Global Growth Trends Portfolio International Health Care Portfolio Asian Technology Portfolio

Transcription

1 AllianceBernstein Investment Funds (formerly known as ACM Investment Funds) Global Growth Trends Portfolio International Health Care Portfolio Asian Technology Portfolio Prospectus 31 August 2006

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3 CONTENTS Clause Page Important Information... 2 Directory Basic Information The Managers and Investment Manager The Trustee The Register of Holders The Auditors The Sub-Fund Structure Investment Objectives, Focus and Approach Inclusion under the CPF Investment Scheme Fees and Charges Risks Subscription of Units Periodic Investment Scheme Realisation of Units Obtaining Prices of Units Suspension of Dealing Performance of the Sub-Funds and the Underlying Entities Soft Dollar Commissions/Arrangements Conflicts of Interest Reports Excessive and Short-Term Trading Policy and Procedures Other Material Information Queries and Complaints Appendix 1 - Non-Specialised Funds Investment Guidelines Appendix 2 CPF Investment Guidelines (CPFIG)... 48

4 ALLIANCEBERNSTEIN INVESTMENT FUNDS GLOBAL GROWTH TRENDS PORTFOLIO INTERNATIONAL HEALTH CARE PORTFOLIO ASIAN TECHNOLOGY PORTFOLIO Important Information The managers of the AllianceBernstein Investment Funds (formerly known as ACM Investment Funds) (the Fund ), AllianceBernstein (Singapore) Ltd. (the Managers ), accept full responsibility for the accuracy of information contained in this Prospectus and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts the omission of which would make any statement in this Prospectus misleading. Unless otherwise stated, all terms not defined in this Prospectus have the same meanings as used in the deed of trust (as amended) relating to the Fund (the Deed ). Some of the information contained in this Prospectus is a summary of corresponding provisions of the Deed. Investors should consult the relevant provisions of the Deed and obtain independent professional advice in any event of any doubt or ambiguity relating thereto. Copies of the Deed are available for inspection, free of charge during normal business hours at the registered office of AllianceBernstein (Singapore) Ltd.. The sub-funds of the Fund offered in this Prospectus, namely Global Growth Trends Portfolio, International Health Care Portfolio and Asian Technology Portfolio (the Sub-Funds ), will not be listed on any stock exchange. There is no ready market for the units in the Sub-Funds ( Units ). Investors may consequently only redeem their Units in accordance with the provisions of the Deed. None of the Units have been or will be registered under the United States Securities Act 1933, as amended, and the Units may not be offered, sold, transferred or delivered, directly or indirectly, in the United States of America or any of its territories or possessions or any area subject to its jurisdiction, including the Commonwealth of Puerto Rico ( United States ), or to any United States Person. Neither the Fund nor the Sub-Funds have been registered under the United States Investment Company Act of 1940, as amended. United States Person has the same meaning as the term U.S. Person, as that term is defined in Regulation S under the United States Securities Act of 1933, as amended, and includes, among others, any natural person resident in the United States, any partnership, corporation or other entity organized or incorporated under the laws of the United States, any estate of which any executor or administrator is a U.S. person, any trust of which any trustee is a U.S. person, and any agency or branch of a foreign entity located in the United States. The Managers have the right to reject any application for Units if they have reasonable grounds to believe that any applicant is a United States Person. Potential investors should seek professional advice to ascertain (a) the possible tax consequences, (b) the legal requirements, (c) any foreign exchange transactions or exchange control requirements which they may encounter under the laws of the countries of their citizenship, residence or domicile and (d) any restrictions or requirements under the Central Provident Fund (Investment Schemes) Regulations and the terms and conditions in respect of the CPF Investment Scheme issued by the CPF Board thereunder (as the same may be amended, modified or supplemented from time to time), which may be relevant to the subscription, holding or realisation of Units in the Sub-Funds. 2

5 This Prospectus does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such an offer or solicitation. Investors should also consider the risks of investing in the Sub-Funds, which are summarised in Paragraph 10 of this Prospectus. All enquiries in relation to the Sub-Funds should be directed to the Managers, or any agent or distributor appointed by the Managers. 3

6 AllianceBernstein INVESTMENT FUNDS GLOBAL GROWTH TRENDS PORTFOLIO INTERNATIONAL HEALTH CARE PORTFOLIO ASIAN TECHNOLOGY PORTFOLIO Directory Managers AllianceBernstein (Singapore) Ltd. 30, Cecil Street, #28-01, Prudential Tower, Singapore Company Registration Number: C Directors of the Managers Margaret Joy Adams Ajai M. Kaul Edward D. Baker III James J. Posch Trustee and Custodian HSBC Institutional Trust Services (Singapore) Limited 21, Collyer Quay, #14-01, HSBC Building, Singapore Company Registration Number: R Auditors Ernst & Young 10, Collyer Quay, #21-01, Ocean Building, Singapore Solicitors to the Managers Clifford Chance Wong One George Street 19th Floor, Singapore Solicitors to the Trustee Shook Lin & Bok 1, Robinson Road, #18-00, AIA Tower, Singapore

7 ALLIANCEBERNSTEIN INVESTMENT FUNDS GLOBAL GROWTH TRENDS PORTFOLIO INTERNATIONAL HEALTH CARE PORTFOLIO ASIAN TECHNOLOGY PORTFOLIO Global Growth Trends Portfolio, International Health Care Portfolio and Asian Technology Portfolio (each a Sub-Fund and collectively the Sub-Funds ) are authorised schemes under the Securities and Futures Act, Chapter 289 of Singapore (the SFA ). A copy of this Prospectus has been lodged with and registered by the Monetary Authority of Singapore (the Authority ). The Authority assumes no responsibility for the contents of this Prospectus. The registration of this Prospectus by the Authority does not imply that the SFA or any other legal or regulatory requirements have been complied with. The Authority has not, in any way, considered the investment merits of AllianceBernstein Investment Funds (the Fund ) or the Sub-Funds. The meanings of terms not defined in this Prospectus can be found in the deed of trust (as amended) constituting the Fund. 1. Basic Information 1.1 AllianceBernstein Investment Funds The Fund is an umbrella fund constituted in Singapore currently offering separate and distinct portfolios of securities or obligations, each of which is a sub-fund investing in different markets or groups of markets. The managers of the Fund are AllianceBernstein (Singapore) Ltd. (the Managers ). Certain of the sub-funds may be invested as feeder funds directly into existing funds established by the AllianceBernstein group elsewhere as may be determined by the Managers (each an Underlying Entity ). 1.2 The Sub-Funds At present, the Managers are offering the following three Sub-Funds: (a) (b) Global Growth Trends Portfolio This Sub-Fund is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of the AllianceBernstein - Global Growth Trends Portfolio ( Luxembourg GGTP ). This Sub-Fund is included under the CPF Investment Scheme for investments by CPF members and under the Supplementary Retirement Scheme ( SRS ) for investment by SRS participants. Units on offer are Class A Units and Class B Units, each with a different charging structure as described in Paragraph 9. Class A Units may be purchased with cash, monies from the Academic Staff Provident Fund 1 ( ASPF monies ), CPF monies or SRS monies and Class B Units may only be purchased with cash. International Health Care Portfolio This Sub-Fund is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of AllianceBernstein - International Health Care Portfolio ( Luxembourg IHCP ). This Sub-Fund is included under the CPF Investment Scheme for investments by CPF members and under the SRS for investment by SRS participants. Units on offer are Class A Units and Class B Units, each with a different charging structure as described in Paragraph 9. Class A Units may be purchased with cash, ASPF monies, CPF monies or SRS monies and Class B Units may only be purchased with cash. 1 The Academic Staff Provident Fund is a provident fund scheme established for the benefit of officers or employees of the National University of Singapore under the National University of Singapore Act, Chapter 204 of Singapore. 5

8 (c) Asian Technology Portfolio This Sub-Fund is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of AllianceBernstein - Asian Technology Portfolio ( Luxembourg ATP ). This Sub-Fund is included under the CPF Investment Scheme for investments by CPF members and under the SRS for investment by SRS participants. Units may be purchased with cash, ASPF monies, CPF monies or SRS monies. There are no classes of Units for this Sub-Fund Class A Units and Class B Units of a relevant Sub-Fund are distinct classes of Units of that Sub-Fund (each a Class and collectively the Classes ) designated as such by the Managers. Each Class of Units has a charging structure that is different from that of another Class. The charging structures for the Class A Units and the Class B Units of the Global Growth Trends Portfolio and the International Health Care Portfolio are described in Paragraph Date of Registration and Expiry Date of Prospectus The date of registration of this Prospectus with the Authority is 31 August This Prospectus shall be valid for 12 months after the date of registration (i.e., up to and including 30 August 2007) and shall expire on 31 August The Deed of Trust The deed of trust relating to the Units being offered to the public for subscription or purchase (the Principal Deed ) is dated 10 March 1998 and the parties to the Principal Deed are the Managers, and HSBC Institutional Trust Services (Singapore) Limited (the Trustee ) The Principal Deed has been amended by the following supplemental deeds and amending and restating deeds entered into between the Managers and the Trustee: (a) First Supplemental Deed dated 4 January 1999; (b) Second Supplemental Deed dated 2 January 2001; (c) Third Supplemental Deed dated 3 January 2002; (d) Amending and Restating Deed dated 16 January 2003; (e) Second Amending and Restating Deed dated 1 July 2003; (f) Third Amending and Restating Deed dated 6 January 2004; (g) Fourth Amending and Restating Deed dated 5 January 2005; (h) Fifth Amending and Restating Deed dated 5 January 2006; and (i) Sixth Amending and Restating Deed dated 31 August The Principal Deed as amended by the First Supplemental Deed, the Second Supplemental Deed, the Third Supplemental Deed, the Amending and Restating Deed, the Second Amending and Restating Deed, the Third Amending and Restating Deed and the Fourth Amending and Restating Deed shall hereinafter be referred to as the Deed. The terms and conditions of the Deed shall be binding on each unitholder (each a Holder and collectively the Holders ) and persons claiming through such Holder as if such Holder had been a party to the Deed and as if the Deed contained covenants on such Holder to observe and be bound by the provisions of the Deed and an authorisation by each Holder to do all such acts and things as the Deed may require the Managers and/or the Trustee to do Copies of the Principal Deed, the supplemental deeds and the amending and restating deeds are available for inspection free of charge at the registered office of the Managers at 30, Cecil Street, #28-01, Prudential Tower, Singapore during normal business hours and will be supplied by the Managers to any person upon request at a charge of S$25 per copy. 6

9 1.5 Accounts and Reports The latest copies of the annual and semi-annual accounts, the auditor s report on the annual accounts and the annual and semi-annual reports relating to the Sub-Funds may be obtained from the Managers upon request. 2. The Managers and Investment Manager 2.1 The Managers The Managers of the Fund are AllianceBernstein (Singapore) Ltd. ( ABSL ), whose registered office is at 30, Cecil Street, #28-01, Prudential Tower, Singapore ABSL is an indirect wholly-owned subsidiary of AllianceBernstein L.P ABSL is the holder of a capital markets services licence issued by the Authority to conduct regulated activities in fund management and to deal in securities and is also a member of the Investment Management Association of Singapore The Managers have been managing collective investment schemes and discretionary funds since In 1998, ABSL was granted Approved Fund Manager status under the Authority s tax incentive scheme. ABSL is also an approved fund management company under the CPF Investment Schemes to manage unit trusts and fund management accounts included under the CPFIS. 2.2 The Investment Manager The investment manager of Luxembourg GGTP, Luxembourg IHCP and Luxembourg ATP, the Underlying Entities of the Sub-Funds, is AllianceBernstein L.P. (formerly known as Alliance Capital Management L.P.) (the Investment Manager ) The Investment Manager has been managing collective investment schemes and discretionary funds since AllianceBernstein L.P. is a leading global investment management firm with approximately US$625 billion in assets under management as of 30 June AllianceBernstein L.P. is based in New York and is present in 46 cities and 24 countries, including Germany, France, England, Canada, Australia, Japan, Switzerland, Spain, Luxembourg, New Zealand, Singapore, South Africa, Bahrain, Korea, Taiwan, Brazil and India. AllianceBernstein L.P., is a Delaware limited partnership. At 30 June 2006, AllianceBernstein Holding L.P. (formerly known as Alliance Capital Management Holding L.P.) owned approximately 32.7% of the issued and outstanding AllianceBernstein L.P. Units. AXA Financial was the beneficial owner of approximately 60.2% of the AllianceBernstein L.P. Units at 30 June 2006 (including those held indirectly through its ownership of approximately 1.7% of the issued and outstanding AllianceBernstein Holding L.P. Units) which, including the general partnership interests in AllianceBernstein L.P. and AllianceBernstein Holding L.P., represent an approximate 60.6% economic interest in AllianceBernstein L.P.. AXA Financial is a wholly-owned subsidiary of AXA, one of the largest global financial services organisations. 3. The Trustee The Trustee of the Fund is HSBC Institutional Trust Services (Singapore) Limited whose registered address is at 21, Collyer Quay, #14-01, HSBC Building, Singapore

10 4. The Register of holders The register of Holders (the Register ) is kept and maintained at the business office of the registrar appointed as the Trustee s agent, HSBC Fund Services (Singapore) Limited at 20, Raffles Place, #13-01/05, Ocean Towers, Singapore and is accessible to the public during normal business hours. The Register is conclusive evidence of the number of units ( Units ) in any Sub-Fund held by each Holder and the details in the Register shall prevail in the event of any discrepancy between the entries in the Register and the details appearing on any statement of holding, unless the Holder proves to the satisfaction of the Managers and the Trustee that the Register is incorrect. 5. The Auditors The auditors of the accounts relating to the Units under the Deed are Ernst & Young whose registered office is at 10, Collyer Quay, #21-01, Ocean Building, Singapore (the Auditors ). 6. The Sub-Fund Structure 6.1 Global Growth Trends Portfolio Global Growth Trends Portfolio is a Sub-Fund of the Fund which is invested as a feeder fund investing all or substantially all of its assets directly in the Class I shares of Luxembourg GGTP. Luxembourg GGTP is a separate portfolio of AllianceBernstein 2 (formerly known as ACM Global Investments). AllianceBernstein 2 is a mutual investment fund (fonds commun de placement) organised under the laws of the Grand Duchy of Luxembourg as an unincorporated co-proprietorship of its securities. AllianceBernstein 2 qualifies as a UCITS within the meaning of Article 1(2) of the EC Directive 85/611 of 20 December 1985, as amended. The shares of Luxembourg GGTP are denominated in U.S. dollars. AllianceBernstein 2 is managed in the interest of its shareholders by AllianceBernstein (Luxembourg) S.A. (formerly known as Alliance Capital (Luxembourg) S.A.) (the Luxembourg Management Company ), an affiliate of the Managers, in accordance with AllianceBernstein s 2 management regulations (the Management Regulations ), as amended from time to time. The assets of AllianceBernstein 2, including Luxembourg GGTP, are separate from those of the Luxembourg Management Company. All actions referred to herein as being taken by AllianceBernstein 2 or Luxembourg GGTP will be performed by the Luxembourg Management Company or its agents on behalf of AllianceBernstein 2 or Luxembourg GGTP. 6.2 International Health Care Portfolio International Health Care Portfolio is a Sub-Fund of the Fund. International Health Care Portfolio is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of Luxembourg IHCP. Luxembourg IHCP is a separate portfolio of AllianceBernstein 3. AllianceBernstein 3 is an open-ended investment company with variable capital (societe d investissement a capital variable) incorporated on 8 June 2006 with limited liability in the Grand Duchy of Luxembourg under the law of 10 August 1915, as amended, relating to commercial companies and is registered under Part I of the law of 20 December 2002, relating to undertakings for collective investment in transferable securities (the UCITS III Law ). The board of directors of AllianceBernstein 3 has appointed the Luxembourg Management Company as the management company of AllianceBernstein 3 to be responsible on a day-to-day basis, under supervision of the board of directors, for providing administration, marketing, investment 2 ACMBernstein, a mutual investment fund (fonds commun de placement) organised under the laws of Luxembourg, conducts business outside of Germany and Austria under the name AllianceBernstein. 3 ACMBernstein SICAV, an open-ended investment company with variable capital incorporated in Luxembourg, conducts business outside of Germany and Austria under the name AllianceBernstein.

11 management and advisory services in respect of all portfolios. The Luxembourg Management Company has delegated its investment management and advisory functions in respect of all portfolios, including the Luxembourg IHCP and Luxembourg ATP, to the Investment Manager. 6.3 Asian Technology Portfolio Asian Technology Portfolio is a Sub-Fund of the Fund. Asian Technology Portfolio is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of Luxembourg ATP. Luxembourg ATP is a separate portfolio of AllianceBernstein Investment Objectives, Focus and Approach 7.1 Global Growth Trends Portfolio Investment Objective of Global Growth Trends Portfolio Global Growth Trends Portfolio is invested as a feeder fund investing all or substantially all of its assets directly in the Class I shares of Luxembourg GGTP. The benchmark against which the performance of Global Growth Trends Portfolio should be measured is the Morgan Stanley Capital International ( MSCI ) World Index Investment Objective and Policies of Luxembourg GGTP Luxembourg GGTP seeks long-term capital growth by investing in a global portfolio of equity securities allocated among specific industry sectors, or sub-portfolios, that are selected for their growth potential. The sectors may be changed as each industry sector s growth potential matures and new global trends for growth emerge in different industry sectors. Luxembourg GGTP currently consists of six sub-portfolios, each managed by an in-house, senior sector analyst-manager. Applying a research-driven, bottom-up stock selection process, each of the sub-portfolio analyst-managers uses the Investment Manager s proprietary research to seek attractive companies in their sectors. Luxembourg GGTP s growth stocks are selected using the Investment Manager s growth investment discipline. The growth investment team selects stocks using a process that seeks to identify companies with superior earnings growth prospects. This discipline relies heavily upon the fundamental analysis and research of the Investment Manager s large internal growth research staff of over 70 dedicated growth analysts, which follows approximately 1,400 companies. The Investment Manager places research emphasis on identifying companies whose substantially above-average prospective earnings growth potential appears likely to outpace market expectations. Luxembourg GGTP s total net assets invested in global equity securities utilizing the Investment Manager s Global Growth investment discipline will be allocated by the Investment Manager among various industry sectors determined by the Investment Manager to possess superior growth potential, with each such industry sector designated a subportfolio. The individual global equity security represented by a sub-portfolio relating to a particular industry sector will be selected by the Investment Manager s in-house research specialist(s) responsible for that particular industry sector. 9

12 The current sub-portfolios designated by the Investment Manager in conjunction with the Investment Manager s Global Growth investment discipline are as follows: (1) information technology, (2) health care, (3) finance, (4) infrastructure, (5) energy and natural resources and (6) consumer growth. The percentage of the total net assets allocated to any one subportfolio will depend upon the Investment Manager s assessment of current and forecasted investment opportunities and conditions. The Investment Manager s Global Growth Portfolio Oversight Group may (i) redesignate or alter the criteria relating to an existing sub-portfolio as a particular industry sector s growth potential fluctuates, (ii) retire an existing sub-portfolio as the growth potential of the relevant industry sector decreases or (iii) establish a new sub-portfolio as the growth potential of a new or different industry sector increases. 7.2 International Health Care Portfolio Investment Objective of International Health Care Portfolio International Health Care Portfolio is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of Luxembourg IHCP. The benchmark against which the performance of the International Health Care Portfolio should be measured is the MSCI World Health Care Index Investment Objective and Policies Of Luxembourg IHCP The primary investment objective of Luxembourg IHCP is growth of capital. In seeking to achieve this investment objective, the Investment Manager expects that at any time at least 80% of Luxembourg IHCP s total assets will be invested in securities issued by companies principally engaged in health care and health care-related industries ( Health Care Industries ) (companies principally engaged in the discovery, development, provision, production or distribution of products and services that relate to the diagnosis, treatment and prevention of diseases or other medical disorders), and in no case will the amount of Luxembourg IHCP s total assets invested in such securities be less than two-thirds of Luxembourg IHCP s total assets. Luxembourg IHCP seeks investments in both new, smaller and less seasoned companies and well-known, larger and established companies. Whenever possible, investments in new, smaller or less seasoned companies will be made with a view to benefit from the development and growth of new products and markets in Health Care Industries. Investments in these companies may offer more reward but may also entail more risk than is generally true of larger, established companies. In implementing its policies, Luxembourg IHCP invests in a global securities of companies selected for their capital appreciation opportunities. The Investment Manager adjusts Luxembourg IHCP s exposure to particular national economies based on its perception of the most favorable markets and issuers. The percentage of Luxembourg IHCP s assets invested in securities of companies in a particular country or denominated in a particular currency varies in accordance with the Investment Manager s assessment of the appreciation potential of such securities and the strength of that currency. Luxembourg IHCP will invest in a diversified global portfolio of government securities and securities issued by companies as the Investment Manager considers most advantageous. 10

13 Luxembourg IHCP is not subject to any limitation on the portion of its total assets that may be invested in any one country or region. Luxembourg IHCP seeks primarily to take advantage of capital appreciation opportunities identified by the Investment Manager in emerging technologies and services in Health Care Industries by investing in companies that are expected to profit from the development of new products and services for these industries. Examples of such emerging technologies and services include: New methods for administering drugs to a patient, such as surgical implants and skin patches that enhance the effectiveness of the drugs and may reduce patient side effects by delivering the drugs in precise quantities over a prolonged time period or by evading natural body defense mechanisms which delay the effect of the drugs; Developments in medical imaging such as the application of computer technology to the output of conventional x-ray systems that allow for cross-sectional images of soft tissue and organs (CT scanning) and continuous imaging (digital radiography) as well as more advanced nuclear medicine, ultrasound and magnetic resonance imaging (MRI); Advances in minimally invasive surgical techniques, such as angioplasty and related technologies for diseased blood vessels and laser beams for the eye, general and cardiovascular surgery, which provide greater effectiveness, lower cost and improved patient safety than more traditional surgical techniques; New therapeutic pharmaceutical compounds that control or alleviate disease, including prescription and non-prescription drugs and treatment regimes for conditions not controlled, alleviated or treatable by existing medications or treatments and chemical or biological pharmaceuticals for use in diagnostic testing; Advances in molecular biology such as signal transduction, cell adhesion and cell to cell communication which have facilitated a rapid increase in new classes of drugs. These have included monoclonal antibodies, bio-engineered proteins and small molecules from novel synthesis and screening techniques; Genomics, which allows scientists to better understand the causes of human diseases, and in some cases has led to the manufacture of proteins for use as therapeutic drugs; Gene chips and other equipment that provides for the screening, diagnosis and treatment of diseases; The introduction of large scale business efficiencies to the management of nursing homes, acute and specialty hospitals as well as free-standing outpatient facilities, surgical centers and rehabilitation centers; Adaptations of microprocessors for use by pharmaceutical manufacturers, hospitals, doctors and others in Health Care Industries to increase distribution efficiency; Health care delivery organizations that combine cost effectiveness with high quality medical care and help address the rising cost of health care; and The sale of prescription drugs and other pharmaceuticals to consumers via the Internet. Luxembourg IHCP may also include companies that provide traditional products and services currently in use in Health Care Industries and that are likely to benefit from any increases in the general demand for such products and services. The following are examples of the products and services that may be offered by companies in Health Care Industries: 11

14 Drugs or Pharmaceuticals, including both ethical and proprietary drugs, drug administration products and pharmaceutical components used in diagnostic testing; Medical Equipment and Supplies, including equipment and supplies used by health service companies and individual practitioners, such as electronic equipment used for diagnosis and treatment, surgical and medical instruments and other products designed especially for Health Care Industries; Health Care Services, including the services of clinical testing laboratories, hospitals, nursing homes, clinics, centers for convalescence and rehabilitation, and products and services for home health care; and Medical Research, including scientific research to develop drugs, processes or technologies with possible commercial application in Health Care Industries. Luxembourg IHCP is not subject to any limitation on the portion of its total assets that may be invested in any one country or region. Luxembourg IHCP intends to spread investment risk and expects to invest in equity securities of issuers domiciled in both developed and emerging market countries. The Investment Manager, in its discretion, will determine which countries constitute emerging market countries. In general, emerging market countries will be countries considered by the global financial community to be developing countries, including countries from time to time included in the MSCI Emerging Markets Index SM, a free float-adjusted market capitalization index designed to measure equity market performance in the global emerging markets. The Investment Manager s determination of which countries constitute emerging market countries may change from time to time. As a temporary defensive measure or to provide for redemptions, Luxembourg IHCP may, without limit, hold cash, cash equivalents, or short-term fixed-income obligations, including money market instruments. Luxembourg IHCP may invest up to 10% of its net assets in securities for which there is no ready market. Luxembourg IHCP may not therefore be readily able to sell such securities. Moreover, there may be contractual restrictions on the resale of such securities. Efficient portfolio management and hedging techniques may include use of exchange-traded and over-the-counter ( OTC ) derivative instruments, including swaps, options, futures and currency transactions. 7.3 Asian Technology Portfolio Investment Objective of Asian Technology Portfolio The Asian Technology Portfolio is invested as a feeder fund investing all or substantially all of its assets directly in Class I shares of Luxembourg ATP. The benchmark against which the performance of the Asian Technology Portfolio should be measured is the Dow Jones Asia Pacific Technology Index Investment Objective and Policies Of Luxembourg ATP The investment objective of Luxembourg ATP is to achieve long-term capital appreciation. Luxembourg ATP will invest primarily in equity and equity-related securities of Asian Technology Companies. For these purposes, an Asian Technology Company is a company that is primarily active in the development or manufacture of technology-related 12

15 products or components or the provision of technology-related services and (i) is domiciled or organized in Asia, or (ii) is established and conducting business in Asia, or (iii) carries out the preponderant part of its economic activities in Asia. Such companies include those whose products or services are anticipated by the Investment Manager to benefit from the commercial application of scientific discoveries or developments and those companies whose processes, products or services are anticipated by management to benefit significantly from the use or commercial application of scientific discoveries or developments in such fields as, for example, aerospace, aerodynamics, astrophysics, biochemistry, chemistry, communications, computers, conservation, electricity, electronics (including radio, television and other media), energy (including development, production and service activities), geology, health care, mechanical engineering, medicine, metallurgy, nuclear physics, oceanography and plant physiology. It is anticipated that, under normal conditions, substantially all of Luxembourg ATP s total assets will be invested in such companies. Luxembourg ATP invests primarily in equity and equity-related securities which are either listed on a recognized stock exchange or dealt in or on a regulated market. A number of investments in unlisted companies, to the limited extent permitted by Luxembourg ATP s investment restrictions, may be made through direct negotiations with potential partners, generally through direct private placements. Luxembourg ATP will seek to diversify by investing in companies involved in different technology products in a number of Asian countries. Stock selection will be driven by research analysis of individual companies and the Investment Manager s assessment of value. Country allocation will depend on the judgment of the Investment Manager of various factors such as market conditions in each jurisdiction, individual company analysis and relative currency valuation among Asian markets. Other economic and political factors are also considered. There is no prescribed limit on geographic asset distribution in Asia. It is presently contemplated that a significant portion of Luxembourg ATP s assets will be invested in Japan, but this portion will normally be less than 65%. The balance may be invested in other Asian countries which may include China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Pakistan, Singapore, Korea, Taiwan and Thailand. Luxembourg ATP is not subject to any limitation on the portion of its total assets that may be invested in any one country or region. Luxembourg ATP intends to spread investment risk and expects to invest in equity securities of issuers domiciled in both developed and emerging market countries. The Investment Manager, in its discretion, will determine which countries constitute emerging market countries. In general, emerging market countries will be countries considered by the global financial community to be developing countries, including countries from time to time included in the MSCI Emerging Markets Index SM, a free float-adjusted market capitalization index designed to measure equity market performance in the global emerging markets. The Investment Manager s determination of which countries constitute emerging market countries may change from time to time. As a temporary defensive measure or to provide for redemptions, Luxembourg ATP may, without limit, hold cash, cash equivalents, or short-term fixed-income obligations, including money market instruments. Luxembourg ATP may invest up to 10% of its net assets in securities for which there is no ready market. Luxembourg ATP may not therefore be readily able to sell such securities. Moreover, there may be contractual restrictions on the resale of such securities. 13

16 The Investment Manager expects that at any time at least 80% of Luxembourg ATP s total assets will be invested in equity and equity-related securities of Asian Technology Companies, and in no case will the amount of Luxembourg ATP s total assets invested in such securities be less than two-thirds of Luxembourg ATP s total assets. Efficient portfolio management and hedging techniques may include use of exchangetraded and OTC derivative instruments, including swaps, options, futures and currency transactions. 7.4 Authorised Investments The Sub-Funds are authorised to invest in the following investments ( Authorised Investments ): any Quoted Investment any Investment 5 in respect of which application for listing or for permission to deal has been made to a Recognised Stock Exchange 6 and the subscription for or purchase of which is either conditional upon such listing or permission to deal being granted within a specified period not exceeding twelve weeks (or such other period as may be agreed between the Managers and the Trustee) or in respect of which the Managers are satisfied that the subscriptions or other transactions will be cancelled if the application is refused; any Unquoted Investment 7 ; any Investment denominated in any currency; the currency of any country or any contract for the spot purchase or sale of any such currency or for hedging purposes, any foreign exchange transaction or any forward contract of such currency; or any other Investment not covered by Paragraphs to of this definition but selected by the Managers for investment of the Deposited Property 8 of the relevant Sub-Fund and approved by the Trustee. 7.5 Investment in Derivatives/ Securities Lending The Managers and the Investment Manager may invest in derivatives for hedging and efficient portfolio management purposes and/or engage in securities lending. However, should the Managers and/or the Investment Manager decide to invest in derivatives or engage in securities lending for the Sub-Funds, the Managers and/or the Investment Manager shall comply with all applicable laws and regulations relating to investments in derivatives and securities lending. 4 Quoted Investment means any Investment which is quoted or listed or in respect of which permission to deal is effective on any Recognised Stock Exchange. 5 Investment means any share, stock, bond, note, debenture, debenture stock, unit or sub unit in any unit trust scheme, participation in a mutual fund, other interests in collective investment schemes, warrant or other stock purchase right, futures, option, index option, loan convertible into security, loan stock, certificate of deposit, banker s acceptance, bill of exchange, bank bill, commercial paper, promissory note, treasury bill or any other fixed or floating rate debt instrument, money market instrument, index and forward currency exchange contract or other derivative or financial transaction or instrument or any other security which may be selected by the Managers for the purpose of investment of the Deposited Property of any Sub-Fund or which may for the time being form part thereof. 6 Recognised Stock Exchange means any stock exchange or over-the-counter market or other market of sufficient repute in any part of the world as may be approved by the Managers and the Trustee and includes, in relation to any particular Authorised Investment, any responsible firm, corporation or association in any part of the world which deals in the Authorised Investment as to be expected generally to provide in the opinion of the Managers a satisfactory market for such Authorised Investment. 7 Unquoted Investment means any Investment which is not quoted, listed or dealt in on any Recognised Stock Exchange. 8 Deposited Property means all the assets, including cash, for the time being held or deemed to be held upon the trusts of the Deed (or if the context so requires, the part thereof attributable to a Sub-Fund), excluding any aggregate amount for the time being standing to the credit of the distribution accounts (or as the case may be, the distribution account of the relevant Sub-Fund). 14

17 8. Inclusion under the CPF Investment Scheme The Sub-Funds are included under the CPF Investment Scheme - Ordinary Account for investment by CPF members using their CPF monies ( CPFIS-Included Funds ). The risk classification of the Sub-Funds is set out in the table below. Sub-Fund Global Growth Trends Portfolio International Health Care Portfolio Asian Technology Portfolio CPF Risk Classification Higher Risk/Broadly Diversified (Global Stocks) Higher Risk/Narrowly Focussed (Other Narrowly Focussed Stocks) Higher Risk/Narrowly Focussed (Asian Region Focussed Stocks) The CPF Board currently pays a legislated minimum annual interest rate of 2.5% on the CPF Ordinary Account. CPF interest rates are based on the 12-month fixed deposit and month-end savings rates of the major local banks and are revised quarterly. The interest is computed monthly and is credited and compounded annually. 9. Fees and Charges 9.1 Fees and charges of Global Growth Trends Portfolio Fees and Charges payable by a Holder Class A Units Preliminary charge Currently up to 5.0%; maximum 5.0% Class B Units Currently none; maximum 5.0% Realisation charge Switching fee Currently none; maximum 4.0% Currently none; maximum 2.0% 4.0%; Holding Period 0-1 year 3.0%; Holding Period 1-2 years 2.0%; Holding Period 2-3 years 1.0%; Holding Period 3-4 years 0.0%; Holding Period >4 years Maximum 4.0% Currently none; maximum 2.0% 15

18 Fees and Charges payable by the Sub-Fund (expressed as a percentage of the average daily net asset value of the Sub-Fund) Management participation Trustee and custodian fees Distribution fee Class A Units Currently 0.75% p.a.; maximum 1.75% p.a. Currently 0.075% p.a., subject always to a minimum of S$10,000 p.a. per Sub-Fund and a maximum of 0.15% p.a. Currently none; maximum 1.0% p.a. Class B Units Currently 0.75% p.a.; maximum 1.75% p.a. Currently 0.075% p.a., subject always to a minimum of S$10,000 p.a. per Sub-Fund and a maximum of 0.15% p.a. Currently 1.0% p.a.; maximum 1.0% p.a. The maximum fees and charges are the maximum fees and charges allowed under the Deed. Fees and Expenses of Class I shares of Luxembourg GGTP Initial sales charge Realisation charge Management Company fee (to cover operational and central administrative expenses in Luxembourg)* Management fee* Custodian fee (based on figures for the annual report dated 31 August 2005)* Transfer agent fee (based on figures for the annual report dated 31 August 2005)* Up to 3.0% but waived None 0.10% p.a. 0.90% p.a. 0.02% 0.15% * Fees payable by Luxembourg GGTP expressed as an annual percentage of average daily net asset value. No fees and charges are payable by Global Growth Trends Portfolio to Luxembourg GGTP in respect of the former s investment in Class I shares of Luxembourg GGTP. 9.2 International Health Care Portfolio Fees and Charges payable by the Holder Class A Units Preliminary charge Currently up to 5.0%; maximum 5.0% Class B Units Currently none; maximum 5.0% Realisation charge Switching fee Currently none; maximum 4.0% Currently none; maximum 2.0% 4.0%; Holding Period 0-1 year 3.0%; Holding Period 1-2 years 2.0%; Holding Period 2-3 years 1.0%; Holding Period 3-4 years 0.0%; Holding Period >4 years Maximum 4.0% Currently none; maximum 2.0% 16

19 Fees and Charges payable by the Sub-Fund (expressed as a percentage of the average daily net asset value of the Sub-Fund) Management participation Trustee & custodian fees Distribution fee Class A Units Currently 0.75% p.a.; maximum 1.75% p.a. Currently 0.075% p.a., subject always to a minimum of S$10,000 p.a. per Sub-Fund and a maximum of 0.15% p.a. Currently none; maximum 1.0% p.a. Class B Units Currently 0.75% p.a.; maximum 1.75% p.a. Currently 0.075% p.a., subject always to a minimum of S$10,000 p.a. per Sub-Fund and a maximum of 0.15% p.a. Currently 1.0% p.a.; maximum 1.0% p.a. The maximum fees and charges are the maximum fees and charges allowed under the Deed. Fees and Expenses of Class I shares of Luxembourg IHCP Initial sales charge Realisation charge Management Company fee (to cover operational and central administrative expenses in Luxembourg)* Management fee* None None 0.05% p.a. 1.00% p.a. Custodian fee (based on figures as of 30 November 2005)* 0.01% Transfer agent fee (based on figures as of 30 November 2005)* 0.16% * Fees payable by Luxembourg IHCP. No fees and charges are payable by International Health Care Portfolio to Luxembourg IHCP in respect of the former s investment in the shares of Luxembourg IHCP. 9.3 Asian Technology Portfolio Fees and Charges payable by a Holder Preliminary charge Currently up to 5.0%; maximum 5% Realisation charge Currently none; maximum 4.0% Switching fee Currently none; maximum 2.0% Fees and Charges payable by the Sub-Fund (expressed as a percentage of the average daily net asset value of the Sub-Fund) Management participation Trustee & custodian fees Distribution fee Currently 0.75% p.a.; maximum 1.75% p.a. Currently 0.075% p.a., subject always to a minimum of S$10,000 p.a. per Sub-Fund and a maximum of 0.15% p.a. Currently none; maximum 1.0% p.a. The maximum fees and charges are the maximum fees and charges allowed under the Deed. 17

20 Fees and expenses of Class I shares of Luxembourg ATP Initial sales charge Management Company fee (to cover operational and central administrative expenses in Luxembourg)* Management fee* None 0.05% p.a. 1.25% p.a. Custodian fee (based on figures as of 31 March 2006)* 0.10% Transfer agent fee (based on figures as of 31 March 2006)* 0.13% *Fees payable by Luxembourg ATP. No fees and charges are payable by Asian Technology Portfolio to Luxembourg ATP in respect of the former s investment in the shares of Luxembourg ATP. 9.4 Marketing, Promotional and Advertising Expenses 10. Risks As required by the Code of Collective Investment Schemes issued by the Authority (the Code ), all marketing, promotional and advertising expenses in relation to the Sub-Funds will be borne by the Managers and not charged to the deposited property of the Sub-Funds General risks The Sub-Funds engage in a business involving special considerations and risks, including those discussed below. There can be no assurance that the investment objective of any Sub-Fund will be achieved or that there will be any return of capital, and investment results may vary substantially on a monthly, quarterly or annual basis. An investment in any Sub-Fund does not represent a complete investment program. The investment return and principal value of an investment in any Sub-Fund will fluctuate as the prices of shares of the Underlying Entity in which such Sub-Fund invests fluctuate, so that Units of such Sub-Fund, when redeemed, may be worth more or less than their original cost. Risks stated for Luxembourg GGTP are similarly applicable to the Singapore-registered Global Growth Trends Portfolio by virtue of its direct investment in Luxembourg GGTP. Risks stated for Luxembourg IHCP are similarly applicable to the Singapore-registered International Health Care Portfolio by virtue of its direct investment in Luxembourg IHCP. Risks stated for Luxembourg ATP are similarly applicable to the Singapore-registered Asian Technology Portfolio by virtue of its direct investment in Luxembourg ATP. Investors should take note of the discussion of such risks below. An investment in any Sub-Fund is meant to produce returns over the long-term. Investors should not expect to obtain short-term gains from such investment. The Sub-Funds are denominated in Singapore dollars. All or substantially all of the Sub-Fund s assets will be invested in shares of Luxembourg GGTP, Luxembourg IHCP and Luxembourg ATP, which are denominated in U.S. dollars, which may magnify fluctuations due to changes in international exchange rates. 18

21 10.2 Special Considerations and Risks of Underlying Entities Each Underlying Entity engages in a business involving special considerations and risks, including those discussed below. There can be no assurance that an Underlying Entity s investment objective will be achieved or that there will be any return of capital, and investment results may vary substantially on a monthly, quarterly or annual basis. An investment in an Underlying Entity does not represent a complete investment programme. Potential investors should be aware that there may be situations in which the Investment Manager or its affiliates ( Interested Parties ) could encounter a conflict of interest in connection with the Underlying Entities. Subject as mentioned below, the Investment Manager will, in such event, have regard to its obligations under the relevant Investment Management Agreement and, in particular, to its obligations to act in the best interests of the Underlying Entities, so far as practicable having regard to its obligations to other clients, when undertaking any investments where potential conflicts of interest may arise. Should a conflict of interest arise, the Investment Manager will endeavour to ensure that it is resolved fairly. Without limitation, these conflicts include the following: Other Funds An Interested Party may make investments for other clients without making the same available to the Underlying Entities. In the event any investment is made in funds already managed or advised by the Investment Manager, they will be effected only on terms which either avoid or make appropriate provision for double charging of investment management or advisory fees. To the extent that the Investment Manager deems it advisable to seek investments for the Underlying Entities and for its other client accounts in the same security at the same time, the Underlying Entities may not be able to acquire as large an allocation of such security as it desires, or it may have to pay a higher price or obtain a lower yield for such security. Allocation will be made in a manner deemed equitable by the Investment Manager, taking into account the size of account, amount purchased or sold and any other factor it may deem relevant. Services To Other Clients An Interested Party may enter into financial, banking, currency, advisory (including corporate finance advice) or other transactions on an arm s length basis with the Underlying Entities or any company in the investment portfolio of the Underlying Entities for which it may receive and retain fees. Sales To And From The Underlying Entities An Interested Party may sell or purchase investment to or from the Underlying Entities provided that (a) the sale or purchase is effected on an official stock exchange or other organised market where the purchaser or vendor is undisclosed at the time of the sale or purchase or in other circumstances where the vendor and purchaser are not identified to each other; or (b) the terms and conditions of any such sale or purchase are effected on an arm s length basis and approved by the respective board of directors before such sale or purchase is effected. Transactions With Affiliated Broker/Dealers The Investment Manager may, in the normal course of business, utilize the brokerage services of affiliated broker/dealers including, but not limited to, Sanford C. Bernstein & Co., LLC and Sanford C. Bernstein Limited subject to the Investment Manager s obligation to execute transactions on behalf of the Underlying Entities consistent with best execution standards. 19