CFB FUNDS PEDFODMANCE 2013 yEAD ENDED 28 FEBDUADy 2013

CFB Funds performance 2013 Year ended 28 February 2013 Contents

02 How CFB funds performed 05 CFB funds in detail 05 – Managed Equity Fund 05 – Managed Fixed Interest Fund 05 – Managed Mixed Fund 06 – Deposit Fund 07 – UK Equity Fund 11 – Overseas Fund 16 – Gilt Fund 17 – Corporate Bond Fund 18 – Short Fixed Interest Fund 19 – Inflation Linked Fund 20 – Property Fund

How CFB funds Performed

Unit price and distribution history Schedule of Valuations and Distributions – Equity and property Funds

UK Equity Fund

Overseas Fund

Property Fund

Annual Annual Annual Valuation Distribution Valuation Distribution Valuation Distribution p p p p p p

28 Feb 2009 28 Feb 2010 28 Feb 2011 29 Feb 2012 28 Feb 2013

978.5 1348.5 1550.0 1490.7 1641.9

58.27 42.67 40.87 49.06 50.17

193.9 270.9 306.6 304.1 348.5

4.24 3.14 5.05 4.58 5.77

59.2 61.9 63.1 61.4 57.3

7.66 6.57 5.19 4.74 4.86

Schedule of Valuations and Distributions – Managed Funds

Managed Equity Fund

Managed Fixed Interest Fund

Managed Mixed Fund

Annual Annual Annual Valuation Distribution Valuation Distribution Valuation Distribution p p p p p p

28 Feb 2009 1171.0 62.23 172.8 28 Feb 2010 1619.0 46.13 173.5 28 Feb 2011 1857.9 46.03 176.3 29 Feb 2012 1795.9 53.89 191.9 28 Feb 2013 1990.8 56.60 194.0

7.48 239.7 12.70 6.82 303.9 10.12 5.81 338.9 10.22 5.51 338.6 10.96 5.00 365.6 11.26

Schedule of Valuations and Distributions – Fixed Interest Funds

Gilt Fund

Corporate Bond Fund

Short Fixed Interest Fund

Inflation Linked Fund

Annual Annual Annual Annual Valuation Distribution Valuation Distribution Valuation Distribution Valuation Distribution p p p p p p p p

28 Feb 2009 28 Feb 2010 28 Feb 2011 29 Feb 2012 28 Feb 2013

132.1 130.8 133.9 150.5 150.7

5.57 109.5 4.97 115.9 4.36 117.4 4.14 124.4 3.79 130.5

5.87 108.5 5.59 108.4 5.32 109.5 5.27 116.9 4.88 117.9

4.53 225.1 4.10 243.7 3.32 262.9 3.09 308.5 2.79 325.5

4.63 4.09 3.94 3.83 3.41

Ethical All CFB portfolios will be invested in securities which are in line with the ethical policy of the Methodist Church.

2 Central Finance Board of the Methodist Church Funds Performance 2013

How CFB funds Performed continued Long term returns: Internal Assessment Total returns of audited unit values for the periods to 28 February 2013 Equity & Convertibles 10.5

1 CFB Managed Mixed Fund 2 CFB Managed Equity Fund 3 CFB UK Equity Fund 4 FTSE All Share Index 5 FTSE All Share Index Ethically Adjusted 6 CFB Overseas Fund 7 FTSE All World Index ex UK

9.9

10.4

9.9

9.7

10.3

9.0 8.0 6.4

6.1

1

6.0

5.6

2

3

7.9

5.8

4

5

6

7

Fixed Interest 1 CFB Managed Fixed Interest Fund 2 Managed Fixed Interest Composite 3 CFB Short Fixed Interest Fund 4 FTSE Short Gilt Composite Index 5 CFB Gilt Fund* 6 FTSE All Stock Gilt Index 7 CFB Corporate Bond Fund 8 iBoxx Non Gilts Index 9 Corporate Bond Index Composite *Figures prior to 01/11/02 relate to CFB Long Fixed Interest Fund

8.3 6.9

7.0

6.5

6.3

5.6

6.0

5.4

1

5.3

2

3

5

5.6

6

Inflation Linked

Cash

1 CFB Inflation Linked Fund 2 FTSE All Stock Index Linked Index 3 FTSE Inflation Linked Composite Index

1 CFB Deposit Fund 2 Higher Rate Bank Deposits (over £10,000) 8.3 7.6

6.7

6.5

5.5

5.2

4

7.3

6.9

5.6

7

8

5.2

9

8.3

8.1

7.6

7.4

3.3 2.0 0.4 1.0 1

2

3

1

2

5 years % pa 10 years % pa


How CFB funds Performed continued Long term returns: independent Assessment Cumulative total returns: source Portfolio Evaluation limited for the periods to 31 December 2012 UK Equity

Overseas Equities

1 CFB 2 FTSE All Share 3 FTSE All Share Ethically Adjusted

1 CFB 2 FTSE All-World ex UK 8.8

8.8

8.3

8.1

8.8

4.0 2.5

2.4

1

3.8

2.2

2

3

1

2

UK Fixed Interest 1 CFB Gilt 2 CFB Short Fixed Interest 3 CFB Corporate Bond 4 FTSE All Stock Gilts 5 Short Fixed Composite 6 iBoxx Non Gilts 7 Corporate Bond Composite

8.1 7.4

7.2 6.6 5.8

1

5.9

5.5

2

3

4

6.8

6.4

5.8

5.4

5

6

6.3

7

UK Inflation Linked 1 CFB 2 FTSE All Stock Index Linked Gilts

7.7 7.5

1

7.7

7.4

2

5 years % pa 10 years % pa


CFB funds in detail

Managed Equity Fund Investment objective

Over rolling five year periods, to achieve through holdings in the CFB UK Equity and Overseas funds, a total return equal to or in excess of the composite index measuring the constituent asset classes.

Investment parameters

Over rolling five year periods, to achieve through holdings in the CFB UK Equity, Overseas, Gilt, Corporate Bond, Short Fixed Interest, Inflation Linked and Property funds, a total return equal to or in excess of a composite index measuring the constituent asset classes.


(reviewed annually)

CFB UK Equity Fund

80-90%

CFB Overseas Fund

10-20%

Dilution levy

0.26%

Summary of investments and other assets as at 28 February 2013 1 UK Equity Fund 83.6% 2 Overseas Fund 16.4%

Managed Mixed Fund Investment objective

1

2

(reviewed annually)

Equities and Inflation Linked Securities

60-80%

– CFB UK Equity Fund (50-70)% – CFB Overseas Fund

(5-15)%

– CFB Inflation Linked Fund

(0-5)%

Fixed Interest Securities

15-35%

– CFB Gilt Fund (10-20)% – CFB Corporate Bond Fund

(0-5)%

– Short Fixed Interest Fund

(5-15)%

Property Fund

0-10%

Dilution levy

0.35%

Summary of investments and other assets

Managed Fixed Interest Fund Investment objective

Over rolling five year periods, to achieve through holdings in the CFB Gilt, Corporate Bond and Short Fixed Interest funds, a total return equal to or in excess of the UK Government fixed interest market.

as at 28 February 2013 1 UK Equity Fund 60.6% 2 Overseas Fund 12.3% 3 Gilt Fund 11.8% 4 Corporate Bond Fund 1.5% 5 Short Fixed Interest Fund 9.2% 6 Property Fund 4.6%

1

2

3 4 5

Investment parameters (reviewed annually)

6

CFB Gilt Fund

30-50%

CFB Corporate Bond Fund

5-15%

CFB Short Fixed Interest Fund

40-60%

Modified duration

4.9-7.9 years

Dilution levy

0.13%

Risk warning

Summary of investments and other assets as at 28 February 2013 1 Gilt Fund 38.6% 2 Corporate Bond Fund 11.6% 3 Short Fixed Interest Fund 49.8%

1

2

CFB Funds are designed for long term investors. While we hope that unit values will rise, prices can and do fall. They are not suitable for you to use if you cannot accept the possibility of capital losses.

Modified duration of fund 6.4 years

3


CFB funds in detail continued Deposit Fund Investment objective

To obtain the higher rates of interest usually available in the London Money Market whilst maintaining the ability to make withdrawals at short notice and with minimal risk of capital loss.

Income history Year to February

Average Average LIBID* rate AER AER % % %

2009

4.96

5.08

3.90

To match the parameters of Affirmative Deposit Fund which are:

2010

1.45

1.46

0.18

On call or repayable within 5 business day

Minimum 10%

2011

1.09

1.09

0.16

Maximum period of redemption (other than floating rate securities) 24 months

2012

1.25

1.26

0.19

2013

1.25 1.26 0.16


Maximum period between coupon changes on floating rate securities

6 months

Maximum average life (excluding fixed terms arrangements made by specific clients)

180 days

Total expense ratio

0.23%

Summary of investments by credit rating as at 28 February 2013 1 Aa2 6.8% 2 Aa3 5.9% 3 A1 2.3% 4 A2 75.7% 5 A3 9.3%

1

2

3

*Represents the Gross LIBID rate less the CFB Deposit Fund expenses.

Total expenses ratio 28/02/13 29/02/12 Expense type % %

CFB cost allocation

0.20

0.20

Corporate trustee charges

0.02

0.02

Other expenses

0.01

0.01

Total expense ratio 0.23 0.23

5

Net asset value Net asset value Date £m

Average life of fund 114 days

4

28 February 2009

421.7

28 February 2010

398.4

28 February 2011

369.5

29 February 2012

346.2

28 February 2013

335.9

Summary of deposits by banking group*

Distributions

Distributions are paid on the last calendar day of each month, and during the period are as follows:

28/2/2013 29/2/2012 As at 28 February 2013 % %

For the period ended

Average AER %

Barclays 14.0 16.7

Average rate %

Nationwide 16.3 10.7

31 March 2012

1.34

1.35

Santander 14.0 11.9

30 April 2012

1.34

1.35

Lloyds 13.9 11.2

31 May 2012

1.34

1.35

Societe Generale

11.6

7.2

30 June 2012

1.34

1.35

Royal Bank of Scotland

9.3

11.9

31 July 2012

1.34

1.35

Sumitomo Mitsui Banking Corporation

4.6

0.0

31 August 2012

1.34

1.35

UBS 4.6 10.7

30 September 2012

1.34

1.35

Commonwealth Bank of Australia

31 October 2012

1.19

1.20

Rabobank 2.3 1.2

30 November 2012

1.19

1.20

SE Banken

2.3

4.8

31 December 2012

1.09

1.10

National Australia Bank

1.6

4.5

31 January 2013

1.09

1.10

Svenska Handelsbanken

1.2

1.2

28 February 2013

1.09

1.10

Credit Agricole

0.9

2.2

3.3

2.2

HSBC 0.1 1.2 Deutsche Bank

0.0

1.2

J P Morgan

0.0

1.2

100.0 100.0 *Figures based on underlying holding in the Affirmative Deposit Fund.


CFB funds in detail continued UK Equity Fund Investment objective


Over rolling five year periods, to achieve mainly through a portfolio of UK equities, a total return equal to or in excess of the UK equity market.

as at 28 February 2013


Oil & Gas Producers

(reviewed annually)

UK equities 95-100% Cash

0-5%

Total expense ratio

0.28%

Dilution levy

0.28%

as at 28 February 2013 1 Equities 99.3% 2 Cash 0.7%

56,630

16.5

16.1

Oil Equipment & Services

2,007

0.6

0.5

Chemicals

4,474 1.3 0.9

Forestry & Paper Mining Construction & Materials Aerospace

Valuation of UK Equity Fund 1

2

Market value CFB Benchmark £’000s % %

General Industrials

–

–

0.2

28,063 8.2 7.8 3,142

0.9

1.0

–

–

0.1

2,249

0.7

0.8

Electronic & Electrical Equipment 2,581

0.8

0.5

Industrial Engineering

2,873

0.8

1.2

782

0.2

0.1

12,509

3.6

4.1

Industrial Transportation Support Services Beverages

975 0.3 0.1

Food Producers

10,284

3.0

3.3

Household Goods

11,369

3.3

3.0

Personal Goods

1,514

0.4

0.5

Healthcare Equipment & Services 1,414

0.4

0.6

Pharmaceuticals & Biotechnology 31,259

9.1

9.2

Food & Drug Retailers

11,061

3.2

3.0

General Retailers

5,933

1.7

1.9

Media

13,215

3.9

3.5

Travel & Leisure

10,289

3.0

2.8

5,889

1.7

1.8

19,949

5.8

6.0

Fixed-Line Telecommunications Mobile Telecommunications Electricity

3,629 1.1 1.2

Gas, Water & Multi-Utilities

13,777

Banks

42,059 12.3 12.5

Non- Life Insurance Life Insurance Real Estate Investment Trusts Real Estate Investment Services General Financial

4.0

4.1

3,087

0.9

0.9

11,528

3.4

3.6

5,338

1.6

1.4

993

0.3

0.4

5,518

1.6

1.7

Equity Investment Instruments

12,851

3.7

3.2

Software & Computer Services

2,798

0.8

0.9

Technology Hardware & Equipment 3,014

0.9

1.1

Total investments

343,053 100.0 100.0

Net cash

2,572

Total value of fund

345,625


CFB funds in detail continued UK Equity Fund Portfolio valuation

Portfolio valuation

Holding Market value 000s £’000s


Oil & Gas Producers

General Industrials

BG Group

Rexam 180 925



770

8,970

BP 3,975 17,711

Smiths Group

Cairn Energy

2,249

280

761

105

1,324

Chevron 10 773

Electronic & Electrical Equipment

Enquest 750 997

Halma 225 1,108

iShares S&P Global Energy Sector Fund

110

2,851

Spectris

Premier Oil

310

1,185

2,581

Royal Dutch Shell B

940

20,896

Industrial Engineering

Tullow Oil

205

2,486

IMI 60 734

62 1,473

56,630

Spirax-Sarco

50 1,202

Oil Equipment & Services

Weir Group

40

Petrofac

2,873

Wood Group (John)

80 1,162 110

845

937

Industrial Transportation

2,007

BBA Aviation

Chemicals

782

Alent 155 578

Support Services

Croda International

Aggreko 25 424

60

1,555

Elementis 250 615

Ashtead Group

Johnson Matthey

53

307

225

782

1,158

1,207

Capita 95 782

Treatt 125 519

Diploma 160 974

4,474

Experian 230 2,514

Mining

Hays 725 711

Anglo American

249

4,785

Intertek Group

35

1,168

BHP Billiton

400

8,354

Premier Farnell

225

495

Randgold Resources

20

1,097

Regus 625 832

Rio Tinto

248

8,779

RWS Holdings

100

630

Xstrata 435 5,048

Sthree 125 444

28,063

Wolseley

Construction & Materials

12,509

Balfour Beatty

Beverages

CRH

200

570

75 1,079

77 2,377

Britvic 230 975

Galliford Try

120

1,083

975

Morgan Sindall

76

410

Food Producers

3,142

Associated British Foods

115

2,128

Tate & Lyle

50

406

Unilever (UK)

295

7,750

10,284


CFB funds in detail continued

Portfolio valuation

Portfolio valuation



Household Goods and Home Construction

Media

Bellway 70 811

British Sky Broadcasting

285

2,424

Berkeley Group

85

1,617

Centaur Media

750

379

Gleeson (MJ) Group

145

264



ITV 750 931

Persimmon 100 913

Lion Hudson

171

93

Reckitt Benckiser Group

157

6,953

Next Fifteen Comms

1,035

1,045

Taylor Wimpey

1,000

811

Pearson 155 1,790

11,369

Reed Elsevier

325

2,304

Personal Goods

United Business Media

100

774

Burberry Group

WPP Group

330

3,475

110

1,514

1,514

13,215

Healthcare Equipment & Services

Travel & Leisure

Smith & Nephew

Carnival

200

1,414

46 1,140

1,414

Cineworld Group

400

1,080

Pharmaceuticals & Biotechnology

Compass Group

415

3,322

Astrazeneca 314 9,406

Go-Ahead Group

31

441

Glaxosmithkline 1,317 19,169

Intercontinental Hotels

47

893

Shire 130 2,684

Intl Consolidated Airlines

350

837

31,259

Restaurant Group

200

837

Food & Drug Retailers

Tui Travel

230

730

Greggs 120 601

Whitbread

Morrison(WM) Supermarkets

645

1,674

10,289

Sainsbury (J)

425

1,469

Fixed Line Telecommunications

40 1,009

Tesco 1,980 7,317

BT Group

11,061

5,889

General Retailers

Mobile Telecommunications

Dignity

Vodafone Group

94 1,193

2,200

12,050

5,889

19,949

Kingfisher 265 734

19,949

Marks & Spencer Group

1,132

Electricity

50 2,099

SSE 251 3,629

Next

305

775

3,629

5,933

Gas, Water & Multi-Utilities

WH Smith

115

Centrica 1,255 4,419 International Power

870

6,347

Pennon Group

135

883

Severn Trent

54

868

United Utilities Group

171

1,260

13,777



Portfolio valuation

Portfolio valuation



Banks

Equity Investment Instruments

Barclays 2,375 7,290

Electra Private Equity

15

349

HSBC Holdings

21,320

Herald Investment Trust

360

2,106



2,915

Ishares S&P Global Financial

25

786

Herald Ventures II

0

574

Lloyds Banking Group

7,400

4,031

Herald Ventures

0

232

Royal Bank of Scotland

420

1,360

HG Capital Trust

80

912

Standard Chartered

405

7,272

Impax Environmental Mkts

450

531

42,059

Impax New Energy

490

235

Non-Life Insurance

International Pbpart

762

961

Amlin 100 427

iShares FTSE 250

97

1,304

Lancashire Holdings

160

1,454

Liontrust UK Smaller Cos

50

296

Rsa Insurance Group

1,000

1,206

North Atlantic Smaller Cos

230

3,192

3,087

Oryx International Growth

525

1,417

Life Insurance

TR Property

400

742

Aviva 640 2,283

12,851

Legal & General

Software & Computer Services

1,730

2,770

Prudential 525 5,153

Aveva Group

35

807

Standard Life

Micro Focus International

145

999

375

1,322

11,528

Microgen 150 176

Real Estate Investment Trusts

Sage Group

British Land

110

624

2,798

Great Portland Estates

130

640

Technology Hardware & Equipment

240

816

Hammerson 135 667

ARM Holdings

Land Securities Group

110

913

CSR 100 459

LondonMetric Property

556

604

Spirent Communications

Primary Health Properties

290

1,015

3,014

Shaftesbury 150 875

200 420

1,910 645

5,338

Total investments 343,053

Real Estate Investment Services

Quintain Estates

715

495

Net current assets 2,572

St Modwen Properties

200

498

993

Total value of Fund 345,625

Financial Services Aberdeen Asset Mgt

300

1,289

F&C Asset Management

800

822

Hargreaves Lansdown

85

736

Jupiter Fund Management

250

840

Rathbone Brothers

87

1,227

Schroders 15 299 Schroders NV

19

305

5,518 10 Central Finance Board of the Methodist Church Funds Performance 2013

CFB funds in detail continued Overseas Fund Investment objectives

PORTFOLIO VALUATION

Over rolling five year periods, to achieve mainly through a portfolio of overseas equities and inflation linked securities, a total return equal to or in excess of non-UK equity markets.



North America

(reviewed annually)

Overseas equities 90-100% Inflation Linked Securities

0-5%

Cash 0-5% Regional exposure in relation to FTSE All World ex UK Index – N America

48.2-58.2%

– Europe ex UK

14.0-24.0%

– Japan

2.8-12.8%

– Pacific ex Japan

10.4-20.4%

– Latin America, Middle East and Africa combined

0-9.6%

Total expense ratio

0.69%

Dilution levy

0.15%

Summary of investments and other assets as at 28 February 2013 1 North America 54.3% 2 Europe 15.2% 3 Japan 8.5% 4 Pacific Basin ex Japan 16.4% 5 Rest of the World 3.9% 6 Cash 1.7%

1

2

3


Canada iShares Canada S&P 60 Index

490

5,825

5,825 United States Consumer Discretionary SPDR

58

1,934

General Board Domestic Stock Fund

4,532

63,629

Health Care Sector SPDR

40

1,145

iShares S&P 100

142

6,409

Powershares QQQ Trust

30

1,329

Prothena 1 0 Industrials Sector SPDR

51

1,376

Financials Sector SPDR

185

2,140

Consumer Staples Sector SPDR

30

753

Technology Sector SPDR

80

1,561

Industrial Sector SPDR

9

228

Energy Sector SPDR

20

1,027

81,531 Europe

4

6

5

Austria Erste Group Bank

2

47

Omv 1 37 Raiffeisen Bank International

0.5

12

96 Belgium Belgacom 1 24 Colruyt 0.5 18 GBL New

1

32

KBC Group

2

37

Solvay 0.3 27 UCB 1 42 Umicore 1 26 206



Portfolio valuation

Portfolio valuation



Switzerland

Germany

ABB 18 264

Adidas 2 99

Adecco 1 38

Allianz

3 310

Chocolade Lindt & Spruengli

0.001

28

BASF

7 435

Credit Suisse Group

10

177

Bayer

6 412

Geberit

0.3

49

Beiersdorf 1 50

Givaudan

0.1

55

BMW

Holcim

2

101

Boss 0.2 15

Julius Bar Gruppe

2

41

Brenntag 0.4 37

Kuehne & Nagel International

0.5

35

Commerzbank 36 44

Lindt & Sprungli

0.01

17

Continental 1 62

Nestle

25

1,129

Deutsche Bank

7

212

Novartis

20

878

Deutsche Boerse

1

57

Richemont

4 201

Deutsche Lufthansa

2

23

Roche Holding

5

808

Deutsche Post

7

98

Schindler ‘P’

0.1

12

Deutsche Telekom

25

177

Schindler ‘R’

0.3

26

E.ON 14 158

SGS Surveillance

0.04

72

Fresenius 1 88

Sonova

0.4

33

Fresenius Medical Care

2

82

Swiss Reinsurance

3

149

Hannover Rueckversicherung

0.5

25

Swisscom

0.2

45



Syngenta

1 196

2 138

Heidelbergcement 1 61 Henkel

2 123

The Swatch Group ‘R’

0.4

23

Infineon Technologies

9

51

The Swatch Group ‘B’

1

42

0.2

86

K + S

3

97

Lanxess 1 39

UBS ‘R’

29

303

Linde

Zurich Insurance Group

1

204

Man 0.4 27

Transocean

5,067

Merck Kgaa

1 126 1

47

Metro 1 28 Muenchener Rueckversicherung

1

159

Porsche

1

62

RWE

4 105

SAP

7 349

Siemens

7 455

Suedzucker 1 17 Volkswagen

2 216

4,429



Portfolio valuation

Portfolio valuation



Denmark

France

A P Moller – Maersk

0.02

88

Accor 2 39

Coloplast

1

34

ADP 0.3 18

Danske Bank

8

98

Air Liquide

Novo Nordisk

3

378

Alstom 2 51

Novozymes 2 48

Axa 18 203

646

BNP Paribas



2

8

189

301

Spain Bollore 0.1 13 Abertis Infraestructuras

3

32

Bouygues 2 36

ACS Actividades

2

25

Bureau Veritas International

0.4

37

Amadeus It Holding

3

45

Cap Gemini

1

42

Banco de Sabadell

22

31

Carrefour 5 94

Banco Santander

78

386

Casino Guichard-P

0.3

21

BBV Argentaria

41

261

CNP Assurances

2

18

Caixabank 10 26

Credit Agricole

8

51

Endesa 1 7

Danone

5 211

Ferrovial 4 42

Dassault Systemes

1

Gas Natural

41

Edenred 2 41

Grifols 2 37

EDF 2 27

Iberdrola 34 110

Essilor International

2

106

Inditex

2 168

Eutelsat Communications

1

31

Mapfre 7 14

France Telecom

15

96

Red Electrica Corpn.

0.4

15

GDF Suez

13

167

Repsol

7

3

37

94

Gecina 0.1 10

Telefonica 34 291

Gemalto 1 42

1,625

Hermes International

0.1

15

Finland Iliad 0.2 20 Fortum 3 43

Klepierre 1 24

Kone

L’Oreal

1

69

2 227

Metso 1 33

Lafarge 2 71

Nokia 28 67

Legrand 2 58

Sampo

106

Michelin 1 80

Upm-Kymmene 4 29

4

Natixis 8 23

Wartsila 1 43

PPR

1 102

390

Publicis Groupe

1

48

Renault 2 67



Portfolio valuation

Portfolio valuation



France continued

Luxembourg

Saint Gobain

SES FDR



4

103

2

47

Sanofi 10 619

Tenaris 4 53

Schneider Electric

4

206

100

Societe Generale

6

143

Netherlands

Sodexo 1 52

Aegon 16 61

Stmicroelectronics

5

27

Ahold Kon

8

76

Suez Environnement

3

27

Akzo Nobel

2

80

Technip 1 64

Arcelormittal 9 87

Unibail-Rodamco

1 102

Asml Holding

2

108

Vinci

4 125

De Master Blenders

5

36

Vivendi 10 139

DSM Koninklijke

1

55

4,223

ING Groep

29

153

Greece

KPN Kon

11

24

Coca-Cola Hellenic

Philips

7 135

20

Randstad Holding

1

24

Ireland

Reed Elsevier

6

56

Elan 4 29

Unilever

12

299

Kerry Group

1

37

Vopak 0.5 21

Ryanair Holdings

6

1

20

29

1,215

95

Norway

Italy

DNB 9 89

Assicurazioni Generali

125

Gjensidige Forsikring

1

14

Atlantia 4 42

Norsk Hydro

8

22

Enel 54 129

Orkla 8 44

Enel Green Power

19

Seadrill 3 62

ENI 21 310

Statoil 10 159

Fiat 7 25

Subsea

Fiat Industrial

7

56

Telenor 6 82

Intesa Sanpaolo

87

93

Yara International

12

16

3 2

33 54

Luxottica 1 40

559

Saipem 2 42

Portugal

Snam 14 43

Energias De Portugal

16

32

Telecom Italia

148

69

Galp Energia

2

18

Terna Rete Elettrica Naz

12

33

Jeronimo Martins

2

27

Unicredit 33 109

77

1,135


Portfolio valuation

Portfolio valuation



Sweden

Pacific Basin ex-Japan

Alfa Laval

3

40

Australia

Assa Abloy

3

68

UCA Australian Equities

Atlas Copco

8

140

1,368

Electrolux

2

39

Hong Kong

Ericsson

23

184

Greater China Fund

60

516

Getinge 2 34

iShares MSCI Hong Kong

46

610



151

1,368

Hennes & Mauritz

5

108

1,126

Hexagon

2

39

Other Asian

Investor

3

66

Aberdeen New Thai

50

268

Lundin Petroleum

2

25

Aberdeen New Dawn

25

244

Nordea Bank

23

174

Edinburgh Dragon Trust

200

584

9 100

JPMorgan Indian

65

252

SCA 5 74

Pacific Assets

250

378

Scania

44

1,726

SEB 17 113

Pacific Basin Composite

Skanska

37

First State Asia Pacific Sustain

1,090

3,349

SKF 3 49

First State Asia Pacific

1,490

13,658

Svenska Handlesbank

5

135

First State Asia Pacific Leaders

269

1,228

Swedbank

7

109

iShares MSCI Pacific Ex Japan

105

3,435

Tele2

3

36

Korea Fund

20

537

Sandvik

3 3

Teliasonera 16 72

22,207

Volvo

Rest of the World

10

102

1,788

Blackrock World Mining

100

577

European Composite

First State Emerging Markets

299

2,045

Baring Emerging Europe

80

644

IM Wheb Sustainability

913

1,054

Central Europe and Russia Fund

28

625

iShares MSCI South Africa

20

848

iShares MSCI Europe ex UK

84

1,629

iShares S&P Latin American 40

61

1,742

2,898

6,266

Japan

Baillie Gifford Japan

150

397

Total investments 158,378

Blackrock Japan Index Sub-Fund

1,700

11,236

Ishares MSCI Japan

285

1,931

Net cash 2,782

JP Morgan Japanese

106

196

13,760

Total value of Fund 161,160


CFB funds in detail continued Gilt Fund Investment objectives

Over rolling five year periods, to achieve mainly through a portfolio of long-dated sterling denominated UK Government securities with an income yield close to the redemption yield prevailing on UK Government securities, a total return equal to or in excess of the UK Government fixed interest market.


Portfolio valuation

as at 28 February 2013 Holding Market value 000s £’000s

Treasury 5% 2014

400

429

Treasury 2¾% 2015

1,925

2,015

Treasury 4¾% 2015

1,500

1,668

Government Securities 95-100%

Treasury 2% 2016

1,830

1,915

Cash 0-5%

Treasury 4% 2016

675

758

Modified duration

Treasury 1¾% 2017

1,000

1,044

Treasury 5% 2018

2,100

2,523

7.5-10.5 years

Total expense ratio

0.15%

Dilution levy

0.05%

Summary of investments and other assets as at 28 February 2013 1 British Government 98.1% 2 Cash 1.9% Modified duration of fund 8.7 years

1

2

Treasury 4½% 2019

1,500

1,793

Treasury 3¾% 2019

1,925

2,223

Treasury 3¾% 2021

2,350

2,723

Treasury 4% 2022

1,650

1,948

Treasury 5% 2025

950

1,227

Treasury 4¼% 2027

800

964

Treasury 4¾% 2030

900

1,145

Treasury 4¼% 2032

1,700

2,036

Treasury 4½% 2034

3,050

3,758

Treasury 4¼% 2040

1,550

1,829

Treasury 4½% 2042

650

802

Treasury 4¼% 2046

955

1,129

Treasury 4¼% 2049

250

296

Treasury 4¼% 2055

150

179

Treasury 4% 2060

190

217

Total investments 32,621 Net current assets 621 Total value of fund 33,242


CFB funds in detail continued Corporate Bond Fund Investment objectives

Over rolling five year periods, to achieve mainly through a portfolio of sterling denominated corporate and sub-sovereign fixed interest securities, a total return equal to or in excess of the UK corporate bond market.



as at 28 February 2013 Holding 28/02/13 000s £’000s

Affirmative Corporate Bond Fund

79,145

87,930

87,930

(reviewed annually)

Credit rating AAA and AA

55-85%

Other investment grade or secured issues

15-45%

Net current assets 224

Cash and bonds under 1 year to maturity

0-5%

Modified duration

6.6-9.6 years

Total expense ratio

0.32%

Dilution levy

0.55%

Total value of fund 88,154

Summary of investments and other assets as at 28 February 2013 1 Debentures 5.6% 2 Supranationals 16.6% 3 Corporate Unsecured – Financials 35.6% 4 Corporate Unsecured – Non Financials 40.2% 5 Cash 2.0%

5

1

2

4


3

Summary of investments by credit rating as at 28 February 2013 1 AAA 25.2% 2 AA 36.1% 3 A 27.9% 4 BBB 4.5% 5 Debentures 4.5% 6 Cash 1.8%

1 2

6 5 4

3


CFB funds in detail continued Short Fixed Interest Fund Investment objectives

Over rolling five year periods, to achieve mainly through a portfolio of short-dated sterling denominated fixed interest securities with an income yield close to the redemption yield prevailing on short-dated UK Government securities, a total return equal to or in excess of the short-dated UK Government fixed interest market.


Portfolio valuation


British Government Stock Treasury 5% 2014

900

965

Treasury 4¾% 2015

250

278

Government securities

70-90%

Treasury 2% 2016

450

471

Debentures and Unsecured Loans

10-30%

Treasury 4% 2016

850

955

Cash 0-5%

Treasury 5% 2018

950

1,142

Modified duration

2.8-5.8 years

Treasury 4½% 2019

800

956

Total expense ratio

0.15%

Treasury 3¾% 2019

350

404

Dilution levy

0.10%

Treasury 4¾% 2020

450

551

Treasury 3¾% 2020

650

752

Treasury 3¾% 2021

250

290

Treasury 4% 2022

650

767

Summary of investments and other assets as at 28 February 2013 1 British Government 75.6% 2 Supranational 5.2% 3 Corporate Unsecured – Financials 12.4% 4 Corporate Unsecured – Non Financials 4.4% 5 Cash 2.4%

2

1

3

7,531 4 5

Supranational Network Rail 47/8% 2015

250

253

Bank Nederlandse 2 /8% 2015

250

261

3


514 Corporate Unsecured – Financial Rabobank Nederland 4% 2015

250

267

Commonwealth Bank of Australia 3 /8% 2015

250

269

UBS 63/8% 2016

250

290

GE Capital 4 /8% 2017

100

109

Nationwide 5 /8% 2019

250

296

7

Summary of investments by credit rating as at 28 February 2013 1 AAA 5.3% 2 AA 84.2% 3 A 7.8% 4 BBB 2.7%

4 3

1

1 2

5

1,231 Corporate Unsecured – Non-Financial Telfonica 53/8% 2018

250

265

BP Capital Markets 4.325% 2018

150

168

433 Total investments 9,709 Net current assets 241 Total value of fund 9,950


CFB funds in detail continued Inflation Linked Fund Investment objectives

Over rolling five year periods, to achieve mainly through a portfolio of sterling denominated securities linked to the Retail Price Index or similar measure of inflation, a total return equal to or in excess of the UK Government Index-Linked market.


Portfolio valuation


British Government Stock

(reviewed annually)

Treasury 2½% 2013

50

140

Government Securities 80-100%

Treasury 2½% 2016

95

333

Debentures & Unsecured Loans

0-20%

Treasury 1¼% 2017

250

375

Cash 0-5%

Treasury 2½% 2020

300

1,156

Modified duration

Treasury 17/8% 2022

1,000

1,584 2,805

16.2-19.2 years

Total expense ratio

0.20%

Treasury 2½% 2024

800

Dilution levy

0.20%

Treasury 1¼% 2027

300

489

Treasury 1¼% 2032

700

1,046

Treasury ¾% 2034

3,650

4,668

Treasury 2% 2035

1,625

3,403

Summary of investments and other assets as at 28 February 2013 1 British Government 84.1% 2 Supranational 4.0% 3 Corporate Unsecured – Financials 3.4% 4 Corporate Unsecured – Non Financials 8.1% 5 Cash 0.4% Modified duration of fund 17.2 years

2

1

3 4

Treasury /8% 2040

1,440

1,942

Treasury 5/8% 2042

1,600

2,232

Treasury ¾% 2047

1,120

1,670

Treasury ½% 2050

225

305

Treasury 1¼% 2055

65

127

5

5

22,275 Supranational

Summary of investments by credit rating as at 28 February 2013 1 AAA 4.8% 2 AA 84.4% 3 A 7.6% 4 BBB 3.2%

4 3

European Inv Bank 3.5426% 2013

475

651

European Inv Bank 2.4% 2030

220

410

1,061

1 2

Corporate Unsecured – Financial Nationwide 4¼% 2024

250

702

Network Rail 1¾ 2027

125

194

896 Corporate Unsecured – Non-financial National Grid 1¼ 2021

200

221

National Grid 6.0328% 2022

160

334

Severn Trent 5.348% 2028

160

312

London Power 3 /8% 2032

160

295

Tesco 1.982% 2036

500

665

SE Water 2.5329% 2041

250

330

1

2,157 Total investments 26,389 Net current assets 107 Total value of fund 26,496


CFB funds in detail continued Property Fund Investment objectives

To provide capital growth linked to the value of commercial property and to provide a high and growing yield.


Property Income Trust for Charities

Dealing purchases

On first working day of month.

Sales

Summary of investments and other assets as at 28 February 2013

Holding 28/02/2013 000s £’000s

Mayfair Property Income Fund for Charities 100%

19,104

13,048

13,048 Net current assets 1

Quarterly on first working day of calendar quarter.

For an information pack, please contact Bill Lane, Client Relationship Manager, on 020 7496 3630 or email [email protected]

Total value of fund 13,049

Summary of investments and other assets as at 28 February 2013 Property Income Trust for Charities 100.0%

Additional risk warning The CFB Property Fund is not suitable for investors who might wish to realise their investment at short notice. Units can only be sold on the first working day of each calendar quarter and in extreme circumstances the illiquid nature of the underlying property assets of the Fund may result in unit redemptions being suspended for unspecified periods. Investors should be aware that the Property Income Trust for Charities, in which the CFB Property Fund invests, is permitted to borrow up to a maximum of 50% loan to value and that the gearing effect of such borrowing significantly increases the risks of investing in the Fund. In adverse conditions capital losses and reductions in income payable to unitholders will be greater than for similar investments held through non-geared funds.


Central Finance Board of the Methodist Church

9 Bonhill Street London EC2A 4PE Telephone 020 7496 3600 Fax 020 7496 3631 Email [email protected] Web www.cfbmethodistchurch.org.uk

Trustees for Methodist Church Purposes

Central Buildings Oldham Street Manchester M1 1JQ Telephone 0161 235 6770 Fax 0161 236 0752