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 ASIAN BOND FUND (the "Sub-Fund"), a sub-fund of Fullerton Fund Product Type Unit Trust Launch Date 27 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 long-term capital gain; o are looking for a fixed income fund which provides exposure to the Asian region; and o are comfortable with the greater volatility and risks of a fund exposed to fixed income or debt securities denominated primarily in US Dollars and Asian currencies (which may include non-investment grade securities). The Sub-Fund may not be suitable for investors who are uncomfortable with the level of risk associated with bonds and credit instruments, and investing in emerging markets. 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 long-term capital growth. Distributions may be made out of capital. Distributions (if any) may be declared at the absolute discretion of the Managers. The declaration and/or payment of distributions may reduce the Net Asset Value of the Sub-Fund. The base currency of the Sub-Fund is the US Dollar. Investment Strategy The Sub-Fund aims to achieve its investment objective by investing all or substantially all of its assets in Fullerton Lux Funds Asian Bonds ( Underlying Fund ). The Underlying Fund is a sub-fund of Fullerton Lux Funds, an open-ended investment company organised as a société anonyme under Luxembourg laws and qualifies as a SICAV. The Hongkong and Shanghai Banking Corporation Limited Every Business Day 1.20% (Class A Units) 1.20% (Class B Units) 0.90% (Class C Units) 1.20% (Class D (RMB- Hedged) Units) 3 Further information Refer to Annex 3 (Sections A and N) on Pg [62] and Pg [70] of the on product suitability. 1.1 on Pg [7] and Annex 3 (Sections A and F) on Pg [62] of the Prospectus for further information on features of the Refer to Annex 3 (Section B) on Pg [62] of the 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 The Underlying Fund invests in fixed income or debt securities denominated primarily in US Dollars and Asian currencies, issued by companies, governments, quasi-governments, government agencies or supranationals in the Asian region. The Underlying Fund invests using a combination of top-down macro research for duration or interest rate management and sector allocation, and bottom-up analysis for credit selection and yield curve positioning. The Sub-Fund/Underlying Fund may hold cash or use derivative instruments for efficient portfolio management and hedging purposes. The Underlying Fund may also use derivative instruments as part of its investment strategy. Parties Involved WHO ARE YOU INVESTING WITH? The Managers are Fullerton Fund Management Company Ltd. The management company of the Underlying Fund is Lemanik Asset Management S.A. and it has appointed the Managers as investment manager of the Underlying Fund. 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 the risk of investing in emerging markets. o The legal, judicial and regulatory infrastructure of emerging and less developed markets is still developing and there is much legal uncertainty. You are exposed to the risk of interest rate fluctuations. o Values of bonds and other debt instruments usually rise and fall in response to changes in interest rates. You are exposed to the credit risk of issuers of debt securities. o The issuer of securities and counterparties to transactions may default on their obligations. Credit ratings of an investment are largely based on historical information and may not reflect current financial, volatility or liquidity conditions. You are exposed to currency risks. o Your investment may be affected by changes in currencies and exchange control regulations. The Sub-Fund's income may be affected by changes in foreign exchange rates and the Sub-Fund may not be fully hedged against such changes. o Classes which are not expressed in the Sub-Fund's base currency are also subject to exchange rate fluctuations between the class and base currencies. For Classes D (RMB-Hedged) and G (RMB-Hedged), the Managers intend to hedge the class currency of RMB against the base currency of US$ but this may not be fully hedged. The Managers may or may not hedge for Classes B, J1 and J2. o Investors in the Classes D (RMB-Hedged) and G (RMB-Hedged) should note that there may be a divergence in the exchange rate between the offshore and onshore RMB markets. The RMB is not a freely convertible currency and it is subject to foreign exchange control policies of and repatriation restrictions. The currency hedging transactions will not eliminate all the risk of loss due to currency fluctuations. You are exposed to regulatory risks. o Fullerton Lux Funds is domiciled in Luxembourg and regulatory protections in Singapore may not apply. The Underlying Fund may be on the investment strategy of the s 2 and 3 on Pg [9] and Pg [13] and Annex 3 (Section C) on Pg [62] of the on their roles and responsibilities. 10 on Pg [19] and Annex 3 (Sections J and K) on Pg [65] and Pg [68] of the on risks of the Page 2

3 registered in non-european Union jurisdictions and may thus be subject to more restrictive regulations, which may prevent it from making full use of the investment limits. 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. Product-Specific Risks You are exposed to derivatives risks. o The Sub-Fund 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 investment in the Underlying Fund. o The Sub-Fund may suffer significant losses where the Underlying Fund declines in value or is adversely affected. You may indirectly bear some of the fees and expenses of the Underlying Fund. You are exposed to debt securities risk. o Investments in lower rated, higher yielding debt securities are subject to greater market and credit risks than higher rated securities. You are exposed to risks arising from distributions out of capital. o The Sub-Fund may make distributions out of its capital (if income is insufficient). This may cause its Net Asset Value to fall, and amount to a partial return of your original investment and reduced future returns. 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 3%, 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, B, D (RMB Currently 0.9% p.a., Maximum 1% Hedged), E, F, and G (RMB-Hedged) Units: Class C Units: At the Managers' discretion. Class J1 and J2 Units: Currently at the Managers' discretion, up to maximum of 1% p.a.. Trustee Fee 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.. 9 on Pg [19] and Annex 3 (Section I) on Pg [64] of the on fees and charges. Registrar fee, valuation fee, audit fee, custody and transaction fees and other fees and charges 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 Payable by the Sub-Fund to the Underlying Fund Initial Charge Currently waived, Up to 5% Redemption Charge Currently waived, Up to 2% Payable out of the Underlying Fund Management Up to 0.04% p.a. of the Net Asset Value of the company fee Underlying Fund Page 3

4 Management fee Depositary fee Fees for administrative, registrar and transfer and domiciliary services Up to 0.6% p.a., fully rebated to the Sub-Fund Up to 0.5% p.a. of the average net asset values of the different sub-funds of Fullerton Lux Funds (as allocated to the Underlying Fund) Up to 0.05% p.a. of the Net Asset Value of Fullerton Lux Funds (as allocated to the Underlying Fund) Other expenses may be charged to the Underlying Fund. VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? The Sub-Fund is valued on each Dealing Day. The issue and realisation 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 Gross realisation x - US$ Realisation Price US$0.00 Realisation Charge = = Gross realisation Net realisation s 12 and 14 on Pg [31] and Pg [34] of the on valuation and exiting from the 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 Asian region Means countries in the Asian region which include, but are not limited to, China, Hong Kong SAR, Taiwan, South Korea, India, Thailand, Malaysia, Singapore, Indonesia, the Philippines, Pakistan and Vietnam. Page 4

5 Business Day Dealing Day FDIs Holders investment grade Net Asset Value non-investment grade p.a. RMB SICAV Units US$ or US Dollar Valuation Point 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. In connection with the issuance, cancellation and realisation of Units, means every Business Day which is also a week day on which banks are normally open for business in Luxembourg. Financial derivative instruments, which include (without limitation) futures, options, forwards, swaps, contracts for differences, credit derivatives and structured notes. holders of Units. In respect of fixed income or debt securities, means having a long-term credit rating of at least BBB- by Standard & Poor's, Baa3 by Moody's or BBB- by Fitch (or their respective equivalents). 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. In respect of fixed income or debt securities, means having a long-term credit rating of less than BBB- by Standard & Poor's, Baa3 by Moody's or BBB- by Fitch (or their respective equivalents). per annum. The lawful currency of the People's Republic of China. Société d'investissement à Capital Variable, being an investment company with variable capital that is established in the Grand Duchy of Luxembourg. The Fullerton Lux Funds qualifies as a SICAV under Part I of the Luxembourg law of 2010 relating to undertakings of collective investment. Units in the Sub-Fund. The lawful currency of the United States. 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 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