PRODUCT HIGHLIGHTS SHEET

Transcription

1 Prepared on: 29 March 2017 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 SINGAPORE BOND FUND (the "Sub-Fund"), a sub-fund of Fullerton Fund Product Type Unit Trust Launch Date 16 August Managers Trustee Fullerton Fund Management Company Ltd HSBC Institutional Trust Services (Singapore) Limited Custodian Dealing Frequency Capital Guaranteed No Expense Ratio for year ended 31 March 2016 PRODUCT SUITABILITY WHO IS THE PRODUCT SUITABLE FOR? The Sub-Fund is only suitable for investors who: o seek long-term capital gain; and o are looking for a fund which invests primarily in SGD-denominated fixed income or debt securities issued by the Singapore government, government agencies, quasi-government institutions, statutory boards and corporations. The Sub-Fund may not be suitable for investors who are uncomfortable with the level of risk associated with bonds and credit instruments or a single country fund. 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 by investing primarily in fixed income or debt securities denominated in SGD. Distributions (if any) may be declared at the absolute discretion of the Managers. Investment Strategy The Sub-Fund will invest primarily in fixed income or debt securities denominated in SGD. These securities will primarily be issued by the Singapore government, government agencies, quasi-government institutions, statutory boards and corporations. The Hongkong and Shanghai Banking Corporation Limited Every Business Day 0.38% (Class A Units) 3 Further information Refer to Annex 4 (Sections A and K) on Pg [70] and Pg [74] of the on product suitability. 1.1 on Pg [7] (Sections A and D) on Pg [70] of the on features of the Refer to Annex 4 (Section B) on Pg [70] 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 Sub-Fund will primarily invest in investment grade issues. However, non-rated SGD corporate issues are permitted if they meet the Managers internal equivalent rating of investment grade. The Sub-Fund may also invest in other Authorised Investments, including securities issued by non-singapore entities. The Sub-Fund seeks to add value from the following sources: interest rate accruals, selection of bonds and/or credits and duration management (optimisation of bond returns by selecting bonds with different terms to maturity). The Sub-Fund may invest in derivative instruments for purposes of hedging and managing risks. 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 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 the credit risk of issuers of fixed income securities and money market instruments. 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 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. o The legal infrastructure and accounting, auditing and reporting standards of countries in which the Sub-Fund may invest may not provide the same degree of investor protection or disclosure as would generally apply in major securities markets. 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. on the investment strategy of the Refer to paragraphs 2 and 3 on Pg [9] and Pg [11] of the on their roles and responsibilities. 10 on Pg [18] (Section H) on Pg [72] of the on risks of the Page 2

3 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 risk of investing in a single country. o As a single country fund, the Sub-Fund may present greater opportunities and potential for capital appreciation but may also be subject to higher risks as such investments may be less diversified than a global portfolio. You are exposed to liquidity risk. o The size of the Sub-Fund's portfolio may make it less easy for the Sub-Fund to buy or sell securities in the Singapore fixed income markets. 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 Units: Currently 0.3% p.a., Max. 0.5% p.a. Class B Units: Currently 0.5% p.a., Max. 0.75% p.a. Trustee Fee, Registrar Fee and Valuation Fee Audit fee, custody and transaction fees and other fees and charges 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$15,000 p.a.. The amount of the registrar fee and valuation fee is subject to agreement with the relevant parties. Each fee may amount to or exceed 0.1% p.a., depending on the proportion that fee bears to the Net Asset Value of the Sub- Fund 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 9 on Pg [18] (Section G) on Pg [71] of the on fees and charges. 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 Refer to paragraphs 12 and 14 on Pg [28] and Pg [31] of the on valuation and exiting from the Page 3

4 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 4 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 US$ Realisation Price = Gross realisation US$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 Business Day 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 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. FDIs Financial derivative instruments, which include (without limitation) futures, options, forwards, swaps, contracts for differences, credit derivatives and structured notes. Holders holders of Units. investment grade Having a minimum long-term credit rating of BBB- by Fitch, Baa3 by Moody s or BBB- by Standard & Poor s. Net Asset Value 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 Page 4

5 p.a. Units Valuation Point relating to the Sub-Fund. per annum. 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