MAX FUNDS. Annual Report and Audited Financial Statements for the year ended 31 December 2017

Transcription

1 MAX FUNDS Annual Report and Audited Financial Statements for the year ended 31 December 2017 MCI (P) 111/01/2018

2 Contents Message 1 Investment Outlook 2 Fund Fact Sheet Max Asian Credit Opportunities 4 Max Multi-Asset Advantage Fund 11 Max Asian Equity Yield Fund 16 Max Pacific Equity Fund 22 Max Global Emerging Markets Fund 27 Max Global Allocation Fund 32 Max Singapore Balanced Fund 38 Max Singapore Trust Fund 43 Capital Account 47 Statement of and Liabilities 49 Notes to the Accounts 50 Independent Auditor s Report 51 NOTE: Please be informed that The Overseas Assurance Corporation Limited (OAC) (now known as Great Eastern General Insurance Limited) had transferred its life insurance business (including the business relating to these Max Funds) to The Great Eastern Life Assurance Company Limited (GEL) with effect from 1 July Both OAC and GEL are wholly-owned subsidiaries of Great Eastern Holdings Limited. GENERAL DISCLAIMERS: The fact sheets on Max Funds are compiled by The Great Eastern Life Assurance Company Limited (GEL). The information presented is for informational use only. A product summary and a Product Highlights Sheet in relation to the funds may be obtained through GEL or its appointed distributors. Potential investors should read the product summary and the Product Highlights Sheet before deciding whether to invest in the funds. Returns on the units of the funds are not guaranteed. The value of the units in the funds and the income accruing to the units, if any, may fall or rise. The fees and charges payable through deduction of premium or cancellation of units are excluded in the calculation of fund returns. Past returns, and any other economic or market predictions, projections or forecasts, are not necessarily indicative of future or likely performance.

3 Message MESSAGE I am pleased to share the Max Funds Annual Report for Markets generally performed well in Our Max Funds returns were in-line with the markets and delivered positive returns. The major regions of North America, Western Europe and Asia (including Japan) released robust economic data throughout last year, and these indicators provide a strong foundation for sustained economic expansion in This year, as Great Eastern celebrates our 110th anniversary special milestone, I take this opportunity to thank you for your support and your continued trust and confidence in us. As a LIFE company, we aim to help our customers achieve their financial and wellness goals. We remain committed to prudently manage your investments to optimise your returns to help you achieve your financial goals. Yours sincerely Khor Hock Seng Group Chief Executive Officer Great Eastern Holdings Please refer to page 3 for disclaimer. 1

4 INVESTMENT OUTLOOK Investment Outlook The synchronised global recovery is expected to continue into Business activity remains positive in the US, and private consumption is resilient in the Eurozone. Meanwhile, corporate earnings in Japan remain buoyant on the back of the Bank of Japan s easing measures. In Asia, the earnings recovery is on a positive trend, supported by strong cash flows. Volatility may increase from a combination of upside surprises in inflation data and political risks. US In the US, a combination of tax reform and looser regulations are expected to contribute to economic growth. Moreover, the market is still expecting a very gradual pace of reduction in the Federal Reserve s stimuli. The risk for the market lies in higher-than-anticipated inflation data that may trigger higher interest rate hikes. The trajectory of inflation data will depend on oil prices and the pace of wage increments. Under the base scenario, the Federal Reserve (Fed) is expected to raise interest rates three times in 2018, and US Treasury yields are likely to range from 2.4% to 2.8% under current expectations. Europe In the Eurozone, resilient private consumption, strong investment and a convergence in economic growth among countries should ensure economic expansion continues into Stronger data is generally broad based, with manufacturing and foreign demand improving amid stable domestic demand. The European Central Bank (ECB) is likely to end bond purchases in September 2018 and signal a rise in short-term interest rates in While markets expect a dovish taper from the ECB, stronger economic growth may cause the ECB to be less dovish than other investors currently expect. Investment Outlook Japan In line with global markets, Japanese equities saw a strong 2017, regaining levels last seen in the pre-lehman crisis years. The overall market environment remains favourable as the global economy, corporate earnings and capital investment continue to be buoyant. Japan remains affected by global macro issues in 2018 which include the effects of the ECB s dovish taper and the impact of Fed s rate hikes on global market liquidity. The key issues to watch out for are whether improved corporate fundamentals and tight labour conditions will likely translate into higher wages and stronger domestic consumption. 2

5 INVESTMENT OUTLOOK Asia Pacific ex-japan Asian markets started 2018 strongly with the PMI (Purchasing Managers Index) data confirming a global business cycle expansion, a weaker USD and an easing of inter-korean tensions. The overall macroeconomic environment remains favourable for Asian equities. Looking ahead, earnings growth is expected to broaden across countries and sectors in 2018, in contrast to 2017 when a few sub-sectors dominated earnings upgrades. While a repeat of 2017 performance is unlikely, earnings growth remains attractive at the mid-teen levels. A combination of an earnings recovery, improving cash flow and low corporate leverage indicates a favourable backdrop for Asian equities. In China, a consumption recovery remains intact amid stable macroeconomic conditions. While tensions between North and South Korea continue to make headlines, any easing of such strains provides more investment opportunities as the growth outlook for Korea is positive. Other opportunities from political uncertainty include the 2018 general elections in India, Indonesia and Malaysia, where economic growth should remain supportive. Conclusion A synchronised global economic recovery is likely to continue into 2018, with the trend of positive economic data supportive of further earnings growth. The improvement in corporate earnings is expected to broaden across sectors and markets. Amidst this positive sentiment, volatility may make a return if global inflation rates are higher than expected, resulting in abrupt halts in stimulus efforts from major central banks like the Fed and the ECB. Investors need to stay vigilant of any possibility for increased volatility, but should remain invested as the investment environment is still favourable. The emphasis is to seek out fundamentally strong, well-diversified assets at reasonable valuations with attractive upside potential to cushion against unexpected market downturns. All data from Bloomberg are presented as at 31 December 2017 unless otherwise stated. Disclaimer: The report is accurate at time of writing on 1 March Past performance is not necessarily indicative of future performances. Any opinion or view presented is subject to change without notice. The document is intended for information purposes only, and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies, and such prediction or forecast is not necessarily indicative of the future or likely performance of the fund. Investment Outlook 3

6 MAX ASIAN CREDIT OPPORTUNITIES^ report as at 31 December 2017 Fund Facts Inception Date: 30 November 2004 NAV Price: Fund Size: million Underlying Fund: Schroder Asian Credit Opportunities (SGD-Hedged) Fund Manager: Schroder Investment Management (Singapore) Ltd Fund Management Fee: 1.00% p.a. (1.75% p.a. max) Valuation Frequency: Daily Currency of Fund: Singapore Dollar Risk Category: Medium to High Benchmark: J.P. Morgan Asian Credit Index (JACI) for reference purposes only^^ Investment Objective The ILP Sub-Fund invests all or substantially into the Schroder Asian Credit Opportunities (SGD- Hedged) ( Underlying Fund ) which aims to provide income and capital growth by investing in fixed and floating rate securities issued by governments, government agencies, supra-nationals and corporates issued by mostly Asian issuers. The Manager intends to make distributions at a variable percentage per annum of the NAV per unit on a quarterly basis, subject to the Manager s discretion. Max Asian Credit Opportunities 4 Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year * 10-year * Inception * Max Asian Credit Opportunities Benchmark NA NA NA NA Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. ^ Restructured from Max Asian Bond Fund effective 1 September ^^ Benchmark: Effective 1 September 2016, the benchmark is changed to J.P. Morgan Asian Credit Index (JACI) for reference purposes only, to bring the ILP Sub-Fund s benchmark more in line with the Schroder Asian Credit Opportunities. The performance figures of the reference benchmark more than 1 year are not available as Max Asian Bond Fund had a different benchmark before the fund was restructured on 1 September 2016.

7 MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Investments in Collective Investment Schemes Unit Trust Schroder Asian Credit Opportunities 31,784, Top 10 Holdings of Underlying Fund as at 31 December 2017 * U US Treasury Bill 1 Feb ,398, ABM Investama Tbk PT 7.125% 1 Aug ,245, Newcastle Coal Infrastructure Group Pty Ltd 4.4% 29 Sep ,101, I.T Ltd 6.25% 15 May ,033, Indonesia Treasury Bond 7% 15 May , Hongkong Electric Finance Ltd EMTN 2.875% 3 May , PB Intl BV 7.625% 26 Jan , Goodman HK Finance EMTN 4.375% 19 Jun , Proven Honour Capital Ltd 4.125% 6 May , Hutchison Whampoa Intl 14 Ltd 3.625% 31 Oct , Top 10 Holdings of Underlying Fund as at 31 December 2016 * U ANZ New Zealand Intl Ltd / London FRN 28 Jul ,307, Sino-Ocean Land Treasure Finance I Ltd EMTN 4.625% 30 Jul ,017, Perusahaan Penerbit SBSN Indonesia III 4.55% 29/03/2026 1,007, Industrial & Commercial Bank of China Ltd / Luxembourg FRN 1,004, Feb 2018 ICBCIL Finance Co Ltd 2.75% 19 May , United Overseas Bank Ltd EMTN Var 8 Mar , AIA Group Ltd 3.2% 11 Mar , NTPC Ltd EMTN 4.75% 3 Oct , Hongkong Electric Finance Ltd EMTN 2.875% 3 May , Goodman HK Finance EMTN 4.375% 19 Jun , Max Asian Credit Opportunities 5

8 Max Asian Credit Opportunities MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Allocation By Country (Underlying Fund) * U Argentina 665, Australia 4,687, Brazil 3,061, Chile 835, China 17,336, Hong Kong 9,444, India 2,584, Indonesia 7,016, Korea, Republic Of 1,912, Malaysia 1,430, Peru 1,372, United Arab Emirates 1,350, United States 1,398, Accrued interest receivable on Fixed Income Securities 647, Others ** 3,502, Total 57,247, ** Includes any other countries and net current assets. 6

9 MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Allocation By Industry (Underlying Fund) * U Automobiles & Components 1,282, Bank 3,706, Chemicals/Petrochemicals 595, Construction & Engineering 1,095, Construction Materials 811, Consumer Durables 1,435, Diversified Operations 923, Energy 1,650, Finance 1,761, Government 4,094, Hotel 1,048, Insurance 721, Internet Services 835, Investment 1,756, Metals & Mining 2,334, Oil & Gas 4,240, Real Estate 5,479, Retail 2,298, Telecommunications 1,422, Transportation & Logistics 1,923, Utilities 2,129, Accrued interest receivable on Fixed Income Securities 647, Others ** 15,051, Total 57,247, ** Includes any other countries and net current assets. Allocation By Asset Class (Underlying Fund) * U Fixed Income (Including accrued interest receivable on 56,000, Fixed Income) Other net assets/(liabilities) 1,246, Total 57,247, Max Asian Credit Opportunities 7

10 Max Asian Credit Opportunities 8 MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Credit Rating of Debt Securities (Underlying Fund) * U A+ / A1 4,256, A / A2 1,526, A- / A3 5,008, BBB+ / Baa1 6,506, BBB / Baa2 6,568, BBB- / Baa3 5,178, BB+ / Ba1 1,093, BB / Ba2 3,127, BB- / Ba3 7,167, B+ / B1 4,783, B / B2 1,109, B- / B3 1,095, Not Rated 7,931, Accrued interest receivable on Fixed Income Securities 647, Total 56,000, Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Asian Credit Opportunities # 1.25% 1.48% % 69.16% Underlying Fund 1.25% 1.48% % 69.16% Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The expense and turnover ratios are derived from its underlying fund - Schroder Asian Credit Opportunities, which is based on unaudited draft accounts. Figures are restated to align with the Fund Manager.

11 Max Asian Credit Opportunities MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Exposure to Derivatives * U (i) Market value of derivative contracts - Foreign exchange forward contracts 462, Futures (8,994) (0.02) (ii) Net gain on derivative realised 3,353,846 (iii) Net gain on outstanding derivatives 453,611 Borrowings * Nil. Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 3,626,571 Redemptions 5,653,329 Related-Party Transactions Not applicable. 9

12 MAX ASIAN CREDIT OPPORTUNITIES report as at 31 December 2017 Soft Dollar Commissions * In the management of the Fund, the Manager may accept soft dollar commissions from, or enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Fund and the soft dollars received are restricted to the following kinds of services: (i) research, analysis or price information; (ii) performance measurement; (iii) portfolio valuations; and (iv) 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 Fund, (b) best execution is carried out for the transactions, and (c) that 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. Any material information that will adversely impact the valuation of the fund * Nil. Max Asian Credit Opportunities 10 * Source: Schroder Investment Management (Singapore) Ltd For disclaimers, please refer to Contents page.

13 MAX MULTI-ASSET ADVANTAGE FUND report as at 31 December 2017 Fund Facts Inception Date: 15 March 2004 NAV Price: Fund Size: million Underlying Fund: Schroder Multi-Asset Advantage Fund Manager: Schroder Investment Management (Singapore) Ltd Fund Management Fee: 1.00% p.a. (1.75% p.a. max) Valuation Frequency: Weekly Currency of Fund: Singapore Dollar Risk Category: Low to Medium Investment Objective The ILP Sub-Fund invests all or substantially into Schroder Multi-Asset Advantage ( Underlying Fund ) which aims to provide growth through exposure to a portfolio of investment funds and indices comprised of various asset classes and a continuous Minimum Floor on each dealing day equal to 85% of the highest Net Asset Value per Unit reached on any prior dealing day on and after 24 November The Minimum Floor is a target only and is not guaranteed. Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year * 10-year * Inception * Max Multi-Asset Advantage Fund The performance of the Underlying Fund is not measured against any benchmark. This is because conventional benchmarks are unconstrained, whereas the Underlying Fund is constrained by the Minimum Floor. Hence no conventional benchmark would be appropriate to measure the performance of the Underlying Fund. Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. Max Multi-Asset Advantage Fund 11

14 MAX MULTI-ASSET ADVANTAGE FUND report as at 31 December 2017 Investments in Collective Investment Schemes Unit Trust Schroder Multi-Asset Advantage Fund 55,008, Top 10 Holdings of Underlying Fund as at 31 December 2017 * SISF - US Large Cap A Acc 7,381, SISF QEP Global Core C Acc 6,108, MAS Bill Series 84 2 Feb ,089, SISF - QEP Global Active Value A Acc 4,925, MAS Bill Series 84 9 Feb ,540, SISF - EURO Equity C Acc 4,207, Schroder Singapore Fixed Income Fund Class I 4,197, MAS Bill Series 84 5 Jan ,798, SISF - Asian Opportunities C Acc 2,710, SISF Japanese Equity A Acc 2,642, Max Multi-Asset Advantage Fund Top 10 Holdings of Underlying Fund as at 31 December 2016 * MAS Bill Series 84 3 Feb ,786, SISF QEP Global Active Value A Acc 9,267, SISF QEP Global Core C Acc 9,257, SISF US Large Cap A Acc 8,355, Schroder Singapore Fixed Income Fund Class I 5,256, SISF - Euro Equity C Acc 2,308, Mas Bill Series Mar ,195, SISF Japanese Equity A Acc 1,775, Schroder Global Quality Bond Class I USD Acc 1,685, SISF QEP Global Quality A Acc 1,315,

15 MAX MULTI-ASSET ADVANTAGE FUND report as at 31 December 2017 Allocation By Country (Underlying Fund) * Luxembourg 33,360, Singapore 21,753, United States 2,160, Others ** 2,304, Total 59,578, ** Includes any other countries and net current assets. Allocation By Industry (Underlying Fund) * Collective Investment Schemes - Equities 33,262, Collective Investment Schemes - Fixed income Securities 9,097, Collective Investment Schemes - Alternative Investments 484, Debt Securities 14,428, Others ** 2,304, Total 59,578, ** Includes any other industries and net current assets. Allocation By Asset Class (Underlying Fund) * Equities 33,262, Fixed Income Securities 23,526, Alternative Investments 484, Other net assets/(liabilities) 2,304, Total 59,578, Max Multi-Asset Advantage Fund 13

16 MAX MULTI-ASSET ADVANTAGE FUND report as at 31 December 2017 Credit Rating of Debt Securities (Underlying Fund) * Not Rated 14,428, Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Multi-Asset Advantage Fund # 1.53% 1.48% % % Underlying Fund 1.53% 1.48% % % Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The expense and turnover ratios are derived from its underlying fund - Schroder Multi-Asset Advantage Fund, which is based on unaudited draft accounts. Max Multi-Asset Advantage Fund Exposure to Derivatives * (i) Market value of derivative contracts - Foreign exchange forward contracts 47, Foreign exchange spot contracts (916) 0.00 (ii) Net gain on derivative realised 71,748 (iii) Net gain on outstanding derivatives 46,440 Borrowings * Nil. Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 400,162 Redemptions 6,134,846 14

17 MAX MULTI-ASSET ADVANTAGE FUND report as at 31 December 2017 Related-Party Transactions Not applicable. Soft Dollar Commissions * In the management of the Fund, the Manager may accept soft dollar commissions from, or enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Fund and the soft dollars received are restricted to the following kinds of services: (i) research, analysis or price information; (ii) performance measurement; (iii) portfolio valuations; and (iv) 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 Fund, (b) best execution is carried out for the transactions, and (c) that 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. The description of soft dollar and the conditions set out above also apply to the investment managers of the underlying funds domiciled in Luxembourg and Singapore. Any material information that will adversely impact the valuation of the fund * Nil. * Source: Schroder Investment Management (Singapore) Ltd For disclaimers, please refer to Contents page. Max Multi-Asset Advantage Fund 15

18 Max Asian Equity Yield Fund 16 MAX ASIAN EQUITY YIELD FUND^ report as at 31 December 2017 Fund Facts Inception Date: 16 February 2007 NAV Price: Fund Size: million Underlying Fund: Schroder Asian Equity Yield Fund (SGD) Fund Manager: Schroder Investment Management (Singapore) Ltd Fund Management Fee: 1.50% p.a. (1.75% p.a. max) Valuation Frequency: Daily Currency of Fund: Singapore Dollar Risk Category: Higher Benchmark: MSCI AC Pacific Free ex-japan^^ Investment Objective The ILP Sub-Fund invests all or substantially into Schroder Asian Equity Yield Fund (SGD) which is to provide capital growth and income through investment in equity and equity related securities of Asian companies which offer attractive yields and sustainable dividend payments. The Manager intends to make distributions at a variable percentage per annum of the NAV per unit on a quarterly basis, subject to the Manager s discretion. Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year * 10-year * Inception * Max Asian Equity Yield Fund Benchmark NA NA NA Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. ^ Restructured from Max Equity Select Income Fund effective 1 March ^^ Benchmark: Max Equity Select Income Fund had no benchmark since inception till 28 February 2013, as it was a structured product that aimed to expose the ILP Sub-Fund to the performance of the strategy. Effective 1 March 2013, benchmark is MSCI AC Pacific Free ex-japan to align the benchmark with that of the Underlying Fund. Benchmark returns more than 3 years are not available as at 31 December 2017.

19 MAX ASIAN EQUITY YIELD FUND report as at 31 December 2017 Investments in Collective Investment Schemes Unit Trust Schroder Asian Equity Yield Fund Class O 23,053, Top 10 Holdings of Underlying Fund as at 31 December 2017 * Samsung Electronics Co. Ltd 17,493, Swire Properties Ltd 14,776, Hon Hai Precision Ind Co. Ltd 13,507, Medibank Private Ltd 13,358, China Construction Bank Corporation - H Shares 13,087, Jardine Strategic Holdings Ltd 12,763, Crown Resorts Ltd 12,653, HSBC Holdings PLC 12,377, Australia & New Zealand Banking Group Ltd 11,938, Kolon Industries Inc 11,604, Top 10 Holdings of Underlying Fund as at 31 December 2016 * Jardine Strategic Holdings Ltd 13,645, Samsung Electronics Co. Ltd 12,924, ASX Ltd 12,101, Taiwan Semiconductor Manufacturing Co. Ltd 12,065, Swire Properties Ltd 11,655, Hon Hai Precision Ind Co. Ltd 10,822, Australia & New Zealand Banking Group Ltd 10,816, Tabcorp Holdings Ltd 10,747, Incitec Pivot Ltd 10,435, Far EasTone Telecommunications Co. Ltd 10,389, Max Asian Equity Yield Fund 17

20 Max Asian Equity Yield Fund MAX ASIAN EQUITY YIELD FUND report as at 31 December 2017 Allocation By Country (Underlying Fund) * Australia 95,293, China 53,951, Hong Kong 73,957, Korea, Republic Of 60,166, Philippines 5,135, Singapore 24,481, Taiwan, Province Of China 57,014, United Kingdom 12,377, Others ** 3,602, Total 385,981, ** Includes any other countries and net current assets. 18

21 MAX ASIAN EQUITY YIELD FUND report as at 31 December 2017 Allocation By Industry (Underlying Fund) * Automobiles & Components 14,938, Bank 43,077, Chemicals 28,697, Consumer Durables 16,394, Containers & Packaging 8,122, Diversified Operations 12,763, Education Services 9,492, Finance 16,658, Health Care/Pharmaceuticals 8,704, Hotel & Leisure 24,214, Insurance 24,688, Mining 9,749, Oil & Gas 16,973, Real Estate 38,665, Semiconductor 11,460, Software 10,152, Technology Hardware & Equipment 57,923, Telecommunications 17,717, Transportation 5,237, Utilities 10,168, Others ** 180, Total 385,981, ** Includes any other industries and net current assets. Allocation By Asset Class (Underlying Fund) * Equities 385,801, Other net assets/(liabilities) 180, Total 385,981, Max Asian Equity Yield Fund 19

22 MAX ASIAN EQUITY YIELD FUND report as at 31 December 2017 Credit Rating of Debt Securities (Underlying Fund) * Not applicable. Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Asian Equity Yield Fund # 1.72% 1.74% 28.49% 28.45% Underlying Fund 1.72% 1.74% 28.49% 28.45% Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The expense and turnover ratios are derived from its underlying fund - Schroder Asian Equity Yield Fund, which is based on unaudited draft accounts. Max Asian Equity Yield Fund Exposure to Derivatives * (i) Market value of derivative contracts (ii) Net loss on derivative realised (286,101) (iii) Net gain on outstanding derivatives - Borrowings * Nil. Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 1,160,976 Redemptions 3,200,240 20

23 MAX ASIAN EQUITY YIELD FUND report as at 31 December 2017 Related-Party Transactions Not applicable. Soft Dollar Commissions * In the management of the Fund, the Manager may accept soft dollar commissions from, or enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Fund and the soft dollars received are restricted to the following kinds of services: (i) research, analysis or price information; (ii) performance measurement; (iii) portfolio valuations; and (iv) 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 Fund, (b) best execution is carried out for the transactions, and (c) that 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. Any material information that will adversely impact the valuation of the fund * Nil. * Source: Schroder Investment Management (Singapore) Ltd For disclaimers, please refer to Contents page. Max Asian Equity Yield Fund 21

24 MAX PACIFIC EQUITY FUND report as at 31 December 2017 Fund Facts Inception Date: 15 April 2005 NAV Price: Fund Size: million Underlying Fund: Aberdeen Pacific Equity Fund Fund Manager: Aberdeen Asset Management Asia Limited Fund Management Fee: 1.50% p.a. (2.50% p.a. max) Valuation Frequency: Daily Currency of Fund: Singapore Dollar Risk Category: Higher Benchmark: MSCI AC Asia Pacific ex-japan Index Investment Objective The ILP Sub-Fund aims to provide medium to long-term capital growth by investing all or substantially all its assets in the Aberdeen Pacific Equity Fund which in turns invests in a diversified portfolio of Asian-Pacific equities excluding Japanese equities and as a feeder fund to invest in the equity-based Asia Pacific sub-funds of the Aberdeen Select Portfolio, namely the Aberdeen China Opportunities Fund, the Aberdeen Indonesia Equity Fund, the Aberdeen Malaysian Equity Fund, the Aberdeen Singapore Equity Fund and the Aberdeen Thailand Equity Fund, and invests up to 10% of its deposited property in the Aberdeen Global Indian Equity Fund +, a sub-fund of the Luxembourgregistered Aberdeen Global. + Fund is offered in Singapore as a restricted foreign scheme. Max Pacific Equity Fund Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year * 10-year * Inception * Max Pacific Equity Fund Benchmark Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. Investments in Collective Investment Schemes Unit Trust Aberdeen Pacific Equity Fund 62,587,

25 MAX PACIFIC EQUITY FUND report as at 31 December 2017 Top 10 Holdings of Underlying Fund as at 31 December 2017 * Aberdeen Global - Indian Equity Fund # 124,108, Aberdeen Singapore Equity Fund 108,144, Aberdeen China Opportunities Fund 105,035, Samsung Electronics Co. Ltd (Pref) 68,595, Taiwan Semiconductor Manufacturing Co. Ltd 57,438, Aberdeen Indonesia Equity Fund 50,433, Aberdeen Thailand Equity Fund 48,966, AIA Group Ltd 46,839, Jardine Strategic Holdings Ltd 42,882, Rio Tinto 37,607, # The underlying fund is not authorised for public sale in Singapore. Top 10 Holdings of Underlying Fund as at 31 December 2016 * Aberdeen China Opportunities Fund 143,460, Aberdeen Singapore Equity Fund 135,156, Aberdeen Global - Indian Equity Fund # 129,642, Samsung Electronics Co. Ltd (Pref) 71,125, Aberdeen Indonesia Equity Fund 54,363, Taiwan Semiconductor Manufacturing Co. Ltd 52,802, Jardine Strategic Holdings Ltd 52,275, AIA Group Ltd 48,731, Aberdeen Thailand Equity Fund 47,121, Rio Tinto 46,345, # The underlying fund is not authorised for public sale in Singapore. Max Pacific Equity Fund 23

26 MAX PACIFIC EQUITY FUND report as at 31 December 2017 Allocation By Country (Underlying Fund) * Australia 61,217, China 202,895, Hong Kong 188,173, India 175,032, Indonesia 75,419, Korea, Republic Of 122,706, Malaysia 41,498, Philippines 59,334, Singapore 236,285, Taiwan, Province Of China 78,903, Thailand 48,966, United Kingdom 137,615, United States 25,781, Others ** 41,673, Total 1,495,502, ** Includes any other countries and net current assets. Max Pacific Equity Fund Allocation By Industry (Underlying Fund) * Consumer Discretionary 25,781, Consumer Staples 26,106, Financials 310,399, Healthcare 31,547, Industrials 109,633, Information Technology 176,951, Materials 118,591, Real Estate 117,436, Telecommunication Services 73,888, Unit Trusts 463,268, Others ** 41,897, Total 1,495,502, ** Includes any other industries and net current assets. 24

27 MAX PACIFIC EQUITY FUND report as at 31 December 2017 Allocation By Asset Class (Underlying Fund) * Equities 1,458,596, Cash and cash equivalents 36,905, Total 1,495,502, Credit Rating of Debt Securities (Underlying Fund) * Not applicable. Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Pacific Equity Fund # 1.67% 1.75% 15.43% 9.73% Underlying Fund ^ 1.67% 1.75% 15.43% 9.73% Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The expense and turnover ratios are derived from its underlying fund - Aberdeen Pacific Equity Fund, which is based on audited accounts. ^ The expense and turnover ratios of the underlying fund were computed for period ended 30 September The ratios for period ended 31 December 2017 are not available. Exposure to Derivatives * Nil. Borrowings * Nil. Max Pacific Equity Fund 25

28 MAX PACIFIC EQUITY FUND report as at 31 December 2017 Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 2,834,462 Redemptions 12,069,940 Related-Party Transactions Not applicable. Soft Dollar Commissions * Nil. Any material information that will adversely impact the valuation of the fund * Nil. Max Pacific Equity Fund * Source: Aberdeen Asset Management Asia Ltd 26 For disclaimers, please refer to Contents page.

29 MAX GLOBAL EMERGING MARKETS FUND report as at 31 December 2017 Fund Facts Inception Date: 7 September 2007 Nav Price: Fund Size: million Underlying Fund: Aberdeen Global Emerging Markets Fund Fund Manager: Aberdeen Asset Management Asia Limited Fund Management Fee: 1.50% p.a. (2.50% p.a. max) Valuation Frequency: Daily Currency of Fund: Singapore Dollar Risk Category: Higher Benchmark: MSCI Emerging Markets Investment Objective The ILP Sub-Fund aims to provide long-term capital growth by investing in authorised investments which are direct or indirect investments in emerging stock markets worldwide or companies with significant activities in emerging markets, or as a feeder fund to invest in the Aberdeen Global Emerging Markets Equity Fund+, a sub-fund of Luxembourg-registered Aberdeen Global. The Aberdeen Global Emerging Markets Equity Fund invests at least two-thirds of its assets in equities and equity-related securities of companies with their registered office in an Emerging Market country; and/or, of companies which have the preponderance of their business activities in an Emerging Market country; and/or, of holding companies that have the preponderance of their assets in companies with their registered office in an Emerging Market country. Emerging Market shall mean any country that is included in the MSCI Emerging Markets Index or composite thereof (or any successor index, if revised), or any country classified by the World Bank as a low to upper middle income country. + Fund is offered in Singapore as a restricted foreign scheme. Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year* 10-year * Inception * Max Global Emerging Markets Fund Benchmark Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. Max Global Emerging Markets Fund 27

30 MAX GLOBAL EMERGING MARKETS FUND report as at 31 December 2017 Investments in Collective Investment Schemes Unit Trust Aberdeen Global Emerging Markets Fund 10,015, Top 10 Holdings of Underlying Fund as at 31 December 2017 * Samsung Electronics Co. Ltd (Pref) 316,068, Aberdeen Global - China A Share Equity Fund # 253,948, Taiwan Semiconductor Manufacturing Co. Ltd 239,808, HDFC Bank Ltd 221,994, AIA Group Ltd 200,520, Banco Bradesco (Pref) ADR 172,815, China Mobile Ltd 167,887, FEMSA ADR 164,852, Grupo Financiero Banorte S.A.B. de C.V. 164,158, Astra International Tbk PT 159,821, Max Global Emerging Markets Fund # Aberdeen Global China A Share Equity Fund is not authorised for sale to the public in Singapore. Top 10 Holdings of Underlying Fund as at 31 December 2016 * Samsung Electronics Co. Ltd (Pref) 398,785, Taiwan Semiconductor Manufacturing Co. Ltd 335,317, Astra International Tbk PT 329,263, HDFC Bank Ltd 321,143, AIA Group Ltd 311,551, China Mobile Ltd 272,159, FEMSA ADR 262,978, Grupo Financiero Banorte S.A.B. de C.V. 238,217, Banco Bradesco (Pref) ADR 227,714, ITC Ltd 222,089,

31 MAX GLOBAL EMERGING MARKETS FUND report as at 31 December 2017 Allocation By Country (Underlying Fund) * Brazil 764,128, Chile 137,724, China/Hong Kong 1,215,960, Hungary 64,633, India 884,335, Indonesia 315,920, Korea, Republic Of 485,659, Malaysia 73,090, Mexico 437,335, Philippines 228,332, Poland 117,790, Russia 219,875, South Africa 220,479, Taiwan, Province Of 302,027, Thailand 245,245, Turkey 233,768, Others ** 96,648, Total 6,042,956, ** Includes any other countries and net current assets. Allocation By Industry (Underlying Fund) * Consumer Discretionary 625,195, Consumer Staples 1,011,186, Energy 263,971, Financials 1,899,145, Healthcare 64,633, Industrials 132,287, Information Technology 802,787, Materials 514,049, Real Estate 369,681, Telecommunication Services 306,859, Others ** 53,156, Total 6,042,956, Max Global Emerging Markets Fund ** Includes any other industries and net current assets. 29

32 MAX GLOBAL EMERGING MARKETS FUND report as at 31 December 2017 Allocation By Asset Class (Underlying Fund) * Equities 5,989,799, Cash and cash equivalents 53,156, Total 6,042,956, Credit Rating of Debt Securities (Underlying Fund) * Nil. Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Global Emerging Markets Fund # 1.75% 1.75% 18.18% 19.20% Underlying Fund ^ 1.75% 1.75% 18.18% 19.20% Max Global Emerging Markets Fund Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The ratios are derived from its underlying fund - Aberdeen Global Emerging Markets Fund, which is based on audited accounts. ^ The expense and turnover ratios of the underlying fund were computed for period ending 30 September The ratios for period ending 31 December 2017 are not available. 30

33 MAX GLOBAL EMERGING MARKETS FUND report as at 31 December 2017 Exposure to Derivatives * Nil. Borrowings * Nil. Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 661,802 Redemptions 1,497,560 Related-Party Transactions Not applicable. Soft Dollar Commissions * Nil. Any material information that will adversely impact the valuation of the fund * Nil. * Source: Aberdeen Asset Management Asia Ltd For disclaimers, please refer to Contents page. Max Global Emerging Markets Fund 31

34 Max Global Allocation Fund 32 MAX GLOBAL ALLOCATION FUND report as at 31 December 2017 Fund Facts Inception Date: 15 April 2005 NAV Price: Fund Size: 2.89 million Underlying Fund: Blackrock Global Fund (BGF) Global Allocation Fund Fund Manager: BlackRock (Luxembourg) S.A. Fund Management Fee: 1.50% p.a. Valuation Frequency: Daily Currency of Fund: Singapore Dollar Risk Category: Higher Benchmark: 36% S&P 500; 24% FTSE World (ex-us); 24% BofA ML US Treasury Cur 5 Year; 16% Citigroup Non-USD World Government Bond Index^ Investment Objective The ILP Sub-Fund invests all or substantially into BlackRock Global Funds (BGF) Global Allocation Fund ( Underlying Fund ) which seeks to maximise total return. The Underlying Fund invests globally in equity, debt and short term securities, of both corporate and governmental issuers, with no prescribed limits. In normal market conditions, the Underlying Fund will invest at least 70% of its total assets in the securities of corporate and governmental issuers. The Underlying Fund generally will seek to invest in securities that are, in the opinion of the BlackRock Investment Management, LLC, undervalued. The Underlying Fund may also invest in the equity securities of small and emerging growth companies. The Underlying Fund may also invest a portion of its debt portfolio in high yield fixed income transferable securities. Currency exposure is flexibly managed. Performance on bid-bid basis (%) as at 31 December 2017 Since 3-month 6-month 1-year 3-year * 5-year * 10-year * Inception * Max Global Allocation Fund Benchmark Source: Morningstar. Performance figures are calculated on a bid-bid basis, with all dividends and distributions reinvested, taking into account all charges which would have been payable upon such reinvestment. * Performance figures longer than 1 year are annualised. ^ Benchmark: Since inception till 30 September 2012, the benchmark was 80% MSCI World Index and 20% JP Morgan SGB Index. Effective 1 October 2012, benchmark is 36% S&P 500; 24% FTSE World (ex-us); 24% BofA ML US Treasury Cur 5 Year;16% Citigroup Non-USD World Government Bond Index.

35 MAX GLOBAL ALLOCATION FUND report as at 31 December 2017 Investments in Collective Investment Schemes Unit Trust BGF Global Allocation Fund (SGD Hedged) 2,892, Top 10 Holdings of Underlying Fund as at 31 December 2017 * U Treasury Note (OLD) 2 11/30/ ,932, Treasury Note (Otr) /15/ ,055, Treasury Note (2OLD) /31/ ,179, SPDR Gold Shares 585,179, Treasury Note (2OLD) /31/ ,918, Treasure Note /30/ ,041, Microsoft Corporation 339,781, Apple Inc 245,397, Alphabet Inc 188,767, Bank Of America Corporation 188,767, Top 10 Holdings of Underlying Fund as at 31 December 2016 * U Treasury Note (2OLD) /31/ ,615, SPDR Gold Shares 405,689, Apple Inc 303,771, Alphabet Inc 183,022, Treasury (CPI) Note /15/ ,469, Treasury (CPI) Note /15/ ,182, Marathon Petroleum 152,306, Canada (Government of) /01/ ,679, Treasury (CPI) Note /15/ ,703, Australia (Commonwealth of) /15/ ,587, Max Global Allocation Fund 33

36 MAX GLOBAL ALLOCATION FUND report as at 31 December 2017 Allocation By Country (Underlying Fund) * U Asia 3,333,633, Europe 3,318,531, Latin America 724,866, United States/Canada 9,576,172, Others ** 1,923,540, Total 18,876,744, ** Includes any other countries and net current assets. Max Global Allocation Fund Allocation By Industry (Underlying Fund) *^ U Consumer Discretionary 1,619,624, Consumer Staples 634,258, Corporate 766,395, Energy 1,138,267, Financials 1,555,443, Government 4,570,059, Health Care 1,226,988, Industrials 1,177,908, Information Technology 2,133,072, Materials 668,236, Real Estate 296,364, Telecommunication 477,581, Utilities 453,041, Others ** 2,159,499, Total 18,876,744, ** Includes any other industries and net current assets. 34

37 MAX GLOBAL ALLOCATION FUND report as at 31 December 2017 Allocation By Asset Class (Underlying Fund) * U Equities 11,603,534, Fixed Income Securities 5,445,940, Commodity-related 762,620, Cash and cash equivalents 1,064,648, Total 18,876,744, Credit Rating of Debt Securities (Underlying Fund) *^ U AAA 3,420,466, AA 69,843, A 639,921, BBB 536,099, BB 494,570, B 201,981, CCC and below 32,090, Not Rated 50,967, Total 5,445,940, Expense/Turnover Ratios * Expense Ratio Turnover Ratio 31 December 31 December 31 December 31 December Max Global Allocation Fund # 1.78% 1.77% % % Underlying Fund 1.78% 1.77% % % Note: The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes, tax deducted at source or arising out of income received, dividend and other distributions paid to unit holders and is calculated for the preceding 12 months, based on the Investment Management Association of Singapore (IMAS) guidelines. # The expense and turnover ratios are derived from its underlying fund - BGF Global Allocation Fund (SGD Hedged), which is based on unaudited draft accounts. Max Global Allocation Fund 35

38 Max Global Allocation Fund 36 MAX GLOBAL ALLOCATION FUND report as at 31 December 2017 Exposure to Derivatives *^ U (i) Market value of derivative contracts 216,245, (ii) Net loss on derivative realised (38,558,696) (iii) Net gain on outstanding derivatives 82,907,695 Borrowings * Nil. A Fund may borrow to the extent of 10% of its total net assets (valued at market value) provided these borrowings are made on a temporary basis. However, the Company may acquire for the account of a Fund foreign currency by way of back-to-back loan. Total Subscriptions and Redemptions for the year ended 31 December 2017 Subscriptions 156,173 Redemptions 368,742 Related-Party Transactions Not applicable. Soft Dollar Commissions *º In accordance with new rules coming into force in January 2018 pursuant to EU Directive 2014/65/EU on markets in financial instruments referred to as MiFID II, BlackRock Group will no longer pay for external research via client trading commissions for its MiFID II-impacted funds ( MiFID II-impacted funds ). The BlackRock Group shall meet such research costs out of its own resources. MiFID II-impacted funds are those which have appointed a BlackRock Group MiFID firm as investment adviser or where investment management has been delegated by such firm to an overseas affiliate. Funds which have directly appointed an overseas affiliate of the BlackRock Group within a third country (i.e. outside the European Union) to perform portfolio management are not in-scope for the purposes of MiFID II and will be subject to the local laws and market practices governing external research in the applicable jurisdiction of the relevant affiliate. This means that costs of external research may continue to be met out of the assets of such funds. A list of such funds is available on request from the Management Company. Where investments are made in non-blackrock Group funds, they will continue to be subject to the external manager s approach to paying for external research in each case. This approach may be different from that of the BlackRock Group and may include the collection of a research charge alongside trading commissions in accordance with applicable laws and market practice. This means that the costs of external research may continue to be met out of the assets within the fund. Where permitted by applicable regulation (excluding, for the avoidance of doubt, any Funds which are in scope for MiFID II), certain BlackRock Group companies acting as investment adviser to the Funds may accept commissions generated when trading equities with certain brokers in certain jurisdictions. Commissions may be reallocated to purchase eligible research services. Such arrangements may benefit one Fund over another because research can be used for a broader range of clients than just those whose trading funded it. BlackRock Group has a Use of Commissions Policy designed to ensure only eligible services are purchased and excess commissions are reallocated to an eligible service provider where appropriate.