FUND PROFILE
October 31, 2011
Capital Liquidity Managed Account - USD Fund Credit Quality Ratings Definitions AAAf The fund's portfolio holdings provide extremely strong protection against losses from credit defaults. The fund's AAf portfolio holdings provide very strong protection against losses from credit defaults. The fund's Af portfolio holdings provide strong protection against losses from credit defaults.
About the Fund Fund Rating
AAAf / S1+
Fund Type
Cash Enhanced
Investment Adviser
Capital International Limited TD 100.0%
Portfolio Manager
John Cookson
Fund Rated Since Custodian
August 2007 Capital International Nominees
TD - Time Deposit
*As assessed by Standard & Poor's
BBBf The fund's portfolio holdings provide adequate protection against losses from credit defaults.
Fund Highlights Standard & Poor's assigned its 'AAAf' fund credit quality rating and 'S1+' fund volatility rating to the underlying portfolio of the Capital Liquidity Managed Account – USD in August 2007. • The 'AAAf' rating assigned signifies the extremely The fund's BBf strong protection that the underlying portfolios of portfolio holdings assets provide against losses from credit defaults. provide uncertain The 'S1+' volatility rating recognizes that the protection against underlying portfolio of assets will demonstrate losses from credit extremely low sensitivity to changing market defaults. conditions. • Standard & Poor's, as part of its surveillance The fund's Bf portfolio holdings process, reviews pertinent fund information and exhibit vulnerability portfolio holding reports on a monthly basis to to losses from credit ensure that the underlying portfolio abides by the defaults. criteria set down to maintain a 'AAAf' fund credit CCCf The fund's quality rating. portfolio holdings make it extremely vulnerable to losses from credit defaults.
Management The Capital Liquidity Managed Accounts are managed by Capital International Limited, which is Plus (+) or Minus (-) registered in the Isle of Man under the Financial The ratings from Supervision Commission. 'AAf' to 'CCCf' may be modified to show relative standing within the major rating categories. Fund Credit quality ratings, identified by the ’f’ subscript, are assigned to bond funds and other actively managed funds that exhibit variable net asset values. These ratings are current assessments of the overall credit quality of a fund’s portfolio. The ratings reflect the level of protection against losses from credit defaults and are based on an analysis of the credit quality of the portfolio investments and the likelihood of counterparty defaults.
Portfolio Composition as of October 31, 2011
John Cookson manages the fund on a day-to-day basis with the support of an experienced team of investment professionals based in Castletown, Isle of Man. Investment strategy is discussed through regular investment committees meetings and the team takes a thorough analytical approach to the management of the underlying portfolio, focusing on credit quality and interest rate risk.
losses from credit defaults. The 'AAAf /S1+' ratings have also been assigned to two other Capital Liquidity Managed Accounts namely: - Capital Liquidity Managed Account – GBP - Capital Liquidity Managed Account – EUR The Capital Liquidity Managed Account - USD had its fund credit quality and fund volatility ratings affirmed by Standard & Poor's in August 2011. Portfolio Assets The Capital Liquidity Managed Account – USD portfolio takes controlled interest rate risk and limits credit risk by focusing on highly rated instruments. In April 2010 Capital International changed their investment strategy for all three accounts to solely invest in high-quality time deposits of Isle of Man based financial institutions. Volatility ratings evaluate sensitivity to factors such as interest-rate movements, currency risk, credit quality and liquidity. The 'S1+' volatility rating assigned to the Capital Liquidity Managed Account – USD signifies that the fund possesses extremely low sensitivity to changing market conditions. 'S1+' rated funds possess an aggregate level of risk less than or equal to that of a portfolio made up of government securities maturing within one to three years and denominated in the base currency of the fund.
Credit Quality The fund's investment policies and credit quality guidelines meet the minimum standard for a 'AAAf' rating. It also indicates that the fund's portfolio investments provide very strong protection against
www.standardandpoors.com Standard & Poor's Analyst: Andrew Paranthoiene - (44) 20-7176-8416 Investors should consider the investment objectives, risks and charges and expenses of the fund before investing. The prospectus which can be obtained from your broker-dealer, contains this and other information about the fund and should be read carefully before investing.
Capital Liquidity Managed Account - USD Volatility Ratings Definitions S1 Low sensitivity to
AAAf / S1+
Data Bank as of October 31, 2011 Ticker Symbol............................................. N/A NAV........................................................... $108.54
changing market conditions. Within this category of (S-1) certain funds may be designated with a plus sign (+). This indicates the fund's extremely low sensitivity to changing market conditions.
Net Assets (millions).................................. $68.42 Inception Date............................................. March 2007
Portfolio Credit Quality as of October 31, 2011 *
Portfolio Maturity Distribution as of October 31, 2011
AA 9.3%
A17.6%
100 A3.4%
80 60 40 AA35.4%
S2 Low to moderate
20 0
sensitivity to changing market conditions.
A 34.3%
S3 Moderate
Years
sensitivity to changing market conditions.
Portfolio Historical Performance Comparison (Growth of $ 10,000)
Total Returns as of October 31, 2011, (%) S4 Moderate to high
Index * Cumulative
Annualized
sensitivity to changing market conditions.
Fund Year to Date
Index *
Fund
1.38
NA
NA
0.39
1.01
1.01
0.45
6.28 20.03
S5 High sensitivity to
1 Year
0.45
changing market conditions.
3 Years
0.53
2.05
1.61
5 Years
NA
3.72
NA
S6 Highest sensitivity to changing market conditions.
Volatility ratings evaluate the fund's sensitivity to interest rate movements, credit risk, investment diversification or concentration, liquidity, leverage, and other factors. Not all bond funds have volatility ratings
* Citi US Gov Bd 1-3y
$ 12,000
$ 11,000
$ 10,000
$ 9,000
The returns shown above do not reflect the deduction of sales loads or charges. Inclusion of the sales load would reduce the performance shown. Fund Citi US Gov Bd 1-3y
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, which when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be available by calling the fund at the phone number listed in the ‘About the Fund’ section on page 1 Top Ten Holdings as of October 31, 2011 Security % Barclays Bank 19.40 Close Bank 17.80 Lloyds Banking Group 16.50 LandesBank Berlin 14.30 Banco Bilbao Vizcaya Argentaria 12.60
Security Santander UK PLC Nationwide Building Soceity Woori Bank London Branch Zurich Bank HSBC Banking Corp
% 8.70 3.40 3.40 3.30 0.60
A Volatility Rating is not a credit rating. Standard & Poor's is neither associated nor affiliated with the fund. Copyright © 2011 by Standard & Poor's Financial Services LLC (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P's opinions and analyses do not address the suitability of any security. S&P does not act as a fiduciary or an investment advisor. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. STANDARD & POOR'S, S&P, GLOBAL CREDIT PORTAL and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.