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AXA Life Insurance Singapore Private Limited Company Reg No. 199903512M 8 Shenton Way #27-02 AXA Tower Singapore 068811 AXA Customer Centre #B1-01 Tel: 1800-880 4888 Fax: 68805501
INVESTMENTS
INSPIRETM
FlexiProtector
productsummary
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IMPORTANT INFORMATION
INSPIRETM
FlexiProtector is a whole life, Regular Premium investment-linked insurance plan. The actual benefits payable will be based on the actual performance of the assets of the underlying funds (as described in the Fund Information Booklet). Investments in investment-linked plans are subjected to investment risks including the possible loss of the principal amount invested. The value of Units in the sub-funds may fall as well as rise.
Buying a life insurance policy is a long-term commitment. An early termination of the policy
usually involves high costs and the surrender value payable may be less than the total
premiums paid.
The Fund Information Booklet contains details on the ILP sub-funds and constitutes a part of
the Product Summary, without which the Product Summary is incomplete. As such, this
Product Summary booklet must be read together with the Fund Information Booklet.
More information on the funds can be found in the Fund Prospectuses which are available
online at www.axa.com.sg. This Product Summary is for information only and is not a contract of assurance. You should refer to the Policy Contract for specific policy details applicable to INSPIRE
TM FlexiProtector and should
consult Your financial advisers or financial planners to ascertain the suitability of INSPIRETM
FlexiProtector in relation to Your own financial needs. The allocation, crediting, cancellation, switching or other dealings of Units as described in the Policy are notional in nature and are solely for the purpose of the Policy, including without limitation for determining the Policy Value. For the avoidance of doubt, the Company shall have the right to use the Regular Premium received to invest in the relevant reference funds or to make such other investments as the Company may consider appropriate, provided that the Policy Value shall be determined based on the Unit Price of the relevant Units standing to the credit of the policy.
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IINNSSPPIIRREETTMM
FlexiProtector
TABLE OF CONTENTS
1. BASIC INFORMATION ..................................................................................................................... 4
2. AVAILABLE ILP SUB-FUNDS .......................................................................................................... 9
3. MANAGEMENT & ADMINISTRATION ......................................................................................... 9
4. INVESTMENT OBJECTIVES, FOCUS AND APPROACH ........................................................... 9
5. RISKS .................................................................................................................................................. 10
6. CPF INVESTMENT SCHEME (“CPFIS”)...................................................................................... 10
7. FEES AND CHARGES ...................................................................................................................... 10
8. SUBSCRIPTION AND ISSUE OF UNITS ....................................................................................... 11
9. WITHDRAWALS ............................................................................................................................... 12
11. OBTAINING PRICES OF UNITS .................................................................................................... 14
12. SUSPENSION OF DEALINGS AND LIMITATION ...................................................................... 14
13. PERFORMANCE AND BENCHMARK.......................................................................................... 15
14. EXPENSE RATIO .............................................................................................................................. 15
15. TURNOVER RATIO.......................................................................................................................... 15
16. SOFT DOLLAR COMMISSIONS .................................................................................................... 15
17. CONFLICTS OF INTEREST ............................................................................................................ 15
18. REPORTS ........................................................................................................................................... 16
19. OTHER MATERIAL INFORMATION........................................................................................... 16
20. KEY POLICY PROVISIONS............................................................................................................ 16
21. POLICYOWNERS’ PROTECTION SCHEME .............................................................................. 19
GLOSSARY OF TERMS ................................................................................................................................... 20
1.1 Product Description We, AXA Life Insurance Singapore Private Limited, are currently offering Policyholders an investment cum protection platform through the investment-linked policy, INSPIRE
TM
FlexiProtector. INSPIRE
TM FlexiProtector gives You the flexibility to choose the level of investment and
protection cover that suits their financial needs. You may choose to invest in one (1) or up to ten (10) investment-linked policy sub-funds offered under this Policy.
We intend to provide YYoouu with a diversified range of investment products that can include equities and fixed income securities managed by managers with investment and financial services expertise.
Depending on Your level of priority for protection and wealth accumulation, You have the flexibility to choose between 1) Choice Cover or 2) Max Cover. The Benefit Option will determine the payout for the Death Benefit, as follows:
1) Choice Cover
The Death Benefit payable is the higher of: a) the Basic Sum Assured less any withdrawals made during the period commencing 12
months before the date of claim event and ending on the date when the claim is admitted; OR
b) the Policy Value, less any Indebtedness.
2) Max Cover
The Death Benefit payable is the total of : a) the Basic Sum Assured AND b) the Policy Value, less any Indebtedness.
The Benefit Option cannot be altered once the policy has been issued.
1.2 Benefits of
1. Death Benefit
Subject to the terms of this Policy, We will pay the Death Benefit according to the Death Benefit Option You have elected (and as specified in the Certificate of Insurance i.e. (a) Choice Cover or (b) Max Cover) when the Life Assured dies (other than by reason of suicide within one (1) year from the Date of Issue or the date of any Reinstatement of this Policy) while this Policy is in effect.
The Policy will terminate upon full payment of the Death Benefit.
2. Total & Permanent Disability Benefit (“TPD Benefit”)
Subject to the terms of this Policy, We will pay the TPD Benefit as an advancement of the Death Benefit when the Life Assured sustains Total and Permanent Disability before Age 65 while this Policy is still in effect. The TPD Benefit is payable in a lump sum. This Policy will terminate upon full payment of the TPD Benefit.
The maximum TPD Benefits payable on the Life Assured is S$4 million, inclusive of all other policies issued by AXA and other insurance companies, in respect of the same Life Assured.
If the Life Assured sustains TPD before the Age of 1, only 25% of the Basic Sum Assured will be used to compute the benefits payable as set out below: (a) For Choice Cover, the TPD Benefit payable will be the higher of :
i. 25% of the Basic Sum Assured less all withdrawals made during the period commencing 12 months before the date of claim event and ending on the date which the TPD claim is admitted; OR
ii. Policy Value, less any Indebtedness.
(b) For Max Cover, the TPD Benefit payable will be the total of
i. 25% of the Basic Sum Assured and ii. Policy Value, less any Indebtedness.
3. Terminal Illness Benefit (“TI Benefit”)
Subject to the terms of this Policy, We will pay the Terminal Illness Benefit as an
advancement of the Death Benefit when the Life Assured is diagnosed with TI while this
Policy is still in force. The TI Benefit is payable in a lump sum. This Policy will terminate
upon payment of the TI Benefit.
1.3 Life Replacement Option (“LRO”)
LRO is available under (a) Choice Cover and (b) Max Cover with Yearly Renewable Term(YRT) Option .
During the Policy term, You may exercise the option to replace the Life Assured, subject to the following conditions:
(a) You must provide proof of insurable interest on the Life Assured at point of request; (b) There is no limit to the number of times this option can be exercised; (c) Upon the request being submitted, the basic Policy and all riders to be attached to it,
covering the new Life Assured, are subject to underwriting; (d) Upon replacement, the Cost Of Insurance charges on the basic cover and any attaching
rider will be based on the attained age of the new Life Assured; (e) You must pay an administrative charge of S$100 in cash upon approval of the request.
Without prejudice to the other provisions in the Policy, the Company reserves the right to vary the administrative charge and the manner in which the charge may be imposed by Us; and
(f) If a material non-disclosure is discovered upon a claim on the new Life Assured, the Policy contract shall be deemed null and void. We will refund any part of the Premium paid which is not allocated to the purchase of Units and the Policy Value based on the Unit Prices as at the Dealing Date on or immediately after We void this Policy. Once the request to replace the Life Assured is approved and the coverage on the new Life Assured has taken effect, (a) We will not be liable for any claim on the original Life Assured and (b) the coverage on the original Life Assured will cease immediately.
For the avoidance of doubt, the coverage on the new Life Assured will be effective on the next Policy Commencement Day immediately following Our approval. An endorsement will be issued upon Our approval of the request to replace the Life Assured.
1.4 Increase in the Basic Sum Assured (Only available only to Policyholders of INSPIRETM
Protector with (a) Choice Cover or (b) Max Cover with YRT COI) This option is only available when this Policy has been incepted with standard rates.
Subject to Our approval, You have the option to apply for an increase in the Basic Sum Assured without providing evidence of insurability when one of the following significant milestone events occur after the Policy has been in effect for at least one year from the Policy
Commencement Date when this Policy is first issued and provided all Regular Premium due to date have been paid to Us. The significant milestone events are:
(a) the Life Assured’s legal marriage; or (b) the Life Assured is having a new born baby; or (c) the Life Assured is adopting a child through legal means; or (d) the Life Assured is completing a purchase of a property in Singapore and subject to the following terms and conditions, (1) (a) You must exercise the option to increase the Basic Sum Assured within 90 days from
the occurrence date of the significant milestone event, subject to Our receipt of satisfactory supporting legal documents; and
(b) the Life Assured must be less than 55 years old at the time of You exercising the option to increase the Basic Sum Assured; and
(c) the requested increase in Sum Assured must not be more than 25% of the Basic Sum Assured (specified on the Certificate of Insurance first issued by Us), and not exceeding S$100,000.
(2) We have no record that the Life Assured’s application for insurance cover has been
declined or postponed, and the Life Assured has no adverse claim records with Us.
(3) You can exercise the option to increase the Basic Sum Assured up to (a) a maximum of three times during the lifetime of the Life Assured. This includes one time for the event of getting married and (b) subject to a cap of 25% of the Basic Sum Assured (specified on the Certificate of Insurance first issued by Us), and not exceeding S$100,000 as set out in Paragraph 1.4(1)(c) above.
If You have exercised the LRO prior to this, You will be entitled to exercise the option to increase the Basic Sum Assured on the new Life Assured so long as the conditions specified in Paragraph 1.3 above are met. The Basic Sum Assured will be based on the current Basic Sum Assured at the point of exercising the option to increase the Basic Sum Assured.
1.5 Premium (Regular premium, Recurring Single premium and Top-up)
1) Regular Premium
You shall pay Regular Premium in respect of this Policy subject to the minimum and maximum amounts as may be determined by Us from time to time.
You may choose to make regular premium payments on a monthly, quarterly, half-yearly or
yearly basis. The minimum regular premium amounts are S$100, S$300, S$600 and S$1,200 for the different premium payment modes respectively.
During the Initial Premium Payment Term If the Regular Premium (excluding RSP and ad hoc Top-up) due is not received on Premium due date, this Policy will be kept in effect for the next 30 days (i.e. the Grace Period). However, if no Regular Premium is received on the expiry of the Grace Period, this Policy will lapse with refund of the Policy Value (if any), less any indebtedness. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.
After the Initial Premium Payment Term
If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically upon the expiry of the Grace Period and applicable charges under the Policy will continue to be deducted from this Policy. The Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due (Premium Holiday). Otherwise, this Policy will lapse. You will be notified that the Policy has
lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.
2) Recurring Single Premium (“RSP”)
Subject to the Age limit of 70, You may opt to increase Your investments into the ILP sub-funds by making RSP in addition to Your Regular Premium payments. The RSP activation
must be made by written request and is subject to underwriting. However, RSP is not allowed
during Premium Holiday. The RSP is payable only through interbank GIRO and is subject to a minimum amount determined by Us, which may be varied from time to time. The current minimum is S$50 per month. 100% of each RSP will be allocated to the Fund(s) according to the last specified allocation and each RSP will be subject to the 5% sales charge, which is made through cancellation of units. RSP is only allowed in multiples of S$50. We will notify You of any failed attempt to deduct the RSP from the designated bank account. After three (3) consecutive failed attempts, this Policy will be ineligible for further payments by GIRO facility. You will have to provide a fresh written request and authorisation to Us and upon approval by Us, the RSP deductions will resume by GIRO facility.
RSP will not increase the Basic Sum Assured of this Policy.
You may change the allocation of the RSP into each Fund, by informing Us of the change in writing in the form provided by Us. The change will take effect from the Policy Commencement Day of the month immediately following Our approval of the change. The revised percentages will apply to future RSP only. You may choose to stop paying the RSP at anytime and there is no penalty imposed by Us if the RSP is discontinued at any time.
3) Top-Up Premium (“Top-Up”)
You have the flexibility to make top-up premium payments at any time during the Policy term until the Life Assured reaches the age of 70.
The minimum Top-Up amount is S$250.
100% of each Top-Up will be allocated to the Fund(s) selected by You according to the allocation as specified by You for the Top-Up and each Top-up will be subjected to a 5% sales charge which cannot be dialed down and will be deducted from the Fund(s) after allocation of the Premium. The Top-ups will be applied to purchase Units at the Unit Price prevailing as at the Dealing Day on which the Top-Up Premium has been credited to Our account (on a cleared fund basis).
Top-Up is only allowed in multiples of S$100. However, Top-Up is not allowed during
Premium Holiday.
1.6 Insurance Charge (also known as cost of insurance (“COI”)
A monthly COI will be levied on the Basic Policy by cancellation of Units. Units will be cancelled from the Fund(s) according to the current allocation based on the net asset value of the Fund(s) at point of deduction. The COI will be deducted at the beginning of the month. The monthly COI is calculated based on the Sum At Risk of this Policy. For Choice Cover, Sum At Risk (subject to the minimum value of zero) is defined as the Basic Sum Assured less Policy Value and for Max Cover, Sum At Risk will be the Basic Sum Assured.
Once You have elected the manner in which COI will be levied on the Basic Policy (“COI
Option” or “Insurance Charge Option”), it cannot be changed after this Policy has been issued. (a) For YRT COI option, the COI increases annually based on the Age of the Life Assured.
The COI is not fixed and is payable as long as this Policy is in effect. We may increase this charge by giving one (1) month’s prior written notice.
(b) For the Level Pay COI option (also known as Level COI), the COI is level throughout the COI payment period and is fixed. COI on the original Sum Assured for the Basic Policy specified in the Certificate of Insurance is free for the first two (2) Policy Years as long as You pay the Regular Premium. After the Level Pay COI period, no COI will be deducted for the Basic Policy. In the event that You surrender this Policy, a non-guaranteed portion of the COI paid for the Basic Policy may be refunded to You.
If You have elected the Level Pay COI option, You are not allowed to change from one Level Pay COI option to another Level Pay COI option, e.g. from Level and Limited Pay to Age 50 option to Level and Limited Pay to Age 55 option.
1.7 Premium Allocation
The amount of regular premium paid by You will be allocated to purchase Units in the relevant ILP sub-funds in the following proportions:
Premium paid during Percentage (%) of Regular Premium Allocated to
Purchase Units
1st Policy Year 20%
2nd
Policy Year 30%
3rd
Policy Year 55%
4th Policy Year and above 105%
1.8 Bonus Units
Bonus Units will be notionally allocated on every Policy Commencement Day based on the Policy Value as follows:
Policy Value Bonus Units (% of Policy Value in each tier)
First S$29,999 Nil
Next S$30,000 – S$99,999 0.10% per annum
Next S$100,000 – S$499,999 0.20% per annum
Next S$500,000 and above 0.30% per annum
The Bonus Units will be allocated to the Fund(s) according to the current allocation based on the net asset value of the Fund(s) at point of allocation.
1.9 Selecting a Sum Assured
Depending on the entry Age of the Life Assured, You may select the level of protection with a sum assured of X times the annualised premium or more, as set out in the table below.
COI Option
Entry Age
Minimum Sum Assured
(only applicable at Policy
Inception)
Maximum Sum
Assured
YRT
0-35 60 X Annualised Premium Unlimited, subject to Our underwriting requirements and approval.
36-50 30 X Annualised Premium
51-70* 15 X Annualised Premium
Level COI 0-35 25 X Annualised Premium Unlimited, subject to
Our underwriting 36-50 15 X Annualised Premium
COI Option
Entry Age
Minimum Sum Assured
(only applicable at Policy
Inception)
Maximum Sum
Assured
51-70* 10 X Annualised Premium requirements and approval.
* The maximum Age of entry into an INSPIRETM
FlexiProtector Policy is 70.
Subject to the Locked-In Period, the Minimum Sum Assured refers to the total of the Basic Sum Assured and Rider Sum Assured of all riders, except Accidental Death Benefit rider, Extended Total and Permanent Disability rider, Waiver of Premium rider, Waiver of Premium
Plus rider and Wavier of Premium Special rider. Reduction in Sum Assured is only allowed
from 5th
Policy Year onwards, subject to the Minimum Sum Assured requirement of this Policy where the Basic Sum Assured is at least 5 times the Annualised Premium.
A Reduction in Basic Sum Assured may lead to corresponding reduction in the
attached acceleration Rider (such as Living Accelerator Rider and Choice Accelerator
Rider) Sum Assured.
Please refer to the INSPIRE
TM FlexiProtector Policy Contract for the full list of definitions,
including the definitions of "TPD", Minimum Sum Assured and Maximum Sum Assured.
2.1 You may choose to invest in one (1) or up to ten (10) ILP sub-funds available. The details specific to each such ILP sub-fund as well as the rest of the general provisions are set out in the Fund Information Booklet.
3.1 The Insurer
AXA Life Insurance Singapore Private Limited is the insurer. We are part of the AXA Group.
The AXA Group is a global leader in wealth management and financial protection. Further
information on Us can be found in the Fund Information Booklet.
3.2 The Managers
Information on the Manager of each ILP sub-fund, including such Manager’s track record, is
set out in the relevant section and schedule of the Fund Information Booklet.
3.3 The Underlying Fund Managers
Information on the fund manager of each of the underlying funds of an ILP sub-fund (the
“underlying fund manager”), including such underlying fund manager’s track record, is set
out in the relevant schedule for each ILP sub-fund in the Fund Information Booklet. 3.4 Other Parties
The auditors for the ILP sub-funds are PricewaterhouseCoopers (the "Auditors").
The investment objectives, focus and approach of each ILP sub-fund are set out in the relevant schedule for each ILP sub-fund in the Fund Information Booklet.
The risks of investing in the ILP and each ILP sub-fund are set out in the relevant section of the Fund Information Booklet.
INSPIRETM
FlexiProtector is a whole of life, Regular Premium investment-linked product. It is not available under CPFIS. You cannot use Your CPF monies to pay for the Regular Premium of tthhiiss PPoolliiccyy..
7.1 The fees and charges payable by You in relation to this Policy are through the cancellation of
Units, set out in the table below. In addition to the fees and charges set out in the table below,
fees and charges payable in relation to an investment into each ILP sub-fund are set out in the
relevant section of the Fund Information Booklet.
Fees and Charges
Sales Charge The sales charge is 5% of each allocated Regular Premium, Recurring Single Premium or Top Up Premium deducted by cancellation of Units, after allocation of the Regular Premium, Recurring Single Premium and Top Up Premium.
Units will be cancelled from the Fund(s) according to the current
allocation based on the net asset value of the Fund(s) at point of
deduction.
Redemption Fee Nil
Switching Fee There is currently no charge for switches made. We reserve the right to impose a switching fee at Our discretion from time to time by giving You one (1) month’s prior written notice.
Insurance Charge
(also known as Cost
of Insurance (“COI”))
For details, refer to paragraph 1.6 Insurance Charge.
Administration Fee Currently, a flat fee of S$5 is chargeable on a monthly basis through the cancellation of Units according to the current allocation of the Fund(s) at point of deduction.
We will review the administration charge from time to time and We
reserve the right to vary the fee. We will give You one (1) month’s
prior written notice if the rates are to be increased. The monthly
administration fee will not exceed S$12 per month.
Service Fee The service fee is to be mutually agreed between You and Your Insurance Advisor at the point of sale of this Policy for the purpose of ongoing reviews conducted by your Insurance Advisor. At the point of sales, You may mutually agree with Your Insurance Advisor on the level of service fee (0.75% per annum, 0.50% per annum, 0.25% per annum or 0% per annum) for Your Policy. Any changes to the service fee after inception of Your Policy are not allowed. The service fee, which is payable monthly, will be calculated at the level of service fee agreed between You and Your Insurance Advisor per annum of the Policy Value divided by 12. We will deduct the service fee through the cancellation of Units in
the Fund(s) under this Policy according to the allocation based on the net asset value of the Fund(s). Without prejudice to the other provisions in this Policy, We reserve the right to vary the service fee set out in this Policy and the manner in which the fee may be imposed by Us. We will notify You in writing of any such variation with at least one (1) month’s prior notice. For the avoidance of doubt, regardless of the agreed level of service fee at the point of sales, Your level of service fee may change but at no point will the service fee exceed 1.2% per annum.
8.1 Subscription Procedure
You may apply to subscribe for units in the relevant ILP sub-fund by submitting the application form available from Us, Our Insurance Advisers and financial advisers authorised by Us to distribute INSPIRE
TM FlexiProtector ((“Authorised Financial Advisers”), together with such other
documents as may be required and the subscription monies in full in the manner stipulated by them.
Payment of the premium shall be by way of cash or through interbank GIRO (as indicated on the application form).
8.2 Pricing and Dealing Deadlines
As Units are issued on a forward pricing basis (except during the initial offer period of an ILP sub-fund, where applicable), the issue price of Units will not be ascertainable at the time of application.
Subject to Our approval of Your application, You will be issued Units in relation to Your
Regular Premium, or RSP or Top-Up (as the case may be) at the issue price prevailing as at the Dealing Day on which We actually receive Your premium in full on a cleared funds basis. Any payment which is received or which has been cleared before approval of the relevant application shall be deemed to be received on the first Dealing Day after approval of that application.
After the initial offer period of an ILP sub-fund, if any of the above payments is received (on a cleared funds basis) by Us before 2.30 p.m. on a Dealing Day, the application will be taken to have been received on that Dealing Day. If such payment is received by Us after 2.30 p.m. on a Dealing Day or on a day which is not a Dealing Day, such payment will be taken to have been received on the next Dealing Day. We and the authorised advisers reserve the right to bring forward the cut-off time in respect of any Dealing Day.
The pricing is done on a single pricing basis and the issue price per Unit on each Dealing Day shall be based on the net asset value (plus or minus duties or charges) calculated by the relevant Manager as at each Valuation Point in respect of the relevant ILP sub-fund invested into.
8.3 Calculation of Number of Units Allotted
The following table illustrates the number of Units that a Policyholder in an ILP sub-fund will receive based on an investment premium amount of S$2,000* and a notional issue price of S$1.00** in respect of a first policy year:
PPrreemmiiuumm aallllooccaattiioonn IIssssuuee PPrriiccee NNuummbbeerr ooff
((2200%% ooff SS$$22,,000000)) UUnniittss UUnniittss rreepprreesseennttiinngg NNuummbbeerr ooff UUnniittss
SSaalleess CChhaarrggee ((55%%)) AAllllootttteedd***
S$400 ÷ S$1.00 = 400
20 = 380
* An example only ** The actual issue price of Units will fluctuate according to the net asset value of the
Units
*** Please note that insurance charge on the INSPIRETM
FlexiProtector policy has not
been factored into this example
8.4 Minimum ILP sub-fund Size
There is no minimum ILP sub-fund size for the continued operation of the ILP sub-funds.
9.1 Partial Withdrawals
Whilst this Policy is in force, You may apply to withdraw part of this Policy Value by specifying
the number of Units from the selected Fund(s) subject to the conditions We may from time to
time determine.
Partial Withdrawal is only available for amounts of at least S$250 (“Minimum Partial
Withdrawal Amount”) in value provided always that the remaining Policy Value is more than the Minimum Holding Amount of S$2,500. If the Partial Withdrawal results in the remaining Policy Value being lower than Minimum Holding Amount, no Partial Withdrawal is allowed and We will notify You.
Your application for withdrawal must be in a form specified by Us to be sent to Our office. The Units will be cancelled on the Dealing Days of the relevant Fund(s) as soon as practicable following the date on which We approve Your application for partial withdrawal.
Any Partial Withdrawal may reduce the Policy Value and affect the Bonus Units
allocation, if any.
Without prejudice to the other provisions in this Policy, We reserve the right to vary the Minimum Withdrawal Amount and the Minimum Holding Amount set out in this Policy from time to time.
MMiinniimmuumm AAmmoouunntt iinn rreellaattiioonn ttoo tthhiiss PPoolliiccyy
Minimum Holding Amount S$2,500
Minimum Partial Redemption Amount S$250
9.2 Regular Withdrawals
You may select to make regular withdrawals on this Policy on an annual, semi-annual, quarterly or monthly basis on this Policy by submitting to Us a written request in such form indicating the amount to be withdrawn and the frequency of the withdrawals together with any other documents/information as may be required by Us.
The minimum amount of each regular withdrawal is S$1,200 per year, S$600 half-yearly, S$300 quarterly or S$100 monthly. Each withdrawal under this facility will be processed by Us on the 16
th day of each month (or if that day is not a Business Day, the next Business Day) or
on such other date as We may determine (“Regular Withdrawal Day”). The number of units to be deducted from this Policy for each withdrawal will be determined by reference to the redemption price of the Units prevailing as at the Regular Withdrawal Day. Payment will be made by cheque to You within four (4) Business Days for bond and money market Funds and within six (6) Business Days for all other types of Fund(s) (or such other period as the relevant authorities may require or permit from time-to-time) from the date of the next pricing of the Fund immediately after the regular withdrawal day. We reserve the right to revise the minimum withdrawal amount and the mode and manner of payment at any time.
Where You hold Units in more than one Fund, redemption of the Units for purpose of regular withdrawal will be in proportion to the current allocation into each Fund (based on the net asset value of the Fund(s) on the date of withdrawal). Subject to such other terms and conditions as We may impose, We reserve the right not to process a Regular Withdrawal request or any particular withdrawal if the requested withdrawal (a) does not meet the
minimum amount; or (b) will reduce Your Policy Value to below the Minimum Holding
Amount. In such event, You will be notified. This Regular Withdrawal facility will cease: (a) on the first Dealing Day after the request for withdrawal is received, if processing that
request will reduce the value of this Policy to an amount below the Minimum Holding Amount;
(b) upon Your written request; or (c) upon termination of this Policy.
Regular withdrawals will not reduce the Basic Sum Assured. Regular withdrawals may
reduce the Policy Value and the Bonus Units allocation, if any. We reserve the right to suspend or terminate this Regular Withdrawal facility at any time and shall under no circumstances be responsible for any losses whatsoever due to Our decision to suspend or terminate such facility.
9.3 Pricing and Dealing Deadline
As Units are priced on a forward pricing basis, the redemption price of Units will not be ascertainable at the time of the submission of the redemption request. If Your redemption request is received by Us before 2.30p.m. on a Dealing Day, the redemption request will be taken to have been received on that Dealing Day and You will receive that Dealing Day’s redemption price. If the redemption request is received after 2.30 p.m. on a Dealing Day or on a day which is not a Dealing Day, the realisation request will be taken to have been received on the next Dealing Day and You will receive the next Dealing Day’s redemption price. We and Our authorised advisers reserve the right to bring forward the cut-off time in respect of any Dealing Day.
The pricing is done on a single pricing basis and the redemption price per Unit on each Dealing Day shall be based on the net asset value (plus or minus duties or charges) calculated by the relevant Manager as at each Valuation Point in respect of that ILP sub-fund.
9.4 Calculation and Payment of Redemption Proceeds
The following table illustrates the amount of redemption proceeds that a Policyholder will receive based on a redemption of 1,000 Units* and a notional redemption price of S$0.95**:-
NNuummbbeerr ooff UUnniittss RReeddeemmppttiioonn GGrroossss RReeddeemmppttiioonn
ttoo bbee rreeddeeeemmeedd pprriiccee pprroocceeeeddss NNeett rreeddeemmppttiioonn pprroocceeeeddss******
1,000 X S$0.95 = S$950
= S$950
* An example only ** The actual redemption price of Units will fluctuate according to the net asset value of
the Units *** There is currently no redemption fee
9.5 Settlement for Redemption
(a) Redemption proceeds for the Units will be paid to You within four (4) Business Days for bond and money market ILP sub-funds and within six (6) business days for all other types of ILP sub-funds (or such other period as the relevant authorities may require or allow from time to time) from the date of the next pricing of the ILP sub-fund
immediately following the receipt by Us of the redemption request with all the requisite
documents and information unless the redemption amount falls below the Minimum
Partial Redemption Amount or valuation or redemption of the Units has been suspended by Us and/or the relevant Manager.
(b) The redemption proceeds payable to You in respect of the redeemed Units will be paid by cheque sent through the post to Your address (in the case of an individual) or registered address (in the case of a corporate entity)..
10. FUND SWITCH
Unless otherwise provided by Us, You may switch all or any of the Units in one (1) Fund (the
“Original Fund”) to Units of another Fund (the “Other Fund”) offered under this Policy by giving written instructions in the form provided by Us. The following conditions apply: (a) the minimum value of Units for each switch is S$1,000 or 100% of the value of the Units in
the Original Fund, whichever is lower; (b) the minimum value of Units remaining in the Original Fund or the Other Fund must not be
less than the minimum amount specified by Us from time to time. The current amount is S$1,000. We reserve the right to vary the amount by notifying You in writing of any such variation with at least one (1) month’s prior notice;
Units of the Original Fund to be switched will be cancelled on the Dealing Day of the Original Fund on which We complete processing Your written instructions for the switch. Units of the Other Fund to be switched to will be purchased for allocation to this Policy using proceeds from the cancellation of Units of the Original Fund. This will be done on a Dealing Day of the Other Fund that is within five (5) Business Days of the date of cancellation of the Units in the Original Fund. Units in the Other Fund will be issued based on such formula We may determine from time to time. There is currently no charge for switches made. Without prejudice to the other provisions in this Policy, We reserve the right to impose a switching fee or vary the imposed switching fee. We will notify You in writing of any such variation with at least one (1) month’s prior notice.
11.1 Unit prices are published in, or through one or more major local newspapers in Singapore at least once a week. Currently, Unit prices are published in Reuters, The Straits Times, The Business Times and Lianhe Zaobao by Us. Policyholders should note however that this is dependent on the publication policies of each newspaper and publisher concerned. We shall not be responsible for:
(a) any errors in the published prices; or
(b) for any late or non publication of the prices
attributable to the publishers.
11.2 Unit prices may also be found on Our website at www.axalife.com.sg
12.1 Suspension of Dealings
We or the relevant Manager may at any time in relation to any ILP sub-fund suspend the valuation and the issue and redemption of the Units in their discretion under, but not limited to, the following circumstances:
(a) during which any stock exchange, commodities exchange, futures exchange or over
the counter market on which a significant part of the relevant ILP sub-fund’s or underlying fund’s investments is quoted, listed, traded or dealt in is closed (other than
customary weekend and holiday closing) or trading on any such stock exchange or market is restricted or suspended; or where applicable, any period when dealings in any underlying funds of the ILP sub-fund are restricted or suspended; or
(b) when circumstances exist as a result of which in the opinion of the Manager it is not
reasonably practicable for the relevant ILP sub-fund to dispose of investments or as a result of which any such disposal would be materially prejudicial to the Policyholders; or
(c) when a breakdown occurs in any of the means normally employed in ascertaining the
value of investments or the net asset value or the issue and redemption price per Unit of the relevant ILP sub-fund or when for any other reason the value of the relevant ILP sub-fund’s investments or other assets of that ILP sub-fund cannot be reasonably or fairly ascertained; or
(d) during which the relevant ILP sub-fund is unable to repatriate funds for the purpose of
making payments on the redemption of Units or during which any transfer of funds involved in the redemption or acquisition of investments or payments due on redemption of Units cannot in the opinion of the Managers be effected at normal rates of exchange.
We and the relevant Manager may at any time in relation to any ILP sub-fund suspend the valuation, issue and redemptions of Units during, and/or extend the period for the payment of the redemption monies by the number of days comprised in the above circumstances (in whole or in part) and otherwise, for a period not exceeding six (6) months. All Policyholders will be notified, as soon as reasonably practicable, of any such suspension, and the termination of such suspension, by means of a written notice.
12.2 Limitaton
We reserve the right to limit at Our discretion the number of Units of any ILP sub-fund to be cancelled on any Dealing Day to 10% (or such other percentage as We may determine) of the total number of Units of the ILP sub-fund then in issue, after disregarding any Units to be issued on that Dealing Day. This limitation may be implemented if for example, We are aware there is a short-term trading in the underlying sub-funds. The Units will be cancelled on a pro rata basis in respect of the total number of applications for surrender and withdrawal. Any Units not cancelled will be carried forward for cancellation on the next Dealing Day.
The performance and benchmark against which the performance of an ILP sub-fund is measured are set out in the relevant section of the Fund Information Booklet.
The expense ratio of each ILP sub-fund is set out in the relevant section of the Fund Information Booklet.
The turnover ratio of each ILP sub-fund is set out in the relevant section of the Fund Information Booklet.
Information on any soft dollar commissions in respect of any ILP sub-fund is set out in the relevant section of the Fund Information Booklet.
Information on any conflict of interests, which exists or may arise in relation to the ILP sub-
funds and their management is set out in the relevant section of the Fund Information Booklet.
18.1 Statements will be made available to Policyholders within 30 days after the end of the financial year of the respective ILP sub-funds. The financial year-end of the ILP sub-funds is 31 December.
18.2 The semi-annual reports and annual reports* of each of Your ILP sub-funds, will be made
available to Policyholders within 2 months and 3 months respectively from the last date of the period to which the reports relate.
18.3 At Your request, We will, provide printed versions of the latest semi-annual reports and annual
reports*. The latest semi-annual reports and annual reports* of each of Your ILP sub-funds are available at AXA Customer Service office, located at: 8 Shenton Way #27-02 AXA Tower Singapore 068811.
(*Unless applicable regulations or guidelines provide otherwise, annual reports in respect of the ILP sub-funds will be audited annual reports.)
19.1 Tax Considerations
Prospective Policyholders should consult their own professional advisers as to the implications of buying, holding or disposing of Units and to the provisions of the laws of the jurisdiction in which they are subject to tax.
19.2 ILP sub-fund Valuation
The ILP sub-funds shall be valued on every Dealing Day. Policyholders and prospective Policyholders may contact Us or Our Insurance Advisers or Our Authorised Financial Advisers for details on the valuation of the ILP sub-funds.
19.3 ILP sub-fund Closure
We have the discretion to close any ILP sub-fund upon giving one (1) month’s prior written notice to the Policyholders.
The following are key provisions found in the Policy Contract. Policyholders are advised to refer to the actual terms and conditions in the Policy Contract and to consult their insurance adviser or authorised advisers for details.
(a) Incontestability Clause
In the absence of fraud, negligent misrepresentation or failure to pay Premium, We will not contest the validity of this Policy if it has been in effect for at least two (2) years during the lifetime of the Life Assured.
(b) Suicide Claims
If the Life Assured dies by suicide within one (1) year from the date of issue or the most recent date of reinstatement of this Policy, the amount payable will be the value of Units accrued to this Policy based on the redemption price of the Units prevailing as at the Dealing Day on which the Suicide Claim is admitted by Us.
For the avoidance of doubt, We will not pay the Death Benefit under (a) Choice Cover and (b) Max Cover.
(c) Free-look Period
We give You a period of 14 days to review this Policy. This Policy may be cancelled by a written request to Us within 14 days from the date of receipt of this Policy (the "Free-Look Period").
a) If a Regular Premium has been paid and You choose to cancel this Policy within the Free-Look Period, We will refund the amount up to the Regular Premium You have paid for this Policy and without interest: (i) the Policy Value accrued to this Policy on the Dealing Day on which We receive the
request for cancellation of this Policy from You, including the administration fee, Insurance Charge (if applicable), service fee, and any other unallocated portion of the Premium excluding the bonus Units (if any) allocated for large sums invested;
(ii) less any medical expenses incurred by Us in processing Your application after adding back the sales charge.
b) If a Top-Up Premium or Recurring Single Premium has been paid and You choose to
cancel this Policy within the Free Look Period, We will treat this as an application for Surrender of Units for the Recurring Single Premium and Top-Up Premium. We will refund the Policy Value accrued to this Policy calculated by deducting: (i) the bonus Units (if any) allocated for large sums invested; and (ii) any medical expenses incurred by Us in processing Your application after adding
back the sales charge. This Policy is deemed to have been delivered and received by You 7 days after posting.
(d) Grace Period
There is a Grace Period of thirty (30) days from the Regular Premium due date (except for payment of the first Regular Premium). This Policy continues to be in effect during the Grace Period.
(e) Premium Holiday
During the Initial Premium Payment Term, no Premium Holiday is allowed. After the Initial Premium Payment Term, You may apply to stop paying Regular Premium at any time from the 25
th month by sending Us an application in the form
specified by Us provided that the Policy Value on the date on which the application is approved (if such date is a Dealing Day of the relevant Fund(s) or otherwise on their Dealing Days immediately before such date) is sufficient to cover the applicable Policy Charges. (a) For Choice Cover and Max Cover with YRT option only:
If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically upon the expiry date of the Grace Period and the applicable charges (including Insurance Charges) under this Policy will continue to be deducted from this Policy. The Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due. Otherwise, the Policy will lapse. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision. (b) For Max Cover, Level Pay COI option with a limited payment period:
If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically on the expiry of the Grace Period and the applicable charges (including Insurance Charges) under this Policy will continue to be deducted from this Policy.
(i) During the Premium Holiday and COI payment period, this Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due. Otherwise, this Policy will lapse. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.
(ii) During the Premium Holiday Period and after the COI payment period, this Policy will remain in effect even if the Policy Value is insufficient to cover the charges due. The outstanding charges will be accumulated and deducted from the claim benefits when a claim occurs.
For the avoidance of doubt with respect to (a) and (b) above, You can choose to end the Premium Holiday by exercising one of the following 2 options: (i) paying one (1) Regular Premium. (ii) paying all the outstanding of Regular Premiums. You will have to inform Us in writing, that You are ending the Premium Holiday and the option You elect to exercise. The allocation rate for the resumed Regular Premium will depend on the option You elect to exercise and will continue from where the last Regular Premium was made. Please refer to Paragraph 1.7 for more details on the allocation rate.
(f) Non-Guaranteed Insurance Charges
For the YRT COI option, the insurance charges for the INSPIRETM
FlexiProtector are not guaranteed. These rates may be adjusted based on future experience. We may, at Our sole discretion, vary the charges. We will give You one (1) month’s prior written notice, if the rates are to be increased.
(g) Lapsation During the Initial Premium Payment Term,
The Policy will lapse and the Policy Value (if any), less indebtedness will be refunded; if no Regular Premium (excluding RSP and ad-hoc Top-up) is received on the expiry of the Grace Period. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.
After the Initial Premium Payment Term,
The Policy will lapse if no Regular Premium (excluding RSP and ad-hoc Top-up) is received on the expiry date of the Grace Period and the Policy Value is insufficient to cover the payment of the relevant Policy Charges. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.
(h) Reinstatement
You may apply to reinstate this Policy on the following conditions: a) You must apply for reinstatement within 24 months from the date of lapsation of
this Policy; b) For policies that lapse during the Initial Premium Payment Term, You must pay
back all outstanding Regular Premiums and the amount of Policy Value refunded. c) For policies that lapse after the Initial Premium Payment Term,
For policies with monthly Premium payment, You can choose to pay: (i) a minimum of three (3) months of Regular Premiums or; (ii) all the outstanding Regular Premiums
For policies with quarterly, semi-annual and annual Premium payment, You can choose to pay: (i) one (1) Regular Premium or;
(ii) all the outstanding Regular Premiums
d) The Life Assured must be less than age 80, and e) You give the Company at Your expense, satisfactory evidence of the health of the
Life Assured. Upon successful reinstatement, the allocation rate for the resumed Regular Premium will depend on the option You elect to exercise and will continue from where the last Regular Premium was made. Please refer to Paragraph 1.7 for more details on the allocation rate. Reinstatement is subject to Our approval and may be on different terms from those applicable before lapsation.
(i) Termination
This Policy will terminate when any of the following occurs: a) On full payment of the Death Benefit claim; b) On full payment of the TPD Benefit claim; c) On full payment of the Terminal Illness claim; d) On Your request to surrender of this Policy; e) On the occasion of any other reason which may result in the termination of the
policy as set out in the Policy Contract. f) 24 months after the date of lapsation if this Policy is not reinstated.
In the event of termination of this Policy, You will be notified in writing and no reinstatement for this Policy is allowed thereafter.
This Policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for Your Policy is automatic and no further action is required from You. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Us or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg.).
In this Product Summary the following expressions have, except where the context otherwise requires, the meanings respectively shown opposite them:-
Approved Fund Manager means an approved fund manager under the Monetary Authority of Singapore’s tax incentive scheme.
Authority the Monetary Authority of Singapore.
Basic Sum Assured Refers to the Sum Assured of INSPIRETM
FlexiProtector.
Business Day means a business day in Singapore.
Commencement Date means the date when coverage under the Policy Contract begins.
CPF means the Central Provident Fund.
CPF Act means the Central Provident Fund Act, Chapter 36.
CPF Board means the Board of the CPF established pursuant to the CPF Act.
CPFIS means the CPF Investment Scheme (as defined in the CPFIS Regulations) or such other scheme as shall replace it
Dealing Day means every Business day or such other day which We and/or Manager stipulates from time to time, as the day on which an issuance or redemption of Units is deemed to occur.
ILP sub-funds or ILP sub-fund means the investment-linked policy sub-fund(s) offered under “Fund(s)” INSPIRE
TM FlexiProtector.
Insurance Adviser means Our insurance agent as defined in the Insurance Act.Initial Premium Payment Term refers to the first 24 months of this Policy commencing on the Commencement Date.
Lapsation Period refers to the period from the date of lapsation of this Policy till the date this Policy is reinstated.
Life Assured the person whose life is insured by INSPIRETM
FlexiProtector and as named in the Certificate of Insurance.
Locked-In Period refers to the first 4 years of this Policy commencing on the Commencement Date and during which the total of the Basic Sum Assured and Rider Sum Assured of all riders attached (except Accidental Death Benefit rider, Extended Total and Permanent Disability rider, Waiver of Premium rider, Waiver of Premium Plus rider and Wavier of Premium Special rider) at Policy inception will be locked-in as Minimum Sum Assured. No reduction in Basic Sum Assured or Rider Sum Assured and no cancellation or deletion of Riders attached to Policy at Policy inception is allowed during the Locked-In Period. However, You may request for Increase in Basic Sum Assured or Rider Sum Assured, or Add new Riders.
Manager means and includes all investment managers of the ILP sub-funds or an ILP sub-fund.
Moody’s means the rating agency Moody’s.
NRSRO means Nationally Recognised Statistical Rating Organisation.
Policy Anniversary means each annual anniversary of the Commencement Date.
Policy Contract means the policy contract [as defined in the INSPIRETM
Protector General Provisions as "Policy"] between You and Us.
Policy Value means the number of Units in this Policy multiplied by the Unit Price on the Valuation Day.
Policy Year the period between each consecutive Policy Anniversary. The first Policy Year is the period from the Commencement Date to the first Policy Anniversary.
Premium Holiday Period in relation to the period during the COI payment period, means the period during which payment of Regular Premium is suspended and the policy value is sufficient to maintain the policy; and
in relation to the period after the COI payment period means the period during which payment of Regular Premium is suspended regardless of whether the policy value is sufficient to maintain the policy.
Rider Sum Assured refers to the total Sum Assured of any Riders attached to this Policy.
Singapore Dollars or S$ means the lawful currency of the Republic of Singapore.
Specialist is defined as a medical practitioner registered and licensed as such in the geographical area of his practice and who is classified by the appropriate health authorities as a physician with superior and special expertise to treat the type of disability, injury or illness for which a claim is made for treatment provided to the Life Assured, but excludes the Life Assured, the Policyholder, a business partner, spouse, family member or relative of the Life Assured or the Policyholder.
S&P means the rating agency Standard and Poors.
Sum Assured means the amount of insurance coverage shown in the
Certificate of Insurance.
Terminal Illness is defined as the conclusive diagnosis of an illness that is
expected to result in the death of the Life Assured within 12
months of the date of diagnosis. This diagnosis must be
supported by a Specialist and confirmed by the Company’s
appointed doctor.
Unit means one (1) undivided share in an ILP sub-fund. Where the context so requires, the definition includes a fraction of a Unit and, save where this Product Summary otherwise provides, a fraction of a Unit shall rank pari passu and proportionately with a whole Unit
U.S. means the United States of America
U.S.$ means the lawful currency of the United States of America
Valuation Day means every Business Day or such other day which We and/or the Manager may stipulate from time to time, as the day on which the price of each Unit is determined
Valuation Point means any time as may be determined by Us and/or the relevant Manager in relation to any Valuation Day
We/Our/Us/Company means the insurer, AXA Life Insurance Singapore Private Limited (Company registration no.: 199903512M)
You/Your/Yours/Policyholder The person with whom the contract of assurance is made, who is responsible for paying the Premium and who may exercise all rights under this Policy.
02/2012
1
important information
This Fund Information Booklet contains details on the various sub-funds offered under the Investment-
Linked Policies (ILP) referred to in the cover of this Fund Information Booklet. The Product Summary
comprises of the Product Summary Booklet and the Fund Information Booklet. This Fund Information
Booklet constitutes a part of the Product Summary, without which the Product Summary is not complete.
As such, this Fund Information Booklet should be read together with the Product Summary Booklet for
information on the policyholders‟ ILP.
Past performance of an ILP sub fund, the manager of an ILP sub-fund and the manager of an underlying
fund is not indicative of the future or likely performance of such ILP sub-fund or the managers.
Note: This Fund Information Booklet is not a contract.
2
contents
1 About AXA Life Insurance
2 The Available ILP Sub-Funds and the Managers
3 Fees and Charges
4 Performance and Benchmark
5 Expense Ratios and Turnover Ratios
6 Risks
7 Soft Dollar Commissions/Arrangements
8 Conflicts of Interest
schedule A
Global Defensive Fund
Global Secure Fund
Global Balanced Fund
Global Growth Fund
Global High Growth Fund
schedule B
Asian Growth Fund
schedule C
China Growth Fund
schedule D
Fortress Fund A
schedule E
Global Equity Blend
Emerging Markets Debt Portfolio
schedule F
Pacific Equity Fund
Singapore Equity Fund
India Fund
schedule G
Singapore Bond Fund
schedule H
Singapore Dollar Fund
South East Asia Special Situations Trust
schedule I
Asian Income Fund
Asian Balanced Fund
Singapore Balanced Fund
Global Emerging Markets Equity Fund
schedule J
Health Fund
3
1 about AXA Life Insurance
The insurer
We, AXA Life Insurance Singapore Private Limited (“AXA Life”) (Company Registration No.199903512M),
whose business address is 8 Shenton Way #27-02 AXA Tower Singapore 068811, are part of the AXA.
AXA has its origins from Paris in the 19th century and over 200 years has grown from strength to strength,
extending from Europe to around the world.
In the financial markets, AXA is positioned as a global leader in Financial Protection.
Key figures:
102 million clients in 56 countries worldwide
160,000 employees
91.3 billion euros in revenues (at December 2013)*
4.7 billion euros in underlying earnings (at December 31 2013)*
*Prepared in accordance with IFRS (International Financial Reporting Standards)
With offices in over 60 countries, AXA is a global brand. But every one of our staff and adviser operates as
a member of your family, with a complete understanding of local culture, practices and customs. It's part of
our global culture where, AXA in every country not only delivers quality financial advice and solutions for our
clients, but also plays an integral part in community building.
4
2 the available ILP sub-funds and the Managers
You may choose to invest in the following range of ILP sub-funds in accordance with the terms of the
Product Summary. The Product Summary is made up of the Product Summary Booklet and Fund
Information Booklet. Details on each of the ILP sub-funds are set out in the relevant schedules of this Fund
Information Booklet. The table below sets out the information on the Manager of each ILP sub-fund and on
the underlying funds of an ILP sub-fund (where applicable).
The Manager refers to the manager of the ILP sub-fund or manager of the underlying fund that the
respective ILP sub-fund feeds into, wherever applicable.
ILP sub-funds Manager
Asian Growth Fund
AXA Rosenberg Investment
Management Asia Pacific Limited
Fortress Fund A
First State Investments
(Singapore)
Singapore Equity Fund
Pacific Equity Fund
India Fund
Aberdeen Asset Management Asia
Limited
China Growth Fund
LionGlobal Investors Ltd
Global Equity Blend
Emerging Markets Debt Portfolio
AllianceBernstein (Singapore)
Limited
Singapore Balanced Fund
Asian Balanced Fund
Asian Income Fund
Global Emerging Markets Equity Fund
Global Secure Fund
Global Balanced Fund
Global Growth Fund
Global High Growth Fund
Schroder Investment
Management (Singapore) Ltd
Global Defensive Fund
Singapore Dollar Fund
South East Asia Special Situations
Trust
Western Asset Management
Company Pte Limited
(an ultimately wholly-owned
subsidiary of Legg Mason, Inc.)
Singapore Bond Fund
UOB Asset Management
Health Fund
AXA Fund Management
(Luxembourg) SA
Further background information on the Managers, including their track records, are contained in the
relevant schedules of the ILP sub-funds.
5
3 fees and charges
The following fees and charges are applicable to the following ILP sub-funds. These are in addition to the
list of fees and charges payable by the Policyholder stated in paragraph 7 of the Product Summary Booklet.
ILP sub-funds Annual Management Fees1 p.a. Fixed Operating Fees2
p.a.
Global Defensive Fund 1.05% 0.10%
Global Secure Fund 1.15% 0.00%
Global Balanced Fund 1.25% 0.50%
Global Growth Fund 1.35% 0.40%
Global High Growth Fund 1.45% 0.50%
Asian Growth Fund 1.60% 0.35%
Asian Balanced Fund 1.40% 0.35%
Asian Income Fund 1.40% 0.35%
China Growth Fund 1.60% 0.35%
Fortress Fund A 1.60% 0.35%
Global Equity Blend 1.60% 0.35%
Health Fund 1.60% 0.35%
Emerging Markets Debt Portfolio 1.40% 0.35%
Global Emerging Markets Equity Fund 1.60% 0.35%
India Fund 1.60% 0.35%
Pacific Equity Fund 1.60% 0.35%
Singapore Balanced Fund 1.40% 0.35%
Singapore Bond Fund 1.05% 0.10%
Singapore Dollar Fund 0.30% 0.10%
South East Asia Special Situations Trust 1.60% 0.35%
Singapore Equity Fund 1.60% 0.35%
Notes:
1 Annual Management Fees
The Annual Management Fees are a percentage of the net asset value of the ILP sub-fund and are
guaranteed not to exceed 2.5% p.a. AXA Life may give rebates on these charges from time to time at
our discretion.
The Annual Management Fees are a composite fee structure that covers both the management fees
that are charged at the ILP sub-fund level and will also cover the fees charged by the Manager of the
ILP sub-fund and/or Manager of the underlying fund(s) that the respective ILP sub-fund feeds into.
Therefore, the Annual Management Fee represents the total composite fee that is payable to both AXA
Life and Manager of the ILP sub-fund or underlying fund(s) that the respective ILP sub-fund feeds into.
AXA Life will only be paid the amount that remains after deducting the fees payable to the Manager of
the ILP sub-fund or underlying fund(s) that the respective ILP sub-fund feeds into, from this composite
amount.
2 Fixed Operating Fee
The purpose of the Fixed Operating Fee is to provide transparency in terms of fund charges. This is
achieved by combining the operating and administrative expenses that are currently charged
separately at the ILP sub-funds and underlying fund level (or by the respective portfolio managers
where applicable), to a single, fixed composite fee.
The Fixed Operating Fee will accrue daily and will be paid in arrears periodically to AXA Life.
With the Fixed Operating Fee, you stand to enjoy greater savings on your investment as AXA Life will
bear and absorb any excess expenses that exceed the annual rate of the Fixed Operating Fee.
Conversely, AXA Life will be entitled to retain any amount that falls below such annual rate specified for
each ILP sub-fund.
The Fixed Operating Fee will cover the operating fees and expenses of the relevant ILP sub-funds and,
where applicable, their corresponding underlying funds, that are deemed to be components of the
Total Expense Ratio (“TER”) as set by the Investment Management Association of Singapore (“IMAS”)
from time to time in its guidelines on the computation of the TER. Such expenses will include, but are
not limited to:
6
- Trustee fees
- Administration fees
- Accounting and Valuation fees
- Custodian, sub-custodian and depository fees
- Legal and professional fees
- Printing and distribution fees
- Audit fees
- Amortised expenses
- Performance fee
- GST on expenses
- Registrar fees
All of the above expenses (and others) are now covered by AXA Life through the Fixed Operating Fee.
The Fixed Operating Fee does not include non-TER components such as:
- Interest expense
- Brokerage and other transaction costs associated with the purchase and sales of investments
(such as registrar charges and remittance fees)
- Foreign exchange gains and losses of the fund, whether realised or unrealised
- Tax deducted at source or arising on income invested, including withholding tax
- Front end loads, back end loads and other costs arising on the purchase or sale of a foreign unit
trust or mutual fund, including any costs arising where a Singapore feeder fund invests into an off-
shore parent-fund. Such expenses would generally be capitalised into the cost of the investment
and will subsequently be reflected as a diminution on net asset value when the investment is first
marked to market after purchase
- Dividends and other distributions paid to unit-holders
7
4 performance and benchmark
Performance
The past performance of the ILP sub-funds or underlying funds and their benchmarks as at 28 February
2014 are shown in the following table:
Average Annual Compounded Return
ILP sub-funds
Date of
Inception 1 Year 3 Years 5 Years Since Launched
Global Defensive Fund 19 Aug 2002 0.41% 1.31% 0.73% -0.51%
Benchmark: Citigroup World
Government Bond Index ex
Japan
1.76% 3.72% 1.63% 2.65%
Global Secure Fund 19 Aug 2002 1.71% 1.83% 3.59% 0.53%
Benchmark: 30% MSCI World &
70% Citigroup World
Government Bond Index
9.73% 4.58% 5.05% 3.68%
Global Balanced Fund 19 Aug 2002 3.60% 2.77% 6.04% 0.92%
Benchmark: 50% MSCI World &
50% Citigroup World
Government Bond Index
14.01% 6.76% 8.19% 4.55%
Global Growth Fund 19 Aug 2002 6.52% 3.61% 8.13% 2.00%
Benchmark: 70% MSCI World &
30% Citigroup World
Government Bond Index
18.40% 8.39% 11.31% 5.18%
Global High Growth Fund 19 Aug 2002 19.90% 7.73% 13.02% 2.37%
Benchmark: MSCI World - Net
Return
24.53% 10.71% 15.28& 5.88%
Asian Growth Fund 05 Oct 2004 -2.28% 0.89% 10.94% 4.95%
Benchmark; 80% MSCI AC Far
East ex Japan, 20% SIBOR 6M
2.18% 2.93% 12.16% 6.12%
Asian Balanced Fund
Benchmark: 60% MSCI AC Far
East ex Japan Growth Index
and 40% UOB SGS All Index
09 Mar 2010 1.82%
-1.61%
5.11%
2.34
N/A
N/A
5.17%
2.57%
China Growth Fund 12 Feb 2007 5.17% -0.09% 7.29% -1.40%
Benchmark: MSCI Golden
Dragon Index
5.23% 2.47% 12.09% 1.80%
Fortress Fund A 23 May 2003 -1.10% 7.98% 19.84% 13.19%
Benchmark: The Singapore
Straits Times Index
-1.96% 4.18% 17.92% 11.21%
Global Equity Blend 01 Jun 2006 25.35% 4.93% 10.64% -4.01%
Benchmark: MSCI World Index
25.20% 10.31% 15.93% 2.92%
Global Emerging Markets
Equity Fund
Benchmark: MSCI Emerging
Markets Index
30 Nov 2011 3.15%
-3.81%
N/A
N/A
N/A
N/A
3.32%
3.76%
8
India Fund
Benchmark: MSCI India
12 Feb 2007 2.05%
0.63%
-5.46%
-4.03%
8.33%
11.62%
-1.49%
-1.67%
Pacific Equity Fund 21 Aug 2006 -4.35% 3.82% 16.59% 5.46%
Benchmark: MSCI AC Asia
Pacific ex Japan Index
1.60% 3.12% 15.60% 4.50%
Singapore Balanced Fund 09 Mar 2010 -1.68% 2.37% N/A 3.20%
Benchmark: 60% MSCI
Singapore Free Index and 40%
UOB SGS All Index
-1.13% 3.36% N/A 4.32%
Singapore Dollar Fund 24 Aug 2009 0.73% 0.48% N/A 0.35%
Benchmark: 1-month
Singapore Interbank Bid Rate
Average (SGD)
0.09% 0.09% N/A 0.09%
Singapore Equity Fund 21 Aug 2006 -4.59% 4.06% 17.64% 6.77%
Benchmark: The Singapore
Straits Times Index
-1.96% 4.18% 17.92% 6.57%
Singapore Bond Fund
-1.28% N/A N/A -0.48%
Benchmark: Singapore
Government Bond Index All
UOB
17 Jan 2013
-1.61%
N/A
N/A -2.18%
Asian Income Fund
-0.68% N/A N/A 2.45%
Benchmark: 50% MSCI AC Asia
Pacific ex Japan Net and 50%
JP Morgan Asia Credit Index
13 Dec 2012
0.92% N/A N/A 3.23%
AXA World Funds – Framlington
Health A SGD*
5 Mar 2014 N/A N/A N/A N/A
Benchmark: MSCI World
Healthcare Index
N/A N/A N/A N/A
* As AXA World Funds – Framlington Health A SGD was incepted on 5 March 2014, a track record of at
least one year is not available.
Source: Lipper
Notes:
1 Performance of the ILP sub-funds are based on single pricing, in S$, without taking into consideration
the Initial Charge and with net dividends reinvested taking into account all charges which would have
been payable upon such reinvestment.
2 The past performance of an ILP sub-fund and benchmark against which the performance is measured,
is not necessarily a guide to its future performance.
3 Fees and charges payable through deduction of premium or cancellation of units are excluded from
the calculation of past performance.
4 A performance track record for Emerging Markets Debt Portfolio, South East Asia Special Situations
Trust, Health Fund is not available, as the funds have been incepted for less than one year.
Highlights of Changes to Benchmarks
The following benchmarks were changed as shown in the table below to:
Better reflect a more relevant benchmark as a result of revised asset allocation; or
As a result of changes in the ILP sub-fund‟s investment universe; or
As a result of a change of the Manager for the underlying fund and the underlying funds.
9
ILP sub-funds Benchmark
Global Defensive Fund
19 Aug 2002 to 31 Mar 2006: 40% JP Morgan World Bond & 60%
SIBOR 3 Month.
1 April 2006 to 21 Jan 2008: 70% JP Morgan Global Government Bond
& 30% SIBOR 3 month.
22 Jan 2008 to 5 Nov 2008: Lehman Global Aggregate Index
(unhedged USD).
6 Nov 2008 to 27 Jun 2012: Barclays Global Aggregate Index^
(unhedged USD).
28 Jun 2012 onwards*: Citigroup World Government Bond Index ex
Japan.
Global Secure Fund
19 Aug 2002 to 31 Mar 2006: 50% JP Morgan World Bond, 30% MSCI
World & 20% SIBOR 3 Month.
1 April 2006 to 21 Jan 2008: 60% JP Morgan Global Government Bond,
30% MSCI World & 10% SIBOR 3 Month.
22 Jan 2008 to 5 Nov 2008: 70% Lehman Global Aggregate Index
(unhedged USD) and 30% MSCI World Index (unhedged USD).
6 Nov 2008 to 27 Jun 2012: 70% Barclays Global Aggregate Index^
(unhedged USD) and 30% MSCI World Index (unhedged USD).
28 Jun 2012 onwards#: 30% MSCI World and 70% Citigroup World
Government Bond Index.
Global Balanced Fund
19 Aug 2002 to 21 Jan 2008: 50% MSCI World, 40% JP Morgan World
Bond & 10% SIBOR 3 Month.
22 Jan 2008 to 5 Nov 2008: 50% Lehman Global Aggregate Index
(unhedged USD), 40% MSCI World Index (unhedged USD) and 10% UBS
Global Investors Index (unhedged USD).
6 Nov 2008 to 27 Jun 2012: 50% Barclays Global Aggregate Index^
(unhedged USD), 40% MSCI World Index (unhedged USD) and 10% UBS
Global Investors Index (unhedged USD).
28 Jun 2012 onwards#: 50% MSCI World and 50% Citigroup World
Government Bond Index.
Global Growth Fund
19 Aug 2002 to 21 Jan 2008: 70% MSCI World & 30% JP Morgan World
Bond.
22 Jan 2008 to 5 Nov 2008: 30% Lehman Global Aggregate Index
(unhedged USD), 60% MSCI World Index (unhedged USD) and 10% UBS
Global Investors Index (unhedged USD).
6 Nov 2008 to 27 Jun 2012: 30% Barclays Global Aggregate Index^
(unhedged USD), 60% MSCI World Index (unhedged USD) and 10% UBS
Global Investors Index (unhedged USD).
28 Jun 2012 onwards#: 70% MSCI World and 30% Citigroup World
Government Bond Index.
Global High Growth Fund
19 Aug 2002 to 15 Jan 2008: MSCI World Index.
16 Jan 2008 to 27 Jun 2012: 85% MSCI World Index (unhedged USD)
and 15% UBS Global Investors Index (unhedged USD).
28 Jun 2012 onwards#: MSCI World – Net Return.
Asian Growth Fund
5 Oct 2004 to 31 Mar 2006: 50% MSCI Singapore, 30% MSCI AC Far
East Free Ex Japan/Singapore/China/Indonesia/Philippines & 20%
SIBOR 3 Month.
10
1 April 2006 onwards: 80% MSCI AC Far East Free Ex Japan and 20%
SIBOR 6 Month.
Fortress Fund A
23 May 2003 to 31 Mar 2006: Customised benchmark of Singapore
Top 30 Companies, by market capitalisation, equal weighted.
1 April 2006 onwards: The Singapore Straits Times Index.
^ The name of “Lehman Brothers” Indices was re-branded to “Barclays Capital” indices with effect 6 November 2008, 7am (UK time). * The effective date of the new benchmark coincides with the date on which the assets were substantially migrated to Western Asset
Management Company Pte. Ltd, the Manager of the underlying funds which the ILP sub-funds feed into. # The effective date of the new benchmark coincides with the date on which the assets were substantially migrated to Schroder
Investment Management (Singapore) Ltd , the Manager of the underlying funds which the ILP sub-funds feed into.
5 expense ratios and turnover ratios
5.1 Expense Ratios
The expense ratios (calculated in accordance with the Investment Management Association of Singapore‟s
(IMAS) guidelines on the disclosure of expense ratios) and turnover ratios in respect of the ILP sub-funds
for the one year period ending 31 December 2013 (audited figures) are set out below:
ILP sub-funds Expense Ratio Turnover Ratio
Global Defensive Fund 1.14% 12.61%
Global Secure Fund 0.98% 11.48%
Global Balanced Fund 1.34% 4.21%
Global Growth Fund 1.67% 2%
Global High Growth Fund 1.83% 2.98%
Asian Growth Fund 1.94% 58.16%
Asian Balanced 1.73% 6.23%
China Growth Fund 1.95% 5.39%
Fortress Fund A 1.95% 3.35%
Global Equity Blend 1.94% 16.24%
Global Emerging Markets Equity Fund 1.87% 46.15%
India Fund 1.80% 96.03%
Pacific Equity Fund 1.84% 15.13%
Singapore Balanced 1.73% 4.95%
Singapore Dollar Fund 0.42% 38.90%
Singapore Equity Fund 1.95% 8.16%
Asian Income Fund 1.48% 96%
Singapore Bond Fund 1.11% 45.69%
Emerging Markets Debt Portfolio 1.35% 3.34%
South East Asia Special Situations Trust 1.84% 0.60%
The following expenses are excluded from the calculation of the expense ratio:
charges for insurance coverage;
interest expense;
performance fee, if any;
brokerage;
foreign exchange gains and losses (whether realised or unrealised);
tax deducted at source or arising on income received (including withholding tax);
front-end loads, back-end loads and other costs arising on the purchase or sale of a foreign unit trust
or mutual fund, including any costs arising where a Singapore feeder fund invests into an off-shore
parent-fund; and
dividends and other distributions paid to insured.
But does include other transaction costs at the ILP sub-fund level.
11
The Total Expense Ratio and Turnover Ratio figures of the Health Fund is not available as it is newly
launched.
5.2 Turnover Ratios
The turnover ratio of the underlying funds into which each ILP sub-fund substantially feeds, are set out
below:
Underlying Fund(s) Turnover Ratio of
Underlying Fund (%)
Period to which Turnover
Ratio applies
AllianceBernstein – Emerging Markets Debt
Portfolio
66.96 One year period ending
31 August 2013
AllianceBernstein - Global Equity Blend Portfolio 55.93 One year period ending
31 August 2013
Aberdeen Pacific Equity Fund 5.35 One year period ending
30 September 2013
Aberdeen India Opportunities Fund 17.71 One year period ending
30 September 2013
AXA World Funds – Framlington Health
6.15 Half year ending 30 June
2013
LionGlobal China Growth Fund 27.00 One year period ending
31 December 2013
Legg Mason Singapore Dollar Fund 176.50 One year period ending
31 December 2013
Legg Mason Western Asset Global Bond Trust 256.53 One year period ending
31 December 2013
Legg Mason Southeast Asia Special Situations
Trust
95.18 One year period ending
31 December 2013
Schroder Asian Growth Fund 27.37 One year period ending
31 December 2013
Schroder Asian Income Fund 55.84 One year period ending
31 December 2013
Schroder Global Emerging Market Opportunities
Fund
1.21 One year period ending
31 December 2013
Schroder International Selection Fund Global
Equity Alpha Fund
64.94 One year period ending
31 December 2013 Schroder Multi-Asset Revolution 30 39.88 One year period ending
31 December 2013 Schroder Multi-Asset Revolution 50 39.44 One year period ending
31 December 2013
Schroder Multi Asset Revolution 70 42.21 One year period ending
31 December 2013
Schroder Singapore Fixed Income Fund 88.10 One year period ending
31 December 2013 Schroder Singapore Trust Fund 38.70 One year period ending
31 December 2013 UOB Singapore Bond Fund 14.33 One year period ending
31 December 2013
12
6 risks
General Risks
Investment in an investment-linked policy is meant to produce returns over the long term. Policyholders
should not expect to obtain short-term gains from such investments. The prices of units in an ILP sub-fund
offered under an investment-linked policy and the income from them may go up as well as down. A
possible loss of the principal invested cannot be ruled out. The risks of investments made by an ILP sub-
fund offered under an investment-linked policy include but not limited to economic, political, foreign
exchange, liquidity, regulatory, interest rate and default and repatriation risks.
The types of risks that generally apply in an ILP sub-fund depends on the investment universe and is set
out below:
The value of the ILP sub-funds and the underlying fund‟s assets may be affected by uncertainties such
as international political developments, changes in government policies, taxation, restrictions on
foreign investment and currency repatriation, currency fluctuations and other developments in the
laws and regulations of countries in which investments may be made. Furthermore, it should be noted
that the legal infrastructure and accounting, auditing and reporting standards in certain countries in
which investments may be made do not provide the same degree of Policyholder protection or
information to Policyholders as would generally apply in major securities markets.
In addition to the other risks, bonds and other fixed income securities in which the ILP sub-funds may
invest are interest rate sensitive, which means that their value and consequently, the net asset value
of the ILP sub-funds will fluctuate as interest rates fluctuate. An increase in interest rates will generally
reduce the value of the fixed income securities. The performance of each ILP sub-fund therefore, will
depend in part on its ability to anticipate and respond to such fluctuations in market interest rates and
to utilise appropriate strategies to maximise returns to the Policyholder while attempting to minimise
the associated risks to its investment capital.
Additionally, bonds and other fixed income securities are subject to credit risks, such as risk of default
by issuers. The credit rating for all bonds continue to be of at least an investment grade rating with a
minimum credit rating of BBB minus.
The value of the securities in which the underlying funds will invest will fluctuate depending upon the
general trend of the stock market and prevailing interest rates. The economic environment of the
countries in which the underlying funds invest will have an impact on the value of the securities
acquired. The value of the underlying funds and hence the value of the ILP sub-funds, which invest
directly into these underlying funds, are affected by such changes in the market conditions and
interest rates.
The ILP sub-funds and the underlying funds are authorised to use derivative instruments from time to
time. Derivative instruments are financial contracts whose values are “derived” from the value of the
underlying assets. The use of these derivative instruments is purely for hedging existing positions in a
portfolio or efficient portfolio management, provided that derivatives are not used to gear the overall
portfolio. While the professional use of derivatives may be beneficial to the overall investment
portfolio, derivatives in themselves involve different risks that may be greater than those of more
traditional investments.
As the volatility of prices of derivative instruments may be higher than that of their underlying stocks,
commodities or other benchmarks, these derivative instruments are riskier. The relevant Manager has
the necessary expertise and risk control systems/procedures for investment in derivatives. Investment
in derivatives is made only after extensive research. Such investments are re-valued daily and are
subject to strict investment limits.
The net asset value per unit of certain ILP sub-funds will be computed in Singapore Dollars, whereas
the underlying funds and/or securities may be denominated in foreign currencies. Changes in the
exchange rate of the Singapore Dollar against the currencies of denomination of the underlying funds
and/or securities will have an impact on the value of the Units. Further, the underlying investments of
the underlying funds and/or securities may be acquired in a wide range of currencies, some of which
13
may not be a freely convertible currency. It may not be possible or practicable to hedge against the
consequent currency risk exposure and in certain instances the relevant Manager may not consider it
desirable to hedge against such risk. The relevant Manager will enter into hedging transactions at its
sole discretion.
As certain ILP sub-funds and underlying funds invest in securities in various markets, the net asset
value of these ILP sub-funds and underlying funds will be influenced by the prices of these
investments. This will in turn have an impact on the value of Units of the ILP sub-funds.
The investments of the underlying funds and/ or securities will each be denominated in a number of
different currencies and will be subject to fluctuations in currency exchange rates and in certain cases,
exchange control regulations. There may be state regulations governing the outward remittance by
foreign Policyholders of their share of net profits and dividends and the repatriation of their
investments in a foreign currency.
Investments in emerging markets and some Asian markets may be more volatile than those in the
developed countries. The prices of investments in these markets may be influenced by economic and
political conditions and interest rates. Some of the investments that will be made in smaller markets
may be less liquid and the limited liquidity of these markets may therefore affect the respective
underlying fund‟s ability to acquire or dispose of securities at the price and time it desires. There may
be state regulations governing the outward remittance by foreign Policyholders of their share of net
profits and dividends and the repatriation of their investments in a foreign currency. Many of the
emerging markets and some of the Asian markets may not have well developed consolidated bodies of
securities laws and regulatory frameworks. Disclosure and regulatory standards in these countries may
be less stringent than those in developed markets. Accounting, auditing and financial standards and
requirements may not have been established in some respects or may differ significantly from
international standards and, as a result, information on the company‟s accounts may not be an
accurate reflection of its financial strength.
There can be no guarantee against loss, nor any assurance that the ILP sub-fund‟s investment
objective will be attained. The value of investments and the income from them and therefore the value
of, and income from, the Units of each ILP sub-fund can fall as well as rise and Policyholders may not
realise the same amount that they invest.
Policyholders should be aware that investments in single country, sectoral or regional funds which may
present greater opportunities and potential for capital appreciation, may be subject to higher risks as
they may be less diversified than a global portfolio.
Policyholders should be aware that some of the industries, in which the underlying funds invest, might
be subject to greater government regulations than many other industries in certain countries. Changes
in government policies and the need for regulatory approval may have a material adverse effect on
these industries. The companies that the relevant ILP sub-fund invests in may also be subject to risks
of developing technology and communications, competitive pressures and other factors and are
dependent upon consumer and business acceptance as new technologies evolve. Trading in such
securities may be subject to more abrupt price movements.
Investment in the ILP sub-funds may only be suitable for Policyholders who can accept the associated
volatility and risks and are prepared to take a medium to longer-term view of their investment.
Risks Specific to Each ILP sub-fund
Any risk specific to an ILP sub-fund other than those described in this paragraph 6 are set out in the
relevant schedule for that ILP sub-fund.
The above should not be considered to be an exhaustive list of the general risks which Policyholders
should consider before investing into any of the ILP sub-funds. Policyholders should be aware that an
investment in the ILP sub-funds may be exposed to other risks from time to time.
14
7 soft dollar commissions/arrangements
Cash or commission rebates arising out of transactions for the ILP sub-funds (whether executed in or
outside Singapore) will not be retained by AXA Life or the relevant managers for their own account.
Nevertheless, AXA Life, the relevant managers and the fund managers of the underlying funds (the
“underlying fund managers”) are entitled to receive soft-dollars in respect of the relevant ILP sub-fund or
the respective underlying funds. Soft-dollar commissions / arrangements do not include travel,
accommodation, entertainment, general administrative goods and services, general office equipment or
premises, membership fees, employees‟ salaries or direct money payment.
AXA Life, the relevant managers and the underlying fund managers will comply with applicable regulatory
and industry standards on soft-dollars including its proper documentation and reporting.
The soft-dollar commissions which AXA Life, the relevant managers and the underlying fund managers may
receive include specific advice as to the advisability of dealing in, or the value of any investments, research
and advisory services, economic and political analyses, portfolio analyses including valuation and
performance measurements, market analyses, data and quotation services, computer hardware and
software or any other information facilities to the extent that they are used to support the investment
decision making process, the giving of advice, or the conduct of research or analysis, and custodial service
in relation to the investments managed for clients.
Soft dollar commissions/arrangements will not be accepted or entered into unless soft-dollar
commissions/arrangements would reasonably assist AXA Life and the relevant managers and/or the
underlying fund managers in their management of the relevant ILP sub-fund and the respective underlying
funds, provided that (a) it is ensured at all times that transactions are executed on the best available terms
taking into account the relevant market at the time for transactions of the kind and size concerned, and (b)
no unnecessary trades are entered into in order to qualify for such soft-dollar commissions/arrangements.
15
8 conflicts of interest
Where we issue other investment-linked policies and where the relevant manager manages funds other
than the ILP sub-funds, we and the managers may from time to time have to deal with competing or
conflicting interests between these ILP sub-funds and such other investment-linked policies issued by us or
between the relevant ILP sub-fund and such other funds managed by the relevant manager (as the case
may be). For example, we or the manager may make a decision on behalf of an investment-linked policy or
one fund (as the case may be) without making the same decision on behalf of any other investment-linked
policies or funds, as a decision whether or not to make the same decision in respect of the investment-
linked policies and funds depends on many other factors, for example the investment or sale for any fund
depends on many factors such as the cash availability and portfolio balance of such funds. However, we
and managers will use their reasonable endeavours at all times to act fairly in respect of all investment-
linked policies issued by us and all funds managed by the relevant manger and to balance the interests of
all policyholders/ investors (as the case may be). Currently, we are the issuer of other investment-linked
policies and the managers manage other funds in addition to the relevant ILP sub-funds, where applicable.
We will conduct all transactions with or for each investment-linked policy, and the managers will conduct
all transactions with or for the relevant ILP sub-fund, on an arm‟s length basis.
We or our affiliates or the relevant manager and its affiliates (together the “Parties”) are or may be involved
in other financial, investment and professional activities which may on occasion cause conflict of interest
between the different investment-linked policies issued by AXA Life and such other funds managed by the
relevant manager. Each of the Parties will ensure that the performance of their respective duties will not be
impaired by any such involvement. In the event a conflict of interest does arise, the Parties will endeavour
to ensure that it is resolved as quickly as possible and as far as possible, in the interest of the
Policyholders or otherwise as equitably as possible.
We and the managers may each own, hold, dispose or otherwise deal with Units in the relevant ILP sub-
fund in its own capacity. In the event of any conflict of interest arising as a result of such dealing, We or the
manager (as the case may be) will resolve such conflict in a just and equitable manner as it deems fit.
16
schedule A
Global Defensive Fund
Global Secure Fund
Global Balanced Fund
Global Growth Fund
Global High Growth Fund
1 structure of the ILP sub-funds
The structure of each Lifestyle Fund is set out below:
ILP sub-funds Structure
Global Defensive Fund
The Global Defensive Fund is a ILP sub-fund which feeds 100% into the
Legg Mason Western Asset Global Bond Trust, a Singapore constituted
open-ended unit trust. Dividends are reinvested.
Global Secure Fund
The Global Secure Fund is a ILP sub-fund which feeds 100% into Schroder
Multi Asset Revolution 30, which is a Singapore constituted open-ended
unit trust. Dividends are reinvested.
Global Balanced Fund
The Global Balanced Fund is a ILP sub-fund which feeds 100% into
Schroder Multi Asset Revolution 50, which is a Singapore constituted open-
ended unit trust. Dividends are reinvested.
Global Growth Fund
The Global Growth Fund is a ILP sub-fund which feeds 100% into Schroder
Multi Asset Revolution 70, which is a Singapore constituted open-ended
unit trust. Dividends are reinvested.
Global High Growth Fund
The Global High Growth Fund is a ILP sub-fund which feeds 100% into
Schroder International Selection Fund Global Equity Alpha, which is
domiciled in Luxembourg. Dividends are reinvested.
2 the Manager, Investment Adviser and Securities Managers The Manager, Investment Adviser and Securities Managers of the Strategic Investment Service underlying
sub-funds (“underlying sub-funds”) into which the Lifestyle Funds invest into are as follows:
Underlying sub-funds Manager
Legg Mason Western Asset Global Bond Trust Western Asset Management Company Pte Ltd
Sub-Managers: Western Asset Management
Company and Western Asset Management
Company Limited
Schroder Multi-Asset Revolution 30
Schroder Investment Management (Singapore) Ltd
Schroder Multi-Asset Revolution 50
Schroder Multi-Asset Revolution 70
Schroder International Selection Fund Global
Equity Alpha
Schroder Investment Management Limited
17
2.1 Manager of the underlying sub-funds
Schroder Investment Management (Singapore) Ltd
Schroder Investment Management (Singapore) Ltd (the “Manager“) was incorporated in Singapore and
has been managing collective investment schemes and discretionary funds since 1992. The Manager
is part of the Schroder group (“Schroders”).
Schroders has been managing collective investment schemes and discretionary funds in Singapore
since the 1970s.
Schroders is a leading global asset management company, whose history dates back over 200 years.
The group‟s holding company, Schroders Plc is and has been listed on the London Stock Exchange
since 1959.
Schroders aims to apply its specialist asset management skills in serving the needs of their clients
worldwide, through its large network of offices and over 300 portfolio managers and analysts covering
the world‟s investment markets.
Source: Schroder Investment Management (Singapore) Ltd.
Schroder Investment Management Limited
Schroders is a global asset management company with £236.5 billion under management. We
manage assets on behalf of institutional and retail investors, financial institutions and high net worth
individuals in a diverse range of products covering equities, fixed income, alternatives and multi-asset.
Our aim is to apply our specialist asset management skills in serving the needs of our clients
worldwide and to deliver value to our shareholders. With one of the largest networks of offices of any
dedicated asset management company, and with over 340 portfolio managers and analysts covering
all the major investment markets, we offer our clients a comprehensive range of products and
services.
With a history of over 200 years, we are one of the largest asset managers listed on the London Stock
Exchange where we have been listed since 1959. The Schroder family holds 47.75% of the equity of
the firm, ensuring stability of ownership and providing security for our clients.
Source: Schroders as at 30 June 2013.
Western Asset Management Company Pte Ltd
Western Asset Management Company Pte Ltd (“WAMCPL”) is an ultimately wholly-owned subsidiary of
Legg Mason, Inc. (“Legg Mason”), a U.S. financial services holding company that provides asset
management services through its subsidiaries. Legg Mason has assets of US$664.6 billion under
management as of 31 March 2013. Assets include broad range of financial instruments such as global
equities, fixed interest securities, and currencies.
WAMCPL advises and manages an extensive range of investments on behalf of institutions and
individuals. Through unit trusts and separate account management, WAMCPL provides investors with
access to fixed interest and currency investment opportunities that seek to add value and control risk.
WAMCPL has been managing collective investment schemes in Singapore since 2003. As at 31 March
2013, WAMCPL managed approximately US$4.56 billion of assets on behalf of institutional and retail
clients.
Western Asset Management Company (“WAMC”) and Western Asset Management Company Limited
(“WAMCL”) collectively referred to as the “Sub-Managers”) have been appointed as the sub-managers
of the underlying sub-fund. The Sub-Managers are, like the Manager, subsidiaries of Legg Mason.
WAMC is organised as a corporation under the laws of California, U.S.A. and is registered in the U.S.
with the U.S. Securities and Exchange Commission as an investment adviser pursuant to the U.S.
Investment Advisers Act 1940 and also as a commodity-trading adviser and a commodity pool operator
under the Commodity Exchange Act. WAMC has extensive experience in the mutual funds industry,
having been managing mutual funds and other types of collective investment schemes for over 24
years.
18
WAMCL is organised as a corporation in the United Kingdom and is regulated and supervised in
respect of its investment management activities by the UK Financial Services Authority. WAMCL has
extensive experience in the mutual funds industry, having been managing mutual funds and other
types of collective investment schemes for over 143 years. WAMC manages the North America, South
America and Central America portfolio of debt securities of the underlying sub-fund while WAMCL
manages the Europe, UK, Scandinavia, Middle East and Japan portfolio of debt securities of the
underlying fund.
WAMCPL has appointed Legg Mason Asset Management Singapore Pte. Limited as the principal
distributor for the underlying sub-fund. Legg Mason Asset Management Singapore Pte Limited, also an
ultimately wholly owned subsidiary of Legg Mason, is authorized to market, promote, offer and arrange
for sale and redemption of shares/units in the underlying sub-fund.
Source: Legg Mason, Inc.
3 investment objectives and focus
The investment objective and focus of each Lifestyle Fund are as follows:
ILP sub-funds Investment Objective and Focus
Lifestyle Funds
Global Defensive Fund To maximize total returns in Singapore Dollar terms over the longer term by
investing a portfolio of high quality debt securities of Singapore and major
global bond markets such as the G10 countries and Australia and New
Zealand. The sub-fund aims to outperform the Citigroup World Government
Bond Index ex-Japan, hedged in Singapore Dollar terms.
Global Secure Fund To achieve long term growth of capital by investing primarily in the Global
Secure Fund, whose investment objective is to achieve medium to long
term capital growth through investment in investment funds investing in
equities, bonds and other fixed income securities in global markets, as well
as investment directly in those types of assets. The Global Secure Fund
may also gain exposure to alternative asset classes including but not
limited to real estate and commodities related securities for additional
diversification.
Global Balanced Fund To achieve long term growth of capital by investing primarily in the Global
Balanced Fund, whose investment objective is to achieve medium to long
term capital growth through investment in investment funds investing in
equities, bonds and other fixed income securities in global markets, as well
as investment directly in those types of assets. The Global Balanced Fund
may also gain exposure to alternative asset classes including but not
limited to real estate and commodities related securities for additional
diversification.
Global Growth Fund To achieve long term growth of capital by investing primarily in the Global
Growth Fund, whose investment objective is to achieve medium to long
term capital growth through investment in investment funds investing in
equities, bonds and other fixed income securities in global markets, as well
as investment directly in those types of assets. The Global Growth Fund
may also gain exposure to alternative asset classes including but not
limited to real estate and commodities related securities for additional
diversification.
Global High Growth Fund To achieve long term growth of capital by investing primarily in the Global
High Growth Fund, whose objective is to provide capital growth through
investment in equity securities of companies worldwide. In order to achieve
the objective the Investment Manager will invest in a select portfolio of
securities, which it believes offer the best potential for future growth.
19
4 investment approach
The table below shows the investment approach of each of the ILP sub-funds in respect of the Lifestyle
Funds:
ILP sub-funds Investment Approach
Global Defensive Fund The Managers‟ and (as the case may be) the Sub-Managers‟ investment
policy will be to pursue an active but prudent approach which employs
fundamental economic and market analysis to take maximum advantage of
short and medium to long term investment opportunities in interest rate and
currency trends of the global bond markets.
It is intended that the ILP sub-fund achieves its investment objective by
investing primarily in the following types of debt securities:
(i) Fixed and floating rate government and corporate bonds plus
convertible bonds, commercial papers, bankers acceptances, bills
of exchange, certificates of deposits, promissory notes, bank bills
and treasury bills issued by governments, government linked
companies and corporations in Singapore and in countries as
defined by the Citigroup World Government Bond Index ex Japan.
Currently these countries include USA, Germany, France, UK,
Canada, Italy, the Netherlands, Denmark, Finland, Spain,
Switzerland, Ireland, Austria, Australia, Sweden, Norway, Belgium,
Mexico, Poland, Portugal, Singapore and Malaysia or in countries
that are rated with a minimum of investment grade credit rating of
Aa2 by Moody‟s, AA by Standard & Poor‟s (“S&P”), AA by Fitch Inc.
or its equivalent investment grading by any other internationally
reputable credit rating agency.
Since 3 January 2005, the ILP sub-fund investments in Japanese
debt securities have been limited to 10% of its Deposited Property.
Such investments in Japanese debt securities have been restricted
to a minimum investment grade credit rating of A2 by Moody‟s, A by
S&P, A by Fitch Inc. or its equivalent investment grading by any
other internationally reputable credit rating agency.
(ii) Otherwise, the ILP sub-fund will place its monies on short term fixed
deposits with banks that are rated with a minimum short term
rating of A2 and P2 as defined by S&P and Moody‟s respectively
and long term rating of A and A3 as defined by S&P and Moody‟s
respectively.
To ensure that the ILP sub-fund owns a portfolio of debt securities with high
credit quality, it will only invest in debt securities issued by governments of
benchmark countries or debt securities of issuers with a minimum credit
rating of Aa2 by Moody‟s, AA by S&P, AA by Fitch Inc. or its equivalent
investment grading by any other internationally reputable credit rating
agency (and for issuers of Japanese debt securities, a minimum credit rating
of A2 by Moody‟s, A by S&P, A by Fitch Inc. or its equivalent investment
grading by any other internationally reputable credit rating agency). In the
case of bonds not rated by any international rating agency, the Managers
20
and (as the case may be) the Sub-Managers will use their proprietary credit
research or analysis to determine that such bonds meet the quality criteria
of the ILP sub-fund.
To protect the Singapore Dollar value of the ILP sub-fund‟s investments, the
Managers and (as the case may be) the Sub-Managers may employ an
active currency hedging programme to manage their non Singapore Dollar
currency exposure. For prudent management of the underlying foreign
currency exposures of the bond investments in the ILP sub-fund, the
hedging back into the Singapore Dollar - the base currency of the ILP sub-
fund – may range from 0% to 100% of the ILP sub-fund‟s net asset value at
all times, i.e., the ILP sub-fund may range between being fully unhedged to
fully hedged, but would never be leveraged in foreign currency exposure.
To assist diversification of credit risks, other than sovereign or sovereign
related credit risks, exposure to any one corporate issuer is restricted to no
more than 10% of the total value of the Deposited Property.
In order to ensure a greater degree of liquidity or marketability of the
investments, the ILP sub-fund will not invest in more than 5% of the
aggregate issued and outstanding securities of any single issue.
The Managers and (as the case may be) the Sub-Managers currently do not
intend to engage in securities lending and/or carry out repurchase
transactions. However, should the Managers and (as the case may be) the
Sub-Managers decide to engage in securities lending or repurchase
transactions for the underlying sub-fund, they shall comply with all
applicable laws and regulations relating to securities lending and
repurchase transactions.
Global Secure Fund The Managers recognise that over time, traditional global equities and
global bonds may behave in a similar fashion and therefore may not always
provide investors with a diversified portfolio outcome. By considering a
broad range of asset classes and investment strategies, the Managers
attempt to increase the probability of achieving the investment objective in
a consistent manner, over the long term.
The allocation to equities and bonds in the Global Secure Fund is in the
proportion of approximately 30:70. Different asset classes usually react to
news in various ways so different assets may not move in the same
direction under the same market conditions. In this regard, the Managers
will take a dynamic approach to asset allocation, where the asset mix will
change through time in favour of asset classes that are attractive to add
value and manage downside risk over different market conditions.
It is the Managers‟ present intention to invest the assets of the Global
Secure Fund into various subfunds of the Schroder ISF and other collective
investment schemes and exchange traded funds (collectively known as
“Underlying Funds”). The Managers may from time to time at their sole
discretion vary the percentage of assets of the Global Secure Fund which
may be invested into the Underlying Funds and may, subject to such
regulatory approvals as may be required, vary the jurisdictions and types of
Underlying Funds into which the Global Secure Fund may invest, in
accordance with the investment objective and policy of the Global Secure
21
Fund. The investment managers of the ILP Funds are domiciled in various
countries, including the United Kingdom, the United States, Japan and
Singapore.
Investors should note that the Global Secure Fund may invest in the SPDR
Gold Trust and such other fund(s) investing directly in commodities but
unless otherwise permitted by the MAS, investment in such funds in
aggregate shall limited to 10% of the deposited property of the Global
Secure Fund.
Global Balanced Fund The Managers recognise that over time, traditional global equities and
global bonds may behave in a similar fashion and therefore may not always
provide investors with a diversified portfolio outcome. By considering a
broad range of asset classes and investment strategies, the Managers
attempt to increase the probability of achieving the investment objective in
a consistent manner, over the long term.
The allocation to equities and bonds in the Global Balanced Fund is in the
proportion of approximately 50:50. Different asset classes usually react to
news in various ways so different assets may not move in the same
direction under the same market conditions. In this regard, the Managers
will take a dynamic approach to asset allocation, where the asset mix will
change through time in favour of asset classes that are attractive to add
value and manage downside risk over different market conditions.
It is the Managers‟ present intention to invest the assets of the Global
Balanced Fund into various subfunds of the Schroder ISF and other
collective investment schemes and exchange traded funds (collectively
known as “Underlying Funds”). The Managers may from time to time at their
sole discretion vary the percentage of assets of the Global Balanced Fund
which may be invested into the Underlying Funds and may, subject to such
regulatory approvals as may be required, vary the jurisdictions and types of
Underlying Funds into which the Global Balanced Fund may invest, in
accordance with the investment objective and policy of the Global Balanced
Fund. The investment managers of the Underlying Funds are domiciled in
various countries, including the United Kingdom, the United States, Japan
and Singapore.
Investors should note that the Global Balanced Fund may invest in the SPDR
Gold Trust and such other fund(s) investing directly in commodities but
unless otherwise permitted by the MAS, investment in such funds in
aggregate shall limited to 10% of the deposited property of the Global
Balanced Fund.
Global Growth Fund The Managers recognise that over time, traditional global equities and
global bonds may behave in a similar fashion and therefore may not always
provide investors with a diversified portfolio outcome. By considering a
broad range of asset classes and investment strategies, the Managers
attempt to increase the probability of achieving the investment objective in
a consistent manner, over the long term.
The allocation to equities and bonds in the Global Growth Fund is in the
proportion of approximately 70:30. Different asset classes usually react to
news in various ways so different assets may not move in the same
direction under the same market conditions. In this regard, the Managers
22
will take a dynamic approach to asset allocation, where the asset mix will
change through time in favour of asset classes that are attractive to add
value and manage downside risk over different market conditions.
It is the Managers‟ present intention to invest the assets of the Global
Growth Fund into various subfunds of the Schroder ISF and other collective
investment schemes and exchange traded funds (collectively known as
“Underlying Funds”). The Managers may from time to time at their sole
discretion vary the percentage of assets of the Global Growth Fund which
may be invested into the Underlying Funds and may, subject to such
regulatory approvals as may be required, vary the jurisdictions and types of
Underlying Funds into which the Global Growth Fund may invest, in
accordance with the investment objective and policy of the Global Growth
Fund. The investment managers of the Underlying Funds are domiciled in
various countries, including the United Kingdom, the United States, Japan
and Singapore.
Investors should note that the Global Growth Fund may invest in the SPDR
Gold Trust and such other fund(s) investing directly in commodities but
unless otherwise permitted by the MAS, investment in such funds in
aggregate shall limited to 10% of the deposited property of the Global
Growth Fund.
Global High Growth Fund At least two-thirds of the ILP sub-fund (excluding cash) will be invested in a
concentrated range of shares of companies worldwide.
As an "Alpha" fund, the ILP sub-fund invests in companies in which the
Investment Manager has a high conviction that the current share price does
not reflect the future prospects for that business. The ILP sub-fund will
typically hold fewer than 50 companies and has no bias to any particular
industry or size of company.
The Investment Manager considers investment opportunities that reflect the
importance of themes that drive longer term growth in companies, including
climate change, changes to population demographics and the rising
importance of emerging market countries within the world economy.
The Investment Manager‟s approach takes advantage of the most attractive
investment opportunities, throughout the global investment universe,
without regional constraint. They combine in-depth knowledge with global
expertise to identify attractively-valued, quality growth stocks with a
sustainable competitive advantage. Extensive local research generates
globally-diverse investment ideas which are viewed in a global context,
selecting stocks based on „best in class‟.
The ILP sub-fund may also invest in other financial instruments and hold
cash on deposit. Financial derivative instruments may be used to achieve
the investment objective and to reduce risk or manage the ILP sub-fund
more efficiently.
Source: Schroder Investment Management (Singapore Ltd) and Legg Mason, Inc.
23
5 CPF investment scheme
The risk classification and inclusions under the CPF Investment Scheme (CPFIS) for the Lifestyle funds are:
ILP sub-funds CPFIS Risk Classification Included Under
Lifestyle Funds
Global Defensive Fund Low to Medium Risk (Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Global Secure Fund Low to Medium Risk (Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Global Balanced Fund Medium to High Risk (Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Global Growth Fund Medium to High Risk (Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Global High Growth Fund Higher Risk (Broadly Diversified)
CPFIS Ordinary Account
6 fees and charges No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying sub-funds that the ILP sub-funds invest
into, these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are
charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying sub-fund level.
7 specific risks
All investments involve risk and the risks inherent to Global Defensive Fund, Global Secure Fund, Global
Balanced Fund, Global Growth Fund and Global High Growth Fund are set out below:
Global Defensive Fund
7.1 Market risk
Prices of securities in the sub-fund may go down or up in response to changes in economic conditions,
political conditions, interest rates and market perception of securities which in turn may cause the
price of Units to rise or fall.
7.2 Interest rate risk
Any investments by the sub-fund in bonds, debentures, loan stocks, convertibles and other debt
securities may decline in value if interest rates change. In general, the price of debt securities rises
when interest rates fall, and fall when interest rates rise.
7.3 Currency risk
The income earned by the sub-fund may be affected by fluctuations in foreign exchange rates. The
Manager may actively monitor and manage the sub-fund‟s exposure to adverse foreign exchange risks
by hedging through the forwards or futures markets.
7.4 Debt securities risk
Issuers of bonds and other debt securities held by the sub-fund may default on their obligations
despite careful selection of issuers.
7.5 Liquidity risk
24
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.6 Derivatives risk
The sub-fund may invest in derivatives for purposes of risk management and hedging the underlying
investment or currency exposures. Derivatives involve risks different from, and, in some cases, greater
than, the risks presented by more traditional securities investments. The value of derivative
instruments is subject to market risks and may fall in value as rapidly as it may rise and it may not
always be possible to dispose of such instruments during such fall in value.
Global Secure Fund, Global Balanced Fund and Global Growth Fund
7.1 Market risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Credit risks
The sub-fund is subject to the risk that some issuers of debt securities and other investments made by
the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse
changes in its financial condition that could lower the credit quality of a security, leading to greater
volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of a
security can also affect the security‟s liquidity and make it more difficult to sell.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.4 Interest rate risk
Declining interest rates generally increase the values of existing debt instruments, and rising interest
rates generally reduce the value of existing debt instruments. Interest rate risk is generally greater for
investments with long durations or maturities.
7.5 Emerging and less developed markets securities risks
Investment in emerging and less developed markets securities poses risks different from, and/or
greater than, risks of investing in the securities of developed countries. It may include risks such as
greater social, economic and political uncertainty and instability and more substantial government
involvement in the economy. There may also be less well defined tax laws and procedures.
7.6 Equity risk
The sub-fund may invest in stocks and other equity securities and their derivatives which are subject to
market risks that historically have resulted in greater price volatility than that experienced by bonds
and other fixed income securities. The sub-fund may also invest in convertible instruments which may
be converted into equity. A convertible instrument tends to yield a fairly stable return before
conversion but its price usually has a greater volatility than that of the underlying equity.
7.7 Derivatives risk
The sub-fund may use financial derivatives. The use of futures, options, warrants, forwards, swaps or
swap options involves increased risk. The sub-fund‟s ability to use such instruments successfully
depends on the Manager‟s ability to accurately predict movements in stock prices, interest rates,
currency exchange rates or other economic factors and the availability of liquid markets. If the
Manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund could
suffer greater losses than if the sub-fund had not used the derivatives.
25
Global High Growth Fund
7.1 Market risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Credit risks
The sub-fund is subject to the risk that some issuers of debt securities and other investments made by
the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse
changes in its financial condition that could lower the credit quality of a security, leading to greater
volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of a
security can also affect the security‟s liquidity and make it more difficult to sell.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The liquidity of the sub-fund may be limited if a significant portion of the
assets of the Fund is to be sold to meet redemption requests on a short time frame. During this period,
the portfolio allocation may be modified to prioritise liquidity.
7.4 Market movements in limited sectors/countries
The sub-fund will be subjected to the respective market movements of the limited number of sectors
and/or countries of the investment universe.
7.5 Investing in ADR/GDR
Buying ADR/GDRs may include the inflationary, political and exchange rate risks of the underlying
assets but provide access to some markets without having to invest locally.
7.6 Emerging and less developed markets securities risks
Investment in emerging and less developed markets securities poses risks different from, and/or
greater than, risks of investing in the securities of developed countries. It may include risks such as
greater social, economic and political uncertainty and instability and more substantial government
involvement in the economy. There may also be less well defined tax laws and procedures.
7.7 Derivatives risk
The sub-fund and the Underlying Fund may use financial derivatives and the use of futures, options,
warrants, forwards, swaps or swap options involves increased risk. The sub-fund‟s or Underlying
Fund‟s ability to use such instruments successfully depends on the Manager‟s or investment
manager‟s ability to accurately predict movements in stock prices, interest rates, currency exchange
rates or other economic factors and the availability of liquid markets. If the Manager‟s or investment
manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund or
Underlying Fund could suffer greater losses than if the sub-fund or Underlying Fund had not used the
derivatives.
7.8 Operational risk
The sub-fund‟s operations depend on third parties and it may suffer disruptions or loss in the event of
their failure.
Source: Schroder Investment Management (Singapore Ltd) and Legg Mason, Inc.
26
schedule B
Asian Growth Fund
1 structure of ILP sub-fund
The structure of the Asian Growth Fund is set out below:
ILP sub-fund Structure
Asian Growth Fund The Asian Growth Fund is a single ILP sub-fund managed by AXA Rosenberg
Investment Management Asia Pacific Ltd (“AXA Rosenberg Asia Pacific”).
The Asian Growth Fund is denominated in Singapore Dollars.
2 the Manager
AXA Rosenberg Investment Management Asia Pacific Ltd is a Hong Kong-based investment manager and a
subsidiary of AXA Rosenberg Group LLC, the specialist active global equity investment management firm
within AXA Investment Managers S.A. AXA Rosenberg Group LLC was originally founded in 1985 under the
name Rosenberg Institutional Equity Management. AXA Rosenberg models and predicts company fair
value, future earnings and risk in building portfolios that aim to produce higher future earnings per dollar
than the relevant markets. Our goal is to build a portfolio with an expected future earnings advantage
relative to the market. This process, based on solid economic analysis of company fundamentals, has been
sustainable and repeatable. Today AXA Rosenberg Group LLC and its subsidiaries collectively manage
more than US$22 billion (as of 31st March 2013) in individual country, regional and global strategies for
pension funds, foundations and government entities around the world.
Source: AXA Rosenberg Group LLC.
3 investment objective and focus
The investment objective and focus of the Asian Growth Fund is set out below:
ILP sub-fund Investment Objective and Focus
Asian Growth Fund To provide an attractive level of income and security of capital with potential
long-term growth in the value of assets by investing in a portfolio of
diversified Asian equities and assets.
The Asian Growth Fund seeks to achieve its investment objective by
investing all or substantially all of its assets into Asian Equity and Fixed
Income Securities. Presently, the manager targets to invest the Asian
Growth Fund‟s assets in the following proportions:
• Asian Equities - 80%; and • Asian Fixed Income (excluding Japan) - 20%.
The above percentages only represent targets and the actual asset allocation of the Asian Growth Fund
may deviate from the target percentages, depending on market conditions. We reserved the right to revise
the target asset allocations of the Asian Growth Fund at its discretion from time to time.
27
4 investment approach
The investment approach of the Asian Growth Fund is set out below:
ILP sub-fund Investment Approach
Asian Growth Fund AXA Rosenberg Asia Pacific is a fundamental investor that believes in using
the power of comprehensive, definitive and unbiased information to make
sound investment decisions. It analyses nearly 200 balance sheet and
income statement (Profit & Loss or “P&L”) items to identify each company‟s
potential to generate future earnings and draws conclusions on whether
these companies are over or undervalued relative to their peers.
AXA Rosenberg Asia Pacific‟s investment process combines three models.
Its valuation model seeks to identify mis-valued stocks in each industry. Its
earnings forecast model seeks to predict year-ahead earnings, and its risk
model constructs portfolios that are intended to maximise active return
while controlling active risk. Because its investment process is grounded in
fundamental principles and implemented using technology, it has been
sustainable and repeatable.
Source: AXA Rosenberg Group LLC.
5 CPF investment scheme
Details of the following ILP sub-fund‟s inclusion under the CPF Investment Scheme are set out below:
ILP sub-fund CPFIS Risk Classification Included Under
Asian Growth Fund Higher Risk (Narrowly Focused – Asian Region
Focused Securities)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on Asian Growth Fund except those reflected on paragraph 7 of
the Product Summary Booklet and paragraph 3 of this Fund Information Booklet.
7 specific risks
All investments involve risk and the risks inherent to Asian Growth Fund are set out below:
7.1 Market risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Credit risk
As per investment guideline, the maximum credit quality: Baa by Moody‟s, BBB by Standard and Poor‟s
or BBB by Fitch (including Sub-categories or gradations therein). The minimum credit quality does not
apply when AXA Rosenberg invests in debts of Singapore-incorporated issuers and Singapore Statutory
boards that are not rated.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
Source: AXA Rosenberg Group LLC.
28
schedule C
China Growth Fund
1 structure of ILP sub-fund
The structure of each of the China Growth Fund is set out below:
ILP sub-fund Structure
China Growth Fund The China Growth Fund is a single ILP sub-fund and invests all or
substantially all of its assets in the LionGlobal China Growth Fund, a
Singapore constituted open-ended standalone unit trust managed by
LionGlobal Investors Limited (“LionGlobal”).
The China Growth Fund is denominated in Singapore Dollars.
2 the Manager of the ILP sub-funds and the Underlying Fund Lion Global Investors, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one
of the largest asset management companies in South East Asia, with total assets under management of
S$31.4 billion as at 31 March 2013. Established as an Asian asset specialist since 1986, Lion Global
Investors offers Asian equities and Asian fixed income funds to institutional and retail investors globally. It
has one of the largest and most experienced investment teams dedicated to regional and global equities
and fixed income markets, with over 40 investment professionals with an average of 14 years of
investment experience. The company's commitment to investment excellence begins with a team-based
and research-intensive approach, combining in-depth market insights with comprehensive sector
knowledge.
Source: Lion Global Investors.
3 investment objective and focus
The investment objective and focus of the China Growth Fund is set out below:
ILP sub-fund Investment Objective and Focus
China Growth Fund To achieve medium to long-term capital growth of assets by investing
primarily in equity and equity-linked securities of companies in China, Hong
Kong S.A.R. and Taiwan.
The China Growth Fund seeks to achieve its investment objective by
investing all or substantially all of its assets in the LionGlobal China Growth
Fund.
29
4 investment approach
The investment approach of each of the China Growth Fund and India Fund is set out below:
ILP sub-fund Investment Approach
China Growth Fund
The Managers‟ investment approach is founded on a rigorous research
methodology aimed at uncovering high conviction stock ideas which are
trading at significant discount to fair value. The underlying philosophy is
that securities prices will ultimately reflect underlying economic
fundamentals. In the short to medium term however, technical factors
including behavioural factors or liquidity may distort prices. By staying
focused on the long term, the Managers avoid the common mistake of
selling too early or overtrading the portfolio.
The Managers believe the key is to design and implement a research
process that would identify businesses that have most, if not all, of the
following characteristics:
- A clearly understandable business model and value add proposition
- Strong and forward looking management
- Sustainable top line and bottom line growth
- Adopt healthy corporate governance practices
- Strong free cash flows or has the potential to generate such
- Exhibit strong profitability in terms of net profit margins and return on
equity
- Strong balance sheets
- Sustainable competitive edge
- A proven track record of growth and profitability through both good and
weak economic conditions.
In order to arrive at an accurate estimation of the fair value it is first and
foremost necessary to have a clear understanding of the business model
and all the key drivers of sales and profits. A thorough look back at the
operating history of the company is essential. This should preferably include
a long enough history that indicates operating performance under both
economic growth periods and slow/recessionary conditions.
An earnings and cash flow model is developed for each stock wherein the
Managers also develop some sensitivity analysis to analyse earnings and
cash flows under varying assumptions. The key is to determine for each
stock that we research, its sustainable earning power and the likely medium
to long term growth rate of those earnings and apply an appropriate
discount rate to derive its intrinsic value. The Managers tend to be skeptical
of the accounting definition of earnings and prefer to look at the cash flow
returns as a more reliable basis for determining investment value. Other
inputs that the Managers use to derive fair value include conventional
measures such as Price-Earnings ratios (PER), Enterprise Value-Earnings
Before Interest, Tax, Depreciation and Amortization (EV-EBITDA),
replacement values and comparable business transactions and dividend
discount model.
The Managers‟ preference is to search for growth stocks in growth
industries although they would also include some “value” stocks as well as
cyclical stocks. While these are widely used valuation tools the Managers
believe they can gain an edge by having deeper insights into understanding
the business fundamentals thus enabling them to make better judgments
on estimating the growth potential and applying the correct discount rate
which reflects the risk level of those earnings appropriately. The Managers
also make it a point to monitor closely all their investments so that mid
course adjustments can be made expeditiously when conditions warrant.
Source: Lion Global Investors.
30
5 CPF investment scheme
Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:
ILP sub-fund CPFIS Risk Classification Included Under
China Growth Fund Higher Risk (Narrowly Focused – Country, Greater
China)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on the ILP sub-funds covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying sub-funds that the ILP sub-funds invest
into, these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are
charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund level.
7 specific risks
All investments involve risk and the risks inherent to China Growth Fund are set out below:
7.1 Market risk
Prices of securities may go up or down in response to changes in economic conditions, interest rates
and the market‟s perception of securities. These may cause the price of Units in the sub-fund to go up
or down as the price of Units in the sub-fund is based on the current market value of the investments
of the sub-fund.
7.2 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.3 Derivatives risk
The sub-fund may invest in financial derivative instruments such as futures, options, warrants,
forwards and swaps for hedging purposes or for the purpose of efficient portfolio management. While
the judicious use of derivatives by professional investment managers can be beneficial, derivatives
involve risks different from, and, in some cases, greater than, the risks presented by more traditional
securities investments.
7.4 Emerging markets risk
The sub-fund may invest in emerging markets such as the People‟s Republic of China Region are also
subject to regulatory risks, for example, the introduction of new laws, the imposition of exchange
controls, the adoption of restrictive provisions by individual companies or where a limit on the holding
of the sub-fund in a particular company, sector or country by non-residents (individually or collectively)
has been reached.
31
7.5 Political Risk
The political situation in the countries in which the sub-Fund invests may have an effect on the value of
the securities of companies involved, which may in turn impact on the value of the Units of the sub-
fund.
7.6 Currency Risk
As the investments of the sub-fund may be denominated in foreign currencies, fluctuations of the
exchange rates of foreign currencies against the base currency of the sub-fund (i.e. the Singapore
Dollar) may affect the value of the Units in the sub-fund. The Managers may from time to time employ
currency hedging techniques to manage the impact of the exchange rate fluctuations on the sub-fund
and/or for the purpose of efficient portfolio management
Source: Lion Global Investors.
32
schedule D
Fortress Fund A
1 structure of ILP sub-fund
The structure of Fortress Fund A is set out below:
ILP sub-fund Structure
Fortress Fund A The Fortress Fund is a single ILP sub-fund managed by First State
Investments (Singapore) (“FSIS”).
The Fortress Fund is denominated in Singapore Dollars.
2 the Manager
First State Investments is the international operation of Colonial First State Global Asset Management
(„CFSGAM‟), the specialist asset management business of the Commonwealth Bank of Australia. CFSGAM
has funds under management of US$173.6 billion as at 31 March 2013 and is one of the largest asset
Australian–based managers with offices in Sydney, Melbourne, Auckland, London, Edinburgh, Paris,
Frankfurt, New York, Hong Kong, Singapore, Jakarta and Tokyo.
First State Investments is a signatory to the UN Principles of Responsible Investment since March 2007
with a dedicated sustainability and responsible investments team.
First State Investments offers investment solutions across a diverse range of asset classes, including
global equities, Asia Pacific and global emerging markets, global resources, global property securities,
global listed infrastructure securities, Australian equities, global fixed interest and credit, emerging market
debt, direct property, direct infrastructure investments, multi-asset solutions and asset allocation
strategies.
In Singapore, First State Investments provides access to the Group‟s investment capabilities. In particular,
Asia Pacific equities, multi-asset solutions and asset allocation strategies and Asian Fixed Income are
managed out of Singapore. In addition, we currently offer 14 Singapore registered collective investment
schemes. These include award-winning funds such as First State Bridge, First State GEM Leaders, First
State Regional China Fund and First State Global Resources.
Source: First State Investments (Singapore) as at 31 March 2013.
3 investment objective and focus
The investment objective and focus of Fortress Fund A is set out below:
ILP sub-fund Investment Objective and Focus
Fortress Fund A To achieve attractive medium-to-long term capital appreciation by investing
in companies listed on the main board of the Singapore Stock Exchange.
The portfolio will have a bias for companies with a large market
capitalisation.
33
4 investment approach
The investment approach of Fortress Fund A is set out below:
ILP sub-fund Investment Approach
Fortress Fund A FSIS essentially look to exploit market inefficiencies by purchasing
companies whose sustainable long-term growth rates are underestimated
by the market.
In doing so, it follows an active bottom-up investment approach where the
team aims to invest in quality companies with strong fundamentals using a
disciplined proprietary methodology. The objective of its research is the
identification of sensibly priced, high quality companies that can deliver
sustainable long-term earnings per share growth. Its belief is that the
selection of companies within a portfolio is the most important ingredient in
producing above average long-term performance with relatively low risk.
With a focus on owning quality companies, it regards benchmark indices as
poor representations of potential investment universes. It does not use
benchmarks to drive stock selection or portfolio construction. It realise that
fund managers that consistently do not meet their benchmark index targets
will fail. However, it is convinced that the way to achieve superior long-term
returns is by applying an absolute return mindset to all investment
decisions.
By adopting an absolute return mindset it avoid the risk of being carried
away by indiscriminate market euphoria. This focus on the potential
downside as well as on the upside when making any investment decision
means the risk to long-term client returns is significantly reduced.
Source: First State Investments.
5 CPF investment scheme
Details of the following ILP sub-fund‟s inclusion under the CPF Investment Scheme are set out below:
ILP sub-fund CPFIS Risk Classification Included Under
Fortress Fund A Higher Risk (Narrowly Focused – Country, Singapore)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on Fortress Fund A except those reflected on paragraph 7 of the
Product Summary Booklet and paragraph 3 of this Fund Information Booklet.
7 specific risks
All investments involve risk and the risks inherent to Fortress Fund A are set out below:
7.1 Market risk
Certain situations may have a negative effect on the price of shares within a particular market. These
may include regulatory changes, political changes, economic changes, technological changes and
changes in the social environment.
34
7.2 Investment risk
Investment in the sub-fund involves risk and you may not get back the full amount you have invested.
Past performance is no guarantee of future performance.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
Source: First State Investments.
35
schedule E
Global Equity Blend
Emerging Markets Debt Portfolio
1 structure of ILP sub-fund
The structure of the ILP sub-fund is set out below:
ILP sub-funds Structure
Global Equity Blend The Global Equity Blend is a single ILP sub-fund and invests all or
substantially all of its assets in AllianceBernstein - Global Equity Blend
Portfolio, a sub-fund of the AllianceBernstein mutual investment fund
which is structured as an umbrella mutual fund (fonds commun de
placement) organised under the laws of the Grand Duchy of Luxembourg
as an unincorporated co-proprietorship of its securities and qualifies as an
undertaking for collective investment in transferable securities (a “UCITS”)
within the meaning of Article 1(2) of the EC Directive 85/611 of 20
December 1985, as amended.
The Global Equity Blend is denominated in Singapore Dollars.
Emerging Markets Debt
Portfolio
The Emerging Markets Debt Portfolio is a single ILP sub-fund and invests
all or substantially all of its assets in AllianceBernstein - Emerging Markets
Debt Portfolio, a sub-fund of the AllianceBernstein mutual investment fund
which is structured as an umbrella mutual fund (fonds commun de
placement) organised under the laws of the Grand Duchy of Luxembourg
as an unincorporated co-proprietorship of its securities and qualifies as an
undertaking for collective investment in transferable securities (a “UCITS”)
within the meaning of Article 1(2) of the EC Directive 85/611 of 20
December 1985, as amended.
The Emerging Markets Debt Portfolio is denominated in Singapore Dollars. Directives of the European Parliament and of the Council of 21st January, 2002 (2001/107/EC and 2001/108/EC), amending the
Directive 85/611/EEC of the Council on the coordination of laws, regulations and administrative provisions relating to undertakings
for collective investment in transferable securities (“UCITS”).
2 the Manager of the ILP sub-fund and the Underlying Fund
AllianceBernstein L.P. is a leading global investment management firm that offers high-quality research
and diversified investment services to institutional clients, individuals and private clients in major markets
around the world. AllianceBernstein employs more than 400 investment professionals with expertise in
equities, fixed income securities, asset allocation strategies and alternative investments and, through its
subsidiaries and joint ventures, operates in more than 20 countries. AllianceBernstein‟s research
disciplines include fundamental research, quantitative research, economic research and currency
forecasting capabilities. Through its integrated global platform, AllianceBernstein is well positioned to tailor
investment solutions for its clients.
Source: AllianceBernstein L.P.
36
3 investment objective and focus
The investment objective and focus of Global Equity Blend and Emerging Markets Debt Portfolio is set out
below:
ILP sub-funds Investment Objective and Focus
Global Equity Blend To achieve long-term growth of capital by investing in an equity portfolio that
is designed as a solution for investors who seek equity returns but also want
broad diversification of the related risks across styles, sectors and
geographic regions.
Emerging Markets Debt
Portfolio
To maximize potential returns from price appreciation and income by
investing in sovereign debt obligations and non-U.S. corporate fixed-income
securities from issuers in emerging and developing countries. The Portfolio
invests in both U.S. dollar and non-U.S. dollar denominated securities. A
significant portion of the portfolios assets may be held in below investment
grade securities at any time. The Investment Manager utilizes the research
of its global fixed income, global economic and global credit teams in
managing the Portfolio.
4 investment approach
The investment approach of Global Equity Blend and Emerging Markets Debt Portfolio is set out below:
ILP sub-funds Investment Approach
Global Equity Blend
Global Equity Blend seeks to achieve long-term growth of capital.
Global Equity Blend invests in global equity portfolios that are designed as
solutions for investors who seek equity returns but also want broad
diversification of the related risks across styles, sectors and geographic
regions.
In managing Global Equity Blend, the underlying manager efficiently
diversifies between growth and value equity investment styles. The
underlying manager selects growth and value equity securities by drawing
from a variety of its fundamental growth and value investment disciplines to
produce a blended portfolio.
Normally, the underlying manager‟s targeted allocation for the Global Equity
Blend is an equal weighting of 50% growth stocks and 50% value stocks.
The underlying manager will allow the relative weightings of Global Equity
Blend‟s growth and value components to vary in response to markets, but
ordinarily only within a range of +/- 5% of Global Equity Blend. Beyond those
ranges, the underlying manager will generally rebalance Global Equity Blend
toward the targeted allocation. However, under extraordinary circumstances,
when the underlying manager believes that conditions favoring one or the
other investment are compelling, the range may expand to +/-10% of Global
Equity Blend before rebalancing occurs.
Emerging Markets Debt
Portfolio
Emerging Markets Debt Portfolio seeks to generate returns in excess of the
benchmark through a combination of country selection, currency allocation,
sector analysis and security selection.
Emerging Markets Debt Portfolio invests in sovereign debt obligations and
non-U.S. corporate fixed-income securities emphasize countries that are
included in the J.P. Morgan Emerging Markets Bond Index Global or are
considered at the time of purchase to be emerging markets or developing
countries. Emerging Markets Debt Portfolio invests at least two-thirds of its
total assets in sovereign and quasi-sovereign (i.e. debt issued by
supranational organizations and other government-related entities) debt
obligations.
37
Emerging Markets Debt Portfolio is non-diversified, meaning it may invest
more of its assets in a fewer number of issuers.
In managing Emerging Markets Debt Portfolio, the underlying manager
expects that at any time at least 80% of the Portfolio's total assets will be
invested in emerging market debt securities, and in no case will the amount
of the Portfolio's total assets invested in such securities be less than two-
thirds of the Portfolio's total assets. Emerging market countries are those
not characterized as high income countries by the World Bank, based on per
capita gross national income.
Furthermore, the Emerging Markets Debt Portfolio will invest no more than
25% of its total assets in convertible bonds, no more than 30% of its total
assets in money market instruments and no more than 10% of its total
assets in equity securities. Fixed-income securities and other assets,
including cash, which the Emerging Markets Debt Portfolio may hold, may
be denominated in various currencies. The Emerging Markets Debt Portfolio
may invest in structured securities (both Investment Grade and non-
Investment Grade) originated by a wide range of originators and sponsors.
Source: AllianceBernstein L.P.
5 CPF investment scheme
Details of the following ILP sub-fund‟s inclusion under the CPF Investment Scheme are set out below:
ILP sub-fund CPFIS Risk Classification Included Under
Global Equity Blend Higher Risk (Broadly Diversified)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on Global Equity Blend and Emerging Markets Debt Portfolio
except those reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund
Information Booklet.
Although certain fees and charges are imposed on the underlying sub-fund that Global Equity Blend and
Emerging Markets Debt Portfolio invest into, these will be set-off against the Annual Management Fee and
the Fixed Operating Fee that are charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund level.
7 specific risks
All investments involve risk and the risks inherent to Global Equity Blend and Emerging Markets Debt
Portfolio are set out below:
7.1 Global country risk
Investment in issuers located in a particular country or geographic region may have more market,
political and economic risks because of particular factors affecting that country or region.
7.2 Currency risk
38
Currency movements in the underlying investments of a portfolio that is denominated in a currency
different from that of the portfolio itself may significantly affect the NAV of that portfolio.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized advisers. The sub-fund may hold a significant portion of illiquid assets and there could
therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The sub-
fund may end up selling at lower than expected prices or face difficulties in valuing illiquid securities
and meeting redemption request.
7.4 Derivatives risk
The sub-fund is entitled to use derivatives instruments for hedging and EPM purposes which may
involve addition risks different from, and, in certain cases, greater than, the risks presented by more
traditional investments. Some of the risks associated with derivatives are market risks, management
risk, credit risk, liquidity risk and leverage risk.
In adverse situations, the sub-fund‟s use of derivative instruments may become ineffective in hedging
or EPM and the sub-fund may suffer significant losses.
The failure of counterparty to a derivative contract to comply with the terms of that contract could
cause the sub-fund to suffer a loss.
7.5 Turnover risk
The sub-fund is an actively managed investment fund – a higher rate of portfolio turnover increases
brokerage and other expenses, which must be borne by the sub-fund and its investors.
Source: AllianceBernstein L.P.
39
schedule F
Pacific Equity Fund
Singapore Equity Fund
India Fund
1 structure of ILP sub-fund
The structure of each of the Pacific Equity Fund and the Singapore Equity Fund is set out below:
ILP sub-funds Structure
Pacific Equity Fund The Pacific Equity Fund is a single ILP sub-fund and invests all or
substantially all of its assets in the Aberdeen Pacific Equity Fund, a sub-
fund under the Singapore domiciled umbrella, Aberdeen Select Portfolio,
managed by Aberdeen Asia.
The Pacific Equity Fund is denominated in Singapore Dollars.
Singapore Equity Fund The Singapore Equity Fund is a single ILP sub-fund managed by Aberdeen
Asset Management Asia Limited (“Aberdeen Asia”).
The Singapore Equity Fund is denominated in Singapore Dollars.
India Fund The India Fund is a single ILP sub-fund and invests all or substantially all of
its assets in the Aberdeen India Opportunities Fund, a sub-fund under the
Singapore domiciled umbrella, Aberdeen Select Portfolio, managed by
Aberdeen Asia.
The India Fund is denominated in Singapore Dollars.
2 the Manager of the ILP sub-funds and the Underlying Fund
Aberdeen Asset Management Asia Limited (“Aberdeen Asia”), a wholly-owned subsidiary of the Aberdeen
Asset Management Group (the “Aberdeen Group”), was established in Singapore in May 1992, as the
regional headquarters of the Aberdeen Group to oversee all of its Asia-Pacific assets, including collective
investment schemes. As at 31 December 2012, Aberdeen Asia had over US$113.7 billion worth of assets
under its management.
The Aberdeen Group
The roots of the Aberdeen Group go back to 1983, when it was formed by a management buy-out. Over the
years, the Aberdeen Group has undergone a series of transformations, but retained its identity as a pure
asset manager. Worldwide, the Aberdeen Group managed over US$314.3 billion as at 31 December 2012
in assets for institutional and retail clients, across different mandate types - equity, fixed income, private
equity and direct property. The Aberdeen Group‟s headquarters are in Aberdeen, Scotland, with principal
investment centres (Edinburgh, London, Philadelphia and Singapore) in the three main time zones. Within
Asia, the Aberdeen Group has offices in Singapore, Hong Kong, Thailand, Malaysia, Australia, Japan and
Taiwan, plus representation in China and Korea. Aberdeen Asset Management PLC was listed on the
London Stock Exchange in 1991.
Source: Aberdeen Asset Management Asia Limited.
40
3 investment objective and focus
The investment objective and focus of each of the Pacific Equity, Singapore Equity Fund and India Fund are
set out below:
ILP sub-funds Investment Objective and Focus
Pacific Equity Fund To provide investors with medium to long-term capital growth from a
diversified portfolio of Asian-Pacific (excluding Japanese) equities.
The Pacific Equity Fund currently seeks to achieve its investment objective
by investing all or substantially all of its assets in the Aberdeen Pacific
Equity Fund.
Singapore Equity Fund To provide investors with medium to long-term capital growth from a
portfolio of Singapore equities.
India Fund Aims to achieve long term capital growth by investing all or substantially all
of its assets in the Aberdeen Global – Indian Equity Fund* (the “underlying
fund”), a sub-fund of the Luxembourg-registered Aberdeen Global, which
invests at least two-thirds of its assets in equities and equity-related
securities of companies with their registered office in India; and/ or, of
companies which have the preponderance of their business activities in
India; and/or, of holding companies that have the preponderance of their
assets in companies with their registered office in India.
The current investment policy of the underlying fund, into which the
Aberdeen India Opportunities Fund feeds, is to invest in India via a
Mauritian subsidiary. Investors should refer to the prospectus for further
information on the Mauritian subsidiary.
4 investment approach
The investment approach of each of the Pacific Equity Fund and India Fund are set out below:
ILP sub-funds Investment Approach
Pacific Equity Fund
India Fund
The Manager‟s and the investment managers‟ investment philosophy is that
markets are not always efficient. Superior returns are therefore attainable
by identifying good securities (defined in terms of the fundamentals which
the Manager believes will drive stock prices over the long term) cheaply.
This is achieved primarily through first-hand research and active
management of portfolios.
In emphasizing the primacy of corporate performance, the Manager and the
investment managers tend to disregard the role of indices and the concept
of relative return. Market capitalization appears an unsound theoretical
basis for a „neutral‟ portfolio position, being an inherently historical
construct, while consensus-driven demand is potentially distorting. Absolute
return is held to be more important over the long term, with risks controlled
primarily at the security level.
In respect of the Aberdeen Pacific Equity Fund, the underlying fund of the Pacific Equity Fund, the
manager‟s policy is to invest all or substantially all of the assets of the Aberdeen Pacific Equity Fund as a
feeder fund to invest in the equity-based Asia Pacific sub-funds in the same umbrella, the Aberdeen Select
Portfolio, and up to 10% in the Aberdeen Global – Indian Equity Fund, a sub-fund of the Luxembourg
domiciled Aberdeen Global.
For the Aberdeen India Opportunities Fund will invest all or substantially all of its assets in the Aberdeen
Global – Indian Equity Fund*, the Underlying Fund, which invests at least two-thirds of its assets in equities
and equity-related securities of companies with their registered office in India; and/ or, of companies which
41
have the bulk of their business activities in India; and/or, of holding companies that have the bulk of their
assets in companies with their registered office in India.
Source: Aberdeen Asset Management Asia Limited.
5 CPF investment scheme Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:
ILP sub-funds CPFIS Risk Classification Included Under
Pacific Equity Fund Higher Risk (Narrowly Focused – Regional, Asia)
CPFIS Ordinary Account
Singapore Equity Fund Higher Risk (Narrowly Focused – Country, Singapore)
CPFIS Ordinary Account
India Fund Higher Risk (Narrowly Focused – Country, Others)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying fund(s) that the ILP sub-fund(s) invest
into or charged by the Manager of the ILP sub-fund, these will be set-off against the Annual Management
Fee and the Fixed Operating Fee that are charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund or manager level.
7 specific risks
All investments involve risk and the risks inherent to the Aberdeen Pacific Equity Fund, Singapore Equity
Fund and the Aberdeen India Opportunities Fund (collectively the “Funds”) are set out below:
General Risks
The value of the Funds may rise or fall. Investments in the Funds are subject to various risks such as
market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange
controls, changes in taxation and foreign investment policies and other restrictions and controls which
may be imposed by the relevant authorities in other countries. The risk factors set out herein may
cause you to lose some or all of your investment. These risks are elaborated upon below.
7.1 Market Risk
The usual risks of investing in listed and unlisted securities apply. Prices of securities may rise or fall in
response to changes in economic conditions, political conditions, interest rates, and market sentiment.
These may cause the price of Units in the Underlying Funds to go up or down as the price of Units is
based on the current market value of the investments of the Funds.
7.2 Political Risk
The Funds invests in countries with less stable political and economic environments and in securities‟
markets with lower levels of regulation and different accounting, commercial and market practices
than those of acceptable international standards are likely to increase the overall risk of the Funds.
42
7.3 Liquidity Risk
The securities markets of some countries lack the liquidity, efficiency, regulatory and supervisory
controls of more developed markets. The lack of liquidity may adversely affect the value or ease of
disposal of assets, thereby increasing the risk of investing in such markets.
7.4 Settlement Risk/Transactions Risk
The property of the Aberdeen Pacific Equity Fund and the Aberdeen India Opportunities Fund are held
by the Trustee on behalf of the Holders, separate from the Trustee‟s assets. It is therefore protected in
the event of the insolvency of the Trustee. There is, however, still a risk that there may be a temporary
delay in subscriptions and redemptions of the Units.
7.5 Regulatory Risk
The investment objectives and parameters of the Funds are restricted by applicable legislation and
regulatory guidelines. There may be a risk that legislative or regulatory changes may make it less likely
for the Funds to achieve their objectives.
7.6 Currency Risk/Exchange Rate Risk
The assets and income of the Funds will be substantially denominated in currencies other than the
Singapore dollar. Currency fluctuations between foreign currencies and the Singapore dollar may affect
the income and valuation of the assets of the Funds in ways unrelated to business performance.
Investors should note that the Manager generally does not hedge the currency position of the Funds
unless circumstances require it.
7.7 Taxation
Investors should note that the proceeds from the sale of securities in some markets or the receipt of
any dividends or other income may be or may become subject to tax, levies, duties or other fees or
charges imposed by the authorities in that market, including taxation levied by withholding at source.
Tax law and practice in certain countries into which the Funds invest or may invest in the future (in
particular other emerging markets) is not clearly established. It is possible therefore that the current
interpretation of the law or understanding of practice might change, or that the law might be changed
with retrospective effect. It is therefore possible that the Funds could become subject to additional
taxation in such countries that is not anticipated either at the date of this Fund Summary or when
investments are made, valued or disposed of.
7.8 Repurchase/Reverse Repurchase or Securities Lending Agreements
Whilst the value of the collateral of repurchase or securities lending agreements will be maintained to
at least equal to the value of the securities transferred, in the event of a sudden market movement
there is a risk that the value of such collateral may fall below the value of the securities transferred.
In relation to repurchase transactions, investors should note that (A) in the event of the failure of the
counterparty with which cash of the Funds have been placed, there is the risk that collateral received
may yield less than the cash placed out, whether because of inaccurate pricing of the collateral,
adverse market movements, a deterioration in the credit rating of issuers of the collateral, or the
illiquidity of the market in which the collateral is traded; that (B) (i) locking cash in transactions of
excessive size or duration, (ii) delays in recovering cash placed out, or (iii) difficulty in realising
collateral may restrict the ability of the Funds to meet redemption requests, security purchases or,
more generally, reinvestment; and that (C) repurchase transactions will, as the case may be, further
expose the Funds to risks similar to those associated with optional or forward derivative financial
instruments, which risks are further described in other sections of the Aberdeen Select Prospectus.
Securities lending involves counterparty risk, including the risk that the loaned securities may not be
returned or returned in a timely manner and/or at a loss of rights in the collateral if the borrower or
the lending agent defaults or fails financially. This risk is increased when the Funds‟ loans are
concentrated with a single or limited number of borrowers. Investors must notably be aware that (A) if
the borrower of securities lent by the Funds fail to return these, there is a risk that the collateral
received may realise less than the value of the securities lent out, whether due to inaccurate pricing,
adverse market movements, a deterioration in the credit rating of issuers of the collateral, or the
illiquidity of the market in which the collateral is traded; that (B) in case of reinvestment of cash
collateral such reinvestment may (i) create leverage with corresponding risks and risk of losses and
volatility, (ii) introduce market exposures inconsistent with the objectives of the Funds, or (iii) yield a
43
sum less than the amount of collateral to be returned; and that (C) delays in the return of securities
on loans may restrict the ability of the Funds to meet delivery obligations under security sales.
7.9 Potential Conflicts of Interest
The Manager and other companies in the Aberdeen Group may effect transactions in which they
have, directly or indirectly, an interest which may involve potential conflicts with their duty to the
Funds. Neither the Manager nor other companies in the Aberdeen Group shall be liable to account to
the Funds for any profit, commission or remuneration made or received from or by reason of such
transactions or any connected transactions nor will the Manager‟s fees, unless otherwise provided,
be abated. The Manager will ensure that such transactions are effected on terms which are not less
favourable to the Funds than if the potential conflict had not existed. Such potential conflicting
interests or duties may arise because the Manager or other members in the Aberdeen Group may
have invested directly or indirectly in the Funds. More specifically, the Manager, under the rules of
conduct applicable to it, must try to avoid conflicts of interests and, where they cannot be avoided,
ensure that its clients (including the Underlying Sub-Funds) are fairly treated.
7.10 Derivative Usage
The Funds may use financial derivative instruments for the purposes of hedging and/or efficient
portfolio management to the extent permitted in the Aberdeen Select Portfolio Trust Deed. In no
event are financial derivative instruments used to lever the Funds.
Total Derivatives Exposure
The Manager will ensure for the Funds that its exposure relating to financial derivative instruments
does not exceed the total net value of its portfolio. The Manager will ensure that the global exposure
of the Funds to financial derivative instruments or embedded financial derivative instruments will
not exceed 100% of the net asset value of the Funds at all times. Such exposure will be calculated
using the commitment approach as described in, and in accordance with the provisions of, the Code
of Investment Collective Scheme issued by the MAS (“Code”).
Execution of Trades
An automated trading system provides for the capture of orders from the fund manager for
transmission to an independent dealing function which facilitates management of the dealing
process and, once executed, onward transmission to the back office trade processing function. It is
used for the execution of fixed and equity securities, exchange-traded derivatives and OTC
derivatives (as defined in paragraph (7.12) below).
Investors should note that there are risks associated with the use of such financial derivative
instruments. Some of the risks associated with financial derivative instruments include market risk
(described in paragraph (7.1)), liquidity risk (described in paragraph (7.3)) and counterparty risk
(described in paragraph (7.12)). Therefore, it is essential that investments in financial derivative
instruments are monitored closely. Description of risk management and compliance procedures and controls adopted by the Manager An electronic Compliance Guideline Monitoring system, which is integrated within the trading
platform, gives pre-deal alerts to fund managers and post-deal exception reports to the Compliance
Department in respect of actual and potential breaches of regulations and guideline restrictions.
This includes total derivatives exposure and counterparty exposure. The Compliance Guideline
Monitoring system is maintained independently of the fund managers by the Compliance
Department. Monitoring for derivatives and physical assets takes place on a pre-trade basis.
The Manager will ensure that the risk management and compliance procedures and controls
adopted are adequate and have been implemented and that it has the necessary expertise to
control and manage the risks relating to the use of financial derivatives.
7.11 Counterparty Risk Where financial derivative instruments are dealt in over-the-counter markets (“OTC derivatives”),
there is a risk that the counterparty may default. It may be necessary to make payment on a
purchase or delivery on a sale before receipt of the securities or, as the case may be, sale proceeds.
44
Subject to the provisions of the Code:
(a) the risk exposure of the Funds to a counterparty in an OTC derivative transaction may not
exceed 10% of its net assets when the counterparty is a credit institution, which has its
registered office in a country which is a EU Member State or if the registered office of the credit
institution is situated in a non-EU Member State provided that it is subject to prudential rules
equivalent to those in EU Member States; and
(b) the Funds are restricted to dealing with OTC counterparties, which are rated between AAA and A-
(S&P/Fitch) or Aaa and A3 (Moody‟s), such ratings as may be allowed by the Code, as may be
amended from time to time. Where multiple external ratings are available, if there is discrepancy
between ratings, the most recently published rating is used. If the rating dates are equal, the
lower of the two ratings is used. In the case that external rating falls below the relevant A-/A3
rating requirement, the OTC counterparty is rated internally using AAM credit model, which
covers both quantitative and qualitative information from a number of sources, i.e. data from
audited financial statements, market-based risk metrics Credit Default Swap (CDS) and
Expected Default Frequency (EDF), and qualitative assessments of counterparty‟s business,
leadership, risk management, regulatory oversight and competitive dynamics.
7.12 Capacity Restrictions
There is a possibility that the Funds may be closed to new subscriptions without prior notice to its
holders in certain circumstances, for instance, where the Funds have reached a size such that the
capacity of the market and/or the capacity of the relevant investment adviser/sub-manager has
been reached, and where to permit further inflows would be detrimental to the performance of the
Funds. In such case, the Manager may also need to restrict or close new subscriptions or switches
into the Funds.
The risk disclosures included in this section are intended to summarise some of the general risks
associated with investment in the Funds, but they are not exhaustive and do not constitute or
purport to offer advice on the suitability of investment in the Funds. Investors should consult their
financial advisors.
(a) Investments in the Funds are designed to produce returns over the long-term and are not
suitable for short-term speculation. Investors should not expect to obtain short-term gains from
such investment.
(b) Investors should be aware that the price of Units in the Funds and the income of the Funds may
fall or rise. Investors may not get back their original investment.
7.13 Specific Risks In addition to the general risk factors set out above, potential investors should be aware of certain fund specific risks as set out below: Pacific Equity Fund
(a) Exposure to specific regional markets increases potential volatility because the concentration in
specific regional markets makes the Funds less diversified compared to exposure to global markets.
(b) Exposure to emerging markets increases potential volatility in your portfolio as emerging markets
tend to be more volatile than mature markets and the value of underlying investments could move
sharply up or down. In some circumstances, the underlying investments may become illiquid which
may constrain the Funds‟ investment managers‟ ability to realise some or all of the assets. The
registration and settlement arrangements in emerging markets may be less developed than in more
mature markets so the operational risks of investing in emerging markets are also higher. In addition,
the legal, judicial and regulatory infrastructures in emerging markets are still developing and political
risks and adverse economic circumstances are also more likely to arise.
(c) Investment in the Aberdeen Pacific Equity Fund which invests in investments in China is subject to
certain additional risks. Investments in local Chinese securities are done through the use of a
Qualified Foreign Institutional investor ("QFII") licence and the QFII licence holder‟s name is used to
set up nominee accounts for which the securities and other assets are held on behalf of the relevant
underlying sub-funds. There is a risk that creditors of the QFII may attempt to assert that the
securities and other assets in the nominee accounts are owned by the QFII and not the relevant
45
underlying sub-fund. If a court upholds such an assertion, the creditors of the QFII may seek payment
from the assets of the relevant underlying sub-funds which could in turn affect the net asset value of
the Underlying Fund
Singapore Equity Fund
(a) Exposure to a single country market increases potential volatility because the concentration in a
single country market makes it less diversified compared to an exposure to specific regional or
global markets
India Fund
(a) Exposure to a single country market increases potential volatility as it is less diversified compared to
exposure to specific regional or global markets
(b) Exposure to emerging markets increases potential volatility in your portfolio as the legal, judicial and
regulatory infrastructure in emerging markets is still developing and there is much legal uncertainty
both for local market participants and their overseas counterparts.
For efficient portfolio management purposes, a wholly-owned Mauritian subsidiary is utilised by Aberdeen
Global to hold all the investments of the Aberdeen Global – Indian Equity Fund, into which the Aberdeen
India Opportunities Fund and Aberdeen Pacific Equity Fund feed. Mauritius is a widely used jurisdiction for
investing on a collective basis into India and has developed an infrastructure to support such vehicles
encompassing the full range of administration services. The Mauritian subsidiary is governed by the
provisions of the India-Mauritius Double Taxation Avoidance Treaty. If it is no longer beneficial to invest
through the Mauritian subsidiary, the Aberdeen Pacific Equity Fund may elect to invest directly in India.
Source: Aberdeen Asset Management Asia Limited.
46
schedule G
Singapore Bond Fund
1 structure of ILP sub-fund
The structure of the Singapore Bond Fund is set out below:
ILP sub-fund Structure
Singapore Bond Fund
You are investing in an ILP sub-fund that feeds 100% into United Singapore
Bond fund, a unit trust constituted in Singapore, that aims to maximise
returns over the longer term by investing mainly in SGD-denominated
bonds and/or foreign currency-denominated bonds (including, without
limitation, zero coupon bonds, callable bonds, equity linked bonds and
convertible bonds) and fixed income/debt securities of all maturities
issued in Singapore by the government, statutory bodies, public and private
entities, SGD-denominated and/or foreign currency denominated money
market instruments, bond funds (including funds managed by the
Managers) and/or time deposits in accordance with the CPF Investment
Guidelines. There is no target industry or sector.
The initial purchase price of the ILP sub-fund is set at SGD 1.00 at launch.
2 the Manager of the ILP sub-funds and the Underlying Fund
UOBAM is a wholly-owned subsidiary of UOB Group. Established in 1986, UOBAM has been managing
collective investment schemes and discretionary funds in Singapore for 27 years and as of 30 April 2013
manages about S$27.2 billion in clients' assets. UOBAM also has investment operations in Malaysia and
Thailand.
UOBAM offers global investment management expertise to institutions, corporations and individuals,
through customised portfolio management services and unit trusts. As at 30 April 2013, UOBAM manages
53 unit trusts in Singapore, with total assets of about S$27.2 billion under management. UOBAM is one of
the largest unit trust managers in Singapore in terms of assets under management.
In terms of market coverage, UOBAM has acquired specialist skills in equity investment in Asian,
Australian, European and US markets and in major global sectors. In the bond markets, UOBAM covers the
Organisation of Economic Co-operation and Development (OECD) countries to emerging markets. UOBAM's
investment philosophy is to emphasise on securities selection using a bottom-up approach. UOBAM makes
regular company visits and supplements its fundamental investment approach with quantitative tools to
control risks and to aid in the portfolio construction process. UOBAM has also established itself as one of
the leading players in structured credits and investment solutions, managing third party investments in
global emerging market securities as well as global investment grade, non-investment grade and multi-
sector credits.
In addition, UOBAM is committed to achieving consistently good performance. Since 1996, UOBAM has
won 125 awards for investments in local, regional and global markets, and across global sectors such as
Banking and Finance, Technology, Healthcare, as well as Gold and Mining.
As at 30 April 2013, UOBAM and its subsidiaries in the region have a staff strength of over 240 including
about 60 investment professionals in Singapore.
Source: UOBAM.
47
3 investment objective and focus
The investment objective and focus of the Singapore Bond Fund is set out below:
ILP sub-fund Investment Objective and Focus
Singapore Bond Fund The investment objective of the Singapore Bond Fund is to maximise returns
over the longer term by investing mainly in SGD-denominated bonds and/or
foreign currency-denominated bonds (including, without limitation, zero
coupon bonds, callable bonds, equity-linked bonds and convertible bonds)
and fixed income/debt securities of all maturities issued in Singapore by the
government, statutory bodies, public and private entities, SGD denominated
and/or foreign currency-denominated money market instruments, bond
funds (including funds managed by the Managers) and/or time deposits in
accordance with the CPF Investment Guidelines. There is no target industry
or sector.
4 investment approach
The investment approach of the Singapore Bond Fund is set out below:
ILP sub-fund Investment Approach
Singapore Bond Fund
The investment process is principally driven by the Managers‟ assessment
on the fundamental factors which they consider to be important to the
direction of both interest rates and exchange rates. The process involves a
top down approach supplemented by bottom up analysis to arrive at the
final asset allocation.
The sub-fund may use or invest in financial derivative instruments for the
purposes of hedging existing positions in a portfolio or efficient portfolio
management or a combination of both purposes.
Source: UOBAM.
5 fees and charges
No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying fund(s) that the ILP sub-fund(s) invest
into or charged by the Manager of the ILP sub-fund, these will be set-off against the Annual Management
Fee and the Fixed Operating Fee that are charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund or manager level.
48
6 CPF Investment Scheme
The risk classification and inclusions under the CPF Investment Scheme (CPFIS) for the Singapore Bond Fund is:
ILP sub-fund CPFIS Risk Classification Included Under
Singapore Bond Fund Low to Medium Risk
(Narrowly Focused)
CPFIS Ordinary Account and
CPFIS Special Account
7 specific risks
All investments involve risk and the risks inherent to Singapore Bond Fund are set out below:
7.1 Market risk
Investors in the sub-fund should consider and satisfy themselves as to the usual risks of investing
and participating in publicly traded securities. Prices of securities may go up or down in response
to changes in economic conditions, interest rates and the market‟s perception of securities which
in turn may cause the value of units in the sub-fund to rise or fall.
Furthermore, some of the markets or exchanges on which the sub-fund may invest may prove to
be illiquid or highly volatile from time to time and this may affect the price at which the sub-fund
may liquidate its positions to meet realisation requests.
7.2 Foreign exchange / currency risk
Where investments of the sub-fund are denominated in currencies other than the currency in
which the sub-funds or any Class thereof are denominated, fluctuations of the exchange rates of
other foreign currencies against the Singapore Dollar or the US Dollar (as the case may be) may
affect the value of the units. In the management of the sub-fund, the Managers adopt an active
currency management approach. However, the foreign currency exposure of any sub-fund may not
be fully hedged depending on circumstances of each case. Such considerations include but are
not limited to the outlook on the relevant currency, the costs of hedging and the market liquidity of
the relevant currency.
Additionally, a sub-fund may have Classes of Units that are denominated in currencies other than
the base currency of the sub-fund. Changes in the exchange rate between the base currency of the
sub-fund and the currency of denomination of any such Class may lead to a depreciation of the
value of the Units of such Class, as expressed in the currency of denomination of the Class. The
Managers may hedge against such exchange rate risks. Where a class of units in a sub-fund is
designated in a currency other than the base currency of the sub-fund, the Manager may or may
not mitigate the exchange rate risks to extent of the value of the assets of the sub-fund attributed
to such Class by hedging such exchange rate risks. Investors should note that although the
financial instrument used to mitigate such exchange rate risks is not in relation to the other
Classes of Units within the sub-fund, the financial instrument will comprise the assets (or
liabilities) of the sub-fund as a whole. The gains (or losses) on and the costs of the relevant
financial instruments will, however, accrue solely to the relevant Class of Units of the sub-fund.
Exchange control regulations or any changes thereto may cause difficulties in the repatriation of
funds, and the performance of the sub-funds‟ holdings may be affected. Certain countries
maintain their currencies at artificial levels relative to the Singapore Dollar or the US Dollar (as the
case may be), and restrict conversion of their currency into other currencies, including the
Singapore Dollar or the US Dollar (as the case may be), and for some currencies, there is no
significant foreign exchange market. This type of system can lead to sudden and large
adjustments in such currency, which can result in losses to investors.
7.3 Political risk
Investments in each sub-fund may be adversely affected by political instability as well as exchange
controls, changes in taxation, foreign investment policies, restrictions on repatriation of
investments and other restrictions and controls which may be imposed by the relevant authorities
in the relevant countries.
49
7.4 Derivatives risk
As the sub-fund may be investing in derivatives for efficient portfolio management or hedging it will
be subject to risks associated with such investments. These derivatives include foreign exchange
forward contracts and equity index futures contracts. Investments in derivatives may require the
deposit of initial margin and additional deposit of margin on short notice if the market moves
against the investment positions. If no provision is made for the required margin within the
prescribed time, the relevant sub-fund‟s investments may be liquidated at a loss. Therefore, it is
essential that such investments in derivatives are monitored closely. The Managers have the
necessary controls for investments in derivatives and have in place systems to monitor the
derivative positions of the sub-fund.
Risk management procedures of the Managers
(a) The Managers may use or invest in financial derivative instruments (“FDIs” or “derivatives”) for
the purposes of hedging existing positions in a portfolio or efficient portfolio management or a
combination of both purposes.
(b) The Managers will ensure that the global exposure of each sub-fund to FDIs or embedded FDIs
will not at any time exceed 100% of the Net Asset Value of the Deposited Property of the relevant
sub-fund. The Managers will apply a commitment approach to determine the relevant sub-fund‟s
global exposure to FDIs by converting the positions in the FDIs into equivalent positions in the
underlying assets of those FDIs and will calculate such exposure in accordance with the methods
described in the Code on Collective Investment Schemes.
(c) Description of risk management and compliance procedures and controls adopted by the
Managers:
(i) The Managers will implement various procedures and controls to manage the risk of the assets
of each sub-fund. The decision to invest in any particular security or instrument on behalf of a sub-
fund will reflect the Managers‟ judgment of the benefit of such transactions to the relevant sub-
fund and will be consistent with the relevant sub-fund‟s investment objective in terms of risk and
return.
(ii) Execution of Trades. Prior to each trade, the Managers will ensure that the intended trade will
comply with the stated investment objective, focus, approach and restrictions (if any) of the
relevant sub-fund, and that best execution and fair allocation of trades are done. The Managers‟
middle office department will conduct periodic checks to ensure compliance with the investment
objective, focus, approach and restrictions (if any) of the relevant sub-fund. In the event of any
non-compliance, the Managers‟ middle office department is empowered to instruct the relevant
officers to rectify the same. Any non-compliance will be reported to higher management and
monitored for rectification.
(iii) Liquidity. In the event of unexpectedly large realisations of units in a sub-fund, there may be a
possibility that the assets of a sub-fund may be forced to be liquidated at below their fair and
expected value, especially in illiquid public exchanges or over-the-counter markets. The Managers
will ensure that a sufficient portion of each sub-fund will be in liquid assets such as cash and cash
equivalents to meet expected realisations, net of new subscriptions.
(iv) Counterparty exposure. A sub-fund may have credit exposure to counterparties by virtue of
positions in financial instruments (including derivatives) held by the relevant sub-fund. To the
extent that a counterparty defaults on its obligations and the relevant sub-fund is delayed or
prevented from exercising its rights with respect to the investments in its portfolio, it may
experience a decline in the value of its assets and in its income stream and incur extra costs
associated with the exercise of its financial rights. Subject to the provisions of the Code on
Collective Investment Schemes, the Managers will restrict their dealings with counterparties to
entities that have a minimum long-term issuer credit rating of above BB+ by Standard and Poor‟s,
an individual rating of above C by Fitch Inc. or a financial strength rating of above C by Moody‟s
Investors Service. If any approved counterparty fails this criterion subsequently, the Managers will
take steps to unwind the relevant sub-fund‟s position with that counterparty as soon as
practicable.
50
(v) Volatility. To the extent that a sub-fund has exposure to FDIs that allow a larger amount of
exposure to a security for no or a smaller initial payment than the case when the investment is
made directly into the underlying security, the value of the relevant sub-fund‟s assets will have a
higher degree of volatility. A sub-fund may use FDIs for hedging purposes for reducing the overall
volatility of the value of its assets. At the same time, the Managers will ensure that the global
exposure of a sub-fund to FDIs and embedded FDIs will not exceed the Net Asset Value of that
sub-fund, as stated in paragraph (b) above.
(vi) Valuation. A sub-fund may have exposure to over-the-counter FDIs that are difficult to value
accurately, particularly if there are complex positions involved. The Managers will ensure that
independent means of verifying the fair value of such instruments are available, and will conduct
such verification at an appropriate frequency.
(d) The Managers will ensure that the risk management and compliance procedures and controls
adopted by them are adequate and have been implemented, and that they have the necessary
expertise to control and manage the risks relating to the use of FDIs. The Managers may modify
the risk management and compliance procedures and controls as they deem fit and in the
interests of each sub-fund, but subject always to the requirements under the Code on Collective
Investment Schemes.
(e) For the purposes of determining its counterparty exposure under over-the-counter FDIs, each
sub-fund may net its over-the-counter financial derivative positions with a counterparty through
bilateral contracts for novation or other bilateral agreements with the counterparty, provided that
such netting arrangements satisfy the relevant conditions described in the Code on Collective
Investment Schemes, and that the Managers will obtain (where applicable) the required legal
opinions as stipulated in the Code on Collective Investment Schemes.
(f) Where the underlying asset of a FDI consists of commodities, such FDI transaction will be
settled in cash at all times.
7.5 Liquidity risk
Investments by the sub-fund in some Asian and/or emerging markets often involve a greater
degree of risk due to the nature of such markets which do not have fully developed services such
as custodian and settlement services often taken for granted in more developed markets. There
may be greater degree of volatility in such markets because of speculative elements, significantly
lower retail participation and lack of liquidity, which are inherent characteristics of these Asian
and/or emerging markets.
7.6 Default/credit risks
Investments in debt securities are subject to adverse changes in the financial condition of the
issuer, or in general economic conditions, or both, or an unanticipated rise in interest rates, which
may impair the ability of the issuer to make payments of interest and principal especially if the
issuer is highly leveraged. Such issuer‟s ability to meet its debt obligations may also be adversely
affected by specific corporate developments, or the issuer‟s inability to meet specific projected
business forecasts, or the unavailability of additional financing. Also, an economic downturn or an
increase in interest rates may increase the potential for default by the issuers of these securities.
7.7 Interest rate risk
Investments in debt securities are also subject to the risk of interest rate fluctuations, and the
prices of debt securities may go up or down in response to such fluctuations in interest rates.
7.8 Structured products risk
The sub-fund may, directly or indirectly, invest in structured products that provide exposure,
synthetically or otherwise, to underlying assets and the risk/return profile is determined by the
cash flows derived from such assets. Structured products generally involve multiple components
(for example, derivatives and debt instruments) and are therefore exposed to the risks associated
with such components. The price of such an investment could also be contingent on, or highly
sensitive to, changes in the underlying components of the structure product. Some structured
products may employ leverage which can cause the price of such products to be more volatile
than if they had not employed leverage.
51
7.9 Counterparty risk
The sub-fund will be exposed to credit risk on the counterparties with which it trades particularly in
relation to options, futures, contracts and other derivative financial instruments that are not
traded on a recognised market. Such instruments are not afforded the same protections as may
apply to participants trading futures or options on organised exchanges, such as the performance
guarantee of an exchange clearing house. The sub-fund will be subject to the possibility of the
insolvency, bankruptcy or default of a counterparty with which the sub-funds trade, which could
result in substantial losses to the sub-fund.
7.10 Real estate risk
As the sub-fund may invest in real estate investment trust companies, this may entail a higher risk
as real estate investments are subject to risks which are specific to the investment sector or type
of property in which the real estate companies operate or are involved in.
7.11 Exceptional market conditions
Under certain market conditions, it may be difficult or impossible to liquidate or rebalance
positions. For example, this may occur during volatile markets or crisis situations or where trading
under the rules of the relevant stock exchange is suspended, restricted or otherwise impaired.
During such times, the sub-fund may be unable to dispose of certain assets due to thin trading or
lack of a market or buyers. Placing a stop loss order may not necessarily limit a sub-fund‟s losses
to intended amounts as market conditions may make it impossible to execute such an order at the
ideal price. In addition, such circumstances may force a sub-fund to dispose of assets at reduced
prices, thereby adversely affecting that sub-fund‟s performance. Further, such investments may be
difficult to value with any degree of accuracy or certainty. The dumping of securities in the market
could further deflate prices. If the sub-fund incurs substantial trading losses, the need for liquidity
could rise sharply at the same time that access to liquidity is impaired. Further, in a market
downturn, the sub-fund‟s counterparties‟ financial conditions could be weakened, thereby
increasing that sub-fund‟s credit risk.
7.12 Risk of using rating agencies and other third parties
Credit ratings of instruments invested into by a sub-fund represent the Managers‟ and/or rating
agencies‟ opinion regarding the credit quality of the instrument or the institution and are not a
guarantee of quality. Rating methodologies generally rely on historical data, which may not be
predictive of future trends and adjustments to credit ratings in response to subsequent change of
circumstances may take time. When a debt security is rated, the downgrading of such debt
security could decrease the value and liquidity of the security. The Managers are entitled to rely,
without independent investigation, upon pricing information and valuations furnished to a sub-
fund by third parties, including pricing services and independent brokers/dealers. Their accuracy
depends on these parties‟ methodology, due diligence and timely response to changing
conditions. The Managers cannot be held responsible for any failures by such parties in their
valuations.
7.13 Repatriation of capital, dividends, interest and other income risks
It may not be possible for the sub-fund to repatriate capital, dividends, interest and other income
from certain countries, or it may require government consent to do so. The sub-fund could be
adversely affected by the introduction of the requirement for any such consent, or delays in or the
failure to grant any such consent, for the repatriation of funds or by any official intervention
affecting the process of settlement of transactions which may in turn affect the repatriation of
funds. Economic or political conditions could lead to the revocation or variation of consent granted
prior to investment being made in any particular country or to the imposition of new restrictions.
7.14 Settlement, clearing and registration risks
Some of the countries in which the sub-fund may invest are undergoing rapid expansion. There
can be no guarantee of the operation or performance of settlement, clearing and registration of
transactions in some of these markets. Where organised securities markets and banking and
telecommunications systems are underdeveloped, concerns inevitably arise in relation to
settlement, clearing and registration of transactions in securities where these are acquired other
than as direct investments. Furthermore, due to the local postal and banking systems in many less
developed markets, no guarantee can be given that all entitlements attaching to quoted and over-
the-counter traded securities acquired by the sub-fund, including those related to dividends, can
be realised. Some markets currently dictate that a local prime broker receives monies for
52
settlement by a number of days in advance of settlement, and that assets are not transferred until
a number of days after settlement.
7.15 Actions of institutional investors
The Managers may accept subscriptions from institutional investors and such subscriptions may
constitute a large portion of the total investments in a sub-fund. Whilst these institutional
investors will not have any control over the Managers‟ investment decisions, the actions of such
investors may have a material effect on the relevant sub-fund. For example, substantial
realisations of units by an institutional investor over a short period of time could necessitate the
liquidation of the relevant sub-fund‟s assets at a time and in a manner which does not provide the
most economic advantage to the sub-fund and which could therefore adversely affect the value of
the sub-fund‟s assets.
Source: UOBAM.
53
schedule H
Singapore Dollar Fund
South East Asia Special Situations Trust
1 structure of ILP sub-fund
The structure of Singapore Dollar Fund and South East Asia Special Situations Trust are set out below:
ILP sub-funds Structure
Singapore Dollar Fund The Singapore Dollar Fund is a single ILP sub-fund and invests all or
substantially all of its assets in the Legg Mason Western Asset Singapore
Dollar Fund, a sub-fund under the Singapore constituted open–ended
umbrella unit trust, Legg Mason Western Asset Funds, managed by
Western Asset Management Company Pte Ltd (WAMCPL).
The Singapore Dollar Fund is denominated in Singapore Dollars and will
not provide any income distribution. It is not offered to AXA‟s policyholder
for new business (including top-ups and recurring single premiums), and is
only available via fund switching from existing AXA‟s INSPIRETM ILP sub-
funds.
South East Asia Special
Situations Trust
The South East Asia Special Situations Trust is a single ILP sub-fund and
invests all or substantially all of its assets in the Legg Mason Western Asset
Southeast Asia Special Situations Trust, a Singapore-constituted open-
ended unit trust managed by Western Asset Management Company Pte Ltd
(WAMCPL) and sub-managed by Havenport Asset Management Pte Limited.
The South East Asia Special Situations Trust is denominated in Singapore
Dollars and will not provide any income distribution.
2 the Manager
Western Asset Management Company Pte Ltd (“WAMCPL”) is an ultimately wholly-owned subsidiary of Legg
Mason, Inc. (“Legg Mason”), a U.S. financial services holding company that provides asset management
services through its subsidiaries. Legg Mason has assets of US$664.6 billion under management as of 31
March 2013. Assets include broad range of financial instruments such as global equities, fixed interest
securities, and currencies.
WAMCPL advises and manages an extensive range of investments on behalf of institutions and individuals.
Through unit trusts and separate account management, WAMCPL provides investors with access to fixed
interest and currency investment opportunities that seek to add value and control risk. WAMCPL has been
managing collective investment schemes in Singapore since 2003. As at 31 March 2013, WAMCPL
managed approximately US$4.56 billion of assets on behalf of institutional and retail clients.
Havenport Asset Management Pte Ltd (“Havenport”) has been appointed as the sub-manager of the
underlying fund Legg Mason Western Asset Southeast Asia Special Trust. Havenport is an independent
employee-owned company incorporated in Singapore on 20 July 2010 and whose founders were
executives of Legg Mason Asset Management Singapore Pte. Limited. Havenport is focused on managing
Asian equity mandates for a broad spectrum of clients. The key investment personnel of Havenport have
been managing collective investment schemes in Singapore since 1995.
WAMCPL has appointed Legg Mason Asset Management Singapore Pte. Limited as the principal distributor
for the underlying sub-funds. Legg Mason Asset Management Singapore Pte Limited, also an ultimately
wholly owned subsidiary of Legg Mason, is authorized to market, promote, offer and arrange for sale and
redemption of shares/units in the underlying sub-funds.
Source: Legg Mason, Inc.
54
3 investment objective and focus
The investment objectives and focus of Singapore Dollar Fund and the South East Asia Special Situations
Trust are set out below:
ILP sub-funds Investment Objective and Focus
Singapore Dollar Fund To invest as a money market fund, in Singapore Dollar denominated money
market instruments and debt securities to achieve a return above short-
term cash deposit whilst managing liquidity and risk to preserve capital.
The Singapore Dollar Fund does not intend to invest in derivatives.
South East Asia Special
Situations Trust
To achieve medium to long-term capital appreciation by investing at least
70% of the underlying fund in securities issued by companies that are
incorporated, domiciled or listed, or have a significant economic interest, in
South and South-east Asia countries.
4 investment approach
The investment approach of Singapore Dollar Fund is set out below:
ILP sub-funds Investment Approach
Singapore Dollar Fund Western Asset Management Company Pte. Ltd will, through the Underlying
sub-fund, invest in Singapore Dollar denominated money market
instruments and debt securities, such as bank certificates of deposits, fixed
deposits, money market securities, Singapore government and statutory
board securities and corporate bonds so as to achieve a return above short-
term cash deposit whilst managing liquidity and risk to preserve capital. The
Underlying sub-fund is governed by a set of investment guideline, which
restricts the maximum investment allocation to 10% within an issuer,
though the limit for SGD deposits may be increased to 20% or 30%,
depending on the rating of the bank. In addition, the maximum maturity for
a fixed rate asset is such that at least 90% of permissible investments in the
sub-fund must have a remaining term to maturity of not more than 366
calendar days. The remaining 10% may be invested in permissible
investments with a remaining term to maturity of not more than 732
calendar days.
Southeast Asia Special
Situations Trust
The Sub-manager intends to place an emphasis on Asian “Special Situation”
companies (that is, those companies which have yet to gain the attention of
the market) demonstrating strong secular growth trends, reflecting the rich
investment opportunities in the Asian region. Emphasis is placed on
identifying the best investment opportunities and on calibration of the right
investment weight to develop a focused and yet adequately diversified
portfolio. Examples of “Special Situations” can include corporate
restructuring or re-engineering, management change, new product
introduction or innovation, new business injections and changes in the
regulatory and business environment.
The Sub-Manager views the Asian markets as dynamic, high-growth and
rapidly expanding, yet persistently inefficient and volatile, offering long-term
investors the opportunity to exploit such inefficiencies. The Sub-Manager‟s
strategy uses a systematic, thematic approach in information gathering and
analysis to capture periodic market mis-pricing where there are sufficient
market signals and data points available. The Sub-Manager intends to
devote more of their internal research resources to seek out and analyze
mid-cap and small-cap stocks where opportunities for significant securities
mis-pricing are more abundant.
55
Whilst the Managers or (as the case may be) the Sub-Manager may from
time to time enter into foreign exchange transactions to manage the fund‟s
currency exposure, in practice over the longer term, the Managers or (as the
case may be) the Sub-Manager will generally maintain an unhedged strategy
applying tactical, or shorter term currency hedges, only in extreme market
conditions.
Borrowings may be effected on behalf of the fund, of up to 10% of the
Singapore Dollar equivalent of the fund‟s total net asset value. Such
borrowing or gearing is unlikely to take place under normal market
conditions.
To assist diversification of corporate risk exposure, investment in any one
corporation or body or issuer will be restricted to 10% of the total value of
the fund.
Besides equities, the Managers or (as the case may be) the Sub-Manager
may invest in bonds and other debt securities and cash.
The Managers and the Sub-Manager will not invest more than 10% of the
total value of the fund in foreign unit trusts and mutual funds without the
prior approval of the relevant authorities.
The Managers and the Sub-Manager currently do not invest in derivatives
(except for transferable securities embedding a financial derivative), engage
in securities lending and/or carry out repurchase transactions in respect of
the fund although they are permitted to do so.
Source: Legg Mason, Inc.
5 CPF investment scheme
Details of the following ILP sub-fund‟s (as the case may be) inclusion under the CPF Investment Scheme
are set out below:
ILP sub-funds CPFIS Risk Classification Included Under
Singapore Dollar Fund Lower Risk
(Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
South East Asia Special
Situations Trust
Higher Risk
(Narrowly Focused - Asian Region
Stocks)
CPFIS Ordinary Account
*The CPF interest rate for the Ordinary Account (OA) is based on the 12-month fixed deposit and month-
end savings rates of the major local banks. Under the CPF Act, the Board pays a minimum interest of 2.5%
per annum when this interest formula yields a lower rate.
From 1 January 2008, the new interest rate for the Special, Medisave and Retirement Accounts (SMRA)
will be pegged to the yield of 10-year Singapore government bond plus 1%. For 2008 and 2009, the
minimum interest rate for the SMRA will be 4.0% per annum. After 2009, the 2.5% per annum minimum
interest rate, as prescribed by the CPF Act, will apply to the SMRA.
In addition, from 1 January 2008, the CPF Board will pay an extra interest rate of 1% per annum on the first
$60,000 of a CPF member's combined balances, including up to $20,000 in the OA. And from 1 April
2008, the first $20,000 in both the Ordinary and Special Accounts will not be allowed to be invested under
the CPF Investment Scheme. The $20,000 investment threshold under the Special Account (SA) has been
raised to $30,000 from 1 May 2009 and further raised to $40,000 from 1 July 2010. There is no change
to the requirement for members to set aside $20,000 in the OA before they can invest their OA monies.
56
6 fees and charges
No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying fund(s) that the ILP sub-fund(s) invest
into or charged by the Manager of the ILP sub-fund, these will be set-off against the Annual Management
Fee and the Fixed Operating Fee that are charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund or manager level.
7 specific risks
All investments involve risk and the risks inherent to Singapore Dollar Fund and South East Asia Special
Situations Trust are set out below:
Singapore Dollar Fund
7.1 Market risk
The value of investments may go up and down due to changing economic (such as growth, inflation or
policy changes), political or market conditions in the market(s) that the sub-fund may invest in, or due
to an issuer‟s individual situation.
7.2 Credit risk
The sub-fund is subject to the risk that some issuers of debt securities and other investments made by
the sub-fund may not make payments on such obligations. Alternatively, an issuer may suffer adverse
changes in its financial condition that could lower the credit quality of a security, leading to greater
volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of
security can also affect the security's liquidity and make it more difficult to sell.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.4 Interest rate risk
Investments in bonds, debentures, loan stocks, convertibles and other debt securities which the sub-
fund may invest in may decline in value if interest rates change. In general, the price of debt securities
rises when interest rates fall, and fall when interest rates rise.
South East Asia Special Situations Trust
7.1 Market risk in South and South-East Asian markets
Prices of securities held by the sub-fund may go up and down in response to changes in economic
conditions, political conditions, interest rates in South and South-East Asian markets that the Trust
invests in and the market‟s perception of securities which in turn may cause the price of Units to rise
or fall.
7.2 Currency risk
The sub-fund‟s asset and income will be denominated in a number of different currencies and thus
fluctuations in foreign exchanges may have an impact on the income and the valuation of the assets in
the sub-fund.
7.3 Debt securities risk
57
Issuers of bonds and other debt securities held by the sub-fund may default on their obligations.
7.4 Emerging market risk
The sub-fund may invest in emerging markets. Such investments may involve political, regulatory and
repatriation risks, and risks associated with liquidity, relatively small market capitalisation, relatively
higher price, volatility, lower disclosure standards, susceptibility to financial shocks, and economic and
social uncertainty.
7.5 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.6 Derivative risk
The sub-fund may invest in derivatives for purposes of hedging and/or efficient portfolio management
and may invest in transferable securities embedding a financial derivative for purposes of hedging,
efficient portfolio management and/or optimising returns. Derivatives involve risks different from, and,
in some cases, greater than, the risks presented by more traditional securities investments. The value
of derivative instruments is subject to market risks and may fall in value as rapidly as it may rise and it
may not always be possible to dispose of such instruments during such fall in value.
7.7 Risk of investing in “Special Situations” companies
The sub-manager will place emphasis on investment in the securities of companies in “Special
Situations” which may present greater opportunities for capital appreciation but may also involve
greater risk than is customarily associated with the securities of more stable and established
companies.
Source: Legg Mason, Inc.
58
schedule I
Asian Income Fund
Asian Balanced Fund
Singapore Balanced Fund
Global Emerging Markets Equity Fund
1 structure of ILP sub-fund
The structure of the Asian Income Fund, Asian Balanced Fund, Singapore Balanced Fund and Global
Emerging Markets Equity Fund is set out below:
ILP sub-funds Structure
Asian Income Fund
The Asian Income Fund is a ILP sub-fund which feeds 100% into Schroder
Asian Income, which is a Singapore constituted open-ended unit trust.
The Asian Income Fund is denominated in Singapore Dollars.
Asian Balanced Fund
The Asian Balanced Fund is a single ILP sub-fund and invests all or
substantially all of its assets in the Schroder Asian Growth Fund and
Schroder Singapore Fixed Income Fund, which are both Singapore
constituted open-ended standalone unit trusts managed by Schroder
Investment Management (Singapore) Limited (“Schroders”).
Singapore Balanced Fund
The Singapore Balanced Fund is a single ILP sub-fund and invests all or
substantially all of its assets in the Schroder Singapore Trust and Schroder
Singapore Fixed Income Fund, which are both Singapore constituted open-
ended standalone unit trusts managed by Schroder Investment
Management (Singapore) Limited (“Schroders”).
Global Emerging Markets
Equity Fund
To invest substantially into the Schroder ISF Global Emerging Market
Opportunities, whose investment objective is to provide a total return
through investment in equity and equity related securities of emerging
market countries worldwide. The Schroder ISF Global Emerging Market
Opportunities may also invest in fixed income securities worldwide and
liquidities for defensive purposes.
2 the Manager
Schroder Investment Management (Singapore) Ltd
Schroder Investment Management (Singapore) Ltd (the “Manager“) was incorporated in Singapore and has
been managing collective investment schemes and discretionary funds since 1992. The Manager is part of
the Schroder group (“Schroders”).
Schroders has been managing collective investment schemes and discretionary funds in Singapore since
the 1970s.
Schroders is a leading global asset management company, whose history dates back over 200 years. The
group‟s holding company, Schroders Plc is and has been listed on the London Stock Exchange since 1959.
Schroders aims to apply its specialist asset management skills in serving the needs of their clients
worldwide, through its large network of offices and over 300 portfolio managers and analysts covering the
world‟s investment markets.
Source: Schroder Investment Management (Singapore) Ltd.
59
Schroder Investment Management Limited
Schroders is a global asset management company with £236.5 billion under management. We manage
assets on behalf of institutional and retail investors, financial institutions and high net worth individuals in
a diverse range of products covering equities, fixed income, alternatives and multi-asset.
Our aim is to apply our specialist asset management skills in serving the needs of our clients worldwide
and to deliver value to our shareholders. With one of the largest networks of offices of any dedicated asset
management company, and with over 340 portfolio managers and analysts covering all the major
investment markets, we offer our clients a comprehensive range of products and services.
With a history of over 200 years, we are one of the largest asset managers listed on the London Stock
Exchange where we have been listed since 1959. The Schroder family holds 47.75% of the equity of the
firm, ensuring stability of ownership and providing security for our clients.
Source: Schroders as at 30 June 2013.
3 investment objective and focus
The investment objective and focus of the Asian Income Fund, Asian Balanced Fund, Singapore Balanced
Fund and Global Emerging Markets Equity Fund is set out below:
ILP sub-funds Investment Objective and Focus
Asian Income Fund To provide income and capital growth over the medium to longer term by
investing primarily in Asian equities and Asian fixed income securities.
Asian Balanced Fund*
Aims to seek long-term capital growth through investment in quoted equities
in the Asian market (including Australia and New Zealand but excluding
Japan), and diversified exposure to the Singapore fixed income market
through investment in SGD denominated Bonds.
The Asian Balanced Fund currently seeks to achieve its investment objective
by investing all or substantially all of its assets in the Schroder Asian Growth
Fund and Schroder Singapore Fixed Income Fund, with a target asset
allocation of 60% and 40% respectively.
Singapore Balanced
Fund*
To provide investors with capital growth through investments in securities
listed on Singapore Exchange Securities Trading Limited (“SGX-ST”) and
diversified exposure to the Singapore fixed income market through
investment in SGD denominated bonds.
The Singapore Balanced Fund currently seeks to achieve its investment
objective by investing all or substantially all of its assets in the Schroder
Singapore Trust and Schroder Singapore Fixed Income Fund, with a target
asset allocation of 60% and 40% respectively.
Global Emerging
Markets Equity Fund
To provide capital growth primarily through investment in equity and fixed
income securities of a universe of emerging market countries worldwide.
* The actual asset allocation of each ILP sub-fund may deviate from the target percentages, by not more
than 10%. We reserve the right to revise the target asset allocations of each ILP sub-fund at our discretion
from time to time.
60
4 investment approach
The investment approach of Asian Income Fund and Global Emerging Markets Equity Fund is set out below:
ILP sub-funds Investment Approach
Asian Income Fund
Asian Income Fund will actively allocate between Asian equities, Asian fixed
income securities, cash and other permissible investments to achieve its
objective. The sub-fund will use a cyclical approach to asset allocation
where the asset mix will be adjusted according to four phases of the
economic cycle – recovery, expansion, slowdown and recession – based on
a combination of fundamental and quantitative factors such as asset class
valuation, macroeconomic data and liquidity. Cash will be treated as a
separate asset class and will be deployed if necessary to limit downside risk
during adverse market conditions.
In addition to active asset allocation, the sub-fund will also perform active
security selection for its investments in Asian equities, Asian fixed income
and other permissible investments. For the Asian equities portfolio, the sub-
fund intends to focus on companies that are able to create true shareholder
value, have a strong and stable earnings stream and have a strong
sustainable dividend yield. For the Asian fixed income portfolio, the sub-fund
intends to select securities that deliver attractive yield and capital growth
taking into account both fundamental and technical views such as
valuation, demand/supply conditions and liquidity. The sub-fund will also
manage the impact of interest rate movements on the value of the portfolio.
Global Emerging
Markets Equity Fund
The ILP sub-fund will feed 100% into a unit trust which invests in shares of
companies in emerging markets. The ILP sub-fund may also invest in bonds
and cash for defensive purposes. It has no bias to any particular industry or
size of company.
The ILP sub-fund provides focused exposure to the best investment ideas
generated by the Investment Manager‟s global team of emerging market
experts. It has the flexibility to be aggressively positioned to maximise
growth potential when market conditions are favourable and also to be
cautiously positioned when stock markets are expected to be weak. The ILP
sub-fund can have up to 60% in cash and global bonds if necessary in order
to protect returns during such periods. Typically, the majority of the ILP sub-
fund is invested in emerging market equities as the Investment Manager
believes that there are likely to deliver strong returns over the longer term.
The ILP sub-fund may also invest in other financial instruments and hold
cash on deposit. Financial derivative instruments may be used to achieve
the investment objective and to reduce risk or manage the ILP sub-fund
more efficiently.
The net asset value of the ILP sub-fund is likely to have high volatility due to
its investment policies or portfolio management techniques.
Source: Schroder Investment Management (Singapore) Ltd.
The investment approach of the underlying sub-fund in respect of the Singapore Balanced Fund and Asian
Balanced Fund is set out below:
Underlying sub-funds Investment Approach
Schroder Singapore
Trust
The Managers‟ investment approach is based on the belief that
fundamental analysis of companies using local research resources would
give a competitive advantage and that companies with consistent above
average growth produce superior stock market returns.
Schroder Singapore
Fixed Income Fund
To achieve the investment objective, the fund will invest in a diversified
portfolio of Singapore denominated fixed income securities, including debt
61
securities issued by the Singapore government, Singapore statutory boards
and corporates with issuer credit ratings of at least Baa by Moody‟s, BBB by
Standard and Poor‟s or BBB by Fitch Inc (including sub-categories or
gradations therein). The fund may also invest in nonrated debt securities
issued by Singapore incorporated entities and Singapore statutory boards.
In managing the fund, the Manager‟s investment philosophy is that the bond
markets are global, interrelated and generally efficient - but can overreact to
events. A globally integrated team of specialist analysts and portfolio
Managers, researching ideas in local markets, provides a performance
advantage.
The Manager‟s investment approach for SGD denominated bonds combines
both top-down macro-economic analysis and bottom-up sector and security
selection, utilising the resources and strength of its global and regional fixed
income teams to identify opportunities to outperform the benchmark of the
fund and deliver the objectives of the fund. It adopts a methodology based
on fundamental and technical/chart analysis, with an emphasis on relative
value. Portfolios are actively constructed aiming to profit from market
opportunities when they arise.
Schroder Asian
Growth Fund
The portfolio of the Schroder Asian Growth Fund is broadly diversified with
no specific industry or sectoral emphasis. The Manager‟s approach is to
capitalize on Schroders‟ strong in-house research capability and exploit
market inefficiencies.
Over the longer term, the Manager believes that share prices should reflect
the ability of companies in creating value for shareholders. As such, the
distinctive focus of their research is to identify companies that have robust
business models, good corporate governance and strong management
teams to drive shareholder returns.
These are companies that exhibit the following:
• Ability to generate sustainable returns on capital greater than cost
of capital.
• Ability to grow and reinvest cash productively.
• Willingness to return free cash flow to minority investors.
At the industry level, the investment Manager seeks to predict potential
industry developments, focusing on competition, supplier power, barriers to
entry, buyer power and threat of substitution amongst other things. As part
of their analysis, they form a picture of how different companies may find
their place within the longer-term structure of each industry. In this regard,
Schroders‟ global resources are a critical asset in a world where markets are
becoming increasingly globalized.
At the company level, the investment Manager seeks to discern whether a
firm has the tangible and intangible resources to support its position within
its industry. A company‟s stated strategy and its management‟s execution
track record are key inputs in the analysis. They also emphasize profitability
by focusing on a company‟s ability to generate revenue growth and defend
profit margins. A company‟s ability to generate sustainable free cash flows
either to fund business growth or to return to shareholders is also
paramount.
Source: Schroder Investment Management (Singapore) Ltd.
62
5 CPF investment scheme
Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:
ILP sub-funds CPFIS Risk Classification Included Under
Asian Balanced Fund Medium to High Risk
(Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Singapore Balanced Fund Medium to High Risk
(Broadly Diversified)
CPFIS Ordinary Account and
CPFIS Special Account
Global Emerging Markets Equity
Fund
Higher Risk
(Narrowly Focused – Emerging
Market)
CPFIS Ordinary Account
6 fees and charges
No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those
reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information
Booklet.
Although certain fees and charges are imposed on the underlying fund(s) that the ILP sub-fund(s) invest
into or charged by the Manager of the ILP sub-fund, these will be set-off against the Annual Management
Fee and the Fixed Operating Fee that are charged at the ILP sub-fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-
fund level and the underlying fund or manager level.
7 specific risks
All investments involve risk and the risks inherent to Asian Income Fund, Asian Balanced Fund, Singapore
Balanced Fund and Global Emerging Markets Equity Fund are set out below:
Asian Income Fund
7.1 Market Risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Credit Risk
The sub-fund is subject to the risk that some issuers of debt securities and other investments made
by the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse
changes in its financial condition that could lower the credit quality of a security, leading to greater
volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of a
security can also affect the security‟s liquidity and make it more difficult to sell.
7.3 Investment grade, below investment grade and unrated debt securities risk
There is a risk that investment grade securities that the sub-fund invests in may be downgraded due
to adverse market conditions. In the event of a down-grading of the credit rating of a security or an
issuer relating to a security that the sub-fund invests in, the value of the sub-fund may be adversely
affected.
The sub-fund may invest in debt securities below investment grade which are generally accompanied
by a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding
securities.
Investment in unrated debt securities may be subject to risks similar to those associated with below
investment grade debt securities.
63
7.4 Emerging markets and frontier risk
Emerging markets will generally be subject to greater political, legal, counterparty and operational
risk.
7.5 Financial derivatives risk
The sub-fund may use financial derivatives. The use of futures, options, warrants, forwards, swaps or
swap options involves increased risk. The sub-fund‟s ability to use such instruments successfully
depends on the Manager‟s ability to accurately predict movements in stock prices, interest rates,
currency exchange rates or other economic factors and the availability of liquid markets. If the
Manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund could
suffer greater losses than if the sub-fund had not used the derivatives.
7.6 Hedging risk
The currency exposure of the sub-fund will be actively managed by the lead fund manager via hedging.
Majority of the sub-fund is hedged to Singapore dollars, with some tactical exposure to the Asian
currencies. Currency hedging will be implemented mainly via currency forwards.
Asian Balanced Fund and Singapore Balanced Fund
7.1 Market risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Currency risk
Schroder Singapore Fixed Income Fund is subject to the risk that some issuers of debt securities and
other investments made by the fund may not make payments on such obligations, or an issuer (or
counterparty) may suffer adverse changes in its financial condition that could lower the credit quality
of a security, leading to greater volatility in the price of the security and subsequently in the value of
the fund.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.4 Equity risk
The Schroder Asian Growth Fund may invest in stocks and other securities and their derivatives which
are subject to market risks that historically have resulted in greater price volatility than that
experienced by bonds and other fixed income securities.
7.5 Interest rate risk
Deposits in financial institutions and investments in bonds, debentures, loan stocks, convertibles and
other debt securities may decline in value if interest rates change. In general, the price of debt
securities will rise when interest rates fall, and fall when interest rates rise.
7.6 Foreign Securities risk
Investments in securities throughout the world are subject to numerous risks resulting from market
and currency fluctuations, future adverse political and economic developments, the possible
imposition of restrictions on the repatriation of currency or other governmental laws or restrictions,
reduced availability of public information concerning issuers and the lack of uniform accounting,
auditing and financial reporting standards or of other regulatory practices and requirements
comparable to those applicable to companies in the investor‟s domicile. In addition, securities of
companies or governments of some countries may be illiquid and their prices volatile and, with respect
to certain countries, the possibility exists of expropriation, nationalisation, exchange control
restrictions, confiscatory taxation and limitations on the use or removal of funds, or other assets,
including withholding of dividends.
64
7.7 Derivatives risk
The underlying funds‟ use of futures, options, warrants, forwards, swaps or swap options involves
increased risk. In the event the underlying funds invest in such instruments, the ability to use such
instruments successfully depends on the manager‟s ability to accurately predict movements in stock
prices, interest rates, currency exchange rates or other economic factors and the availability of liquid
markets. If the manager‟s predictions wrong, or if the derivatives do not work as anticipated, the
underlying funds could suffer greater losses than if the underlying funds had not used the derivatives.
Global Emerging Markets Equity Fund
7.1 Market risk
The value of investments by the sub-fund may go up and down due to changing economic, political or
market conditions, or due to an issuer‟s individual situation.
7.2 Credit risk
The ability, or perceived ability, of an issuer of a debt security to make timely payments of interest and
principal on the security will affect the value of the security. It is possible that the ability of the issuer to
meet obligation will decline or default on its obligations.
7.3 Liquidity risk
There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our
authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there
could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The
sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid
securities and meeting redemption request.
7.4 Risks of market movements in limited sectors/countries
The sub-fund will be subjected to the respective market movements of the limited number of sectors
and/or countries of the investment universe.
7.5 Risks of investing in American Deposit Receipts (ADR) / Global Deposit Receipts (GDR)
Buying ADR/GDRs may include the inflationary, political and exchange rate risks of the underlying
assets but provide access to some markets without having to invest locally.
You may lose part or all of the value of the investment when investing in structured products (such as
ADR/GDRs, fully funded participation notes and warrants) due to the default risk of the issuer of the
structured products as well as the inflationary, political and exchange rate risks of the underlying
assets. However those instruments provide access to some markets without having to invest locally.
7.6 Political risk
The investments may be subject to legal and regulatory, execution, counterparty, political, economic
and financial risks. The Fund can be impacted by a higher volatility, inflation, currency, custody and
settlement risks. However the access such markets may provide a higher return for the fund in line
with its risk profile.
Source: Schroder Investment Management (Singapore) Ltd.
65
schedule J
Health Fund
1 structure of ILP Sub-Fund
The structure of the ILP Sub-Fund is set out below:
ILP Sub-Fund Structure
Health Fund The Health Fund is a single ILP Sub-Fund and is wholly invested in the AXA
World Funds – Framlington Health, with some minor amounts of cash kept
aside for liquidity purposes. AXA World Funds – Framlington Health,
managed by AXA Funds Management S.A., is a SICAV incorporated under
Luxembourg law and registered pursuant to Part 1 of the Law of 2010 and
is a UCITS.
The Health Fund is denominated in Singapore Dollars, and the dividends
will be reinvested.
The custodian of the Health Fund is Citibank, N.A., Singapore Branch,
registered address at 8 Marina View, Level 16 Asia Square Tower 1,
Singapore 018960.
The initial purchase price is S$1.00, and the initial offer period is from 5th
to 30th May 2014.
Units in the Health Fund are Excluded Investment Products, and invest only
in deposits or other Excluded Investment Products, and will not engage in
securities lending or repurchase transactions for the ILP Sub-Fund.
2 the Manager AXA Funds Management S.A. (“AFM”) is the Management Company of the Luxembourg based funds of the
AXA IM Group. It is a limited company (société anonyme) incorporated in Luxembourg and whose registered
address is at 49, Avenue J. F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg. AFM is
regulated by the Commission de Surveillance du Secteur Financier (CSSF). AFM was founded in 1989, with
EUR 42.4 billion Asset Under management as of Dec 31 2013.
AFM has delegated the investment management duties to AXA Investment Managers UK Limited, a
company incorporated in the United Kingdom and whose registered address is at 7 Newgate Street,
London EC1A 7NX, United Kingdom. It is regulated by the Financial Conduct Authority and has been
managing funds since 1979.
Source: AXA Investment Managers Asia Limited
3 investment objective and focus
The investment objective and focus of Health Fund is set out below:
ILP Sub-Fund Investment Objective and Focus
Health Fund To achieve long-term capital growth by permanently investing at least two
thirds of its total assets in equities and equity related instruments issued by
companies engaged in healthcare and medical services and products
worldwide.
The ILP Sub-Fund will invest not more than 10% of its net assets in units of
UCITS and/or other UCIs. The ILP Sub-Fund may use FDIs for efficient
portfolio management, and may enter into securities lending and
66
repurchase agreement transactions.
Investments will be in producers of pharmaceuticals, biotechnology firms,
medical device and instrument manufacturers, distributors of healthcare
products, care providers and managers and other healthcare services
companies.
4 investment approach
The investment approach of Health Fund is set out below:
ILP Sub-Fund Investment Approach
Health Fund The Manager‟s investment process is primarily built upon the fundamental,
bottom-up research. Combining the thematic views, financial perspectives
and specialist field expertise, the result is a diversified portfolio that is truly
reflective of the investment team‟s highest conviction stock ideas,
unrestricted by any regional, sub-sector or capitalisation limitations.
Complementing the unconstrained approach to investment is a robust risk
management structure. This is embedded at every stage of the investment
process to ensure that the risk taken in the portfolio is in line with expected
returns, and that there are no unintended areas of concentrated risk
exposure.
Source: AXA Investment Managers Asia Limited
5 fees and charges
No other fees and charges are imposed on Health Fund except those reflected on paragraph 7 of the
Product Summary Booklet and section 3 of this Fund Information Booklet.
Although certain fees and charges are imposed on the underlying Sub-Fund that Health Fund invest into,
these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are charged at
the ILP Sub-Fund level.
Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in section 3 of this Fund
Information Booklet represent the total composite fees and charges that are payable at both the ILP Sub-
Fund level and the underlying fund level.
6 specific risks
All investments involve risk and the risks inherent to Health Fund are set out below:
6.1 Risk linked to investments in emerging markets
Legal infrastructure, in certain countries in which investments may be made, may not provide with the
same degree of investors' protection or information to investors, as would generally apply to major
securities markets (governments‟ influence, social, political and economic instability, different
accounting, auditing and financial report practises). Emerging markets securities may also be less
liquid and more volatile than similar securities available in major markets, and there are higher risks
associated to transactions settlement, involving timing and pricing issues.
6.2 Risk of global investments
Investments in securities issued or listed in different countries may imply the application of different
standards and regulations (accounting, auditing and financial reporting standards, clearance and
settlement procedures, taxes on dividends…). Investments may be affected by movements of foreign
exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange
control regulations or price volatility.
67
6.3 Risks linked to investments in specific sectors or asset classes
The ILP Sub-Fund is exposed to concentration risk on healthcare and medicine service.
6.4 Risks linked to counterparties
Counterparties to over-the-counter FDIs may default or fail to perform its obligations. This may have a
material adverse effect on the net asset value.
6.5 Risks linked to derivatives
The ILP Sub-Fund may use both listed and over-the-counter FDIs, including but not limited to futures,
and forward contracts, swaps, options and warrants. FDIs are volatile and may be subject to risks
including market, liquidity, credit, counterparty, legal and operations risks. Over-the-counter FDIs may
involve additional risks. There may be an imperfect correlation between FDIs used for hedging and the
investments or market sectors being hedged. The use of FDIs may involve leverage, which may
increase the effect of market movements and may involve significant risks of loss.
6.6 Risks on concentration
The ILP Sub-Fund is exposed to concentration risk on healthcare and medicine services.
6.7 Equity risks
Volatility on equity markets has historically been much greater than the volatility of fixed income
markets.
6.8 Political, regulatory, economic and convertibility risks
Geographical areas that the ILP Sub-Fund invests in may be affected by economic or political events
or measures, changes in government policies, laws or tax regulations, currency convertibility, currency
redenomination, restrictions on foreign investments, and economic and financial difficulties, which may
adversely impact the net asset value.
6.9 Exchange rate risks
The ILP Sub-Fund‟s assets may be denominated in currencies other than its Reference Currency and
exchange rate fluctuations may impact the ILP Sub-Fund's performance. The ILP Sub-Fund's assets will
not be hedged against the SGD.
Source: AXA Investment Managers Asia Limited
7 soft dollar commissions/arrangements
The entities with the AXA Investment Managers ("AXA IM") group have not entered into soft
dollar or soft commission agreements. Instead, AXA IM has signed Commission Sharing
Agreements ("CSAs") with selected brokers, which allow surplus commissions to generate a
balance of cash with these brokers who will fund, at AXA IM's request, third-party research
and permitted market data services. In no circumstances, will such CSAs allow the Company
to deviate from its obligation of best execution. Additional information on such commissions is
available in the Sub-Funds' annual reports.
Source: AXA Investment Managers Asia Limited
Glossary of Terms
“FDIs” means Financial Derivative Instruments
“Reference Currency” means the currency in which each ILP Sub-Fund is denominated
“SICAV” means société d'investissement à capital variable
“UCITS” means Undertaking for Collective Investment in Transferable Securities “UCI” means Undertaking for Collective Investment
68
Product Summary Acknowledgement
Presented to: _______________________________________________________________
(Name and NRIC of Applicant)
Name of Life Assured: ________________________________________________________
Life Assured‟s Nearest Age & Gender: ___________________________________________
_____________________________________________ _________________________
Name & Signature of AXA Financial Date
Planner/Representative
Applicant for a New Policy
Name of new Policy: __________________________________
I _________________________________________________ (name and NRIC of Applicant)
confirm that I have received a copy of the Product Summary (comprising the Fund
Information Booklet, Product Highlight Sheets and a separate Product Summary Booklet).
I confirm that the terms and conditions of the Policy as set out in the Product Summary
have been explained to me. I understand the features of the Policy and the applicable fees
and charges.
Existing Policyholder
Name of existing Policy: _______________________________
I _________________________________________________ (name and NRIC of Applicant)
confirm that I have received a copy of the Fund Information Booklet and the Product
Highlight Sheets.
I understand that the Fund Information Booklet mentioned above describes the sub-funds
available for new investments under my Policy.
______________________________
(Signature of Applicant)
1999003512M 06/2013