Hansard International Series 2 Fund Range

Hansard International Series 2 Fund Range

Series 2 Our internal unit fund range offers funds from a range of fund management groups and covers a variety of risk profiles, asset types, sectors and geographic regions. This guide is intended to give you an overview of the funds available to you and your clients. For further details on each fund please refer to our Unit Fund Centre on Hansard Online, which provides access to detailed fund fact sheets and fund performance reports. In addition to conventional cash, fixed interest and equity based funds, our range also includes a number of managed, multi manager and more specialist funds. Over a number of years, we have built strong relationships with some of the world s largest Global Asset Managers and a number of specialist fund providers. These managers provide additional support in terms of marketing, delivering presentations and access to webcasts. At a Glance Selection of Funds from leading Global Asset Management Groups Coverage of a diverse range of asset & sector types Access to a number of base currencies What is a Hansard International Internal Unit Fund? This is a unitised fund structure which is created, priced and administered by Hansard and operates on a pooled investment basis, meaning many individual clients will each invest in the same Hansard fund at the same time. Units of the chosen fund will be allocated to each client s contract, according to the amount invested and the prevailing fund price at the time of investment. Contract holders taking out a life assurance product will have access to a range of Hansard funds to choose from. Following their initial fund selection, Contract holders can hold as many funds as they wish. Each Hansard fund will typically be linked to a single external fund offered by one of the Asset Management Groups with whom we partner. Pooled investment into any Hansard fund will then be invested in the linked external fund. The performance of Hansard Unit Funds will primarily be determined by the performance of the underlying external funds to which they are linked. The Hansard fund may be withdrawn without notice if the underlying external fund is withdrawn or suspended by the asset manager. For more information on the Hansard unit funds, this can be found in How Our Unit Funds Work (HO228O). Please note a number of our managed funds may invest in more than one underlying external fund. Hansard funds may also carry small positive or negative cash balances from time to time to allow for the management of smaller cash flows or transactional cash awaiting the settlement of purchases or sales of the underlying fund. The annual management charge, as defined by life assurance products, will be included in the calculation of the price of the Hansard fund and are therefore reflected in the value of the contract. Benefits of the Hansard Fund Range We believe our fund range provides more than sufficient scope and choice for the differing needs of our clients. Some of the key benefits include:- Linking to funds offered by a range of experts in the world of asset management Purchasing underlying funds at institutional rates which is close to or at Net Asset Value (NAV) Switching between Hansard funds at bid to bid price on the same day with no settlement period. For further information on how to switch between funds, please refer to on line switching or Unit Fund Switch and Redirection Instruction (HO07O) The minimum contribution will be set at Hansard product level and not constrained by any minimums imposed by fund management groups Vast majority of Hansard funds are daily priced. The Hansard Fund Range We have categorised our unit fund range by asset type for ease of reference. The details we have included for each fund in the list below will give you some basic information on each fund but please visit our Unit Fund Centre on Hansard Online if you require more detailed information. Page 2 of 8

Fund Risk Rating - Synthetic Risk and Reward Indicator Our unit funds have been assigned a risk rating using the Synthetic Risk and Reward Indicator (SRRI) methodology, to help you and your client assess which internal funds best align with your client s approach to risk. This does not constitute investment advice and should be used as a guidance tool only. The SRRI is calculated based on the volatility of the unit fund for the past five years and the values obtained are translated into one of seven risk categories available based on pre-defined volatility intervals. Volatility is a measure of change of a financial asset s price over a particular time period, which means the greater the movement in unit fund prices, the more volatile the unit fund s performance is. Unit funds with high volatility are generally associated with higher risk but potentially higher reward. Unit funds with low volatility are generally associated with lower risk, but lower potential reward. SRRI scale Lower Risk Higher Risk 2 7 Potentially lower reward Potentially higher reward Each SRRI category represents a volatility range as follows: SRRI Category Volatility Range (%) Unit funds with very low volatility will have a or 2 rating. These unit funds generally have a more cautious approach with little or no exposure to equity markets, and usually invest in cash or money market securities. Unit funds with high volatility will have a or 7 rating. These unit funds tend to have a high exposure to less developed, emerging markets or use high risk alternative assets within their investment strategy. Over the long term, exposure to equity markets could provide the opportunity for higher investment returns. However, it also brings a much higher degree of investment risk. You must therefore be prepared not only for the potential of higher returns, but also the potential for higher losses by linking to these types of unit funds. Where the unit fund was launched more than five years ago, the SRRI has been calculated based on the unit fund prices. Where the unit fund is less than five years old, the SRRI has been calculated based on the underlying asset prices for the past five years or since launch if that is later. The five year period is to January 20. Potentially Lower Reward 2 7 0-0. 0. - 2 2 - - 0 0 - - 2 >2 For all unit funds, there is no guarantee that its rating will remain the same and it may be re-categorised in the future. Please note that the lowest rating does not mean that a unit fund has no risk. The following additional risks are not reflected in the SRRI and may warrant consideration with your client. Credit Risk where the unit fund invests in securities that are subject to the risk that the issuer may default on interest or capital payments; Derivative Risk where the underlying assets may use derivatives. The use of derivatives can carry the risk of substantial loss and/or increased volatility in adverse financial conditions; Counter party Risk where the unit fund could lose money if an entity (counterparty) with which it does business becomes unwilling or unable to honour its obligations to the unit fund; and Liquidity Risk in some market conditions, the securities held by the underlying asset of the unit fund may be hard to value or difficult to sell at the desired price. Please note that past performance is not a guide to future performance. The Synthetic Risk and Reward Indicator (SRRI) was defined in 2009 by the Committee of European Securities Regulators (CESR) with the aim of providing investors with a method of assessing an underlying fund s risk. Page Page of of 8

Deposit Funds HIL (S2) UK Deposit B0S2 GBP HIL (S2) US Dollar Deposit C0S2 USD HIL (S2) Japanese Yen Deposit G0S2 JPY HIL (S2) Australian Deposit R0S2 AUD HIL (S2) Swedish Krona Deposit S0S2 SEK HIL (S2) Euro Deposit X02S2 EUR Fixed Interest HIL (S2) US Fixed Interest (Allianz PIMCO Total Return) C0S2 USD HIL (S2) Emirates MENA Fixed Income USD MC8S2 USD HIL (S2) Templeton Global Total Return USD MC209S2 USD Managed To achieve long-term capital growth through investing in a diversified portfolio of US dollar denominated bonds. The Fund aims to achieve a high level of income as well as capital growth, predominantly through a diversified portfolio of MENA debt securities of varying maturities along with cash and other ancillary instruments, such as Wakala. The Fund aims to maximise total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and/or floating rate debt securities and debt obligations. HIL (S2) US Dollar Managed (Templeton Global Balanced) C0S2 USD To achieve long-term capital growth through investing in a diversified portfolio of quoted equities and bonds. HIL (S2) US Dollar Cautious Managed (BlackRock) C0S2 USD HIL Emirates Global Income USD MC8S2 USD HIL (S2) European Managed (Fidelity) XH0S2 EUR To achieve long-term capital growth through investing in a diversified portfolio of quoted equities, bonds and other fixed interest securities. The Portfolio aims to provide long-term capital growth through price appreciation through investments in collective investment schemes investing in securities. To achieve long-term capital growth through investing in a diversified portfolio of European quoted equities, bonds and other fixed interest securities. Page of 8

Multi Manager HIL (S2) Emirates Active Managed MC9S2 USD HIL (S2) Emirates Balanced Managed MCS2 USD HIL (S2) JP Morgan Global Income USD MC2S2 USD The Portfolio may invest globally through collective investment schemes in a range of asset classes including cash/near cash, fixed income, equity, property and alternative strategy funds, with the aim of providing long-term capital growth. The Portfolio may invest globally through collective investment schemes in a range of asset classes including cash/near cash, fixed income, equity, property and alternative strategy funds, with the aim of providing long term capital growth through a balanced investment strategy. To provide regular income by investing primarily in a portfolio of income generating securities, globally, and through the use of financial derivative instruments. The Fund aims to maximise current income while HIL (S2) Templeton Global Income USD MC207S2 USD maintaining prospects for capital appreciation by investing in a diversified portfolio of debt and equity securities worldwide. Sharia HIL (S2) Crescent Global Equity MC7S2 USD HIL (S2) Emirates Islamic Money Market MCS2 USD HIL (S2) Emirates MENA Opportunities MCS2 USD HIL (S2) Emirates Islamic Global Managed MC0S2 USD HIL (S2) Emirates Emerging Market Equity USD MC82S2 USD HIL (S2) Emirates Global Sukuk USD MC8S2 USD HIL (S2) Franklin Global Sukuk USD MC2S2 USD HIL (S2) Templeton Sharia Asian Growth USD MC2S2 USD HIL (S2) Templeton Sharia Global Equity USD MC2S2 USD The Crescent Global Equity Fund is a Sharia-compliant equity fund that seeks to provide ethical investors with a superior investment product that conforms to religious and cultural beliefs. The Fund is a Sharia compliant investment that aims to achieve a higher profit return than traditional Sharia compliant bank deposits of similar liquidity. The Fund will primarily invest in diversified portfolio of Sharia compliant money market instruments including collectives investing in such instruments. The objective of the Fund is to provide investors with a professionally managed means of participating in Sharia compliant growth investments across a range of MENA markets. The Fund will seek over time to acquire a diversified portfolio of collective investment schemes and direct investments, including but not limited to, investments in Murabaha, Sukuk, Real Estate and Equity. The Fund will aim to achieve long-term capital appreciation over a complete economic cycle by deploying assets globally across Sharia compliant stocks listed in emerging market stock exchanges. The primary investment objective of the Fund is to achieve high income as well as capital growth by investing in a diversified portfolio of Sukuk both in the MENA region and globally. To maximise, consistent with prudent investment management, total investment return, consisting of a combination of profit income and capital appreciation. Long-term capital appreciation by investing primarily in Sharia compliant equity securities of companies incorporated or who have their area of primary activity in Asia (excluding Australia, New Zealand and Japan). The Fund seeks capital appreciation by investing principally in Sharia-compliant equity and equity-related securities including common stocks of companies located anywhere in the world, including Emerging Markets. 2 Page Page of of 8

Equities HIL (S2) Intl Growth (Investec Global Strategic Equity) B08S2 GBP HIL (S2) US Stock Market (JP Morgan US Value) C02S2 USD HIL (S2) Latin America Equity (BlackRock Latin America) C08S2 USD To achieve long-term capital growth through investing in a diversified portfolio of International equities. To achieve long-term capital growth through investing in a diversified portfolio of quoted US equities. To achieve long-term capital growth through investing in a diversified portfolio of quoted equities of Latin America. HIL (S2) US Momentum (BlackRock US Flexible Equity) C2S2 USD To outperform the U.S. equity market indices long-term. HIL (S2) Invesco Pan European Small Cap Equity MC0S2 USD HIL (S2) BlackRock World Mining MC20S2 USD HIL (S2) BlackRock Global Equity Income MCS2 USD HIL (S2) BlackRock World Gold MC7S2 USD HIL (S2) BlackRock Asian Dragon USD MC8S2 USD HIL (S2) BlackRock World Agriculture USD MC9S2 USD HIL (S2) Pictet Water USD MCS2 USD HIL (S2) Pictet Premium Brands USD MC8S2 USD HIL (S2) Fidelity Global Dividend USD MC72S2 USD HIL (S2) Fidelity America USD MC7S2 USD HIL (S2) Fidelity Global Property USD MC7S2 USD HIL (S2) M&G Global Leaders USD MC77S2 USD To achieve long-term capital growth primarily from a portfolio of investments in smaller companies of any European stock market. The Fund seeks to maximise total return by investing globally at least 70% of its total assets in the equity securities of mining and metals companies whose predominant economic activity is the production of base metals and industrial minerals such as iron ore and coal. The Fund seeks an above average income from its equity investments without sacrificing long term capital growth by investing globally at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, developed markets. The Fund seeks to maximise total return by investing globally at least 70% of its total assets in the equity securities of companies whose predominant economic activity is gold-mining. The Fund seeks to maximise total return by investing at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, Asia, excluding Japan. The Fund seeks to maximise total return by investing globally at least 70% of its total assets in the equity securities of agricultural companies. The Fund seeks capital growth by investing at least two-thirds of its total assets in the shares of companies operating in the water sector worldwide. The sub-fund favours companies operating in water supply, processing services, water technology and environmental services. The Fund seeks capital growth by investing at least two-thirds of its total assets in the shares of companies in the premium brands sector providing high-quality services and products. Aims to provide income and long-term capital growth. At least 70% of the Funds investments will be in income producing company shares globally. The choice of assets is guided by attractive dividend yields in addition to the potential for capital growth. Aims to provide long-term capital growth with the level of income expected to be low. At least 70% of the Funds investments will be in the shares of US companies. Aims to provide income and long-term capital growth. At least 70% of the Funds investments will be in the shares of companies involved in the real estate industry and other real estate-related investments. The Fund aims to maximise long-term capital and income growth. The fund manager selects stocks from across a wide range of global equities, focusing on businesses that are undergoing positive internal change, leading to improvements in their return on capital. 7 7 Page of 8

Equities HIL (S2) Emirates MENA Top Companies USD MC8S2 USD HIL (S2) Harris Associates US Equity USD MC89S2 USD The Fund aims to achieve medium to long-term capital growth through investments in a portfolio of GCC and MENA equity offerings. To achieve long term capital growth by primarily investing in larger U.S. companies. HIL (S2) BlackRock New Energy USD MC20S2 USD HIL (S2) JP Morgan US Equity USD MC202S2 USD HIL (S2) Templeton Global MC20S2 USD The Fund seeks to maximise total return. The Fund invests globally at least 70% of its total assets in the equity securities of new energy companies. New energy companies are those which are engaged in alternative energy and energy technologies. To maximise long-term capital growth by investing primarily in an actively managed portfolio of medium to large capitalisation US companies. The Fund aims to achieve long-term capital appreciation by investing in equity and debt obligations of companies and governments of any nation throughout the world, including emerging markets. HIL (S2) Templeton Asian Growth MC20S2 USD The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities listed in Asia (excluding Australia, New Zealand and Japan). HIL (S2) Franklin US Opportunities USD MC2S2 USD HIL (S2) Franklin MENA USD MC22S2 USD HIL (S2) BlackRock China USD MC227S2 USD HIL (S2 ) Franklin India USD MC228S2 USD HIL (S2) Fidelity Emerging Markets USD MC229S2 USD HIL (S2) Investec Global Strategic Equity MC2S2 USD The Fund aims to achieve capital appreciation by investing principally in equity securities of US companies believed to possess sustainable growth characteristics. The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities of companies across the entire market capitalisation spectrum in the Middle East and North Africa (MENA) region. The Fund aims to maximise the return on your investment through a combination of capital growth and income on the Fund s assets with at least 70% of its total assets invested in the shares of companies domiciled in, or the main business of which is in, the People s Republic of China. The Fund aims to achieve long-term capital appreciation by principally investing in equity securities of companies of any size located or performing business predominately in India. Aims to provide long-term capital growth with the level of income expected to be low. At least 70% of its total assets will be invested in company shares in countries in areas experiencing rapid economic growth. The Fund aims to provide long-term capital growth primarily through investment in companies from around the world, which are expected to enhance underlying profitability and shareholder value through operational or structural improvements to their businesses. Page Page 7 of 7 of 8

Equities HIL (S2) Invesco ASEAN Equity MCS2 USD The objective of this Fund is to achieve long term capital growth by investing in the ASEAN countries. HIL (S2) Investec Global Energy MC9S2 USD HIL (S2) Templeton Global (Euro) MX02S2 EUR Commodity The Fund seeks to achieve capital growth principally through investment in companies throughout the world involved in the exploration, production or distribution of oil, gas and other energy sources. Aims to achieve objective by investing primarily in equity securities of companies worldwide, including emerging markets. 7 HIL (S2) Pictet Physical Gold USD MCS2 USD The Fund aims to participate in returns of gold price movements by investing predominantly in standard 2, kilos of fine gold with a fineness of 99/,000 or greater. The Fund will be managed passively. Hansard International Limited Harbour Court, Lord Street, Box 92, Douglas, Isle of Man IM99 QL, British Isles Telephone: + 2 88000 Website: hansard.com Registered Number: 028C Regulated by the Isle of Man Financial Services Authority Page U00 808/02/7 of Page 8 of 8