What is Distribution Bonds ?

Core principles of distribution fund investments

• Maintaining a balanced mix of asset classes within the fund structure.
• Selecting quality holding within each asset class.
• Delivering a fund management strategy that focuses on the fund's objectives, whatever the market conditions.

A balance of asset classes
The principal asset classes in which the funds invest and their aims are.

UK equities/Overseas equities	Deliver long term real returns but with potential volatility
Fixed Interest Securities:
- Gilts	Source of secure income without credit risk.
- Corporate Bonds	Generate higher levels of income but less secure than Gilts.
UK Commercial Property	Delivers high level of income althogh capital values can fluctuate.

When a fund includes a proportion invested in property, it may be necessary to defer encashments during periods when property cannot be sold easily. If a proportion of a fund is invested overseas, exchange rate fluctuations may cause the value to decrease or increase.