Product Summary Table of Contents

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1 Product Summary Table of Contents ManuRetire Secure (I) Details of Product Provider... 2 Product Description... 2 Product Features Death Benefit Savings Period Payout Option and Payout Period... 3 Flexible Options Top-Up Premiums Full or Partial Surrenders Savings Period Extension Payout Period Extension... 5 Manulife Octave SGD Tracking Fund Dealing Manulife Octave SGD Tracking Fund Unit Purchases (including Top-Up) Manulife Octave SGD Tracking Fund Unit Sales... 7 Fees and Charges Premium Charge Surrender Charge Management Fee... 9 Key Product Provisions Valuation of Manulife Octave SGD Tracking Fund Free-Look Termination Manulife Octave SGD Tracking Fund Closure Manulife Octave SGD Tracking Fund The Manager of the Manulife Octave SGD Tracking Fund The Index Sponsor and the Swap Counterparty Other Parties Conflicts of Interest Investment Objectives Index Methodology Risks Factors Payment of Proceeds Obtaining Unit Price Suspension of Dealing Performance of the Manulife Octave SGD Tracking Fund Expense Ratio Turnover Ratio Citi Octave SGD Index allocation Soft-Dollar Commission/Arrangements Statement and Reports Other Material Information Appendix I. Manulife Octave SGD Tracking Fund Dealing Illustration GLOSSARY Page 1 of 28

2 Please refer to Glossary for definition of the key capitalized terms. Details of Product Provider Manulife (Singapore) Pte. Ltd. ( Manulife, the Company, We, Our, Us ) (Reg. No D) is the product provider and underwriter for this Policy. This Policy is distributed through our representatives or appointed distributors only. Customers may contact Us for claims under this Policy Contact details: 51 Bras Basah Road #09-00 Manulife Centre, Singapore Tel: , Website: Product Description ManuRetire Secure (I) is a Singapore Dollar-denominated single premium investment-linked policy. The Policy is suitable as a retirement savings and income solution, offering great flexibility to meet your needs. You start investing with a single premium (minimum S$15,000); and you can make additional contributions at your option (minimum premium S$5,000 each time) during the Savings Period 1. Premiums, less the Premium Charge, are invested in the Manulife Octave SGD Tracking Fund whose performance is based on the performance of the Citi Octave SGD Index (the Index ) 2. In line with the volatility and drawdown control mechanisms of the Index, the Manulife Octave SGD Tracking Fund Unit Price will be at least the Guaranteed Price which is 80% of the highest Unit Price of the Manulife Octave SGD Tracking Fund since its inception. The Account Value (which is Manulife Octave SGD Tracking Fund Unit Price x Number of Units) will therefore be at least the Guaranteed Value (which is Guaranteed Price x Number of Units). Your investment is always accessible to you 3. You have flexibility to choose when to start taking income and which income option best meets your needs 4. The Policy also provides life protection to your loved ones in the event of death 5. This Policy is available in cash only and not included under CPF Investment Scheme (CPFIS) and Supplementary Retirement Scheme (SRS). This Policy and the Manulife Octave SGD Tracking Fund are NOT Excluded Investment Products. The definition of Excluded Investment Product can be found in Annex 1 to the Notice on Recommendations on Investment Products [Notice No. FAA-N16] at Stability/Regulations-Guidance-and-Licensing/Financial-Advisers/Notices.aspx 1 See Policy Contract for provisions related to Top-Up Premiums. 2 A proprietary Index developed and maintained by Citigroup Global Markets Limited ( CGML ), a wholly owned subsidiary of Citigroup Inc. The Index was designed by CGML to offer exposure to international equity market performance and provide volatility and drawdown control mechanisms. These volatility and drawdown control mechanisms allow for the Index to provide an Index Floor of 80% of the highest level ever achieved by the Index since its inception. See Manulife Octave SGD Tracking Fund section for more details. 3 Subject to Dealing Days, applicable Surrender Charges, minimum withdrawal amounts and minimum outstanding Account Value. 4 Subject to provisions specified in Product Features section on Payout Period. 5 Subject to provisions specified in Product Features section on Death Benefit. Page 2 of 28

3 Product Features 1. Death Benefit ManuRetire Secure (I) provides life insurance to protect your loved ones in the event of the Life Insured s death. The Death Benefit applicable until the Policy Anniversary immediately following the Life Insured s 75 th birthday or the end of the Savings Period (whichever is earlier) is the greater of the Basic Sum Insured or the Account Value. The Basic Sum Insured is the sum of: a. Single Premium; plus b. Total Top-Up Premium(s); less c. Total Withdrawals, before Surrender Charges. Thereafter, the Death Benefit is the Account Value. 2. Savings Period During the Savings Period, your Premium (less Premium Charge) is invested in the Manulife Octave SGD Tracking Fund. ManuRetire Secure (I) provides growth potential through the Manulife Octave SGD Tracking Fund s exposure to the performance of a diversified basket of international equity indices, along with downside protection 6. The minimum Savings Period is 10 years. At Policy inception, you will select one of the following options for the duration of your Savings Period: a. 10 Years commencing from the Policy Effective Date; or b. Until the Policy Anniversary immediately following the Life Insured s 55 th birthday; or c. Until the Policy Anniversary immediately following the Life Insured s 60 th birthday; or d. Until the Policy Anniversary immediately following the Life Insured s 65 th birthday. 3. Payout Option and Payout Period ManuRetire Secure (I) provides flexible options for your retirement income while keeping you invested in the Manulife Octave SGD Tracking Fund. Depending on your situation and preference, you may wish to receive your income as a lump-sum or as a regular income stream. The Payout Options are: a. A Lump Sum Withdrawal; or b. A level income payout over your selected Payout Period; or c. A growth income payout over your selected Payout Period. Lump Sum Withdrawal If you have chosen this Payout Option, the Policy will terminate immediately after the end of the Savings Period and you will receive the Account Value at the end of the Savings Period as a lumpsum payment. A regular income stream If you wish to continue to enjoy the benefits and features of the Manulife Octave SGD Tracking Fund while drawing a regular income, you have two options: 6 The Manulife Octave SGD Tracking Fund provides 100 % exposure to the Citi Octave SGD Index. See Manulife Octave SGD Tracking Fund section for more details. Page 3 of 28

4 I) Level Income Payout The Level Income Payout provides a constant payout for the full duration of your Payout Period. The Yearly Payout is paid at the beginning of each Policy Year, and is calculated as follows: Yearly Payout 7 = Guaranteed Value 8 at the beginning of Payout Period Payout Period (in years) The first payout will be paid at the beginning of the Payout Period. II) Growth Income Payout The Growth Income Payout provides a potential growth in your Yearly Payout if the Guaranteed Price of the Manulife Octave SGD Tracking Fund increases. The Yearly Payout is paid at the beginning of each Policy Year, and is re-calculated each year as follows: Yearly Payout 7 = (re-calculated every year) Guaranteed Value 9 at the beginning of each Policy Year in the Payout Period Number of remaining Yearly Payouts in Payout Period The first payout will be paid at the beginning of the Payout Period. The Policy will terminate immediately after the end of the Payout Period and any remaining Account Value will be paid as a lump-sum payment thereafter. Your Payout Period options are: a. 10 Years; or b. 15 Years; or c. 20 Years. At Policy inception, you will select a Payout Option. Before the end of the Savings Period, we will contact you to confirm your selected Payout Period and Payout Option or receive instructions on your new choice. At this time, you may also extend your Savings Period. Please refer to the section on Flexible Options for further details. You may receive your income on a monthly or annual basis, provided each payout is at least S$200. If no payment frequency is chosen, the default payment will be made on an annual basis. Monthly payouts are paid at the beginning of each Policy Month, and are calculated as the Yearly Payout divided into 12 equal installments. One of the benefits of ManuRetire Secure (I) is that your investment remains accessible throughout the life of the Policy, including during the Payout Period. Should you make a withdrawal outside of our regular payments during the Payout Period, your Yearly Payout will be recalculated based on your new Guaranteed Value. 7 The Yearly Payout is calculated in accordance with the Policy Contract. 8 Guaranteed Value is calculated as the Guaranteed Price as at the Dealing Day immediately prior to the first Policy Anniversary of the Payout Period x No. of Units held on the first Policy Anniversary of the Payout Period. 9 Guaranteed Value is calculated as the Guaranteed Price as at the Dealing Day immediately prior to the Policy Anniversary on the relevant Policy Year during the Payout Period x No. of Units held on the Policy Anniversary on the relevant Policy year during the Payout Period. Page 4 of 28

5 Flexible Options 1. Top-Up Premiums You may add to or top-up your investment at any time during the Savings Period except that there shall be no addition or top-up: a. once it is less than three Policy Years before the end of the Savings Period; or b. on or after the Policy Anniversary immediately following the Life Insured s 69 th birthday, whichever is earlier. The minimum Top-Up Premium is S$5,000. We also reserve the right to stop receiving Top-Up Premiums with at least thirty (30) days notice. 2. Full or Partial Surrenders Your investment remains accessible throughout the life of the Policy, including during the Payout Period. The Unit Price at which the Units are withdrawn will be at least the Guaranteed Price at all times. You may partially cash out your units at any time 10, subject to the following minimum requirements: a. S$200 per surrender; and b. S$5,000 Account Value remaining after the partial surrender or such higher amount (as described in the Policy Contract) as may be required to ensure that your Policy is able to sustain future payouts under the Level Income or Growth Income Payout Option(s). Alternatively, you may fully cash out your units at any time, and the Policy terminates. 3. Savings Period Extension You may extend the Savings Period beyond the period that you initially selected with at least thirty (30) days written notice. We will confirm your chosen option prior to the end of the Savings Period. This option may only be exercised once. You may select any of the following extensions to the Savings Period: a. For a further 10 year period, provided that such extension does not result in the Savings Period ending after the Policy Anniversary immediately following the Life Insured s 79 th birthday; or b. Until the Policy Anniversary immediately following the Life Insured s 55 th birthday; or c. Until the Policy Anniversary immediately following the Life Insured s 60 th birthday; or d. Until the Policy Anniversary immediately following the Life Insured s 65 th birthday. 4. Payout Period Extension This option is applicable only for the Level Income Payout option. You may extend the Payout Period and continue receiving the regular payouts. We will offer you this option in writing 60 days prior to the end of the Payout Period if the Account Value is at least equivalent to twice the Yearly Payout. If you opt to exercise this option, you will continue to receive the same amount of Payout beyond the Payout Period until the Account Value is completely paid out or until the Policy Anniversary 10 Subject to Dealing Days and applicable Surrender Charges. Page 5 of 28

6 immediately following the Life Insured s 99 th birthday if earlier, upon which the Policy will terminate and any remaining Account Value will be paid thereafter. If this option is not available or is not exercised, the Policy will terminate immediately after the end of the Payout Period and any remaining Account Value will be paid thereafter. Manulife Octave SGD Tracking Fund Dealing We carry out the trading of the Manulife Octave SGD Tracking Fund on a weekly basis (subject to all exchanges on which the Index components (or any potential Index components) are listed being open for trading). Manulife Octave SGD Tracking Fund Units are bought and sold on the Dealing Day. In order for a trade to be fulfilled on the Dealing Day, it must be confirmed on or before the Dealing Deadline 11, which is one Singapore Business Day prior to the Dealing Day. In order to trade in the Manulife Octave SGD Tracking Fund, all exchanges on which the Index components (or any potential Index components) are listed must be open for trading. We will provide in advance on our website: a schedule of Dealing Deadlines and the corresponding Dealing Days and Valuation Dates. In the circumstance that there is an unexpected closure in any of the relevant market exchanges, the Dealing Day will be the following day when all exchanges on which the Index components (or any potential Index components) are listed are open for trading. Manulife Octave SGD Tracking Fund Unit Prices are determined on a forward basis. We publish weekly (according to the published schedule) a Unit Price and a Guaranteed Price based on the value of the assets held in the Manulife Octave SGD Tracking Fund as at the previous Singapore Business Day. We also publish the allocation between the equity components and cash-like instruments in the general fund factsheet for Manulife Octave SGD Tracking Fund on a monthly basis. The general fund factsheet for Manulife Octave SGD Tracking Fund can also be found on our website: 1. Manulife Octave SGD Tracking Fund Unit Purchases (including Top-Up) If a complete application is submitted with full premium and it is approved and the Policy is issued (for a new Policy)/application for purchase of Top-Up Units is processed On or before the Dealing Deadline: After the Dealing Deadline: Units will be processed at the Unit Price as at the Dealing Day immediately following that Dealing Deadline. Units will be processed at the Unit Price as at the Dealing Day immediately following the next Dealing Deadline. In general, three (3) Singapore Business Days are required to approve complete applications that are submitted with full premium. Premiums are deemed submitted to us when: a. We receive a cheque or bank draft or cashier s order made in favour of Manulife (Singapore) Pte. Ltd. ; or b. We receive notice from the bank that the telegraphic transfer has been successful. 11 Subject to normal market conditions. See Policy Contract for details. Page 6 of 28

7 For the avoidance of doubt, if you are submitting an application through a financial adviser representative, it is only deemed submitted when the application and full premium is submitted to us by that representative. The application will be processed in accordance with the dealing deadlines stated above. Incomplete or unclear applications may be withheld and / or returned to you. Accordingly, such application may be processed at a later date. Your request will be subject to our administrative requirements at the time of application. After deducting the Premium Charge, your Premiums will be fully used to subscribe in Units of the Manulife Octave SGD Tracking Fund. You may make payment for the purchase of Units in one of the following ways, as applicable: a. Cheque or bank draft; b. Telegraphic transfer; c. Cashier s order. Below is a numerical example showing how we determine the number of Units subscribed and the Guaranteed Value of your Policy: Premium Less Premium Amount Unit Price No. of Units Charge Invested S$15,000 - S$750 (5% of S$15,000) = S$ 14,250 S$ 1.00 = 14,250 The Guaranteed Value is based on the amount invested into the Manulife Octave SGD Tracking Fund (net of Premium Charge) and is calculated as below: No. of Units subscribed Guaranteed Price Guaranteed Value 14,250 X S$ 0.80 = S$ 11, Manulife Octave SGD Tracking Fund Unit Sales If a complete application for full or partial sale of Manulife Octave SGD Tracking Fund Units is received and approved by us On or before the Dealing Deadline: After the Dealing Deadline: Units will be processed at the Unit Price as at the Dealing Day immediately following that Dealing Deadline. Units will be processed at the Unit Price as at the Dealing Day immediately following the next Dealing Deadline. For the avoidance of doubt, if you are submitting an application through a financial adviser representative, it is only deemed submitted when the application is submitted to us by that representative. The application will be processed in accordance with the dealing deadlines stated above. Incomplete or unclear applications may be withheld and / or returned to you. Accordingly, such application may be processed at a later date. If the total amount of the requests for surrenders, payments to be made under the Payout Options and payments of Death Benefits to be made from the Manulife Octave SGD Tracking Fund less the total subscription amounts into the Manulife Octave SGD Tracking Fund (aggregating all such Page 7 of 28

8 requests and payments from Policy Owners as a whole) exceeds 10% of the net asset value of the Manulife Octave SGD Tracking Fund in a single Dealing Day, we may limit payments from the Manulife Octave SGD Tracking Fund to 10% of its net asset value. This limitation will be applied pro rata to all requests for surrenders, payments to be made under the Payout Options and death payments to be effected on such Dealing Day. Transactions not fully fulfilled will be processed the next Dealing Day subject to the same 10% limitation. Each payout is funded by selling units of the Manulife Octave SGD Tracking Fund. For Lump Sum Withdrawal: For Level Income or Growth Income Payout Option(s) on an annual basis: For Level Income or Growth Income Payout Option(s) on a monthly basis: Units will be processed at the Unit Price as at the Dealing Day that corresponds with the first Dealing Deadline occurring after the end of the Savings Period. Units will be processed at the Unit Price as at the Dealing Day that corresponds with the first Dealing Deadline on or immediately following the relevant Policy Anniversary. Units will be processed at the Unit Price as at the Dealing Day that corresponds with the first Dealing Deadline on or immediately following the relevant Monthly Anniversary. Please refer to the Appendix for the Manulife Octave SGD Tracking Fund Dealing Illustration. Fees and Charges 1. Premium Charge The Premium Charge of 5% of the premiums is deducted from premiums before they are invested into the Manulife Octave SGD Tracking Fund. The Premium Charge is deducted from Single Premium and Top-Up Premiums. 2. Surrender Charge Surrender Charges (at the rates set out in the table below) will apply to full and partial surrenders of the Policy effected within a period of three years following the date of payment of a Single Premium or a Top-Up Premium, as the case may be. Surrender requests will be administered on the basis that Units purchased earliest are sold first ( first-in-first-out basis). Surrender Charge Rate f surrender is requested: (% of amount surrendered) during first year following payment 5% of premium during second year following 3% payment of premium during third year following 1% payment of premium any time thereafter 0% Note: The amount received = No. of Units surrendered x Unit Price x (100% Surrender Charge Rate) Page 8 of 28

9 Illustrative Example: Mr. Ng bought the ManuRetire Secure (I) with an initial Single Premium of S$100,000 and a subsequent Top-Up Premium of S$11,000 in Year 2. Year 1 Single Premium = S$100,000 -> he purchased 95,000 Unit Price S$1.00 Year 2 Top-Up Premium = S$11,000 -> he purchased 9,500 Unit Price S$1.10 Mr. Ng requested for full surrender in Year 3, the amount he Unit Price S$1.20: = 95,000 Units x S$1.20 x (100% 1%) + 9,500 Units x S$1.20 x (100% 3%) = S$123, Management Fee The Management Fee is 2.0% per year and is deducted on a daily basis from the asset value of the Manulife Octave SGD Tracking Fund. The Manulife Octave SGD Tracking Fund Unit Prices published are net of the Management Fee. We reserve the right to increase the Management Fee by giving at least thirty (30) days notice to you. However, the Management Fee will not exceed 3%per annum. The Management Fee does not include brokerage, government taxes/duties/levies, bank charges, foreign exchange gains and losses, rebalancing cost and other transaction cost which may incur during the investment process. The Management Fee may apply even in situations where the Index is 100% allocated to cash-like instruments (a portfolio investing in U.S. Federal Funds Effective Rate / SGD Domestic Interbank Overnight Rate) over a pro-longed investment period and/or for a significant portion of the investment period. Such Management Fee may on a cumulative basis, negatively affect the performance of the Manulife Octave SGD Tracking Fund and/or its ability to return back to a higher level. The Management Fee will be waived to the extent required to ensure that the Guaranteed Price is maintained. You may not be given notice of any waiver in Management Fee. Key Product Provisions The following are some key provisions found in the Policy Contract. This is only a brief summary. You should refer to the actual terms and conditions in the Policy Contract. Please consult your financial adviser representative should you require clarification on this product. 1. Valuation of Manulife Octave SGD Tracking Fund The price at which Units can be purchased or sold is the Unit Price. The Manulife Octave SGD Tracking Fund is valued on a daily basis, but unit transactions will be carried out weekly according to the published schedule. 2. Free-Look You enjoy a free-look period of 14 days. Should you decide to cancel the Policy during this period, we will refund the lower of: a. the total premiums paid (before applying Premium Charges); or b. the sum of the Account Value and the Premium Charges*. No Surrender Charge will be applied. * The Account Value is based on the Unit Price as at the next appropriate Dealing Day following the cancellation request (in accordance with the Dealing Deadline requirement). Where the sum of the Account Value and the Premium Charges is lower than the total premiums paid (before applying Premium Charges), you may suffer losses. Page 9 of 28

10 3. Termination The Policy will terminate on any of the following: a. the death of the Life Insured; or b. the Policy is surrendered; or c. where the Payout Option is the Lump Sum Withdrawal Option, at the end of the Savings Period; d. where the Payout Option is the Level Income Payout Option, at the end of the Original Level Income Payout Period (or earlier upon the remaining Account Value being paid out, if applicable) or at the end of the Extended Payout Period (if the Policy has been extended); or e. where the Payout Option is the Growth Income Payout Option, at the end of the Growth Income Payout Period (or earlier upon the remaining Account Value being paid out, if applicable); f. the termination of the Manulife Octave SGD Tracking Fund pursuant to an Event of Closure; or g. immediately before we issue the new policy pursuant to the Guaranteed Insurability Option as described in the Manulife Octave SGD Tracking Fund Closure section. No coverage will be provided after termination of the Policy. 4. Manulife Octave SGD Tracking Fund Closure Upon the occurrence of any of the following events, we may designate an Event of Closure : the agreement between the Swap Counterparty 12 and us is terminated; or the Swap Counterparty is unable to fulfill its commitments in its agreement with us; or it is determined by us, in our sole discretion that (1) the Manulife Octave SGD Tracking Fund's asset size is no longer economically viable, or (2) it is not in the interests of Policy Owners as a whole to maintain the Manulife Octave SGD Tracking Fund; or any law or regulation shall be passed or any government or regulatory authority order made, which renders the Manulife Octave SGD Tracking Fund impossible or impractical to maintain; or if the Swap Counterparty shall go into liquidation or a receiver is appointed over any of its assets or if a judicial manager is appointed or if an encumbrancer shall take possession over any of its assets. You will be notified in writing of an Event of Closure as soon as practicable. The Manulife Octave SGD Tracking Fund mandate will be changed to 100% cash allocation and Management Fees and Surrender Charges will be waived. Your Account Value after the occurrence of the Event of Closure shall be the Account Value as of the Final Determination Date, less Withdrawals made after the Final Determination Date. Final Determination Date refers to the last date at which the Unit Price is determined and such price is supported by collateral provided by the Swap Counterparty to us under the Swap Agreement. For this purpose, any subsequent date at which the Unit Price is determined but for which is not supported by such collateral, shall be inapplicable. For the avoidance of doubt, the Account Value as at the Final Determination Date will be at least the Guaranteed Value as at the Final Determination Date. 12 The Swap Counterparty is Citigroup Global Markets Limited. Please see sub-section The Index Sponsor and the Swap Counterparty for more details Page 10 of 28

11 The Death Benefit and payments under the Payout Options will continue to be provided as set out under the terms and conditions of the Policy. We will decide whether to terminate the Manulife Octave SGD Tracking Fund or continue with it if an Event of Closure occurs. If the Manulife Octave SGD Tracking Fund terminates, the Policy will also terminate. We will pay the remaining Account Value thereafter. This Account Value is the Account Value as at the Final Determination Date less all Withdrawals made after the Final Determination Date till the date of termination of the Manulife Octave SGD Tracking Fund. No further payment will be made after the remaining Account Value is paid. You may not exercise any of the Flexible Options 13 except partial/full surrenders once an Event of Closure has occurred. If your Policy is within the Savings Period upon the Event of Closure and provided this is before the Policy Anniversary immediately following the Life Insured's 75 th birthday, you will be provided with a Guaranteed Insurability Option ("GI Option") to convert the Policy without medical underwriting to a new policy. The policies that are eligible for the GI Option may change from time to time and you may choose from the eligible policies at the time of the conversion. The maximum death benefit applied for under the GI Option is the Net Amount at Risk ( NAAR ) which is the Basic Sum Insured less Account Value at the time of conversion. The GI Option is available up to a period of six months commencing from the Event of Closure. Please refer to the terms stated in the Policy Contract. 13 Please refer to the Flexible Options section as specified in this Product Summary. Page 11 of 28

12 Manulife Octave SGD Tracking Fund The Manulife Octave SGD Tracking Fund is not a Capital Guaranteed Fund. The Manulife Octave SGD Tracking Fund Unit Price will be at least 80% of the highest historical Unit Price ever achieved. Your premiums (less Premium Charges) will be fully invested in the Manulife Octave SGD Tracking Fund. The Manulife Octave SGD Tracking Fund is the only investment-linked policy sub-fund available under this Policy. 1. The Manager of the Manulife Octave SGD Tracking Fund Manulife (Singapore) Pte. Ltd. Established in 1980, Manulife (Singapore) Pte Ltd ( Manager ) provides one-stop solutions to meet the financial needs of Our customers at different stages of their lives. We offers life insurance, retirement solutions and wealth management solutions. In addition to Our established agency force, We distributes Our products through a number of specialist partners, including banks and financial advisory firms. 2. The Index Sponsor and the Swap Counterparty Citigroup Global Markets Limited ( CGML ) is a private company limited by shares and incorporated in England under the laws of England and Wales and is a wholly owned subsidiary of Citigroup Inc. ( Index Sponsor or Swap Counterparty ) The Citi Octave SGD Index is developed by Citi Investment Strategies ( CIS ), a team that was formed in December 2010 within the global Multi Asset Group, which is a division within CGML. CIS is built upon Citigroup s intellectual capital from research, financial engineering, quantitative development and trading. This dedicated effort leverages on traditional capital markets expertise and on existing efforts and infrastructure across product lines, delivery mechanisms, distribution departments and support functions. CIS is a team of seasoned professionals focused exclusively on the design, implementation and distribution of cutting edge investment strategies. Key players of this global team include developers and product strategists. They are specialists that are responsible for the communication and development, respectively, of rule-based non-discretionary strategies. The global cross-asset CIS team is responsible for all the equity, foreign exchange, commodities, rates and hybrid asset class related strategies and the outstanding notional across all of transactions involved by CIS about US$13.5 billion as of 30 June Other Parties The auditor for the Manulife Octave SGD Tracking Fund is Ernst & Young LLP of One Raffles Quay North Tower Level 18 Singapore (048583). The collateral manager and collateral custodian is RBC Investor Services Trust Singapore Ltd. of 20 Cecil Street #28-01 Equity Plaza Singapore (049705). Page 12 of 28

13 4. Conflicts of Interest One of the appointed distributors is Citibank Singapore Limited ( CSL ), who will receive a distribution fee from Manulife (Singapore). CGML, the developer of the Index, is a wholly owned subsidiary of Citigroup, Inc. and an affiliate of CSL. CGML is paid a management fee for managing the Index. CGML also acts as a swap counterparty under the swap agreement pursuant to which the Manulife Octave SGD Tracking Fund will pass the premiums less Premium Charge to CGML in exchange for the performance of the Index. CGML also pledges cash collateral to us, held by an independent custodian as security for the Account Value, in respect of the exposure we take against CGML under the swap agreement. In the event that CGML is unable to fulfill its commitments in its agreement with Manulife (Singapore), this may result in the closure of the Manulife Octave SGD Tracking Fund and a transfer of the pledged collateral from the collateral manager and collateral custodian to Manulife (Singapore). CSL, CGML and their affiliates are not our affiliates. 5. Investment Objectives The Manulife Octave SGD Tracking Fund tracks the performance of the Citi Octave SGD Index (the Index ) by entering into a swap agreement with CGML. The Index is a proprietary Index developed and maintained by CGML to offer exposure to international equity markets and to provide volatility and drawdown control mechanisms that limit the maximum decline of the Index to 20% of the highest value ever achieved by the Index since its inception. The Index has the following objectives: offers exposure across various international equity markets by measuring a diversified basket of country and regional components; aims to capture market momentum by observing historical trends in the country and regional components; aims to provide stability with volatility control mechanism and minimize extreme market loss with drawdown control mechanism; embeds a drawdown control where the Index Level is floored at 80% of highest level ever achieved by the Index (i.e. the maximum loss, from the highest ever level to the lowest level, is capped at 20% from the highest level). The Manulife Octave SGD Tracking Fund is suitable for investors who: seek capital appreciation in the medium- to long-term; seek exposure to the performance of international equity markets through a diversified basket of indices; understand that even in the worst case scenario where there is no or negative performance delivered by the Index, the minimum Unit Price is equal to 80% of the highest Unit Price achieved by the Manulife Octave SGD Tracking Fund; can accept potential exposure to 100% cash over an extended period of time; can accept that the list of equity indices may change if the regulatory environment makes continued use of the indices impractical; and fully understand and can accept the volatility and risks associated with the Manulife Octave SGD Tracking Fund and the Citi Octave SGD Index, and that such risks can have a compounding effect. Page 13 of 28

14 Sample hypothetical illustration of how the Manulife Octave SGD Tracking Fund works (Unit Price vs. Guaranteed Price): Note: The illustration above shows that if you were to retire in Year 28 of the Manulife Octave SGD Tracking Fund during the market downturn, you can be assured that your Unit Price will never drop below the Guaranteed Price as ManuRetire Secure (I) guarantees the Unit Price of the Manulife Octave SGD Tracking Fund at 80% of the highest historical Unit Price, which has been locked in Year 25 as shown in the illustration above. The Guaranteed Price will never reduce and is stable even during unfavourable market conditions. This illustration should not be construed as an indication of the actual Manulife Octave SGD Tracking Fund performance. The Manulife Octave SGD Tracking Fund tracks the performance of the Index by entering into a swap agreement with CGML. Under the swap agreement, the Manulife Octave SGD Tracking Fund will pass the premiums less Premium Charge to CGML in exchange for the performance of the Index. CGML will also pledge cash collateral to the Manulife Octave SGD Tracking Fund which will be held by an independent custodian (and who will ensure that collateral posting and retrieval is managed in accordance with the terms of the collateral agreements between us and CGML). In the event that CGML is unable to fulfill its commitments in its agreement with us, this may result in such swap agreement being terminated and the cash collateral being transferred to us. The Policy will terminate and any remaining Account Value at such time will be paid thereafter. Manulife Octave SGD Tracking Fund Fully funded and fully collateralized swap Manulife Octave SGD Tracking Fund pays premiums (less Premium Charges) CGML pays performance of the Index The swap and collateral will be FLOORED at 80% of the highest Net Asset Value of the Manulife Octave SGD Tracking Fund CGML Page 14 of 28

15 6. Index Methodology The Index may comprise allocations to nine international equity components and two cash-like instruments. Exposure Region Index Constituents North America Canada S&P/TSX 60 Net Total Return Index Europe Asia Pacific Cash-like Instruments Eurozone U.K. Japan Australia China Hong Kong Singapore South Korea U.S. Singapore EuroSTOXX 50 Net Total Return Index FTSE 100 Index MSCI Japan Daily Net Total Return Index S&P/ASX 200 Index ishares FTSE A50 China Index ETF Hang Seng Index MSCI Singapore Free Local Daily Net Total Return Index MSCI Emerging Markets Korea Daily Net Total Return Index Federal Funds Effective Rate US SGD Overnight Prime Interest Rate The Index dynamically rebalances its allocation to the nine international equity components and two cash-like instruments, with the aim of providing stable performance, limit losses and capture positive equity market trends. It seeks to do this, by using the methodology described below: Page 15 of 28

16 Sample Composition of the Index The Index allocates to nine international equity components and two cash-like instruments. Some index components may be eliminated in the process of finding the optimized allocation. In the illustration (right), the allocation eliminated three components. Allocations between equity components and cash-like-instruments may vary from 0% to 80% in equity components and from 20% to 100% in cash-like instruments. Cash-like instruments may serve as a safehaven when (1) expected return of equity components is negative, (2) volatility of equity components is high and (3) drawdown risk is high. Note: In this example, the allocation eliminated three components. The sample allocation is for illustrative purposes only and not intended to depict an actual Citi Octave SGD index allocation. The actual constituents and the percentage weights allocation may vary. Canada Australia Eurozone South Korea ManuRetire Secure (I) China S&P/TSX 60 FTSE 100 EuroStoxx 50 ishares FTSE A50 China Hong Kong U.K. Singapore Hang Seng Index S&P/ASX 200 MSCI Korea MSCI Singapore Free US Fed US Funds Fed ishares & Funds SGD Overnight FTSE A50 Effective Deposit China Rate 16% 20% MSCI Korea 12% Hang Seng Index 16% S&P/ASX % MSCI Japan 12% MSCI Singapore Free 12% Japan MSCI Japan Cash-Like Instruments US Fed Funds & SGD Overnight Deposit The Index assigns percentage weights to the constituents of the Index based on Markowitz' "Modern Portfolio Theory". It uses historical actual returns and volatility of Index constituents (both calculated over the past 2 months) as proxies for the expected return and volatility of the allocations that are used in the optimization process. Rebalancing takes place every two weeks, but adjustments may be made in between to control volatility and drawdown. The portfolio is constructed according to predefined rules as described below: a. Optimization - Find all combinations of allocations for the Index constituents in the universe including a 100% allocation to cash-like instruments; b. Volatility Control - Excludes allocations with previous 2-month volatility greater than an annualized volatility of 13% taking correlation into account; c. Drawdown Control - Excludes allocations with a potential drawdown greater than drawdown budget 14 (varies between 0% and 20%). The Index limits drawdown to 20% of the highest ever level achieved by the Index since launch of the Manulife Octave SGD Tracking Fund; d. Exposure to Equity Components - Excludes allocations where total exposure to equity components is above the total equity components allocation permitted. Maximum exposure to equity components is 80% of the Index Level; there will always be a minimum 20% allocation to cash-like instruments; e. Weight Budget - Excludes allocations where each equity component s weighting does not fall within its weight budget (varies between 0% and 16%); maximum exposure to any one equity component is 16%; 14 The drawdown budget is how much the Index is allowed to fall before breaching the Index floor. Page 16 of 28

17 f. Momentum - From the remaining allocations, select the allocation with highest positive return over the previous 2 months, which may be the expected return of the cash-like instruments; g. Resulting index allocation - The Index results in the optimal allocation from the above construction process. There may be periods when the Index will be 100% allocated to cash-like instruments to protect against downside performance and which may constrain upside performance. In certain situations where the Index Level is close to the Index Floor, the Index may not have allocations in any equity components in the short- or medium-term. Should the Index Level decrease to the Index Floor, the Index may be 100% allocated to cash-like instruments for an extended period, and in a worst case scenario for the remaining tenure of the policy term. The Index may underperform its individual constituents in rising markets due to the volatility and drawdown control, but it is expected to outperform some of its individual constituents in falling markets. Illustrative Example of the Index Performance The following diagrams illustrate that the Index may underperform equity markets in rising markets (Bull Phases) due to the volatility and drawdown control, but it is expected to outperform falling markets (Bear Phases). Performance during Bull Phases Performance during Bear Phases Sample Bull Scenario (illustrative only) Sample Bear Scenario (illustrative only) Citi Octave Index (SGD) World Equities (SGD) Citi Octave Index (SGD) World Equities (SGD) Page 17 of 28

18 The following diagram illustrates the sample scenario where there may be an extended period into which the Manulife Octave SGD Tracking Fund is invested 100% into the cash-like instrument S am ple S cenari o w ith Extended P erio d i nto 100% Cash -l ike In stru me nt (il lu stra tive on ly) Citi Octa ve Inde x Wor ld E quities ( SG D) Risks Factors General Risks Associated with an Investment in the Manulife Octave SGD Tracking Fund The Manulife Octave SGD Tracking Fund s performance is based on the performance of the Index and the value of the Index may rise or fall. The Index value is 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. Risk factors may cause your Account Value to fall, subject to the Guaranteed Value. Specific risks are detailed below and are not exhaustive. Risks Relating to the Manulife Octave SGD Tracking Fund A. Market Risk As the performance of the Manulife Octave SGD Tracking Fund is based on the performance of the Index, the Manulife Octave SGD Tracking Fund is subject to market risks affecting the Index. B. Liquidity Risk The Manulife Octave SGD Tracking Fund is not a publicly listed fund. There is no secondary market for the Manulife Octave SGD Tracking Fund. All redemption requests can only be made to us. The dealing frequency is on weekly intervals. You may only realize your Units according to the prescribed dates as stated in the schedule of Dealing Deadlines and the corresponding Dealing Days and Valuation Dates on our website: In the event that there is an unexpected closure in any of the relevant market exchanges, the Dealing Day will be the following day when all exchanges on which the Index components (or any potential Index components) are listed are open for trading. Page 18 of 28

19 Where Surrender Charges apply, you may realize a value on your Units that is below the Guaranteed Value. The Manulife Octave SGD Tracking Fund provides 100 % exposure to the Citi Octave SGD Index via a swap agreement with CGML (as Swap Counterparty). C. Currency Risk The Manulife Octave SGD Tracking Fund is denominated in Singapore dollars but the Index may consist of constituents that are not denominated in Singapore dollars. A depreciation of the currencies in which the constituents are denominated against Singapore Dollars will cause the Manulife Octave SGD Tracking Fund to lose value. Exchange rates depend on a variety of international and local factors such as interest rates, economic performance, and political developments. You may experience losses on the investment as a result of currency fluctuations. D. Early Termination Risk Please refer to the Manulife Octave SGD Tracking Fund Closure section under Key Product Provisions for further details. E. Credit Risk As a risk management measure, CGML posts collateral in SGD cash to us, which is used by us to back the Account Value 15. The collateral is deposited in an account with an independent custodian and an independent collateral manager is appointed to monitor the collateral posting process. The collateral manager ensures that collateral posting and retrieval is managed in accordance with the terms of the agreement between us and CGML. In the event that CGML is unable to fulfill its commitments in its agreement with us, this may result in the closure of the Manulife Octave SGD Tracking Fund and transfer of collateral to us. In the event that the Manulife Octave SGD Tracking Fund is terminated, the Policy will terminate and any remaining Account Value at such time will be paid thereafter. Please also refer to the Manulife Octave SGD Tracking Fund Closure section under Key Product Provisions for further details. You should note that your rights under the Manulife Octave SGD Tracking Fund (including the right to receive any payment) are the sole responsibility of Manulife. In the unlikely event that Manulife is unable to meet its obligations to you, 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 Manulife or visit the Life Insurance Association or SDIC web-sites ( or You do not have any right to claim any recourse against the Index Sponsor, Citibank Singapore Limited, the Index Calculation Agent and/or any of their affiliates. F. Compounding of Risks Due to the inter-linked nature of financial markets, an investment in the Manulife Octave SGD Tracking Fund involves risks and should only be made after assessing the direction, timing and magnitude of potential future market changes (e.g. in the value of the reference securities, indices, commodities, interest rates etc.). More than one risk factor may have simultaneous effects with regard to the Manulife Octave SGD Tracking Fund 15 Subject to the guarantee of 80% of the highest Unit Price ever achieved. Page 19 of 28

20 such that the effect of a particular risk factor may not be predictable. In addition, more than one risk factor may have a compounding effect, which may not be predictable. No assurance can be given as to the effect that any combination of risk factors may have on the value of the Manulife Octave SGD Tracking Fund. G. Changes in Charges We reserve the right to increase the Management Fee by giving you at least thirty (30) days notice. However, the Management Fee will not exceed 3%per annum. Please refer to Fees and Charges section for more details. Risks Relating to the Index H. Index Market Risk The Index is comprised of equity components and is subject to all the risks associated with equities. The Index Level can go down as well as up. The Index does not eliminate market risk. I. Strategy Risk 100% allocation to cash-like instruments: Should the Index Level decrease and reach the Index Floor, the Index may be 100% allocated to cash-like instruments for the remaining tenure. No outperformance: The Index methodology will not necessarily result in improved performance relative to a direct investment in the constituents. Minimal exposure to equity components: The basis on which the Index assigns percentage weights to the constituents means that it may, in certain situations when the Index Level is close to 80% of the highest level ever achieved by the Index (the Index Floor ), result in an allocation to cash-like instruments and may not have allocations in any equity components in a short or medium term. Impact of fees: The Index contains replication costs that reduce the Index Level; these costs will be notionally deducted from the Index Level even when the Index is allocated to the cash-like instruments; these costs may be suspended when the Index Level is close to the Index Floor. Limitations of optimization process: The Index assigns percentage weights to the constituents of the Index based on Markowitz' "Modern Portfolio Theory." This theory, although routinely used in financial theory, is based on several assumptions that may have shortcomings. These assumptions are not true all the time, and may impact the validity of the predictions generated by Modern Portfolio Theory. In particular, the optimization process is based on historical data and trends which may not continue. Limitations of rule-based indices: The Index contains fixed parameters. The Index methodology assumes these are reasonable, but other parameters, if selected instead, could result in improved performance. Optimization model precision: The Index methodology uses an optimization algorithm, which is a complex calculation model; rounding conventions and information technology constraints can affect the results of the process. Dependency on estimated values: The Index methodology estimates expected returns, volatility and correlation in order to apply its optimization methodology. The resulting optimized allocation will depend on the input values. J. No Investment The Index reflects the performance of notional positions in its constituents. There is no actual portfolio of assets to which any person is entitled or in which any person has any Page 20 of 28

21 ownership interest. The Index merely identifies certain hypothetical investment positions, the performance of which will be used as a reference point for the purpose of calculating the Index Level. K. Index Calculation Agent and Index Sponsor CGML, as the Index Calculation Agent will make determinations with respect to the Index, including as to the occurrence of a market disruption event or extraordinary event. As a consequence of certain events, the Index Calculation Agent may remove or substitute constituents of the Index and/or make adjustments to the Index which it determines to be appropriate in the circumstances, any of which may affect the performance of the Index. CGML, as Index Sponsor, will determine prices and other data relevant to the calculation of the value of the Index, including whether a market disruption event or other event permitting suspension of an underlying constituent has occurred. Within the limitation of its role as an Index Sponsor, CGML may add, delete or substitute any underlying constituent, make other methodological changes that could change the value of the Index. The Index Sponsor and the Index Calculation Agent may also discontinue the calculation, publication and dissemination of an underlying constituent (or the Index itself), any of which may affect the value of the Index. The Index Sponsor and the Index Calculation Agent shall not be liable for any errors made in good faith or omissions in calculations or other actions as provided in the Index Conditions. In carrying out their respective duties, the Index Sponsor and the Index Calculation Agent are acting as principals and not as agents or fiduciaries of any other person. L. Discontinuance of an underlying constituent Certain events and circumstances may affect an underlying constituent, resulting in a change in that underlying constituent or the disappearance of that underlying constituent. In any such circumstances, the Index Calculation Agent may select a replacement index that has substantially similar characteristics to the underlying constituent being replaced; and/or the Index Sponsor may discontinue and cancel the Index. M. Potential Conflicts of Interest The Index Sponsor and its affiliates trade the securities underlying the indices in the ordinary course of business, for their own accounts and for other accounts under their management. Such trading activities could potentially affect the value of such securities or the indices. The Index Sponsor or its affiliates may act as issuer, agent or underwriter for issuances of securities, or enter into other transactions, with returns linked or related to changes in the level of the indices or the components underlying the indices and in connection therewith may enter into hedging transactions. Such transactions may affect the level of the indices and may generate profit to the Index Sponsor or its affiliates, even in the case of a decline in the value of the relevant index. Page 21 of 28

22 8. Payment of Proceeds We will pay the proceeds within 6 (six) Singapore Business Days after the relevant Dealing Day. The proceeds are considered paid on the day the account is credited or a cheque is mailed to you. The surrender value is based on the number of Units withdrawn and the Unit Price, less Surrender Charge (if any). Below is a numerical example of surrender value: No. of Units Unit Price 100% - Surrender Surrender Value withdrawn Charge Rate* 1,000 X S$1.10 X (100% 3%*) = S$1,067 * Assumes the surrender is processed during the 2 nd year following the payment of the premium, therefore a Surrender Charge Rate of 3% is applied. 9. Obtaining Unit Price The table below shows where you can obtain various information: Media The Straits Times, The Business Times, Lianhe Zaobao or such other publication as we may specify from time to time. Information Available Guaranteed Price, Unit Price, Dealing Deadline, Valuation Dates, Dealing Days Unit Price. The frequency and timing of publication will be dependent on the publication policies of the publisher. All published prices do not represent the actual prices of the Units purchased or sold (as the case may be) on the day of publication since Unit Prices are determined on a forward basis. 10. Suspension of Dealing We reserve the right to suspend dealing on the purchase or sale of Manulife Octave SGD Tracking Fund Units during: a. Any period when a relevant market exchange of one of the constituent parts of the Index is closed (other than ordinary holidays or periods during which dealings are restricted or suspended); b. The existence of any state of affairs which, in the opinion of the Index Sponsor, constitutes an emergency as a result of which disposal of investments would not be reasonably practicable or might seriously prejudice the interest of you as a whole and of the Manulife Octave SGD Tracking Fund; c. Any breakdown in the means of communication normally employed in determining the value of any investment or when the value of any investment cannot, in the opinion of the Index Sponsor, be promptly and accurately ascertained; d. Any period when remittance of money which will or may be involved in the realization of investments or payment for investments cannot, in the opinion of the Index Sponsor, be reasonably carried out; e. Any period when the dealing of Units is suspended pursuant to any order or direction Page 22 of 28

23 issued by any applicable authorities; and/or ManuRetire Secure (I) f. Any period when the business operations of the Index Sponsor or the Manager in relation to the operations of the Manulife Octave SGD Tracking Fund are substantially interrupted or closed as a result of or arising from pestilence, acts of war, terrorism, insurrection, revolution, civil unrest, riots, strikes or acts of God. 11. Performance of the Manulife Octave SGD Tracking Fund as at 30 June 2015 The investment-linked policy sub-fund was incepted on 21 November months 6 months 1 year Since inception* Fund Performance (%) Note: * Annualised performance Performance figures for 3 months till 1 year show the percentage change, Net Asset Value-Net Asset Value with income reinvested. Those exceeding 1 year show the average annual compounded return. Past performance is neither an indicator nor a guarantee of future performance. Source: Manulife (Singapore) Pte. Ltd. 12. Expense Ratio The expense ratio as at 31 December 2014 is 2.00% (unaudited). The expense ratio is calculated in accordance with the Investment Management Association of Singapore (IMAS) guidelines on the disclosure of expense ratio. The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received. 13. Turnover Ratio The turnover ratio as at 30 June 2015 is % (unaudited). 14. Citi Octave SGD Index allocation as at 30 June 2015 The Manulife Octave SGD Tracking Fund tracks the performance of the Index by entering into a swap agreement with CGML. The Index allocation as at 30 June 2015 is as follows: Underlying Constituents Percentage of allocation (%) Federal Funds Effective Rate US EuroSTOXX 50 Net Total Return Index SGD Overnight Prime Interest Rate Soft-Dollar Commission/Arrangements The Index Sponsor and the Manager (the Relevant Parties ) may receive or enter into soft-dollar commissions / arrangements in respect of the Manulife Octave SGD Tracking Fund. The Relevant Parties will comply with applicable regulatory and industry standards on soft-dollars. The soft-dollar commissions which the Relevant Parties 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 Page 23 of 28

24 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, conduct of research or analysis, and custodial service in relation to the investments managed for the Manulife Octave SGD Tracking Fund. Soft-dollar commissions/ arrangements received shall not include travel, accommodation, entertainment, general goods and services, general office equipment or premises, membership fees, employees salaries or direct money payment. The Relevant Parties will not accept or enter into soft-dollar commission / arrangements unless such soft-dollar commissions / arrangements would, in the opinion of the Relevant Parties, assist the Relevant Parties in their management of Manulife Octave SGD Tracking Fund. The Relevant Parties shall ensure 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 that no unnecessary trades are entered into in order to qualify for such soft-dollar commissions / arrangements. The Relevant Parties do not currently receive soft-dollar commission in respect of the Manulife Octave SGD Tracking Fund. 16. Statement and Reports The financial year-end of the Manulife Octave SGD Tracking Fund is 31 December. Statements on the performance and status of your Policy will be sent to you every January and July. The semi-annual report will be sent within 2 months from the last date of the period to which the report relates (or such other period as required or permitted by the Authority). The annual audited report will be sent within 3 months from the last date of the period to which the report relates (or such other period as required or permitted by the Authority). The semi-annual report and annual audited report are available from our website: and may also be obtained from Manulife (Singapore) Pte. Ltd. Contact details are as follows: Manulife (Singapore) Pte. Ltd. 51 Bras Basah Road #09-00 Manulife Centre Singapore Tel: Page 24 of 28

25 17. Other Material Information Notes: a) Right to Change Investment Objective Notwithstanding 17 b) 1. we reserve the right to change the investment objective of the Manulife Octave SGD Tracking Fund from time to time. However, we will give you at least thirty (30) days notice before doing so. b) Duties and Obligations We may have to observe certain duties and obligations: 1. Under the agreement between us and CGML, and 2. Under certain statutory and regulatory requirements, which may include but are not limited to notices and guidelines issued from time to time by various associations and authorities. c) Distribution Policy Any income or capital gain distributed by the Manulife Octave SGD Tracking Fund will be accumulated and reinvested into the Manulife Octave SGD Tracking Fund, unless otherwise stated. Manulife Octave SGD Tracking Fund report outlining the Manulife Octave SGD Tracking Fund s performance is sent to you at least twice a year. Past performance is not necessarily a guide to future fund performance. The performance of the Manulife Octave SGD Tracking Fund is not guaranteed and the cash value may be less than the capital invested. Buying an Investment-Linked 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 premiums paid. Please note that ManuRetire Secure (I) does not provide capital guarantee on your invested premiums. Page 25 of 28

26 Appendix I. Manulife Octave SGD Tracking Fund Dealing Illustration Manulife Octave SGD Tracking Fund Dealing Illustration: Below is an example of a published Manulife Octave SGD Tracking Fund dealing schedule: In the example highlighted above, the first Dealing Deadline is on 5 July. If a complete application for Manulife Octave SGD Tracking Fund Unit purchase is approved, full premium is submitted and a new Policy is issued: On 5 July: On 6 July: Units will be processed at the Unit Price calculated on 9 July, based on the value of the assets on 6 July held by the Manulife Octave SGD Tracking Fund. Units will be processed at the Unit Price calculated on 16 July, based on the value of the assets on 13 July held by the Manulife Octave SGD Tracking Fund. If a complete application for Manulife Octave SGD Tracking Fund Unit sale is approved: On 5 July: On 6 July: Units will be processed at the Unit Price calculated on 9 July, based on the value of the assets on 6 July held by the Manulife Octave SGD Tracking Fund. Units will be processed at the Unit Price calculated on 16 July, based on the value of the assets on 13 July held by the Manulife Octave SGD Tracking Fund. For a regular payout option during the Payout Period, if the Policy Anniversary is on: 1 July: the first Dealing Deadline of the Policy Year is on 5 July, and Units will be processed at the Unit Price calculated on 9 July, based on the value of the assets on 6 July held by the Manulife Octave SGD Tracking Fund. 6 July: the first Dealing Deadline of the Policy Year is on 12 July, and Units will be processed at the Unit Price calculated on 16 July, based on the value of the assets on 13 July held by the Manulife Octave SGD Tracking Fund. Page 26 of 28