a
IntesaBci 6.988% FRN Perpetual 2.07 ‘feeder fund’ (a fund that is specifically set up to invest directly
Spanish Government 2011 2.06 into an already established fund) and invests into the Scottish
Widows Investment Partnership (SWIP) Investment Funds ICVC –
GE Capital UK Funding FRN 2017 1.99
Absolute Return Bond Fund thereby providing potentially tax
Citigroup Inc 3.625% 2017 1.96
efficient access**, for customers based offshore, to a fund
HSBC (F/R) 2014 1.83 solution offered by one of the UK's largest Asset Managers.
Japanese Government CPI Linked 1.2% 2017 1.73
** It is your responsibility to ensure that any tax liability in relation to
funds deposited is accounted for by you to your appropriate tax
authorities.
15LLOYDS TSB MONEY FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
STERLING CLASS.
OBJECTIVE. LARGEST INVESTMENTS (%).
The objective of Lloyds TSB Money Fund Limited is to offer both ABN AMRO 17.25
the individual and corporate investor a high degree of protection BNP Paribas 16.11
and access to wholesale money markets, whilst maintaining a Dexia Bank 15.72
competitive level of return and ready availability of funds. The Barclays Bank 15.52
policy of the Sterling Class is to invest in deposits which are
Royal Bank of Scotland 12.77
available in the Eurocurrency markets (including deposits placed
Lloyds TSB Bank 12.62
with members of the Lloyds Banking Group), which are
denominated in sterling. UBS 10.01
LLOYDS TSB MONEY FUND LIMITED.
Launch Date 23/11/1983
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £500 or currency equivalent
Fund Value 30/06/2011 £79.97m
Initial Charge None
Annual Charge 0.35%
AUSTRALIAN DOLLAR CLASS.
OBJECTIVE. LARGEST INVESTMENTS (%).
The objective of Lloyds TSB Money Fund Limited is to offer both UBS 18.94
the individual and corporate investor a high degree of protection Societe Generale 18.68
and access to wholesale money markets, whilst maintaining a Barclays Bank 16.84
competitive level of return and ready availability of funds. The ABN AMRO 15.99
policy of the Australian Dollar Class is to invest in deposits which
Bank of Montreal 14.93
are available in the Eurocurrency markets (including deposits
BNP Paribas 13.78
placed with members of the Lloyds Banking Group), which are
denominated in Australian Dollars. Lloyds TSB Bank 0.84
LLOYDS TSB MONEY FUND LIMITED.
Launch Date 25/09/1985
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £500 or currency equivalent
Fund Value 30/06/2011 AUD25.84m
Initial Charge None
Annual Charge 0.85%
16LLOYDS TSB MONEY FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
EURO CLASS.
OBJECTIVE. LARGEST INVESTMENTS (%).
The objective of Lloyds TSB Money Fund Limited is to offer both BNP Paribas 19.18
the individual and corporate investor a high degree of protection Dexia Bank 17.46
and access to wholesale money markets, whilst maintaining a Societe Generale 15.37
competitive level of return and ready availability of funds. The ABN AMRO 14.87
policy of the Euro Class is to invest in deposits which are available
UBS 13.17
in the Eurocurrency markets (including deposits placed with
Barclays Bank 11.51
members of the Lloyds Banking Group), which are denominated in
Euro. Royal Bank of Scotland 6.66
Lloyds TSB Bank 1.78
LLOYDS TSB MONEY FUND LIMITED.
Launch Date 01/01/1999
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £500 or currency equivalent
Fund Value 30/06/2011 €19.60m
Initial Charge None
Annual Charge 0.20%
NEW ZEALAND DOLLAR CLASS.
OBJECTIVE. LARGEST INVESTMENTS (%).
The objective of Lloyds TSB Money Fund Limited is to offer both BNP Paribas 19.90
the individual and corporate investor a high degree of protection UBS 19.58
and access to wholesale money markets, whilst maintaining a Barclays Bank 18.76
competitive level of return and ready availability of funds. The Dexia Bank 18.42
policy of the New Zealand Dollar Class is to invest in deposits which
ABN AMRO 12.32
are available in the Eurocurrency markets (including deposits
Societe Generale 11.02
placed with members of the Lloyds Banking Group), which are
denominated in New Zealand Dollars.
LLOYDS TSB MONEY FUND LIMITED.
Launch Date 25/09/1985
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £500 or currency equivalent
Fund Value 30/06/2011 NZD18.20m
Initial Charge None
Annual Charge 0.85%
17LLOYDS TSB MONEY FUND LIMITED.
DATA CORRECT AS AT 30 JUNE 2011.
US DOLLAR CLASS.
OBJECTIVE. LARGEST INVESTMENTS (%).
The objective of Lloyds TSB Money Fund Limited is to offer both Bank of Montreal 19.78
the individual and corporate investor a high degree of protection ABN AMRO 19.69
and access to wholesale money markets, whilst maintaining a Royal Bank of Scotland 15.90
competitive level of return and ready availability of funds. The Dexia Bank 14.93
policy of the US Dollar Class is to invest in deposits which are
Societe Generale 11.96
available in the Eurocurrency markets (including deposits placed
UBS 9.53
with members of the Lloyds Banking Group), which are
denominated in US Dollars. BNP Paribas 8.18
Lloyds TSB Bank 0.03
LLOYDS TSB MONEY FUND LIMITED.
Launch Date 23/11/1983
Minimum Investment £5,000 or currency equivalent
Subsequent Investment £500 or currency equivalent
Fund Value 30/06/2011 $33.64m
Initial Charge None
Annual Charge 0.20%
PRICES & RETURNS FOR DEALING 30/06/2011.
Currency Class Price Per Share Net Annualised Return %
Sterling 52.268 0.21
US Dollar 60.975 0.00
Euro 52.854 0.78
Australian Dollar 160.214 3.70
New Zealand Dollar 197.298 1.45
The Net Annualised Returns are projected returns based on the current
deposits held within each portfolio. As a result, these figures are not a
guarantee of future returns.
Investors should be aware that the price of shares may go down as well
as up. Whilst the price of a share will normally rise as income accrues in
respect of underlying investments, such price may fall in certain
circumstances such as a substantial change in interest rates. Investors
may get back less than the original amount invested.
Past performance should not be seen as an indication of future
performance.
18INVESTMENT PERFORMANCE FIGURES.
DATA CORRECT AS AT 30 JUNE 2011.
Past performance should not be seen as an indication of future performance.
LLOYDS TSB OFFSHORE MULTI STRATEGY FUND LIMITED.
30/06/10 to 30/06/09 to 30/06/08 to 30/06/07 to 30/06/06 to Yield as at
30/06/11 (%) 30/06/10 (%) 30/06/09 (%) 30/06/08 (%) 30/06/07 (%) 30/06/11 (%)
Conservative Strategy £ 5.92 15.29 -0.30 -1.92 0.37 3.41
$ 12.98 4.06 -16.94 -2.25 9.64
€ -4.63 19.96 -6.75 -16.79 3.50
Growth Strategy £ 14.96 18.58 -9.61 -8.15 7.06 1.83
$ 22.67 7.13 -24.68 -8.51 16.95
€ 3.47 23.55 -15.38 -22.19 10.50
Aggressive Strategy £ 20.44 21.17 -18.24 -12.25 10.77 0.16
$ 28.54 9.40 -31.83 -12.61 21.06
€ 8.35 26.34 -23.50 -25.68 14.29
Global US$ Growth Strategy £ 18.92 23.30 -17.35 -12.86 11.35 0.00
$ 26.81 11.30 -31.08 -13.13 21.66
€ 7.05 28.43 -22.65 -26.16 14.89
The figures show the performance growth over 5 years as discrete 12 month periods, based on a mid price basis with gross income reinvested.
(Source: Financial Express)
LLOYDS TSB OFFSHORE FUNDS LIMITED – GROWTH FUNDS.
30/06/10 to 30/06/09 to 30/06/08 to 30/06/07 to 30/06/06 to Yield as at
30/06/11 (%) 30/06/10 (%) 30/06/09 (%) 30/06/08 (%) 30/06/07 (%) 30/06/11 (%)
Capital Growth Fund £ 19.23 15.13 -17.30 -10.13 13.82 1.78
$ 27.22 3.89 -31.07 -10.42 24.31
€ 7.29 19.86 -22.58 -23.81 17.37
European Fund £ 30.51 9.66 -22.95 -8.70 27.39 1.67
$ 39.21 -1.04 -35.74 -9.00 39.14
€ 17.44 14.22 -27.86 -22.61 31.38
International Fund £ 19.14 13.37 -18.63 -4.62 7.32 0.29
$ 27.13 2.33 -32.17 -4.95 17.22
€ 7.21 18.04 -23.84 -19.16 10.69
North American Fund £ 16.83 22.21 -10.16 -14.38 9.33 0.00
$ 24.75 10.28 -25.08 -14.71 19.46
€ 5.13 27.29 -15.90 -27.41 12.78
UK Fund £ 22.95 16.11 -24.09 -9.47 21.41 2.46
$ 31.09 4.83 -36.71 -9.81 32.63
€ 10.64 20.94 -28.93 -23.23 25.13
The figures show the performance growth over 5 years as discrete 12 month periods, based on a mid price basis with gross income reinvested. (Source: Financial Express)
LLOYDS TSB OFFSHORE FUNDS LIMITED – INCOME FUNDS.
30/06/10 to 30/06/09 to 30/06/08 to 30/06/07 to 30/06/06 to Yield as at
30/06/11 (%) 30/06/10 (%) 30/06/09 (%) 30/06/08 (%) 30/06/07 (%) 30/06/11 (%)
Euro High Income Fund € 2.39 18.34 -2.92 -6.08 - 5.12
High Income Fund £ 4.98 20.47 -3.92 -2.13 -0.46 6.06
Sterling Bond Fund £ 5.30 20.09 -6.43 -1.04 -1.04 4.70
The figures show the performance growth over 4 & 5 years as discrete 12 month periods, based on a mid price basis with gross income reinvested. (Source: Financial Express)
The Euro High Income Fund was launched on 2nd October 2006. No performance figures are available for the periods 30/06/06 to 30/06/07.
Performance since launch: Euro High Income Fund (€)8.10%
19INVESTMENT PERFORMANCE FIGURES.
DATA CORRECT AS AT 30 JUNE 2011.
Past performance should not be seen as an indication of future performance.
LLOYDS TSB OFFSHORE GILT FUND LIMITED.
30/06/10 to 30/06/09 to 30/06/08 to 30/06/07 to 30/06/06 to Yield as at
30/06/11 (%) 30/06/10 (%) 30/06/09 (%) 30/06/08 (%) 30/06/07 (%) 30/06/11 (%)
Gilt Monthly Share Class £ 2.48 6.44 13.38 4.95 -1.31 3.35
Gilt Quarterly Share Class £ 2.48 6.42 13.51 4.95 -1.26 3.35
The figures show the performance growth over 5 years as discrete 12 month periods, based on a mid price basis with gross income reinvested. (Source: Financial Express)
LLOYDS TSB FUNDS LIMITED.
30/06/10 to 30/06/09 to 30/06/08 to 30/06/07 to 30/06/06 to Yield as at
30/06/11 (%) 30/06/10 (%) 30/06/09 (%) 30/06/08 (%) 30/06/07 (%) 30/06/11 (%)
Absolute Return Bond Fund £ 2.72 3.37 - - - 1.00
The figures show the performance growth over 2 years as discrete 12 month periods, based on a mid price basis with gross income reinvested. (Source: Financial Express)
The Absolute Return Bond Fund was launched on 17th September 2008. No performance figures are available for the periods 30/06/06 to 30/06/09.
Performance since launch: Absolute Return Bond Fund (£)4.02%
20IMPORTANT INFORMATION.
The value of investments and the income from them can go When distributed in, from or into the United Kingdom this
down as well as up and cannot be guaranteed. An investment, in product is only intended for investment professionals having
a currency other than the shareholder’s own currency or in a fund professional experience of investing in unregulated schemes,
that invests in securities denominated in currencies other than its high net worth companies, partnerships, associations or trusts
base currency, will be subject to the movement of foreign and investment personnel of any of the foregoing having
exchange rates. Consequently, investors may receive an amount professional experience of investing in unregulated schemes
greater or less than their original investment. (each within the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 and the Financial Services and
The dividend policy of the Lloyds TSB Offshore Funds Limited – Markets Act 2000 (Promotion of Collective Investment Schemes)
High Income and Euro High Income are to pay an above average (Exemptions) Order 2001), persons outside the European
level of income and this will lead to a gradual reduction in capital Economic Area receiving it electronically, persons outside the
except when bond prices generally are rising. The dividends United Kingdom receiving it non-electronically and any other
may fluctuate in value in money terms. persons to whom it may be communicated lawfully. No other
person should act or rely on it. Persons distributing this product
Lloyds TSB Offshore Multi Strategy Fund Limited consists of four in, from or into the United Kingdom must satisfy themselves that
Strategies. The funds and fund managers utilised within each it is lawful to do so.
Strategy may vary and full details are available within the
prospectus. Latest prices and returns can also be found daily in The Financial
Times under the heading “Managed Funds Service” or on our
Much of the growth in the value of the Conservative Strategy will website lloydstsb-offshore.com
be achieved, through the generation of income, which will be
distributed to shareholders and reinvested. A copy of the prospectus and the latest available Report and
Accounts of the Companies are available from the Manager,
Lloyds TSB Funds Limited – Absolute Return Bond Fund is not Lloyds TSB Offshore Fund Managers Limited, PO Box 311, 11-12
available for general distribution in, from or into the United Esplanade, St Helier, Jersey JE4 8ZU.
Kingdom because the Company is an unregulated collective Tel: +44 (0) 1534 845555
investment scheme whose promotion is restricted by sections Fax: +44 (0) 1534 845556
238 and 240 of the Financial Services and Markets Act 2000. E-mail: funds@lloydstsb-offshore.com
The rules of the UK Financial Services Authority and the United Kingdom Financial Services Compensation Scheme do not apply to the Funds and no cancellation rights apply,
however, Lloyds TSB Offshore Funds Limited, Lloyds TSB Offshore Gilt Fund Limited, Lloyds TSB Offshore Multi Strategy Fund Limited and Lloyds TSB Money Fund Limited are
recognised under Section 270 of the Financial Services and Markets Act 2000.
This document has been issued by Lloyds TSB Offshore Fund Managers Limited (the “Manager”) and approved by Lloyds TSB Private Banking Limited, Registered Office: 25
Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2019697. Authorised and regulated by the Financial Services Authority under number 122626. Lloyds
TSB Offshore Fund Managers Limited, Lloyds TSB Offshore Funds Limited, Lloyds TSB Offshore Gilt Fund Limited, Lloyds TSB Money Fund Limited, Lloyds TSB Offshore Multi
Strategy Fund Limited and Lloyds TSB Funds Limited, have each been authorised by the Jersey Financial Services Commission under the Collective Investment Funds (Jersey)
Law, 1988. Scottish Widows Investment Partnership Limited is regulated by the Financial Services Authority.
The registered address of the Manager is: P.O. Box 160, 25 New Street, St Helier, Jersey, Channel Islands JE4 8RG.
To ensure security for our customers and staff and to help maintain service quality, some calls may be recorded and monitored.
Messages sent by email may not be secure and may be intercepted by third parties. For these reasons, please do not use email to send us communications which contain
confidential information or instructions as we require these communications to be in writing. If you disregard this warning and choose to send us confidential information, you
agree that you do so at your own risk and that you will not hold the Manager responsible for any loss that you suffer as a result.
The information contained in this Investment Commentary does not constitute an invitation to buy or the solicitation of an offer to sell securities or accept deposits or to provide
any other products or services in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation, nor should it be construed to constitute any investment
advice.
Legislation or regulations in your home jurisdiction may prohibit you from entering into such a transaction with us. We reserve the right to make final determination on whether
you are eligible for any products or services.
Residents or Nationals of certain jurisdictions may be subject to exchange controls and should seek independent advice before entering into any transactions with us.
Lloyds TSB Offshore Holdings Limited has registered the business name of Lloyds TSB International in Jersey and has licensed it to Lloyds TSB Offshore Fund Managers Limited
and the funds that it manages.
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