PRODUCT HIGHLIGHTS SHEET

Transcription

1 Prepared on: 19 February 2018 This Product Highlights Sheet is an important document. It highlights the key terms and risks of this investment product and complements the Prospectus 1. It is important to read the Prospectus before deciding whether to purchase units in the If you do not have a copy, please contact us to ask for one. You should not invest in the product if you do not understand it or are not comfortable with the accompanying risks. If you wish to purchase the product, you will need to make an application in the manner set out in the Prospectus. FULLERTON DYNAMIC STRATEGIES FUND AGGRESSIVE (the "Sub-Fund"), a sub-fund of Fullerton Fund Product Type Unit Trust Launch Date 17 April Managers Fullerton Fund Management Company Ltd Custodian Trustee HSBC Institutional Trust Services (Singapore) Limited Dealing Frequency Capital Guaranteed No Expense Ratio for year ended 31 March 2017 PRODUCT SUITABILITY WHO IS THE PRODUCT SUITABLE FOR? The Sub-Fund is only suitable for investors who: o seek medium to long-term capital appreciation; and o are comfortable with the risks of a fund which invests about 20% in fixed income and 80% in equities and is exposed to various asset classes (including equities, fixed income, money market, cash, commodities and alternatives) primarily via collective investment schemes and other investment funds (including ETFs, REITs and other permissible investments). The Sub-Fund may not be suitable for investors who are uncomfortable with the level of risk associated with the asset allocation and asset classes which the Sub-Fund may be exposed to. KEY PRODUCT FEATURES WHAT ARE YOU INVESTING IN? You are investing in a sub-fund of an umbrella unit trust constituted in Singapore that aims to provide you with returns through medium to longterm capital appreciation by investing into various asset classes. Distributions (if any) may be declared at the absolute discretion of the Managers. Investment Strategy The Sub-Fund will invest primarily in collective investment schemes and other investment funds (including ETFs, REITs and other permissible The Hongkong and Shanghai Banking Corporation Limited Every Business Day 1.83% (Class A Units) 3 Further information Refer to Annex 6 (Sections A and K) on Pg [83] and Pg [90] of the on product suitability. 1.1 on Pg [7] and Annex 6 (Sections A and D) on Pg [83] of the on features of the Refer to Annex 6 (Section B) on Pg 1 The Prospectus is available from the Managers or their appointed agents or distributors. It is also available from the Managers' website, at 2 This refers to the earliest launched Class that is offered under the Prospectus. 3 In respect of the classes not stated above, there are no audited figures for the purpose of computing expense ratios. Page 1

2 investments), whether actively or passively managed, for exposure to various asset classes, including equities, fixed income, money market, cash, commodities and alternatives (including listed and OTC FDIs). The Sub-Fund may also invest directly in securities (including but not limited to equities, units of business trusts, bonds and convertible bonds) in accordance with its investment objective and asset allocation strategy, as the Managers deem appropriate. The long-term strategic percentage mix (or neutral asset allocation) for the Sub-Fund is 20% fixed income and 80% equities. The Managers may, from time to time and at their sole discretion, vary the percentage of the Net Asset Value of the Sub-Fund that is exposed to the various underlying investments, including the percentage allocation stated above. The Sub-Fund may use or invest in FDIs for hedging, efficient portfolio management, optimising returns or a combination of all three objectives. The Sub-Fund may also invest in other Authorised Investments. Parties Involved WHO ARE YOU INVESTING WITH? The Managers are Fullerton Fund Management Company Ltd. The Trustee is HSBC Institutional Trust Services (Singapore) Limited. The Custodian is The Hongkong and Shanghai Banking Corporation Limited. KEY RISKS WHAT ARE THE KEY RISKS OF THIS INVESTMENT? The value of the product and its distributions may rise or fall. You should consider the risks of investing in the Sub-Fund, which are detailed in the Prospectus. Generally, some of the risk factors that should be considered are market, credit, liquidity, product-specific and other risks. These risk factors, which are set out below, may cause you to lose some or all of your investment. Market and Credit Risks You are exposed to equity market risks. o Generally, equities have greater volatility than fixed income securities. You are exposed to the risk of interest rate fluctuations. o The prices of fixed income securities are subject to interest rate fluctuations. Generally, the price of fixed income securities rises when interest rate falls and vice versa. The longer the term of a fixed income instrument, the more sensitive it will be to interest rate fluctuations. You are exposed to credit risk. o The value of the Sub-Fund may be negatively affected by changes in the financial condition or credit standing of an issuer and an issuer of fixed income securities may be unable to pay the principal and/or interest on the instrument. You are exposed to currency risks. o The value of your investment may be affected by changes in currencies and exchange control regulations affecting the Sub-Fund's underlying investments, and the Sub-Fund may not be fully hedged against such changes. You are exposed to political, regulatory and legal risks. o The value of your investment may be affected by international political developments, changes in government policies, taxation, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations of countries in which the Sub-Fund may invest. [83] of the on the investment strategy of the Refer to paragraphs 2 and 3 on Pg [9] and Pg [13] of the on their roles and responsibilities. 10 on Pg [19] and Annex 6 (Section H) on Pg [85] of the on risks of the Page 2

3 Liquidity Risks The Sub-Fund is not listed and you can redeem only on Dealing Days. o There is no secondary market for the Sub-Fund. All realisation requests should be made to the Managers or their authorised agents or distributors. You are exposed to liquidity risk. o The Sub-Fund may face difficulties in unwinding or offsetting its investments due to insufficient buyers or market disruption. In exceptional circumstances, the Sub-Fund's investments in underlying funds or trusts may not be readily redeemable. Product-Specific Risks You are exposed to derivatives risks. o The Sub-Fund and its underlying funds may use FDIs and these may negatively impact the value of the Sub-Fund if the FDIs do not work as anticipated. The Sub-Fund may suffer greater losses than if FDIs are not used. FDIs are exposed to counterparty, regulatory and other risks. You are exposed to the risk of investing in other investment funds. o The Sub-Fund may be heavily invested in one or a very small number of investment funds. The performance of these underlying funds could result in large gains or losses for the Sub-Fund. You are exposed to commodities risk. o The prices of commodity equities and futures are influenced by various macroeconomic factors such as changing supply and demand relationships, climatic and geopolitical conditions, disease and other natural phenomena, agricultural, trade, fiscal, monetary and exchange control programmes and policies of governments (including government intervention in certain markets) and other unforeseeable events. You are exposed to the risk of investing in ETFs. o The trading price of an ETF may differ from its net asset value. FEES AND CHARGES WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? Payable directly by you You will need to pay the following fees and charges as a percentage of your gross investment amount: Preliminary Charge Currently up to 5%, Maximum 5% Realisation Charge Currently 0%, Maximum 2% Switching Fee Currently up to 2%,Maximum 2% Payable by the Sub-Fund from invested The Sub-Fund will pay the following fees and charges to the Managers, Trustee and other parties: Management Fee Class A and B Units: Trustee Fee Registrar fee, valuation fee, audit fee, custody and transaction fees and other fees and charges Currently 1.2% p.a., Maximum 1.5% p.a. Currently, the Trustee Fee is not more than 0.1% p.a.. The Trustee Fee is subject to a maximum of 0.25% p.a. and minimum of S$12,000 p.a.. Subject to agreement with the relevant parties. Each fee or charge may amount to or exceed 0.1% p.a., depending on the proportion that it bears to the Net Asset Value of the Sub-Fund. The Sub-Fund will indirectly bear the fees and expenses of its underlying funds. VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? The Sub-Fund is valued on each Dealing Day. The issue and realisation 9 on Pg [19] and Annex 6 (Section G) on Pg [84] of the on fees and charges. Refer to paragraphs 12 and Page 3

4 prices of Units are quoted on a forward pricing basis and will generally be available within 2 Business Days after the relevant Dealing Day from the Managers or their authorised agents, and may also be published on Bloomberg daily. HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? You can exit the Sub-Fund by realising your Units on any Dealing Day by submitting a realisation form to the Managers, either directly or through the distributor from whom you subscribed for your Units. First-time investors may cancel subscription of Units in the Sub-Fund within 7 calendar days from date of subscription by submitting the Notice on Cancellation Form, subject to cancellation terms and conditions. You may do so without incurring the preliminary charge and fees stated above. However, you will have to take the risk of any price changes in the Net Asset Value of the Sub-Fund since your subscription and pay any bank charges, administrative or other fee imposed by the distributor. You will usually receive the realisation within 7 Business Days from the time your realisation request is received and accepted by the Managers. Your realisation price is determined as follows: o If you submit the realisation form by 5pm on a Dealing Day, you will be paid a price based on the Net Asset Value per Unit of the relevant class of Units in the Sub-Fund as at the Valuation Point for such Dealing Day. o If you submit the realisation form after 5pm on a Dealing Day, your form will be treated as having been received on the next Dealing Day. The net realisation that you will receive will be the realisation price multiplied by the number of Units realised, less any charges. A hypothetical example is as follows: 1,000 Units Number of Units realised x S$ Realisation Price = Gross realisation S$0.00 Gross realisation - Realisation Charge = Net realisation CONTACT INFORMATION HOW DO YOU CONTACT US? If you have any queries or feedback, you may contact the Managers at: Telephone No : info@fullerton.com.sg APPENDIX: GLOSSARY OF TERMS Authorised Investments The definition of Authorised Investments is set out in Clause 1.1 of the trust deed relating to the Sub-Fund. Relating to this, you should also consider the definitions of Quoted Investment, Unquoted Investment, Investment and Cash as stated in that Business Day clause. A day (other than a Saturday, Sunday or public holiday) on which commercial banks are open for business in Singapore, or any other day as the Managers and the Trustee may agree in writing. Dealing Day In connection with the issuance, cancellation and realisation of Units, means every Business Day. ETFs Exchange traded funds. 14 on Pg [31] and Pg [34] of the on valuation and exiting from the Page 4

5 FDIs Holders Net Asset Value OTC p.a. REITs Units Valuation Point Financial derivative instruments, which include (without limitation) futures, options, forwards, swaps, contracts for differences, credit derivatives and structured notes. holders of Units. In relation to the Sub-Fund, the value of all assets of the Sub-Fund less liabilities or, as the context may require, of a Unit of the Sub-Fund, determined in accordance with the provisions of the trust deed relating to the Sub-Fund. Over-the-counter. per annum. Real estate investment trusts. Units in the Sub-Fund. The close of business of the last relevant market to close on the relevant Dealing Day (or such other day as the Managers may determine with the prior approval of the Trustee upon one month s prior notice of the change being given to the Holders) on which the Net Asset Value of the Sub- Fund or class of units in the Sub-Fund is to be determined for a Dealing Day, or such other time as the Managers may determine subject to the Trustee s prior approval and (if required by the Trustee) notice to the Holders. Page 5