OLAB fund factsheet FPI Asia Pacific Equity GBP June 2018 This factsheet is for information only and should not be considered a financial promotion. The information shown should not be relied upon for buying and selling decisions. Fund objective The fund aims to achieve capital growth by investing in the Pacific Basin region, including Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan and Thailand. The fund intends to invest primarily in shares of companies in the Pacific Basin region, although it may also invest in other equities, warrants, convertibles, derivatives, money market instruments, cash and near cash assets such as deposits and certificates of deposit. The fund may invest directly or indirectly. Any direct investment in derivatives will be for the purpose of efficient portfolio management and risk reduction. Mirror fund key facts ISIN code Currency GB0003544623 GBP Launch date June 1994 Fund key Dealing FE sector K Daily Equity - Asia Pacific inc Japan Risk rating Grade 4 Mirror fund AMC 0.80% Additional costs 0.20% Overall ongoing costs 1.00% Friends Provident International fund risk warning Top holdings - as at 31/05/2018 Special Risk Warning A, B, C, G The top holdings listed below have been determined by the percentage The assigned their warnings value represents highlight the within risks the that fund. the fund We can display be a maximum of 10 holdings, which may or may not represent the full exposed holdings to, but of the at any fund. given point in time the fund may not have exposure to all of these risks. AVIVA INVESTORS ASIA PACIFIC EX JAPAN FUND A LIFE INCOME AVIVA INVESTORS JAPAN EQUITY FUND A LIFE INCOME 61.3% 38.7% Source: FE Further information about the special risk warning definitions can be found on page 5. further information about terms used in these sections can be found on page 3 and 4. Page 1
Underlying fund breakdown The fund breakdown shown below is provided by FE and derived from information reported by the fund manager. It may include asset, sector or geographic allocations, as well as the credit ratings of any fixed interest elements of the fund (where available). Asset allocation - as at 31/05/2018 Japanese Equities 61.3% Asia Pacific ex Japan Equities 38.7% Geographic allocation - as at 31/05/2018 Japan 61.3% Pacific Equities (ex Japan) 38.7% Source: FE Mirror fund performance Performance over rolling one year periods 31/3/2017-31/3/2018 31/3/2016-31/3/2017 31/3/2015-31/3/2016 31/3/2014-31/3/2015 31/3/2013-31/3/2014 FPI Asia Pacific Equity GBP 6.08% 42.35% -8.66% 26.77% -8.41% Cumulative performance 1 year 3 years 5 years 10 years Since launch FPI Asia Pacific Equity GBP 11.10% 49.25% 71.60% 87.01% 227.87% The information shown refers to the past. Past performance is not a reliable guide to future performance. Source: FE. Figures on a bid-to-bid basis to 31/5/2018 Fund prices may go up as well as down and you may get back less than you paid in. Performance figures are net of all charges. Please note that the securities held within a fund may not be denominated in the currency of that fund and, as a result, fund prices may rise and fall purely on account of exchange rate fluctuations. Percentage growth over five years (as at 31/05/18) 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% May 13 Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 Apr 16 Oct 16 Apr 17 Oct 17 May 18 FPI Asia Pacific Equity GBP Equity - Asia Pacific inc Japan Source: FE. Figures on a bid-to-bid basis Page 2
Further information Important information regarding mirror funds For each fund managed by external investment managers Friends Provident International has set up its own mirror fund, which invests exclusively in the underlying fund, apart from a proportionately small amount, which may be held as a cash balance. This means that the price of the Friends Provident International fund will be different from the corresponding fund due to the cash holding and any differences in fund charges, but will move mainly in line with it. These mirror funds can only be accessed using Friends Provident International product wrappers. Please note that there are fees charged to investments in the mirror funds that will affect their return. For further details, please refer to the relevant product information brochure. Risk grades and descriptions Grade 1 Funds offering conservative return similar to money market rates. Grade 2 Low risk funds offering security and potential growth. Grade 3 These funds take a balanced approach to investment by holding a diverse portfolio of assets. Grade 4 A more focused asset exposure provides good growth potential with the risk of short-term volatility. Fund key facts Sector classification Our funds and (where applicable) the underlying funds they invest in, are classified into sectors, ensuring that funds operating similar investment strategies are grouped together and can be compared on a like for like basis. The sectors referred to in this document are taken from the FE Offshore Insurance Universe. ISIN code the International Securities Identification Number (ISIN) is a 12-character alpha-numerical code used as a unique identifier worldwide. Mirror fund AMC a policy charge taken as a percentage of the value of the fund before pricing. Additional costs charges made by the underlying fund in relation to custody fees, audit fees etc. Overall ongoing costs the total of applicable charges taken from the fund before pricing. It includes the annual management charge and any relevant underlying fund charges outlined above. Any policy charges taken by cancellation of units from the funds are not reflected in the Overall ongoing costs. Grade 5 These aggressive funds balance the risk of high volatility with the potential for high capital growth. This factsheet is intended for general information purposes only and does not constitute financial advice. Please speak to your financial adviser for more details. Whilst every care has been taken to ensure the accuracy of this factsheet, Friends Provident International cannot accept any liability to any party for loss or damage caused by errors or omissions. No part of this factsheet may be reproduced without prior approval from Friends Provident International. Copyright 2017 Friends Provident International. All rights reserved. Page 3
Mirror fund keys A - Fund closed to new investors. G - Fund has a liquidity warning due to the nature of the underlying assets. For information on any restrictions currently in force, please refer to the Funds News section of our website. J - Vanguard is a trademark of the Vanguard Group, Inc. and has been licensed for use by Friends Provident International. The FPI Vanguard Mirror Fund is not sponsored, endorsed, sold or promoted by the Vanguard Group, Inc. and the Vanguard Group, Inc. makes no representation regarding the advisability of investing in the fund. K - Available to all OLAB products. L - Not available to multi-currency IIB, Ultima and Alphasave investors. M - Available to GBP IIB investors only. N - Available to multi-currency IIB, Ultima and Alphasave investors only. O - Available to AlphaSave investors only. P - Not available to Ultima and Alphasave investors. V - Fund is classified as a Non Mainstream Pooled Investment by the UK Financial Conduct Authority and is not available for new investment by customers based in the UK with effect from 1 January 2014. W - There is a performance fee on this fund, which is charged by the underlying fund manager. Please refer to the relevant section of the underlying fund s Prospectus for further information. X - Funds fall under the requirements of the European Union (EU) Alternative Investment Fund Manager Directive (AIFMD). As such, it is not available for (new) investment by EU or EEA investors with effect from 22 July 2014. Y - For investments into this fund, a distributor fee may be paid from the fund charges and rebated to the introducing broker by the fund manager. If these charges are relevant in your case, your financial adviser should make these clear to you. Please refer to the relevant fund fact sheet and underlying fund prospectus for details of the underlying fund s overall expense ratio and charges. Ab - This fund is aimed at professional / sophisticated / experienced investors, who understand the specialist nature of the fund and its risks. Friends Provident International Limited is classified as a professional investor and we operate the internal fund to enable customers to collectively access the underlying fund, however customers should refer to the underlying fund's Prospectus for full information before investing. Page 4
Special Risk Warning A General Investment is not guaranteed: The value of an investment is not guaranteed and can go down as well as up. You could get back less than you have paid in. Price: At times, a fund may need to change the way its price is calculated to ensure that those moving into and out of the fund and exisiting unitholders/shareholders are treated fairly and are not disadvantaged by any large cashflows. Suspend trading: Fund managers have the ability, in certain circumstances, to suspend trading in their funds for as long as necessary. When this occurs we will need to delay the cashing in or switching of units in the relevant fund. You may not be able to access your money during this period. The circumstances in which we may delay a switch, withdrawal or transfer can include but are not limited to the following: a large number of customers want to take money out of the same fund at the same time; there are practical problems selling the assets in which a fund is invested; if the fund (or part of it) is managed by an external company, they may insist on a delay. Stock Lending: Where a fund is involved in the temporary transfer of securities, there is a risk that the borrower may not be able to return the security to its owner. This may have a negative effect on the performance of the fund. Derivatives: Most funds can invest in derivatives for the purpose of efficient portfolio management or risk reduction. For funds that also use derivatives for investment purposes we apply an additional risk warning due to the possible increase in the risk and volatility of the fund. B - Currency Risk: Where a fund invests in share classes or securities priced in currencies other than the fund s base currency, changes in exchange rates can contribute to the value of the investment going up or down. C - Emerging Markets: Where a fund invests in emerging markets, it is likely to be more volatile than one that invests in developed markets. These markets may not be as strictly regulated and securities may be harder to buy and sell than those in more developed markets. These markets may also be politically unstable which can result in the fund carrying more risk. D - Smaller Companies: Where a fund invests in the shares of smaller companies, these shares can be more volatile and may be harder to buy and sell than larger company shares which can result in the fund carrying more risk. E - Fixed Interest: Where a fund invests in fixed interest securities, such as corporate or government bonds, changes in interest rates can contribute to the value of the investment going up or down. If interest rates rise, the value is likely to fall. Bonds with a lower credit rating are known as sub-investment grade or junk bonds. These carry an increased risk that the issuer of the bond will be unable to continue the interest payments or return the capital at maturity. F - Specialist: Where a fund invests only in a specific or limited range of industry sectors, it may carry more risk than funds that invest across a broader range or variety of sectors. These funds can be more volatile and carry higher risk due to their lack of diversification. G - Derivatives: Where a fund uses derivatives for investment purposes, there may be an increase in the risk and volatility of the fund. Some derivative investments also expose investors to counterparty or default risk where another party is unable to meets its obligations and pay what is due, which could result in the loss of the value of the derivative itself. H - Cash Funds: These are not cash deposit accounts but invest in money market instruments and short-term bonds and can fall in value. In a low interest rate environment the charges applied to a cash fund may be greater than its return, so you could if get back less than you have paid in. I - Direct Property: Where a fund invests in physical property, these properties are not easy to buy or sell. In exceptional circumstances, we if may need to delay the cashing in or switching of units in the fund and you may not be able to access your money during this period. The value of properties held is generally a matter of the valuer s opinion rather than fact. J - Index-Linked: Where a fund invests in index-linked bonds, changes in inflation rates can contribute to the value of the investment going up or down. If inflation falls, the value is likely to fall. K - High Cash Levels: Due to the way some funds are managed there may be periods when they have large cash holdings. This can be a deliberate asset allocation decision or while suitable investment opportunities are researched and selected. A fund s growth potential may be less during this period. L - Reinsured Funds: Where a fund invests in an underlying fund operated by another insurance company through a reinsurance agreement, if the other insurance company were to become insolvent, you could lose some or all of the value of your investment in this fund. M - Ethical: Where a fund invests only in sectors and securities that meet its agreed ethical criteria, it may carry more risk than funds which are free from these restrictions. The ethical companies invested in can be involved in new and innovative technologies or new markets and can therefore have a higher risk profile than organisations involved in more mainstream activities. N - Alternative Investments: Where a fund invests in alternatives, it may carry more risk as these instruments are generally priced less regularly and may be harder to buy and sell than investments in more conventional asset classes. Alternatives include commodities, hedge funds, private equity, real estate investment trusts (REITS), venture capital and currencies. O - Convertible Bonds: Where a fund invests in convertible bonds, it will experience the risks associated with holding bonds until conversion at which point it will experience the risks associated with holding equities. To compensate for having additional value through the option to convert from a bond to an equity, a convertible bond typically has a coupon rate lower than that of a similar, non-convertible bond. P - High Yield Bonds: The fund invests in high yield (non investment grade) bonds. This means bonds that have a Credit Quality rating of BB or less. High yield bonds carry a greater risk than investment grade bonds that the issuer may not be able to pay interest or return capital. In addition, economic conditions and interest rate movements will have a greater effect on their price. There may be times when these bonds are not easy to buy or sell. In exceptional circumstances, we may need to delay the cashing in or switching of units in the fund and you may not be able to access your money during this period. Friends Provident International is a trading name of Friends Life Limited for business conducted outside the United Kingdom. Friends Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Pixham End, Dorking, Surrey RH4 1QA England. Incorporated company limited by shares and registered in England and Wales, number 4096141. Friends Life Limited is authorised by the Prudential Regulation Authority to carry on Class I and Class III business in Cyprus and Malta. Salisbury Office: United Kingdom House, Castle Street, Salisbury, Wiltshire SP1 3SH England. Telephone +44(0) 1722 415 088 Fax +44(0) 1722 332 005 Email fp.int@friendsprovident.com Website www.fpinternational.com. Page 5