PRODUCT HIGHLIGHTS SHEET

Transcription

1 PRODUCT HIGHLIGHTS SHEET Investment Risk Rating: 4 Prepared on: 26 September 2017 Important Notes: Information mentioned in this document is intended to provide you with a general summary of the ILP Sub-Fund and are subject to change. Please read the Policy (including Benefit Illustration, Product Summary and Fund Summary) for the full details of the standard terms and conditions of the insurance product and ILP Sub-Fund. This Product Highlights Sheet ( PHS ) is an important document. It highlights the key terms and risks of the ILP Sub-Fund and complements the Product Summary and Fund Summary. It is important to read the Product Summary and the Fund Summary before deciding whether to purchase the ILP Sub-Fund. If you do not have a copy, please contact us to ask for one. You should not invest in the ILP Sub-Fund if you do not understand it or are not comfortable with the accompanying risks. Unless otherwise defined, capitalised terms in this PHS have been defined in the Fund Summary. Investment risk rating is used as a guide to determine the ILP Sub-Fund that is suitable to the risk profile as indicated in the Bank s Risk Profile Questionnaire (RPQ). It is currently only applicable to customers of HSBC Bank (Singapore) Limited (the Bank ). HSBC Insurance Singapore Equity Fund (the ILP Sub-Fund ) Product Type ILP Sub-Fund 1 Launch Date 3 August 2015 Manager Schroder Investment Management (Singapore) Ltd Custodian HSBC Insurance (Singapore) Pte. Limited Capital Guaranteed No Dealing Frequency Every Business Day Name of Guarantor N.A. Expense Ratio for the financial year ended 30 June 2016 Underlying Fund Schroder Singapore Trust (Class SGD A Distribution) 1.32% ILP SUB-FUND SUITABILITY WHO IS THE ILP SUB-FUND SUITABLE FOR? The ILP Sub-Fund is only suitable for potential investors who: seek long-term capital growth; are comfortable with the risks of an equity fund that invests in securities of companies listed on the Singapore Exchange Securities Trading Limited ( SGX-ST ); and understand that the principal of the ILP Sub-Fund will be at risk. KEY FEATURES OF THE ILP SUB-FUND WHAT ARE YOU INVESTING IN? The ILP Sub-Fund is a single ILP sub-fund which feeds (invests all or substantially all of its Further Information Refer to Section 5 page 2 and Section 7 on pages 2 to 3 of the Fund the ILP Sub-Fund. Refer to Section 2 on page 1, Section 1 As the ILP Sub-Fund feeds all or substantially all of its assets into the Underlying Fund, some of the information provided below could be similar to the Underlying Fund. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 1

2 PRODUCT HIGHLIGHTS SHEET assets) into the underlying fund, Schroder Singapore Trust (Class SGD A Distribution) (the Underlying Fund ), which is a unit trust domiciled in Singapore. The Underlying Fund seeks long term capital growth by investing primarily in a well diversified mix of securities of companies that are listed on the SGX-ST. The portfolio of the Underlying Fund will be broadly diversified with no specific industry or sectoral emphasis. Investment Strategy The investment objective of the ILP Sub-Fund is achieved through investments in the Underlying Fund. The Manager s investment approach is based on the belief that fundamental analysis of companies using the Manager s local research resources gives the Underlying Fund a competitive advantage and that companies with consistent above average growth produce superior equity market returns. Parties Involved WHO ARE YOU INVESTING WITH? The Manager of the ILP Sub-Fund is Schroder Investment Management (Singapore) Ltd. The Trustee of the Underlying Fund is HSBC Institutional Trust Services (Singapore) Limited. The custodian of the Underlying Fund is The Hongkong and Shanghai Banking Corporation Limited. The Registrar of the Underlying Fund is Schroder Investment Management (Luxembourg) S.A.. KEY RISKS WHAT ARE THE KEY RISKS OF THIS INVESTMENT? While the ILP Sub-Fund offers potential for capital appreciation, no assurance can be given that this objective will be achieved. The price of units in the ILP Sub-Fund, and the income from them (if any), may fall or rise and you may not get back your original investment. You should not expect to obtain short-term gains, as investments in the ILP-Sub Fund are designed to produce returns over the long-term and are not suitable for short-term speculation. The ILP Sub-Fund may be subject to different degrees of economic, political, foreign exchange rate, interest rate, liquidity, default, regulatory and possible repatriation risks depending on the countries and asset classes that the Underlying Fund invests into or has exposure to. Market and Credit Risks You are exposed to market risks. The value of investments may go up and down due to changing economic, political or market conditions, or due to an issuer s individual situation. 5 on page 2, and Section 16 on page 7 of the Fund features of the ILP Sub-Fund. Refer to Section 5 on page 2 of the Fund Summary for the investment focus and approach of the ILP Sub-Fund. Refer to Section 3 on pages 1 to 2 of the Fund the roles and responsibilities of these entities and what happens if they become insolvent. Refer to Section 7.1 on pages 2 to 3 of the Fund risks of the ILP Sub-Fund. Refer to Sections on page 3 of the Fund market risk of the Underlying Fund. Liquidity Risks You are exposed to liquidity risk. The ILP Sub-Fund is not listed and has no secondary market. You can only redeem your Refer to Section 7.1 pages 2 to 3 of 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 2

3 PRODUCT HIGHLIGHTS SHEET investment through the Company on a day on which dealing is permitted. Redemption of units in the ILP Sub-Fund may be suspended under certain circumstances. This will affect your ability to dispose units. The assets of the Underlying Fund may be relatively illiquid which may restrict its ability to dispose of the investments at a price and time that it wishes to do so. This may result in a loss to the ILP Sub-Fund. The liquidity of the ILP Sub-Fund may also be limited if a significant portion of the assets of the Underlying Fund is to be sold to meet redemptions requests within a short time frame. Product-Specific Risks You are exposed to equity risks. The Underlying Fund may invest in equities and other equity derivatives which are subject to market risks that historically have resulted in greater price volatility than that experienced by fixed income securities (such as bonds). You are exposed to derivatives risk. The Underlying Fund may use or invest in derivatives. The use of futures, options, warrants, forwards, swaps or swap options involves increased risks. The Underlying Fund s ability to use such instruments successfully depends on the Manager s ability to accurately predict movements in equity prices, interest rates, currency exchange rates or other economic factors and the availability of liquid markets. If the Manager s predictions are wrong, or if the derivatives do not work as anticipated, the Underlying Fund could suffer greater losses than if the Underlying Fund had not used the derivatives. You are exposed to currency risk. The assets and liabilities of the Underlying Fund may be denominated in currencies other than the Singapore dollar and the Underlying Fund may be affected favourably or unfavourably by exchange control regulations or changes in the exchange rates between the Singapore dollar and such other currencies. If the currency in which a security is denominated appreciates against the Singapore dollar, the value of the security would increase. Conversely, a decline in the exchange rate of the currency would adversely affect the value of the security. The Manager may manage the currency risks by hedging through forward currency contracts, currency futures, currency swap agreements or currency options. FEES AND CHARGES WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? Payable directly by you as a percentage of your investment amount: Bid-Offer Spread Currently Nil* + Surrender Penalty Switching Fee Surrender penalty may apply. You should also refer to the Product the surrender penalty, if applicable* Currently Nil* Payable by the ILP Sub-Fund from asset value of the ILP Sub-Fund: Annual Management Fee Currently 1.125% per annum (maximum 2% per annum)* the Fund Summary on liquidity risk of the ILP Sub-Fund, and Section 9 on page 4 of the Fund Suspension of Dealings of the ILP Sub-Fund. Refer to Section 7.2 on page 3 of the Fund Summary f or specific risks of the Underlying Fund. Refer to Section 8 on page 4 of the Fund Summary, and Section 5 of the Product fees, charges and surrender penalty (if applicable). Accounting and Valuation Fee Currently does not exceed 0.05% per annum* 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 3

4 PRODUCT HIGHLIGHTS SHEET Additional fees charged by the Underlying Fund in which the ILP Sub-Fund invests: Accounting and Valuation Fees 0.025% per annum Trustee remuneration Currently not more than 0.05% per annum (currently not subject to any minimum amount) Maximum 0.25% per annum, subject to minimum S$10,000 per annum. * The Company reserves the right to review and amend the fees and charges by giving you at least thirty (30) days advance notice. + This applies to GrowthInvest Insurance Plan only. VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? Bid price of the ILP Sub-Fund is published on the next day after valuation of the respective funds and can be found in HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? You can exit or partially exit the ILP Sub-Fund at any time by informing the Company, either directly or through your Financial Consultant from whom you purchased the ILP Sub-Fund. If your application reaches our correspondence address before 3.30pm on a business day, it will be processed on the same business day. If your application is received after 3:30pm, it will be processed on the next business day. The units withdrawn will be realised at the bid price of the ILP Sub-Fund on the valuation date immediately following the date we accept your written application. The withdrawal proceeds will usually be paid out within 6 business days from the day we process your valid application to exit or partially exit the ILP Sub- Fund. The following is an illustration of the withdrawal amount** that you will receive from the ILP Sub-Fund based on withdrawal of 1,000 units, and bid price of $1.50 assuming the policy is surrendered in the first year with surrender penalty charge of 70% on the account value. Refer to Section 11 of the Product more information on valuation, and to Sections 7 of the Product more information on withdrawal and switching. (1,000 x $1.50) - 70% (1,000 x $1.50) = $450 Gross withdrawal amount - surrender penalty charge = Net withdrawal amount **You should also refer to the Product any surrender penalty that may be applicable. If you decide to terminate the Investment-Linked Policy within the free-look period of receiving your Investment-Linked Policy, the Company will refund the initial premium you paid without interest, without incurring the fees and charges as stated above, less any medical and/or underwriting expenses incurred in accepting your application; and a sum to account for market fluctuation in respect of your units as determined by the Company. Please note that no top-up, fund switching, partial withdrawal or surrender is allowed during the free-look period. CONTACT INFORMATION HOW DO YOU CONTACT US? Please contact your Financial Consultant or call Customer Service Hotline at (65) , Mondays to Fridays, 9am to 5pm. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 4

5 HSBC Insurance Singapore Equity Fund Fund Summary 1. Description of the ILP Sub-Fund HSBC Insurance Singapore Equity Fund (the ILP Sub-Fund ) is an investment-linked policy sub-fund offered by HSBC Insurance (Singapore) Pte. Limited (the Company ) which also acts as a custodian of the ILP Sub-Fund. Investment risk rating is used as a guide to determine the ILP Sub-Fund that is suitable to the risk profile as indicated in the Bank s Risk Profile Questionnaire (RPQ). It is currently only applicable to customers of HSBC Bank (Singapore) Limited (the Bank ). 2. Structure of the ILP Sub-Fund The ILP Sub-Fund is a single ILP sub-fund which feeds (invests all or substantially all of its assets) into Schroder Singapore Trust (Class SGD A Distribution) (the Underlying Fund ). The Underlying Fund is an open-ended stand-alone unit trust that is domiciled in Singapore. The ILP Sub-Fund is not classified as an Excluded Investment Product (as defined within the MAS Notice 307 on Investment-Linked Policies (the MAS Notice 307 ). 3. Information on the Manager Schroder Investment Management (Singapore) Ltd is the manager of the ILP Sub-Fund. (the Manager ). The Manager was incorporated in Singapore and has been managing collective investment schemes and discretionary funds since The Manager is part of the Schroder group ( Schroders ). Schroders has been managing collective investment schemes and discretionary funds in Singapore since the 1970s. As at 30 September 2016, Schroders has US$487.1 billion worth of assets under its management. Schroder Investment Management (Singapore) Ltd is also the Manager of the Underlying Fund. The monies and assets of the ILP Sub-Fund are not expected to be affected by the insolvency of the Manager as monies and assets belonging to the ILP Sub-Fund are segregated from the Manager s assets through the maintenance of separate bank and custodian accounts for ILP Sub-Fund, and it is not permissible for monies and assets of the ILP Sub-Fund to be used for payment of the Manager s debts and liabilities under law. 3.1 Information on the Trustee and custodian of the Underlying Fund HSBC Institutional Trust Services (Singapore) Limited is the trustee of the Underlying Fund in Singapore is (the Trustee ). The Hongkong and Shanghai Banking Corporation Limited is the custodian of the Underlying Fund. The Hongkong and Shanghai Banking Corporation Limited has been appointed as the global custodian to provide custodial services to the Underlying Fund globally. The custodian of the Underlying Fund is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. The custodian of the Underlying Fund is entitled to appoint sub-custodians to perform any of the custodian s duties in specific jurisdictions where the Underlying Fund invests. The custodian is a global custodian with direct market access in certain jurisdictions. In respect of markets for which it uses the services of selected sub-custodians, the custodian shall act in good faith and use reasonable care in the selection and monitoring of its selected sub-custodians. 3.2 Information on the Registrar of the Underlying Fund Schroder Investment Management (Luxembourg) S.A. is the registrar for the Underlying Fund is (the Registrar ) who will in turn delegate its duties as to the Register to Schroder Investment Management (Hong Kong) Limited. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 1

6 4. The Auditor The auditor of the ILP Sub-Fund is PricewaterhouseCoopers LLP. 5. Investment Objectives, Focus and Approach 5.1 Investment Objectives The investment objective of the ILP Sub-Fund is to achieve long-term capital growth primarily through investment in securities of companies listed on the Singapore Exchange Securities Trading Limited. The portfolio of the Underlying Fund will be broadly diversified with no specific industry or sectorial emphasis. 5.2 Investment Focus and Approach The objective of the ILP Sub-Fund is achieved through investments in the Underlying Fund. The Managers investment approach is based on the belief that fundamental analysis of companies using the Manager s local research resources gives the Underlying Fund a competitive advantage and that companies with consistent above average growth produce superior equity market returns. The Underlying Fund currently does not intend to carry out securities lending or repurchase transactions but may in the future do so, in accordance with the applicable provisions of the Code on Collective Investment Schemes (the Code ). The investment and borrowing restrictions of Appendix 1 of the Code shall also apply to the Underlying Fund. 5.3 Investor Profile The ILP Sub-Fund is only suitable for potential investors who: seek long-term capital growth; are comfortable with the risks of an equity fund that invests in securities of companies listed on the Singapore Exchange Securities Trading Limited ( SGX-ST ); and understand that the principal of the ILP Sub-Fund will be at risk 6. Central Provident Fund ( CPF ) Investment Scheme 7. Risks The ILP Sub-Fund is currently not included under the CPF Investment Scheme. 7.1 General Risks Investors should consider and satisfy themselves as to the risks of investing in the ILP Sub-Fund. While the ILP Sub- Fund offers potential for capital appreciation, no assurance can be given that this objective will be achieved. Investors should also be aware that the price of units in the ILP Sub-Fund, and the income from them (if any), may fall or rise and investors may not get back their original investment. Investments in the ILP-Sub Fund are designed to produce returns over the long-term and are not suitable for short-term speculation. Investors should not expect to obtain short-term gains from such investments. The ILP Sub-Fund may be subject to different degrees of economic, political, foreign exchange rate, interest rate, liquidity, default, regulatory and possible repatriation risks depending on the countries and asset classes that the Underlying Fund invests into or has exposure to. There are general uncertainties and risks associated with investments and transactions in transferable securities and other financial instruments, including investments in financial derivative instruments for the purposes of hedging (and/or efficient portfolio management) or as direct investments. The ILP Sub-Fund may also be exposed to foreign exchange rate risks where it feeds into an Underlying Fund which invests in assets denominated in foreign currencies, or where the share class is denominated in a currency other than the Singapore dollar. Where the share class is the Singapore dollar hedged share class, the ILP Sub-Fund may still be subject to foreign exchange risks as the currency hedging process may not give a precise hedge. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 2

7 The ILP Sub-Fund is not listed and has no secondary market. Investors can only redeem their investment through the Company on a day on which dealing is permitted. Redemption of units in the ILP Sub-Fund may be suspended under certain circumstances. This will affect an investor s ability to dispose units. The assets of the Underlying Fund may be relatively illiquid which may restrict its ability to dispose of the investments at a price and time that it wishes to do so. This may result in a loss to the ILP Sub-Fund. The liquidity of the ILP Sub-Fund may also be limited if a significant portion of the assets of the Underlying Fund is to be sold to meet redemptions requests on a short time frame. Please refer to Section 7.2 for more the risks specific to the ILP Sub-Fund. 7.2 Specific Risks Investors in the ILP Sub-Fund should carefully consider the following risks of the Underlying Fund. The risks described below are the main risks pertaining to the ILP Sub-Fund and are not purported to be exhaustive. Potential investors should be aware that other risks may also be relevant to the Underlying Fund from time to time. A comprehensive description of risk considerations, where applicable, may be obtained from Section IX of the Underlying Fund's prospectus for such risks Market Risk The value of investments may go up and down due to changing economic, political or market conditions, or due to an issuer s individual situation Equity Risk The Underlying Fund may invest in equities and other equity derivatives which are subject to market risks that historically have resulted in greater price volatility than that experienced by fixed income securities (such as bonds) Currency Risk The assets and liabilities of the Underlying Fund may be denominated in currencies other than the Singapore dollar and the Underlying Fund may be affected favourably or unfavourably by exchange control regulations or changes in the exchange rates between the Singapore dollar and such other currencies. If the currency in which a security is denominated appreciates against the Singapore dollar, the value of the security would increase. Conversely, a decline in the exchange rate of the currency would adversely affect the value of the security. The Manager may manage the currency risks by hedging through forward currency contracts, currency futures, currency swap agreements or currency options Derivatives Risk The Underlying Fund may use or invest in financial derivatives for the purpose of hedging and/or efficient portfolio management. Where such financial derivatives are financial derivatives on commodities, such transactions shall be settled in cash at all times. The Underlying Fund s use of futures, options, warrants, forwards, swaps or swap options involves increased risk. In the event the Underlying Fund invests in such instruments, the Underlying Fund s ability to use such instruments successfully depends on the Manager s ability to accurately predict movements in equity prices, interest rates, currency exchange rates or other economic factors and the availability of liquid markets. If the Manager s predictions are wrong, or if the derivatives do not work as anticipated, the Underlying Fund could suffer greater losses than if the Underlying Fund had not used the derivatives. If the Underlying Fund invests in over-the-counter derivatives, there is increased risk that a counterparty may fail to honour its contract. Derivatives transactions will not be used for speculation or leverage. In the event that the Manager use such instruments, they will ensure that the risk management and compliance procedures and controls adopted are adequate and have been or will be implemented and that it has the requisite expertise and experience to manage and contain such investment risks. The Manager will ensure that the global exposure of the Underlying Fund to financial derivative instruments or embedded financial derivative instruments will not exceed 100% of the net asset value of the Underlying Fund at all times. Such exposure will be calculated using the commitment approach as described in, and in accordance with the provisions of, the Code. Investments in derivatives would normally be monitored and controlled by the Manager with regular mark-to-market valuations, careful research prior to investment and compliance monitoring to ensure careful compliance with the relevant investment restrictions. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 3

8 The above should not be considered to be an exhaustive list of risks which potential investors should consider before investing in the ILP Sub-Fund which will be exposed to the risks of the Underlying Fund. 8. Fees and Charges 8.1 Payable through deduction from asset value of the ILP Sub-Fund Management fee is currently at 1.125% per annum (maximum 2% per annum). The accounting and valuation fee currently does not exceed 0.05% per annum. 8.2 Payable by the Cancellation of Units Please refer to Section 5 (5.1 to 5.4) of the Product Summary 8.3 Additional fees charged by the Underlying Fund in which the ILP Sub-Fund invests Accounting and Valuation Fees Trustee Remuneration 0.025% per annum Currently not more than 0.05% per annum (currently not subject to any minimum amount) Maximum 0.25% per annum, subject to minimum S$10,000 per annum. Please refer to the prospectus of the Underlying Fund for details or updates as may be determined by the Manager from time to time. 9. Suspension of Dealings 9.1 The Company may suspend the issue, realisation and/or cancellation of units by the Policyholder as and when the issue, realisation or cancellation of units of the Underlying Fund is suspended. 9.2 The circumstances under which the issue, realisation and/or cancellation of units of the Underlying Fund may be suspended are set out in the prospectus of Schroder Singapore Trust (as may be supplemented or replaced from time to time). 9.3 In addition, the Company may suspend the issue, realisation and cancellation of units by the Policyholder under the following circumstances: (a) any 48-hour period (or such longer period as the Company may agree) prior to the date of any meeting of Policyholders (or any adjourned meeting thereof); (b) any period when the dealing of units is suspended pursuant to any order or direction of the MAS; or (c) any period when the business operations of the Company in relation to the operation of the ILP Sub-Fund is 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. 9.4 Such suspension shall take effect forthwith upon the declaration in writing thereof by the Company and shall terminate on the day following the first business day on which the condition giving rise to the suspension shall have ceased to exist and no other conditions under which suspension is authorized under this paragraph shall exist upon the declaration in writing thereof by the Company. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 4

9 10. Performance of the ILP Sub-Fund The performance of the ILP Sub-Fund against its benchmark as at 31 July 2017 is as shown below. Cumulative Total Returns Period HSBC Insurance Singapore Equity Fund Benchmark^ (Class SGD A Distribution) 3-month 5.83% 7.26% 6-month 10.86% 11.77% 1-year 17.94% 21.95% 3-year N.A N.A 5-year N.A N.A 10-year N.A N.A Since Inception* 16.94% 14.81% Average Annual Compounded Returns Period HSBC Insurance Singapore Equity Fund Benchmark^ (Class SGD A Distribution) 1-year 17.94% 21.95% 3-year N.A N.A 5-year N.A N.A 10-year N.A N.A Since Inception* * Inception date: 17 August % 7.31% ^The benchmark is MSCI Singapore Free Index with effect from 1 August Prior to this change, the benchmark was DBS CPF Index from 1 February 1993 till 31 July Source: HSBC Insurance (Singapore) Pte. Limited, Schroder Investment Management (Singapore) Ltd, Bloomberg L.P. Note: The performance of the ILP Sub-Fund and/or the Underlying Fund is not guaranteed and the value of investments and income from them may fall as well as rise. Past performance of the ILP Sub-Fund and/or the Underlying Fund is not necessarily indicative of future performance Basis of Calculating the Return The performance figures are calculated in the Singapore dollar using bid-to-bid prices/ NAV-to-NAV prices, with any income or dividends reinvested. Fees and charges payable through deduction of premium or cancellation of units are excluded from this calculation. 11. Expense Ratio The expense ratio of the ILP Sub-Fund for the period 1 July 2015 to 30 June 2016 is 1.32%. The expense ratio of the Underlying Fund for the period 1 April 2015 to 31 March 2016 is 1.32%. The expense ratio of the ILP Sub-Fund does not include charges for insurance coverage, brokerage and other transactions costs, performance fee, foreign exchange gains and losses, front and back end loads arising from the purchase or sales of other funds and tax deducted at source or arising out of income received. The expense ratio of the ILP Sub-Fund is calculated in accordance with the Investment Management Association of Singapore s guidelines as required by MAS Notice Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 5

10 12. Turnover Ratio The turnover ratios of the ILP Sub-Fund and the Underlying Fund are calculated based on the lesser of purchases or sales expressed as a percentage over average daily net asset value. The turnover ratio of the ILP Sub-Fund for the period of 1 July 2015 to 30 June 2016 is 0.89%. The turnover ratio of the Underlying Fund for the period 1 July 2015 to 30 June 2016 is 13.76%. 13. Soft Dollar Commissions/Arrangements The Company does not receive any soft dollar commission in respect of the ILP Sub-Fund. Soft dollars refers to arrangements under which products or services, other than the execution of securities transactions, are obtained from or through a broker in exchange for the direction by the manager of transactions to the broker. In its management of the Underlying Fund, the Manager accepts soft dollar commissions from, or enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Underlying Fund and the soft dollars received are restricted to the following kinds of services: (a) research and price information; (b) performance measurement; (c) portfolio valuations; and (d) analysis and administration services. The Manager may not receive or enter into soft dollar commissions or arrangements unless (a) such soft dollar commissions or arrangements shall reasonably assist the Manager in their management of the Underlying Fund, (b) best execution is carried out for the transactions, and (c) no unnecessary trades are entered into in order to qualify for such soft dollar commissions or arrangements. The Manager shall not receive goods and services such as travel, accommodation and entertainment. 14. Conflicts of Interest The Manager is not affiliated with the Company. The Manager may from time to time have to deal with competing or conflicting interests between the other unit trusts which are managed by the Manager and the Underlying Fund. For example, the Manager may make a purchase or sale decision on behalf of some or all of their other unit trusts without making the same decision on behalf of the Underlying Fund, as a decision whether or not to make the same investment or sale for the Underlying Fund depends on factors such as the cash availability and portfolio balance of the Underlying Fund. However the Manager will use reasonable endeavours at all times to act fairly and in the interests of the Underlying Fund. In particular, after taking into account the availability of cash and the relevant investment guidelines of the other funds managed by the Manager and the Underlying Fund, the Manager will endeavour to ensure that securities bought and sold will be allocated proportionately as far as possible among the Underlying Fund and the other funds managed by the Manager. The factors which the Manager will take into account when determining if there are any conflicts of interest as described above include the assets (including cash) of the Underlying Fund as well as the assets of the other funds managed by the Manager. To the extent that another fund managed by the Manager intends to purchase substantially similar assets, the Manager will ensure that the assets are allocated fairly and proportionately and that the interests of all investors are treated equally between the Underlying Fund and the other funds. Associates of the Trustee may be engaged to offer financial, banking and brokerage services to the Underlying Fund or buy, hold and deal in any investments, enter into contracts or other arrangements with the Trustee and make profits from these activities. Such services, where provided and such activities, where entered into, will be on an arm s length basis. 15. Reports The financial year-end for the ILP Sub-Fund is 30 June. The annual audited financial statements will be prepared and made available by 30 September, i.e. 3 months from the financial year end. 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 6

11 The financial half year-end for the ILP Sub-Fund is 31 December. The semi-annual report will be prepared and made available by 28 February, i.e. 2 months from the date of the financial half-year end. These financial statements and/or the reports, when available, will be accessible from the Company s website at A copy will be provided to Policyholders upon request. 16. Other material information The Fund Summary must be read in conjunction with the Product Highlights Sheet and the Product Summary Distribution of Income, Capital and Dividends There will be no distribution of income or capital for the ILP Sub-Fund. Although the Manager of the Underlying Fund may, at its absolute discretion make half-yearly distributions, any such distributions made will automatically be re-invested into the ILP Sub-Fund Investment Guidelines and Restrictions The investment guidelines that have to be complied with by the ILP Sub-Fund are set out within MAS Notice 307 on Investment-Linked Policies. The Underlying Fund will also have to comply with Appendix 1 of the Code (including any investment guidelines and restrictions set out therein). 21 Collyer Quay #02-01 Singapore , Monday to Friday 9.30am to 5pm. 7