product summary - comparefirst · inspiretm flexiprotector is a whole life, ... buying a life...

04/2

012

AXA Life Insurance Singapore Private Limited Company Reg No. 199903512M 8 Shenton Way #27-02 AXA Tower Singapore 068811 AXA Customer Centre #B1-01 Tel: 1800-880 4888 Fax: 68805501

INVESTMENTS

INSPIRETM

FlexiProtector

productsummary

2 | P a g e

IMPORTANT INFORMATION

INSPIRETM

FlexiProtector is a whole life, Regular Premium investment-linked insurance plan. The actual benefits payable will be based on the actual performance of the assets of the underlying funds (as described in the Fund Information Booklet). Investments in investment-linked plans are subjected to investment risks including the possible loss of the principal amount invested. The value of Units in the sub-funds may fall as well as rise.

Buying a life insurance policy is a long-term commitment. An early termination of the policy

usually involves high costs and the surrender value payable may be less than the total

premiums paid.

The Fund Information Booklet contains details on the ILP sub-funds and constitutes a part of

the Product Summary, without which the Product Summary is incomplete. As such, this

Product Summary booklet must be read together with the Fund Information Booklet.

More information on the funds can be found in the Fund Prospectuses which are available

online at www.axa.com.sg. This Product Summary is for information only and is not a contract of assurance. You should refer to the Policy Contract for specific policy details applicable to INSPIRE

TM FlexiProtector and should

consult Your financial advisers or financial planners to ascertain the suitability of INSPIRETM

FlexiProtector in relation to Your own financial needs. The allocation, crediting, cancellation, switching or other dealings of Units as described in the Policy are notional in nature and are solely for the purpose of the Policy, including without limitation for determining the Policy Value. For the avoidance of doubt, the Company shall have the right to use the Regular Premium received to invest in the relevant reference funds or to make such other investments as the Company may consider appropriate, provided that the Policy Value shall be determined based on the Unit Price of the relevant Units standing to the credit of the policy.

http://www.axa.com.sg/

3 | P a g e

IINNSSPPIIRREETTMM

FlexiProtector

TABLE OF CONTENTS

1. BASIC INFORMATION ..................................................................................................................... 4

2. AVAILABLE ILP SUB-FUNDS .......................................................................................................... 9

3. MANAGEMENT & ADMINISTRATION ......................................................................................... 9

4. INVESTMENT OBJECTIVES, FOCUS AND APPROACH ........................................................... 9

5. RISKS .................................................................................................................................................. 10

6. CPF INVESTMENT SCHEME (“CPFIS”)...................................................................................... 10

7. FEES AND CHARGES ...................................................................................................................... 10

8. SUBSCRIPTION AND ISSUE OF UNITS ....................................................................................... 11

9. WITHDRAWALS ............................................................................................................................... 12

11. OBTAINING PRICES OF UNITS .................................................................................................... 14

12. SUSPENSION OF DEALINGS AND LIMITATION ...................................................................... 14

13. PERFORMANCE AND BENCHMARK.......................................................................................... 15

14. EXPENSE RATIO .............................................................................................................................. 15

15. TURNOVER RATIO.......................................................................................................................... 15

16. SOFT DOLLAR COMMISSIONS .................................................................................................... 15

17. CONFLICTS OF INTEREST ............................................................................................................ 15

18. REPORTS ........................................................................................................................................... 16

19. OTHER MATERIAL INFORMATION........................................................................................... 16

20. KEY POLICY PROVISIONS............................................................................................................ 16

21. POLICYOWNERS’ PROTECTION SCHEME .............................................................................. 19

GLOSSARY OF TERMS ................................................................................................................................... 20

1.1 Product Description We, AXA Life Insurance Singapore Private Limited, are currently offering Policyholders an investment cum protection platform through the investment-linked policy, INSPIRE

TM

FlexiProtector. INSPIRE

TM FlexiProtector gives You the flexibility to choose the level of investment and

protection cover that suits their financial needs. You may choose to invest in one (1) or up to ten (10) investment-linked policy sub-funds offered under this Policy.

We intend to provide YYoouu with a diversified range of investment products that can include equities and fixed income securities managed by managers with investment and financial services expertise.

Depending on Your level of priority for protection and wealth accumulation, You have the flexibility to choose between 1) Choice Cover or 2) Max Cover. The Benefit Option will determine the payout for the Death Benefit, as follows:

1) Choice Cover

The Death Benefit payable is the higher of: a) the Basic Sum Assured less any withdrawals made during the period commencing 12

months before the date of claim event and ending on the date when the claim is admitted; OR

b) the Policy Value, less any Indebtedness.

2) Max Cover

The Death Benefit payable is the total of : a) the Basic Sum Assured AND b) the Policy Value, less any Indebtedness.

The Benefit Option cannot be altered once the policy has been issued.

1.2 Benefits of

1. Death Benefit

Subject to the terms of this Policy, We will pay the Death Benefit according to the Death Benefit Option You have elected (and as specified in the Certificate of Insurance i.e. (a) Choice Cover or (b) Max Cover) when the Life Assured dies (other than by reason of suicide within one (1) year from the Date of Issue or the date of any Reinstatement of this Policy) while this Policy is in effect.

The Policy will terminate upon full payment of the Death Benefit.

2. Total & Permanent Disability Benefit (“TPD Benefit”)

Subject to the terms of this Policy, We will pay the TPD Benefit as an advancement of the Death Benefit when the Life Assured sustains Total and Permanent Disability before Age 65 while this Policy is still in effect. The TPD Benefit is payable in a lump sum. This Policy will terminate upon full payment of the TPD Benefit.

The maximum TPD Benefits payable on the Life Assured is S$4 million, inclusive of all other policies issued by AXA and other insurance companies, in respect of the same Life Assured.

If the Life Assured sustains TPD before the Age of 1, only 25% of the Basic Sum Assured will be used to compute the benefits payable as set out below: (a) For Choice Cover, the TPD Benefit payable will be the higher of :

i. 25% of the Basic Sum Assured less all withdrawals made during the period commencing 12 months before the date of claim event and ending on the date which the TPD claim is admitted; OR

ii. Policy Value, less any Indebtedness.

(b) For Max Cover, the TPD Benefit payable will be the total of

i. 25% of the Basic Sum Assured and ii. Policy Value, less any Indebtedness.

3. Terminal Illness Benefit (“TI Benefit”)

Subject to the terms of this Policy, We will pay the Terminal Illness Benefit as an

advancement of the Death Benefit when the Life Assured is diagnosed with TI while this

Policy is still in force. The TI Benefit is payable in a lump sum. This Policy will terminate

upon payment of the TI Benefit.

1.3 Life Replacement Option (“LRO”)

LRO is available under (a) Choice Cover and (b) Max Cover with Yearly Renewable Term(YRT) Option .

During the Policy term, You may exercise the option to replace the Life Assured, subject to the following conditions:

(a) You must provide proof of insurable interest on the Life Assured at point of request; (b) There is no limit to the number of times this option can be exercised; (c) Upon the request being submitted, the basic Policy and all riders to be attached to it,

covering the new Life Assured, are subject to underwriting; (d) Upon replacement, the Cost Of Insurance charges on the basic cover and any attaching

rider will be based on the attained age of the new Life Assured; (e) You must pay an administrative charge of S$100 in cash upon approval of the request.

Without prejudice to the other provisions in the Policy, the Company reserves the right to vary the administrative charge and the manner in which the charge may be imposed by Us; and

(f) If a material non-disclosure is discovered upon a claim on the new Life Assured, the Policy contract shall be deemed null and void. We will refund any part of the Premium paid which is not allocated to the purchase of Units and the Policy Value based on the Unit Prices as at the Dealing Date on or immediately after We void this Policy. Once the request to replace the Life Assured is approved and the coverage on the new Life Assured has taken effect, (a) We will not be liable for any claim on the original Life Assured and (b) the coverage on the original Life Assured will cease immediately.

For the avoidance of doubt, the coverage on the new Life Assured will be effective on the next Policy Commencement Day immediately following Our approval. An endorsement will be issued upon Our approval of the request to replace the Life Assured.

1.4 Increase in the Basic Sum Assured (Only available only to Policyholders of INSPIRETM

Protector with (a) Choice Cover or (b) Max Cover with YRT COI) This option is only available when this Policy has been incepted with standard rates.

Subject to Our approval, You have the option to apply for an increase in the Basic Sum Assured without providing evidence of insurability when one of the following significant milestone events occur after the Policy has been in effect for at least one year from the Policy

Commencement Date when this Policy is first issued and provided all Regular Premium due to date have been paid to Us. The significant milestone events are:

(a) the Life Assured’s legal marriage; or (b) the Life Assured is having a new born baby; or (c) the Life Assured is adopting a child through legal means; or (d) the Life Assured is completing a purchase of a property in Singapore and subject to the following terms and conditions, (1) (a) You must exercise the option to increase the Basic Sum Assured within 90 days from

the occurrence date of the significant milestone event, subject to Our receipt of satisfactory supporting legal documents; and

(b) the Life Assured must be less than 55 years old at the time of You exercising the option to increase the Basic Sum Assured; and

(c) the requested increase in Sum Assured must not be more than 25% of the Basic Sum Assured (specified on the Certificate of Insurance first issued by Us), and not exceeding S$100,000.

(2) We have no record that the Life Assured’s application for insurance cover has been

declined or postponed, and the Life Assured has no adverse claim records with Us.

(3) You can exercise the option to increase the Basic Sum Assured up to (a) a maximum of three times during the lifetime of the Life Assured. This includes one time for the event of getting married and (b) subject to a cap of 25% of the Basic Sum Assured (specified on the Certificate of Insurance first issued by Us), and not exceeding S$100,000 as set out in Paragraph 1.4(1)(c) above.

If You have exercised the LRO prior to this, You will be entitled to exercise the option to increase the Basic Sum Assured on the new Life Assured so long as the conditions specified in Paragraph 1.3 above are met. The Basic Sum Assured will be based on the current Basic Sum Assured at the point of exercising the option to increase the Basic Sum Assured.

1.5 Premium (Regular premium, Recurring Single premium and Top-up)

1) Regular Premium

You shall pay Regular Premium in respect of this Policy subject to the minimum and maximum amounts as may be determined by Us from time to time.

You may choose to make regular premium payments on a monthly, quarterly, half-yearly or

yearly basis. The minimum regular premium amounts are S$100, S$300, S$600 and S$1,200 for the different premium payment modes respectively.

During the Initial Premium Payment Term If the Regular Premium (excluding RSP and ad hoc Top-up) due is not received on Premium due date, this Policy will be kept in effect for the next 30 days (i.e. the Grace Period). However, if no Regular Premium is received on the expiry of the Grace Period, this Policy will lapse with refund of the Policy Value (if any), less any indebtedness. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.

After the Initial Premium Payment Term

If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically upon the expiry of the Grace Period and applicable charges under the Policy will continue to be deducted from this Policy. The Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due (Premium Holiday). Otherwise, this Policy will lapse. You will be notified that the Policy has

lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.

2) Recurring Single Premium (“RSP”)

Subject to the Age limit of 70, You may opt to increase Your investments into the ILP sub-funds by making RSP in addition to Your Regular Premium payments. The RSP activation

must be made by written request and is subject to underwriting. However, RSP is not allowed

during Premium Holiday. The RSP is payable only through interbank GIRO and is subject to a minimum amount determined by Us, which may be varied from time to time. The current minimum is S$50 per month. 100% of each RSP will be allocated to the Fund(s) according to the last specified allocation and each RSP will be subject to the 5% sales charge, which is made through cancellation of units. RSP is only allowed in multiples of S$50. We will notify You of any failed attempt to deduct the RSP from the designated bank account. After three (3) consecutive failed attempts, this Policy will be ineligible for further payments by GIRO facility. You will have to provide a fresh written request and authorisation to Us and upon approval by Us, the RSP deductions will resume by GIRO facility.

RSP will not increase the Basic Sum Assured of this Policy.

You may change the allocation of the RSP into each Fund, by informing Us of the change in writing in the form provided by Us. The change will take effect from the Policy Commencement Day of the month immediately following Our approval of the change. The revised percentages will apply to future RSP only. You may choose to stop paying the RSP at anytime and there is no penalty imposed by Us if the RSP is discontinued at any time.

3) Top-Up Premium (“Top-Up”)

You have the flexibility to make top-up premium payments at any time during the Policy term until the Life Assured reaches the age of 70.

The minimum Top-Up amount is S$250.

100% of each Top-Up will be allocated to the Fund(s) selected by You according to the allocation as specified by You for the Top-Up and each Top-up will be subjected to a 5% sales charge which cannot be dialed down and will be deducted from the Fund(s) after allocation of the Premium. The Top-ups will be applied to purchase Units at the Unit Price prevailing as at the Dealing Day on which the Top-Up Premium has been credited to Our account (on a cleared fund basis).

Top-Up is only allowed in multiples of S$100. However, Top-Up is not allowed during

Premium Holiday.

1.6 Insurance Charge (also known as cost of insurance (“COI”)

A monthly COI will be levied on the Basic Policy by cancellation of Units. Units will be cancelled from the Fund(s) according to the current allocation based on the net asset value of the Fund(s) at point of deduction. The COI will be deducted at the beginning of the month. The monthly COI is calculated based on the Sum At Risk of this Policy. For Choice Cover, Sum At Risk (subject to the minimum value of zero) is defined as the Basic Sum Assured less Policy Value and for Max Cover, Sum At Risk will be the Basic Sum Assured.

Once You have elected the manner in which COI will be levied on the Basic Policy (“COI

Option” or “Insurance Charge Option”), it cannot be changed after this Policy has been issued. (a) For YRT COI option, the COI increases annually based on the Age of the Life Assured.

The COI is not fixed and is payable as long as this Policy is in effect. We may increase this charge by giving one (1) month’s prior written notice.

(b) For the Level Pay COI option (also known as Level COI), the COI is level throughout the COI payment period and is fixed. COI on the original Sum Assured for the Basic Policy specified in the Certificate of Insurance is free for the first two (2) Policy Years as long as You pay the Regular Premium. After the Level Pay COI period, no COI will be deducted for the Basic Policy. In the event that You surrender this Policy, a non-guaranteed portion of the COI paid for the Basic Policy may be refunded to You.

If You have elected the Level Pay COI option, You are not allowed to change from one Level Pay COI option to another Level Pay COI option, e.g. from Level and Limited Pay to Age 50 option to Level and Limited Pay to Age 55 option.

1.7 Premium Allocation

The amount of regular premium paid by You will be allocated to purchase Units in the relevant ILP sub-funds in the following proportions:

Premium paid during Percentage (%) of Regular Premium Allocated to

Purchase Units

1st Policy Year 20%

2nd

Policy Year 30%

3rd

Policy Year 55%

4th Policy Year and above 105%

1.8 Bonus Units

Bonus Units will be notionally allocated on every Policy Commencement Day based on the Policy Value as follows:

Policy Value Bonus Units (% of Policy Value in each tier)

First S$29,999 Nil

Next S$30,000 – S$99,999 0.10% per annum

Next S$100,000 – S$499,999 0.20% per annum

Next S$500,000 and above 0.30% per annum

The Bonus Units will be allocated to the Fund(s) according to the current allocation based on the net asset value of the Fund(s) at point of allocation.

1.9 Selecting a Sum Assured

Depending on the entry Age of the Life Assured, You may select the level of protection with a sum assured of X times the annualised premium or more, as set out in the table below.

COI Option

Entry Age

Minimum Sum Assured

(only applicable at Policy

Inception)

Maximum Sum

Assured

YRT

0-35 60 X Annualised Premium Unlimited, subject to Our underwriting requirements and approval.

36-50 30 X Annualised Premium

51-70* 15 X Annualised Premium

Level COI 0-35 25 X Annualised Premium Unlimited, subject to

Our underwriting 36-50 15 X Annualised Premium

COI Option

Entry Age

Minimum Sum Assured

(only applicable at Policy

Inception)

Maximum Sum

Assured

51-70* 10 X Annualised Premium requirements and approval.

* The maximum Age of entry into an INSPIRETM

FlexiProtector Policy is 70.

Subject to the Locked-In Period, the Minimum Sum Assured refers to the total of the Basic Sum Assured and Rider Sum Assured of all riders, except Accidental Death Benefit rider, Extended Total and Permanent Disability rider, Waiver of Premium rider, Waiver of Premium

Plus rider and Wavier of Premium Special rider. Reduction in Sum Assured is only allowed

from 5th

Policy Year onwards, subject to the Minimum Sum Assured requirement of this Policy where the Basic Sum Assured is at least 5 times the Annualised Premium.

A Reduction in Basic Sum Assured may lead to corresponding reduction in the

attached acceleration Rider (such as Living Accelerator Rider and Choice Accelerator

Rider) Sum Assured.

Please refer to the INSPIRE

TM FlexiProtector Policy Contract for the full list of definitions,

including the definitions of "TPD", Minimum Sum Assured and Maximum Sum Assured.

2.1 You may choose to invest in one (1) or up to ten (10) ILP sub-funds available. The details specific to each such ILP sub-fund as well as the rest of the general provisions are set out in the Fund Information Booklet.

3.1 The Insurer

AXA Life Insurance Singapore Private Limited is the insurer. We are part of the AXA Group.

The AXA Group is a global leader in wealth management and financial protection. Further

information on Us can be found in the Fund Information Booklet.

3.2 The Managers

Information on the Manager of each ILP sub-fund, including such Manager’s track record, is

set out in the relevant section and schedule of the Fund Information Booklet.

3.3 The Underlying Fund Managers

Information on the fund manager of each of the underlying funds of an ILP sub-fund (the

“underlying fund manager”), including such underlying fund manager’s track record, is set

out in the relevant schedule for each ILP sub-fund in the Fund Information Booklet. 3.4 Other Parties

The auditors for the ILP sub-funds are PricewaterhouseCoopers (the "Auditors").

The investment objectives, focus and approach of each ILP sub-fund are set out in the relevant schedule for each ILP sub-fund in the Fund Information Booklet.

The risks of investing in the ILP and each ILP sub-fund are set out in the relevant section of the Fund Information Booklet.

INSPIRETM

FlexiProtector is a whole of life, Regular Premium investment-linked product. It is not available under CPFIS. You cannot use Your CPF monies to pay for the Regular Premium of tthhiiss PPoolliiccyy..

7.1 The fees and charges payable by You in relation to this Policy are through the cancellation of

Units, set out in the table below. In addition to the fees and charges set out in the table below,

fees and charges payable in relation to an investment into each ILP sub-fund are set out in the

relevant section of the Fund Information Booklet.

Fees and Charges

Sales Charge The sales charge is 5% of each allocated Regular Premium, Recurring Single Premium or Top Up Premium deducted by cancellation of Units, after allocation of the Regular Premium, Recurring Single Premium and Top Up Premium.

Units will be cancelled from the Fund(s) according to the current

allocation based on the net asset value of the Fund(s) at point of

deduction.

Redemption Fee Nil

Switching Fee There is currently no charge for switches made. We reserve the right to impose a switching fee at Our discretion from time to time by giving You one (1) month’s prior written notice.

Insurance Charge

(also known as Cost

of Insurance (“COI”))

For details, refer to paragraph 1.6 Insurance Charge.

Administration Fee Currently, a flat fee of S$5 is chargeable on a monthly basis through the cancellation of Units according to the current allocation of the Fund(s) at point of deduction.

We will review the administration charge from time to time and We

reserve the right to vary the fee. We will give You one (1) month’s

prior written notice if the rates are to be increased. The monthly

administration fee will not exceed S$12 per month.

Service Fee The service fee is to be mutually agreed between You and Your Insurance Advisor at the point of sale of this Policy for the purpose of ongoing reviews conducted by your Insurance Advisor. At the point of sales, You may mutually agree with Your Insurance Advisor on the level of service fee (0.75% per annum, 0.50% per annum, 0.25% per annum or 0% per annum) for Your Policy. Any changes to the service fee after inception of Your Policy are not allowed. The service fee, which is payable monthly, will be calculated at the level of service fee agreed between You and Your Insurance Advisor per annum of the Policy Value divided by 12. We will deduct the service fee through the cancellation of Units in

the Fund(s) under this Policy according to the allocation based on the net asset value of the Fund(s). Without prejudice to the other provisions in this Policy, We reserve the right to vary the service fee set out in this Policy and the manner in which the fee may be imposed by Us. We will notify You in writing of any such variation with at least one (1) month’s prior notice. For the avoidance of doubt, regardless of the agreed level of service fee at the point of sales, Your level of service fee may change but at no point will the service fee exceed 1.2% per annum.

8.1 Subscription Procedure

You may apply to subscribe for units in the relevant ILP sub-fund by submitting the application form available from Us, Our Insurance Advisers and financial advisers authorised by Us to distribute INSPIRE

TM FlexiProtector ((“Authorised Financial Advisers”), together with such other

documents as may be required and the subscription monies in full in the manner stipulated by them.

Payment of the premium shall be by way of cash or through interbank GIRO (as indicated on the application form).

8.2 Pricing and Dealing Deadlines

As Units are issued on a forward pricing basis (except during the initial offer period of an ILP sub-fund, where applicable), the issue price of Units will not be ascertainable at the time of application.

Subject to Our approval of Your application, You will be issued Units in relation to Your

Regular Premium, or RSP or Top-Up (as the case may be) at the issue price prevailing as at the Dealing Day on which We actually receive Your premium in full on a cleared funds basis. Any payment which is received or which has been cleared before approval of the relevant application shall be deemed to be received on the first Dealing Day after approval of that application.

After the initial offer period of an ILP sub-fund, if any of the above payments is received (on a cleared funds basis) by Us before 2.30 p.m. on a Dealing Day, the application will be taken to have been received on that Dealing Day. If such payment is received by Us after 2.30 p.m. on a Dealing Day or on a day which is not a Dealing Day, such payment will be taken to have been received on the next Dealing Day. We and the authorised advisers reserve the right to bring forward the cut-off time in respect of any Dealing Day.

The pricing is done on a single pricing basis and the issue price per Unit on each Dealing Day shall be based on the net asset value (plus or minus duties or charges) calculated by the relevant Manager as at each Valuation Point in respect of the relevant ILP sub-fund invested into.

8.3 Calculation of Number of Units Allotted

The following table illustrates the number of Units that a Policyholder in an ILP sub-fund will receive based on an investment premium amount of S$2,000* and a notional issue price of S$1.00** in respect of a first policy year:

PPrreemmiiuumm aallllooccaattiioonn IIssssuuee PPrriiccee NNuummbbeerr ooff

((2200%% ooff SS$$22,,000000)) UUnniittss UUnniittss rreepprreesseennttiinngg NNuummbbeerr ooff UUnniittss

SSaalleess CChhaarrggee ((55%%)) AAllllootttteedd***

S$400 ÷ S$1.00 = 400

20 = 380

* An example only ** The actual issue price of Units will fluctuate according to the net asset value of the

Units

*** Please note that insurance charge on the INSPIRETM

FlexiProtector policy has not

been factored into this example

8.4 Minimum ILP sub-fund Size

There is no minimum ILP sub-fund size for the continued operation of the ILP sub-funds.

9.1 Partial Withdrawals

Whilst this Policy is in force, You may apply to withdraw part of this Policy Value by specifying

the number of Units from the selected Fund(s) subject to the conditions We may from time to

time determine.

Partial Withdrawal is only available for amounts of at least S$250 (“Minimum Partial

Withdrawal Amount”) in value provided always that the remaining Policy Value is more than the Minimum Holding Amount of S$2,500. If the Partial Withdrawal results in the remaining Policy Value being lower than Minimum Holding Amount, no Partial Withdrawal is allowed and We will notify You.

Your application for withdrawal must be in a form specified by Us to be sent to Our office. The Units will be cancelled on the Dealing Days of the relevant Fund(s) as soon as practicable following the date on which We approve Your application for partial withdrawal.

Any Partial Withdrawal may reduce the Policy Value and affect the Bonus Units

allocation, if any.

Without prejudice to the other provisions in this Policy, We reserve the right to vary the Minimum Withdrawal Amount and the Minimum Holding Amount set out in this Policy from time to time.

MMiinniimmuumm AAmmoouunntt iinn rreellaattiioonn ttoo tthhiiss PPoolliiccyy

Minimum Holding Amount S$2,500

Minimum Partial Redemption Amount S$250

9.2 Regular Withdrawals

You may select to make regular withdrawals on this Policy on an annual, semi-annual, quarterly or monthly basis on this Policy by submitting to Us a written request in such form indicating the amount to be withdrawn and the frequency of the withdrawals together with any other documents/information as may be required by Us.

The minimum amount of each regular withdrawal is S$1,200 per year, S$600 half-yearly, S$300 quarterly or S$100 monthly. Each withdrawal under this facility will be processed by Us on the 16

th day of each month (or if that day is not a Business Day, the next Business Day) or

on such other date as We may determine (“Regular Withdrawal Day”). The number of units to be deducted from this Policy for each withdrawal will be determined by reference to the redemption price of the Units prevailing as at the Regular Withdrawal Day. Payment will be made by cheque to You within four (4) Business Days for bond and money market Funds and within six (6) Business Days for all other types of Fund(s) (or such other period as the relevant authorities may require or permit from time-to-time) from the date of the next pricing of the Fund immediately after the regular withdrawal day. We reserve the right to revise the minimum withdrawal amount and the mode and manner of payment at any time.

Where You hold Units in more than one Fund, redemption of the Units for purpose of regular withdrawal will be in proportion to the current allocation into each Fund (based on the net asset value of the Fund(s) on the date of withdrawal). Subject to such other terms and conditions as We may impose, We reserve the right not to process a Regular Withdrawal request or any particular withdrawal if the requested withdrawal (a) does not meet the

minimum amount; or (b) will reduce Your Policy Value to below the Minimum Holding

Amount. In such event, You will be notified. This Regular Withdrawal facility will cease: (a) on the first Dealing Day after the request for withdrawal is received, if processing that

request will reduce the value of this Policy to an amount below the Minimum Holding Amount;

(b) upon Your written request; or (c) upon termination of this Policy.

Regular withdrawals will not reduce the Basic Sum Assured. Regular withdrawals may

reduce the Policy Value and the Bonus Units allocation, if any. We reserve the right to suspend or terminate this Regular Withdrawal facility at any time and shall under no circumstances be responsible for any losses whatsoever due to Our decision to suspend or terminate such facility.

9.3 Pricing and Dealing Deadline

As Units are priced on a forward pricing basis, the redemption price of Units will not be ascertainable at the time of the submission of the redemption request. If Your redemption request is received by Us before 2.30p.m. on a Dealing Day, the redemption request will be taken to have been received on that Dealing Day and You will receive that Dealing Day’s redemption price. If the redemption request is received after 2.30 p.m. on a Dealing Day or on a day which is not a Dealing Day, the realisation request will be taken to have been received on the next Dealing Day and You will receive the next Dealing Day’s redemption price. We and Our authorised advisers reserve the right to bring forward the cut-off time in respect of any Dealing Day.

The pricing is done on a single pricing basis and the redemption price per Unit on each Dealing Day shall be based on the net asset value (plus or minus duties or charges) calculated by the relevant Manager as at each Valuation Point in respect of that ILP sub-fund.

9.4 Calculation and Payment of Redemption Proceeds

The following table illustrates the amount of redemption proceeds that a Policyholder will receive based on a redemption of 1,000 Units* and a notional redemption price of S$0.95**:-

NNuummbbeerr ooff UUnniittss RReeddeemmppttiioonn GGrroossss RReeddeemmppttiioonn

ttoo bbee rreeddeeeemmeedd pprriiccee pprroocceeeeddss NNeett rreeddeemmppttiioonn pprroocceeeeddss******

1,000 X S$0.95 = S$950

= S$950

* An example only ** The actual redemption price of Units will fluctuate according to the net asset value of

the Units *** There is currently no redemption fee

9.5 Settlement for Redemption

(a) Redemption proceeds for the Units will be paid to You within four (4) Business Days for bond and money market ILP sub-funds and within six (6) business days for all other types of ILP sub-funds (or such other period as the relevant authorities may require or allow from time to time) from the date of the next pricing of the ILP sub-fund

immediately following the receipt by Us of the redemption request with all the requisite

documents and information unless the redemption amount falls below the Minimum

Partial Redemption Amount or valuation or redemption of the Units has been suspended by Us and/or the relevant Manager.

(b) The redemption proceeds payable to You in respect of the redeemed Units will be paid by cheque sent through the post to Your address (in the case of an individual) or registered address (in the case of a corporate entity)..

10. FUND SWITCH

Unless otherwise provided by Us, You may switch all or any of the Units in one (1) Fund (the

“Original Fund”) to Units of another Fund (the “Other Fund”) offered under this Policy by giving written instructions in the form provided by Us. The following conditions apply: (a) the minimum value of Units for each switch is S$1,000 or 100% of the value of the Units in

the Original Fund, whichever is lower; (b) the minimum value of Units remaining in the Original Fund or the Other Fund must not be

less than the minimum amount specified by Us from time to time. The current amount is S$1,000. We reserve the right to vary the amount by notifying You in writing of any such variation with at least one (1) month’s prior notice;

Units of the Original Fund to be switched will be cancelled on the Dealing Day of the Original Fund on which We complete processing Your written instructions for the switch. Units of the Other Fund to be switched to will be purchased for allocation to this Policy using proceeds from the cancellation of Units of the Original Fund. This will be done on a Dealing Day of the Other Fund that is within five (5) Business Days of the date of cancellation of the Units in the Original Fund. Units in the Other Fund will be issued based on such formula We may determine from time to time. There is currently no charge for switches made. Without prejudice to the other provisions in this Policy, We reserve the right to impose a switching fee or vary the imposed switching fee. We will notify You in writing of any such variation with at least one (1) month’s prior notice.

11.1 Unit prices are published in, or through one or more major local newspapers in Singapore at least once a week. Currently, Unit prices are published in Reuters, The Straits Times, The Business Times and Lianhe Zaobao by Us. Policyholders should note however that this is dependent on the publication policies of each newspaper and publisher concerned. We shall not be responsible for:

(a) any errors in the published prices; or

(b) for any late or non publication of the prices

attributable to the publishers.

11.2 Unit prices may also be found on Our website at www.axalife.com.sg

12.1 Suspension of Dealings

We or the relevant Manager may at any time in relation to any ILP sub-fund suspend the valuation and the issue and redemption of the Units in their discretion under, but not limited to, the following circumstances:

(a) during which any stock exchange, commodities exchange, futures exchange or over

the counter market on which a significant part of the relevant ILP sub-fund’s or underlying fund’s investments is quoted, listed, traded or dealt in is closed (other than

customary weekend and holiday closing) or trading on any such stock exchange or market is restricted or suspended; or where applicable, any period when dealings in any underlying funds of the ILP sub-fund are restricted or suspended; or

(b) when circumstances exist as a result of which in the opinion of the Manager it is not

reasonably practicable for the relevant ILP sub-fund to dispose of investments or as a result of which any such disposal would be materially prejudicial to the Policyholders; or

(c) when a breakdown occurs in any of the means normally employed in ascertaining the

value of investments or the net asset value or the issue and redemption price per Unit of the relevant ILP sub-fund or when for any other reason the value of the relevant ILP sub-fund’s investments or other assets of that ILP sub-fund cannot be reasonably or fairly ascertained; or

(d) during which the relevant ILP sub-fund is unable to repatriate funds for the purpose of

making payments on the redemption of Units or during which any transfer of funds involved in the redemption or acquisition of investments or payments due on redemption of Units cannot in the opinion of the Managers be effected at normal rates of exchange.

We and the relevant Manager may at any time in relation to any ILP sub-fund suspend the valuation, issue and redemptions of Units during, and/or extend the period for the payment of the redemption monies by the number of days comprised in the above circumstances (in whole or in part) and otherwise, for a period not exceeding six (6) months. All Policyholders will be notified, as soon as reasonably practicable, of any such suspension, and the termination of such suspension, by means of a written notice.

12.2 Limitaton

We reserve the right to limit at Our discretion the number of Units of any ILP sub-fund to be cancelled on any Dealing Day to 10% (or such other percentage as We may determine) of the total number of Units of the ILP sub-fund then in issue, after disregarding any Units to be issued on that Dealing Day. This limitation may be implemented if for example, We are aware there is a short-term trading in the underlying sub-funds. The Units will be cancelled on a pro rata basis in respect of the total number of applications for surrender and withdrawal. Any Units not cancelled will be carried forward for cancellation on the next Dealing Day.

The performance and benchmark against which the performance of an ILP sub-fund is measured are set out in the relevant section of the Fund Information Booklet.

The expense ratio of each ILP sub-fund is set out in the relevant section of the Fund Information Booklet.

The turnover ratio of each ILP sub-fund is set out in the relevant section of the Fund Information Booklet.

Information on any soft dollar commissions in respect of any ILP sub-fund is set out in the relevant section of the Fund Information Booklet.

Information on any conflict of interests, which exists or may arise in relation to the ILP sub-

funds and their management is set out in the relevant section of the Fund Information Booklet.

18.1 Statements will be made available to Policyholders within 30 days after the end of the financial year of the respective ILP sub-funds. The financial year-end of the ILP sub-funds is 31 December.

18.2 The semi-annual reports and annual reports* of each of Your ILP sub-funds, will be made

available to Policyholders within 2 months and 3 months respectively from the last date of the period to which the reports relate.

18.3 At Your request, We will, provide printed versions of the latest semi-annual reports and annual

reports*. The latest semi-annual reports and annual reports* of each of Your ILP sub-funds are available at AXA Customer Service office, located at: 8 Shenton Way #27-02 AXA Tower Singapore 068811.

(*Unless applicable regulations or guidelines provide otherwise, annual reports in respect of the ILP sub-funds will be audited annual reports.)

19.1 Tax Considerations

Prospective Policyholders should consult their own professional advisers as to the implications of buying, holding or disposing of Units and to the provisions of the laws of the jurisdiction in which they are subject to tax.

19.2 ILP sub-fund Valuation

The ILP sub-funds shall be valued on every Dealing Day. Policyholders and prospective Policyholders may contact Us or Our Insurance Advisers or Our Authorised Financial Advisers for details on the valuation of the ILP sub-funds.

19.3 ILP sub-fund Closure

We have the discretion to close any ILP sub-fund upon giving one (1) month’s prior written notice to the Policyholders.

The following are key provisions found in the Policy Contract. Policyholders are advised to refer to the actual terms and conditions in the Policy Contract and to consult their insurance adviser or authorised advisers for details.

(a) Incontestability Clause

In the absence of fraud, negligent misrepresentation or failure to pay Premium, We will not contest the validity of this Policy if it has been in effect for at least two (2) years during the lifetime of the Life Assured.

(b) Suicide Claims

If the Life Assured dies by suicide within one (1) year from the date of issue or the most recent date of reinstatement of this Policy, the amount payable will be the value of Units accrued to this Policy based on the redemption price of the Units prevailing as at the Dealing Day on which the Suicide Claim is admitted by Us.

For the avoidance of doubt, We will not pay the Death Benefit under (a) Choice Cover and (b) Max Cover.

(c) Free-look Period

We give You a period of 14 days to review this Policy. This Policy may be cancelled by a written request to Us within 14 days from the date of receipt of this Policy (the "Free-Look Period").

a) If a Regular Premium has been paid and You choose to cancel this Policy within the Free-Look Period, We will refund the amount up to the Regular Premium You have paid for this Policy and without interest: (i) the Policy Value accrued to this Policy on the Dealing Day on which We receive the

request for cancellation of this Policy from You, including the administration fee, Insurance Charge (if applicable), service fee, and any other unallocated portion of the Premium excluding the bonus Units (if any) allocated for large sums invested;

(ii) less any medical expenses incurred by Us in processing Your application after adding back the sales charge.

b) If a Top-Up Premium or Recurring Single Premium has been paid and You choose to

cancel this Policy within the Free Look Period, We will treat this as an application for Surrender of Units for the Recurring Single Premium and Top-Up Premium. We will refund the Policy Value accrued to this Policy calculated by deducting: (i) the bonus Units (if any) allocated for large sums invested; and (ii) any medical expenses incurred by Us in processing Your application after adding

back the sales charge. This Policy is deemed to have been delivered and received by You 7 days after posting.

(d) Grace Period

There is a Grace Period of thirty (30) days from the Regular Premium due date (except for payment of the first Regular Premium). This Policy continues to be in effect during the Grace Period.

(e) Premium Holiday

During the Initial Premium Payment Term, no Premium Holiday is allowed. After the Initial Premium Payment Term, You may apply to stop paying Regular Premium at any time from the 25

th month by sending Us an application in the form

specified by Us provided that the Policy Value on the date on which the application is approved (if such date is a Dealing Day of the relevant Fund(s) or otherwise on their Dealing Days immediately before such date) is sufficient to cover the applicable Policy Charges. (a) For Choice Cover and Max Cover with YRT option only:

If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically upon the expiry date of the Grace Period and the applicable charges (including Insurance Charges) under this Policy will continue to be deducted from this Policy. The Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due. Otherwise, the Policy will lapse. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision. (b) For Max Cover, Level Pay COI option with a limited payment period:

If the Regular Premium due (excluding RSP and ad hoc top-up) is not received on Premium due date, Premium Holiday will be activated automatically on the expiry of the Grace Period and the applicable charges (including Insurance Charges) under this Policy will continue to be deducted from this Policy.

(i) During the Premium Holiday and COI payment period, this Policy will remain in effect so long as the Policy Value is sufficient to cover the charges due. Otherwise, this Policy will lapse. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.

(ii) During the Premium Holiday Period and after the COI payment period, this Policy will remain in effect even if the Policy Value is insufficient to cover the charges due. The outstanding charges will be accumulated and deducted from the claim benefits when a claim occurs.

For the avoidance of doubt with respect to (a) and (b) above, You can choose to end the Premium Holiday by exercising one of the following 2 options: (i) paying one (1) Regular Premium. (ii) paying all the outstanding of Regular Premiums. You will have to inform Us in writing, that You are ending the Premium Holiday and the option You elect to exercise. The allocation rate for the resumed Regular Premium will depend on the option You elect to exercise and will continue from where the last Regular Premium was made. Please refer to Paragraph 1.7 for more details on the allocation rate.

(f) Non-Guaranteed Insurance Charges

For the YRT COI option, the insurance charges for the INSPIRETM

FlexiProtector are not guaranteed. These rates may be adjusted based on future experience. We may, at Our sole discretion, vary the charges. We will give You one (1) month’s prior written notice, if the rates are to be increased.

(g) Lapsation During the Initial Premium Payment Term,

The Policy will lapse and the Policy Value (if any), less indebtedness will be refunded; if no Regular Premium (excluding RSP and ad-hoc Top-up) is received on the expiry of the Grace Period. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.

After the Initial Premium Payment Term,

The Policy will lapse if no Regular Premium (excluding RSP and ad-hoc Top-up) is received on the expiry date of the Grace Period and the Policy Value is insufficient to cover the payment of the relevant Policy Charges. You will be notified that the Policy has lapsed. Should a claim arise during the Lapsation Period, no benefits will be payable. For more details, please refer to the Policy Provision.

(h) Reinstatement

You may apply to reinstate this Policy on the following conditions: a) You must apply for reinstatement within 24 months from the date of lapsation of

this Policy; b) For policies that lapse during the Initial Premium Payment Term, You must pay

back all outstanding Regular Premiums and the amount of Policy Value refunded. c) For policies that lapse after the Initial Premium Payment Term,

For policies with monthly Premium payment, You can choose to pay: (i) a minimum of three (3) months of Regular Premiums or; (ii) all the outstanding Regular Premiums

For policies with quarterly, semi-annual and annual Premium payment, You can choose to pay: (i) one (1) Regular Premium or;

(ii) all the outstanding Regular Premiums

d) The Life Assured must be less than age 80, and e) You give the Company at Your expense, satisfactory evidence of the health of the

Life Assured. Upon successful reinstatement, the allocation rate for the resumed Regular Premium will depend on the option You elect to exercise and will continue from where the last Regular Premium was made. Please refer to Paragraph 1.7 for more details on the allocation rate. Reinstatement is subject to Our approval and may be on different terms from those applicable before lapsation.

(i) Termination

This Policy will terminate when any of the following occurs: a) On full payment of the Death Benefit claim; b) On full payment of the TPD Benefit claim; c) On full payment of the Terminal Illness claim; d) On Your request to surrender of this Policy; e) On the occasion of any other reason which may result in the termination of the

policy as set out in the Policy Contract. f) 24 months after the date of lapsation if this Policy is not reinstated.

In the event of termination of this Policy, You will be notified in writing and no reinstatement for this Policy is allowed thereafter.

This Policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for Your Policy is automatic and no further action is required from You. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Us or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg.).

In this Product Summary the following expressions have, except where the context otherwise requires, the meanings respectively shown opposite them:-

Approved Fund Manager means an approved fund manager under the Monetary Authority of Singapore’s tax incentive scheme.

Authority the Monetary Authority of Singapore.

Basic Sum Assured Refers to the Sum Assured of INSPIRETM

FlexiProtector.

Business Day means a business day in Singapore.

Commencement Date means the date when coverage under the Policy Contract begins.

CPF means the Central Provident Fund.

CPF Act means the Central Provident Fund Act, Chapter 36.

CPF Board means the Board of the CPF established pursuant to the CPF Act.

CPFIS means the CPF Investment Scheme (as defined in the CPFIS Regulations) or such other scheme as shall replace it

Dealing Day means every Business day or such other day which We and/or Manager stipulates from time to time, as the day on which an issuance or redemption of Units is deemed to occur.

ILP sub-funds or ILP sub-fund means the investment-linked policy sub-fund(s) offered under “Fund(s)” INSPIRE

TM FlexiProtector.

Insurance Adviser means Our insurance agent as defined in the Insurance Act.Initial Premium Payment Term refers to the first 24 months of this Policy commencing on the Commencement Date.

Lapsation Period refers to the period from the date of lapsation of this Policy till the date this Policy is reinstated.

Life Assured the person whose life is insured by INSPIRETM

FlexiProtector and as named in the Certificate of Insurance.

Locked-In Period refers to the first 4 years of this Policy commencing on the Commencement Date and during which the total of the Basic Sum Assured and Rider Sum Assured of all riders attached (except Accidental Death Benefit rider, Extended Total and Permanent Disability rider, Waiver of Premium rider, Waiver of Premium Plus rider and Wavier of Premium Special rider) at Policy inception will be locked-in as Minimum Sum Assured. No reduction in Basic Sum Assured or Rider Sum Assured and no cancellation or deletion of Riders attached to Policy at Policy inception is allowed during the Locked-In Period. However, You may request for Increase in Basic Sum Assured or Rider Sum Assured, or Add new Riders.

Manager means and includes all investment managers of the ILP sub-funds or an ILP sub-fund.

Moody’s means the rating agency Moody’s.

NRSRO means Nationally Recognised Statistical Rating Organisation.

Policy Anniversary means each annual anniversary of the Commencement Date.

Policy Contract means the policy contract [as defined in the INSPIRETM

Protector General Provisions as "Policy"] between You and Us.

Policy Value means the number of Units in this Policy multiplied by the Unit Price on the Valuation Day.

Policy Year the period between each consecutive Policy Anniversary. The first Policy Year is the period from the Commencement Date to the first Policy Anniversary.

Premium Holiday Period in relation to the period during the COI payment period, means the period during which payment of Regular Premium is suspended and the policy value is sufficient to maintain the policy; and

in relation to the period after the COI payment period means the period during which payment of Regular Premium is suspended regardless of whether the policy value is sufficient to maintain the policy.

Rider Sum Assured refers to the total Sum Assured of any Riders attached to this Policy.

Singapore Dollars or S$ means the lawful currency of the Republic of Singapore.

Specialist is defined as a medical practitioner registered and licensed as such in the geographical area of his practice and who is classified by the appropriate health authorities as a physician with superior and special expertise to treat the type of disability, injury or illness for which a claim is made for treatment provided to the Life Assured, but excludes the Life Assured, the Policyholder, a business partner, spouse, family member or relative of the Life Assured or the Policyholder.

S&P means the rating agency Standard and Poors.

Sum Assured means the amount of insurance coverage shown in the

Certificate of Insurance.

Terminal Illness is defined as the conclusive diagnosis of an illness that is

expected to result in the death of the Life Assured within 12

months of the date of diagnosis. This diagnosis must be

supported by a Specialist and confirmed by the Company’s

appointed doctor.

Unit means one (1) undivided share in an ILP sub-fund. Where the context so requires, the definition includes a fraction of a Unit and, save where this Product Summary otherwise provides, a fraction of a Unit shall rank pari passu and proportionately with a whole Unit

U.S. means the United States of America

U.S.$ means the lawful currency of the United States of America

Valuation Day means every Business Day or such other day which We and/or the Manager may stipulate from time to time, as the day on which the price of each Unit is determined

Valuation Point means any time as may be determined by Us and/or the relevant Manager in relation to any Valuation Day

We/Our/Us/Company means the insurer, AXA Life Insurance Singapore Private Limited (Company registration no.: 199903512M)

You/Your/Yours/Policyholder The person with whom the contract of assurance is made, who is responsible for paying the Premium and who may exercise all rights under this Policy.

02/2012

1

important information

This Fund Information Booklet contains details on the various sub-funds offered under the Investment-

Linked Policies (ILP) referred to in the cover of this Fund Information Booklet. The Product Summary

comprises of the Product Summary Booklet and the Fund Information Booklet. This Fund Information

Booklet constitutes a part of the Product Summary, without which the Product Summary is not complete.

As such, this Fund Information Booklet should be read together with the Product Summary Booklet for

information on the policyholders‟ ILP.

Past performance of an ILP sub fund, the manager of an ILP sub-fund and the manager of an underlying

fund is not indicative of the future or likely performance of such ILP sub-fund or the managers.

Note: This Fund Information Booklet is not a contract.

2

contents

1 About AXA Life Insurance

2 The Available ILP Sub-Funds and the Managers

3 Fees and Charges

4 Performance and Benchmark

5 Expense Ratios and Turnover Ratios

6 Risks

7 Soft Dollar Commissions/Arrangements

8 Conflicts of Interest

schedule A

Global Defensive Fund

Global Secure Fund

Global Balanced Fund

Global Growth Fund

Global High Growth Fund

schedule B

Asian Growth Fund

schedule C

China Growth Fund

schedule D

Fortress Fund A

schedule E

Global Equity Blend

Emerging Markets Debt Portfolio

schedule F

Pacific Equity Fund

Singapore Equity Fund

India Fund

schedule G

Singapore Bond Fund

schedule H

Singapore Dollar Fund

South East Asia Special Situations Trust

schedule I

Asian Income Fund

Asian Balanced Fund

Singapore Balanced Fund

Global Emerging Markets Equity Fund

schedule J

Health Fund

3

1 about AXA Life Insurance

The insurer

We, AXA Life Insurance Singapore Private Limited (“AXA Life”) (Company Registration No.199903512M),

whose business address is 8 Shenton Way #27-02 AXA Tower Singapore 068811, are part of the AXA.

AXA has its origins from Paris in the 19th century and over 200 years has grown from strength to strength,

extending from Europe to around the world.

In the financial markets, AXA is positioned as a global leader in Financial Protection.

Key figures:

102 million clients in 56 countries worldwide

160,000 employees

91.3 billion euros in revenues (at December 2013)*

4.7 billion euros in underlying earnings (at December 31 2013)*

*Prepared in accordance with IFRS (International Financial Reporting Standards)

With offices in over 60 countries, AXA is a global brand. But every one of our staff and adviser operates as

a member of your family, with a complete understanding of local culture, practices and customs. It's part of

our global culture where, AXA in every country not only delivers quality financial advice and solutions for our

clients, but also plays an integral part in community building.

4

2 the available ILP sub-funds and the Managers

You may choose to invest in the following range of ILP sub-funds in accordance with the terms of the

Product Summary. The Product Summary is made up of the Product Summary Booklet and Fund

Information Booklet. Details on each of the ILP sub-funds are set out in the relevant schedules of this Fund

Information Booklet. The table below sets out the information on the Manager of each ILP sub-fund and on

the underlying funds of an ILP sub-fund (where applicable).

The Manager refers to the manager of the ILP sub-fund or manager of the underlying fund that the

respective ILP sub-fund feeds into, wherever applicable.

ILP sub-funds Manager

Asian Growth Fund

AXA Rosenberg Investment

Management Asia Pacific Limited

Fortress Fund A

First State Investments

(Singapore)


Pacific Equity Fund

India Fund

Aberdeen Asset Management Asia

Limited

China Growth Fund

LionGlobal Investors Ltd

Global Equity Blend


AllianceBernstein (Singapore)

Limited


Asian Balanced Fund

Asian Income Fund


Global Secure Fund


Global Growth Fund


Schroder Investment

Management (Singapore) Ltd



South East Asia Special Situations

Trust

Western Asset Management

Company Pte Limited

(an ultimately wholly-owned

subsidiary of Legg Mason, Inc.)

Singapore Bond Fund

UOB Asset Management

Health Fund

AXA Fund Management

(Luxembourg) SA

Further background information on the Managers, including their track records, are contained in the

relevant schedules of the ILP sub-funds.

5

3 fees and charges

The following fees and charges are applicable to the following ILP sub-funds. These are in addition to the

list of fees and charges payable by the Policyholder stated in paragraph 7 of the Product Summary Booklet.

ILP sub-funds Annual Management Fees1 p.a. Fixed Operating Fees2

p.a.

Global Defensive Fund 1.05% 0.10%

Global Secure Fund 1.15% 0.00%

Global Balanced Fund 1.25% 0.50%

Global Growth Fund 1.35% 0.40%

Global High Growth Fund 1.45% 0.50%

Asian Growth Fund 1.60% 0.35%

Asian Balanced Fund 1.40% 0.35%

Asian Income Fund 1.40% 0.35%

China Growth Fund 1.60% 0.35%

Fortress Fund A 1.60% 0.35%

Global Equity Blend 1.60% 0.35%

Health Fund 1.60% 0.35%

Emerging Markets Debt Portfolio 1.40% 0.35%

Global Emerging Markets Equity Fund 1.60% 0.35%

India Fund 1.60% 0.35%

Pacific Equity Fund 1.60% 0.35%

Singapore Balanced Fund 1.40% 0.35%

Singapore Bond Fund 1.05% 0.10%

Singapore Dollar Fund 0.30% 0.10%

South East Asia Special Situations Trust 1.60% 0.35%

Singapore Equity Fund 1.60% 0.35%

Notes:

1 Annual Management Fees

The Annual Management Fees are a percentage of the net asset value of the ILP sub-fund and are

guaranteed not to exceed 2.5% p.a. AXA Life may give rebates on these charges from time to time at

our discretion.

The Annual Management Fees are a composite fee structure that covers both the management fees

that are charged at the ILP sub-fund level and will also cover the fees charged by the Manager of the

ILP sub-fund and/or Manager of the underlying fund(s) that the respective ILP sub-fund feeds into.

Therefore, the Annual Management Fee represents the total composite fee that is payable to both AXA

Life and Manager of the ILP sub-fund or underlying fund(s) that the respective ILP sub-fund feeds into.

AXA Life will only be paid the amount that remains after deducting the fees payable to the Manager of

the ILP sub-fund or underlying fund(s) that the respective ILP sub-fund feeds into, from this composite

amount.

2 Fixed Operating Fee

The purpose of the Fixed Operating Fee is to provide transparency in terms of fund charges. This is

achieved by combining the operating and administrative expenses that are currently charged

separately at the ILP sub-funds and underlying fund level (or by the respective portfolio managers

where applicable), to a single, fixed composite fee.

The Fixed Operating Fee will accrue daily and will be paid in arrears periodically to AXA Life.

With the Fixed Operating Fee, you stand to enjoy greater savings on your investment as AXA Life will

bear and absorb any excess expenses that exceed the annual rate of the Fixed Operating Fee.

Conversely, AXA Life will be entitled to retain any amount that falls below such annual rate specified for

each ILP sub-fund.

The Fixed Operating Fee will cover the operating fees and expenses of the relevant ILP sub-funds and,

where applicable, their corresponding underlying funds, that are deemed to be components of the

Total Expense Ratio (“TER”) as set by the Investment Management Association of Singapore (“IMAS”)

from time to time in its guidelines on the computation of the TER. Such expenses will include, but are

not limited to:

6

- Trustee fees

- Administration fees

- Accounting and Valuation fees

- Custodian, sub-custodian and depository fees

- Legal and professional fees

- Printing and distribution fees

- Audit fees

- Amortised expenses

- Performance fee

- GST on expenses

- Registrar fees

All of the above expenses (and others) are now covered by AXA Life through the Fixed Operating Fee.

The Fixed Operating Fee does not include non-TER components such as:

- Interest expense

- Brokerage and other transaction costs associated with the purchase and sales of investments

(such as registrar charges and remittance fees)

- Foreign exchange gains and losses of the fund, whether realised or unrealised

- Tax deducted at source or arising on income invested, including withholding tax

- Front end loads, back end loads and other costs arising on the purchase or sale of a foreign unit

trust or mutual fund, including any costs arising where a Singapore feeder fund invests into an off-

shore parent-fund. Such expenses would generally be capitalised into the cost of the investment

and will subsequently be reflected as a diminution on net asset value when the investment is first

marked to market after purchase

- Dividends and other distributions paid to unit-holders

7

4 performance and benchmark

Performance

The past performance of the ILP sub-funds or underlying funds and their benchmarks as at 28 February

2014 are shown in the following table:

Average Annual Compounded Return

ILP sub-funds

Date of

Inception 1 Year 3 Years 5 Years Since Launched

Global Defensive Fund 19 Aug 2002 0.41% 1.31% 0.73% -0.51%

Benchmark: Citigroup World

Government Bond Index ex

Japan

1.76% 3.72% 1.63% 2.65%

Global Secure Fund 19 Aug 2002 1.71% 1.83% 3.59% 0.53%

Benchmark: 30% MSCI World &

70% Citigroup World

Government Bond Index

9.73% 4.58% 5.05% 3.68%

Global Balanced Fund 19 Aug 2002 3.60% 2.77% 6.04% 0.92%


50% Citigroup World


14.01% 6.76% 8.19% 4.55%

Global Growth Fund 19 Aug 2002 6.52% 3.61% 8.13% 2.00%


30% Citigroup World


18.40% 8.39% 11.31% 5.18%

Global High Growth Fund 19 Aug 2002 19.90% 7.73% 13.02% 2.37%

Benchmark: MSCI World - Net

Return

24.53% 10.71% 15.28& 5.88%

Asian Growth Fund 05 Oct 2004 -2.28% 0.89% 10.94% 4.95%

Benchmark; 80% MSCI AC Far

East ex Japan, 20% SIBOR 6M

2.18% 2.93% 12.16% 6.12%

Asian Balanced Fund

Benchmark: 60% MSCI AC Far

East ex Japan Growth Index

and 40% UOB SGS All Index

09 Mar 2010 1.82%

-1.61%

5.11%

2.34

N/A

N/A

5.17%

2.57%

China Growth Fund 12 Feb 2007 5.17% -0.09% 7.29% -1.40%

Benchmark: MSCI Golden

Dragon Index

5.23% 2.47% 12.09% 1.80%

Fortress Fund A 23 May 2003 -1.10% 7.98% 19.84% 13.19%

Benchmark: The Singapore

Straits Times Index

-1.96% 4.18% 17.92% 11.21%

Global Equity Blend 01 Jun 2006 25.35% 4.93% 10.64% -4.01%

Benchmark: MSCI World Index

25.20% 10.31% 15.93% 2.92%

Global Emerging Markets

Equity Fund

Benchmark: MSCI Emerging

Markets Index

30 Nov 2011 3.15%

-3.81%

N/A

N/A

N/A

N/A

3.32%

3.76%

8

India Fund

Benchmark: MSCI India

12 Feb 2007 2.05%

0.63%

-5.46%

-4.03%

8.33%

11.62%

-1.49%

-1.67%

Pacific Equity Fund 21 Aug 2006 -4.35% 3.82% 16.59% 5.46%

Benchmark: MSCI AC Asia

Pacific ex Japan Index

1.60% 3.12% 15.60% 4.50%

Singapore Balanced Fund 09 Mar 2010 -1.68% 2.37% N/A 3.20%

Benchmark: 60% MSCI

Singapore Free Index and 40%

UOB SGS All Index

-1.13% 3.36% N/A 4.32%

Singapore Dollar Fund 24 Aug 2009 0.73% 0.48% N/A 0.35%

Benchmark: 1-month

Singapore Interbank Bid Rate

Average (SGD)

0.09% 0.09% N/A 0.09%

Singapore Equity Fund 21 Aug 2006 -4.59% 4.06% 17.64% 6.77%

Benchmark: The Singapore

Straits Times Index

-1.96% 4.18% 17.92% 6.57%

Singapore Bond Fund

-1.28% N/A N/A -0.48%

Benchmark: Singapore

Government Bond Index All

UOB

17 Jan 2013

-1.61%

N/A

N/A -2.18%

Asian Income Fund

-0.68% N/A N/A 2.45%

Benchmark: 50% MSCI AC Asia

Pacific ex Japan Net and 50%

JP Morgan Asia Credit Index

13 Dec 2012

0.92% N/A N/A 3.23%

AXA World Funds – Framlington

Health A SGD*

5 Mar 2014 N/A N/A N/A N/A

Benchmark: MSCI World

Healthcare Index

N/A N/A N/A N/A

* As AXA World Funds – Framlington Health A SGD was incepted on 5 March 2014, a track record of at

least one year is not available.

Source: Lipper

Notes:

1 Performance of the ILP sub-funds are based on single pricing, in S$, without taking into consideration

the Initial Charge and with net dividends reinvested taking into account all charges which would have

been payable upon such reinvestment.

2 The past performance of an ILP sub-fund and benchmark against which the performance is measured,

is not necessarily a guide to its future performance.

3 Fees and charges payable through deduction of premium or cancellation of units are excluded from

the calculation of past performance.

4 A performance track record for Emerging Markets Debt Portfolio, South East Asia Special Situations

Trust, Health Fund is not available, as the funds have been incepted for less than one year.

Highlights of Changes to Benchmarks

The following benchmarks were changed as shown in the table below to:

Better reflect a more relevant benchmark as a result of revised asset allocation; or

As a result of changes in the ILP sub-fund‟s investment universe; or

As a result of a change of the Manager for the underlying fund and the underlying funds.

9

ILP sub-funds Benchmark


19 Aug 2002 to 31 Mar 2006: 40% JP Morgan World Bond & 60%

SIBOR 3 Month.

1 April 2006 to 21 Jan 2008: 70% JP Morgan Global Government Bond

& 30% SIBOR 3 month.

22 Jan 2008 to 5 Nov 2008: Lehman Global Aggregate Index

(unhedged USD).

6 Nov 2008 to 27 Jun 2012: Barclays Global Aggregate Index^

(unhedged USD).

28 Jun 2012 onwards*: Citigroup World Government Bond Index ex

Japan.

Global Secure Fund

19 Aug 2002 to 31 Mar 2006: 50% JP Morgan World Bond, 30% MSCI

World & 20% SIBOR 3 Month.

1 April 2006 to 21 Jan 2008: 60% JP Morgan Global Government Bond,

30% MSCI World & 10% SIBOR 3 Month.

22 Jan 2008 to 5 Nov 2008: 70% Lehman Global Aggregate Index

(unhedged USD) and 30% MSCI World Index (unhedged USD).

6 Nov 2008 to 27 Jun 2012: 70% Barclays Global Aggregate Index^

(unhedged USD) and 30% MSCI World Index (unhedged USD).

28 Jun 2012 onwards#: 30% MSCI World and 70% Citigroup World

Government Bond Index.


19 Aug 2002 to 21 Jan 2008: 50% MSCI World, 40% JP Morgan World

Bond & 10% SIBOR 3 Month.


(unhedged USD), 40% MSCI World Index (unhedged USD) and 10% UBS

Global Investors Index (unhedged USD).






Global Growth Fund

19 Aug 2002 to 21 Jan 2008: 70% MSCI World & 30% JP Morgan World

Bond.










19 Aug 2002 to 15 Jan 2008: MSCI World Index.

16 Jan 2008 to 27 Jun 2012: 85% MSCI World Index (unhedged USD)

and 15% UBS Global Investors Index (unhedged USD).

28 Jun 2012 onwards#: MSCI World – Net Return.

Asian Growth Fund

5 Oct 2004 to 31 Mar 2006: 50% MSCI Singapore, 30% MSCI AC Far

East Free Ex Japan/Singapore/China/Indonesia/Philippines & 20%

SIBOR 3 Month.

10

1 April 2006 onwards: 80% MSCI AC Far East Free Ex Japan and 20%

SIBOR 6 Month.

Fortress Fund A

23 May 2003 to 31 Mar 2006: Customised benchmark of Singapore

Top 30 Companies, by market capitalisation, equal weighted.

1 April 2006 onwards: The Singapore Straits Times Index.

^ The name of “Lehman Brothers” Indices was re-branded to “Barclays Capital” indices with effect 6 November 2008, 7am (UK time). * The effective date of the new benchmark coincides with the date on which the assets were substantially migrated to Western Asset

Management Company Pte. Ltd, the Manager of the underlying funds which the ILP sub-funds feed into. # The effective date of the new benchmark coincides with the date on which the assets were substantially migrated to Schroder

Investment Management (Singapore) Ltd , the Manager of the underlying funds which the ILP sub-funds feed into.

5 expense ratios and turnover ratios

5.1 Expense Ratios

The expense ratios (calculated in accordance with the Investment Management Association of Singapore‟s

(IMAS) guidelines on the disclosure of expense ratios) and turnover ratios in respect of the ILP sub-funds

for the one year period ending 31 December 2013 (audited figures) are set out below:

ILP sub-funds Expense Ratio Turnover Ratio

Global Defensive Fund 1.14% 12.61%

Global Secure Fund 0.98% 11.48%

Global Balanced Fund 1.34% 4.21%

Global Growth Fund 1.67% 2%

Global High Growth Fund 1.83% 2.98%

Asian Growth Fund 1.94% 58.16%

Asian Balanced 1.73% 6.23%

China Growth Fund 1.95% 5.39%

Fortress Fund A 1.95% 3.35%

Global Equity Blend 1.94% 16.24%

Global Emerging Markets Equity Fund 1.87% 46.15%

India Fund 1.80% 96.03%

Pacific Equity Fund 1.84% 15.13%

Singapore Balanced 1.73% 4.95%

Singapore Dollar Fund 0.42% 38.90%

Singapore Equity Fund 1.95% 8.16%

Asian Income Fund 1.48% 96%

Singapore Bond Fund 1.11% 45.69%

Emerging Markets Debt Portfolio 1.35% 3.34%

South East Asia Special Situations Trust 1.84% 0.60%

The following expenses are excluded from the calculation of the expense ratio:

charges for insurance coverage;

interest expense;

performance fee, if any;

brokerage;

foreign exchange gains and losses (whether realised or unrealised);

tax deducted at source or arising on income received (including withholding tax);

front-end loads, back-end loads and other costs arising on the purchase or sale of a foreign unit trust

or mutual fund, including any costs arising where a Singapore feeder fund invests into an off-shore

parent-fund; and

dividends and other distributions paid to insured.

But does include other transaction costs at the ILP sub-fund level.

11

The Total Expense Ratio and Turnover Ratio figures of the Health Fund is not available as it is newly

launched.

5.2 Turnover Ratios

The turnover ratio of the underlying funds into which each ILP sub-fund substantially feeds, are set out

below:

Underlying Fund(s) Turnover Ratio of

Underlying Fund (%)

Period to which Turnover

Ratio applies

AllianceBernstein – Emerging Markets Debt

Portfolio

66.96 One year period ending

31 August 2013

AllianceBernstein - Global Equity Blend Portfolio 55.93 One year period ending

31 August 2013

Aberdeen Pacific Equity Fund 5.35 One year period ending

30 September 2013

Aberdeen India Opportunities Fund 17.71 One year period ending

30 September 2013

AXA World Funds – Framlington Health

6.15 Half year ending 30 June

2013

LionGlobal China Growth Fund 27.00 One year period ending

31 December 2013

Legg Mason Singapore Dollar Fund 176.50 One year period ending

31 December 2013

Legg Mason Western Asset Global Bond Trust 256.53 One year period ending

31 December 2013

Legg Mason Southeast Asia Special Situations

Trust


31 December 2013

Schroder Asian Growth Fund 27.37 One year period ending

31 December 2013

Schroder Asian Income Fund 55.84 One year period ending

31 December 2013

Schroder Global Emerging Market Opportunities

Fund


31 December 2013

Schroder International Selection Fund Global

Equity Alpha Fund


31 December 2013 Schroder Multi-Asset Revolution 30 39.88 One year period ending

31 December 2013 Schroder Multi-Asset Revolution 50 39.44 One year period ending

31 December 2013

Schroder Multi Asset Revolution 70 42.21 One year period ending

31 December 2013

Schroder Singapore Fixed Income Fund 88.10 One year period ending

31 December 2013 Schroder Singapore Trust Fund 38.70 One year period ending

31 December 2013 UOB Singapore Bond Fund 14.33 One year period ending

31 December 2013

12

6 risks

General Risks

Investment in an investment-linked policy is meant to produce returns over the long term. Policyholders

should not expect to obtain short-term gains from such investments. The prices of units in an ILP sub-fund

offered under an investment-linked policy and the income from them may go up as well as down. A

possible loss of the principal invested cannot be ruled out. The risks of investments made by an ILP sub-

fund offered under an investment-linked policy include but not limited to economic, political, foreign

exchange, liquidity, regulatory, interest rate and default and repatriation risks.

The types of risks that generally apply in an ILP sub-fund depends on the investment universe and is set

out below:

The value of the ILP sub-funds and the underlying fund‟s assets may be affected by uncertainties such

as 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 investments may be made. Furthermore, it should be noted

that the legal infrastructure and accounting, auditing and reporting standards in certain countries in

which investments may be made do not provide the same degree of Policyholder protection or

information to Policyholders as would generally apply in major securities markets.

In addition to the other risks, bonds and other fixed income securities in which the ILP sub-funds may

invest are interest rate sensitive, which means that their value and consequently, the net asset value

of the ILP sub-funds will fluctuate as interest rates fluctuate. An increase in interest rates will generally

reduce the value of the fixed income securities. The performance of each ILP sub-fund therefore, will

depend in part on its ability to anticipate and respond to such fluctuations in market interest rates and

to utilise appropriate strategies to maximise returns to the Policyholder while attempting to minimise

the associated risks to its investment capital.

Additionally, bonds and other fixed income securities are subject to credit risks, such as risk of default

by issuers. The credit rating for all bonds continue to be of at least an investment grade rating with a

minimum credit rating of BBB minus.

The value of the securities in which the underlying funds will invest will fluctuate depending upon the

general trend of the stock market and prevailing interest rates. The economic environment of the

countries in which the underlying funds invest will have an impact on the value of the securities

acquired. The value of the underlying funds and hence the value of the ILP sub-funds, which invest

directly into these underlying funds, are affected by such changes in the market conditions and

interest rates.

The ILP sub-funds and the underlying funds are authorised to use derivative instruments from time to

time. Derivative instruments are financial contracts whose values are “derived” from the value of the

underlying assets. The use of these derivative instruments is purely for hedging existing positions in a

portfolio or efficient portfolio management, provided that derivatives are not used to gear the overall

portfolio. While the professional use of derivatives may be beneficial to the overall investment

portfolio, derivatives in themselves involve different risks that may be greater than those of more

traditional investments.

As the volatility of prices of derivative instruments may be higher than that of their underlying stocks,

commodities or other benchmarks, these derivative instruments are riskier. The relevant Manager has

the necessary expertise and risk control systems/procedures for investment in derivatives. Investment

in derivatives is made only after extensive research. Such investments are re-valued daily and are

subject to strict investment limits.

The net asset value per unit of certain ILP sub-funds will be computed in Singapore Dollars, whereas

the underlying funds and/or securities may be denominated in foreign currencies. Changes in the

exchange rate of the Singapore Dollar against the currencies of denomination of the underlying funds

and/or securities will have an impact on the value of the Units. Further, the underlying investments of

the underlying funds and/or securities may be acquired in a wide range of currencies, some of which

13

may not be a freely convertible currency. It may not be possible or practicable to hedge against the

consequent currency risk exposure and in certain instances the relevant Manager may not consider it

desirable to hedge against such risk. The relevant Manager will enter into hedging transactions at its

sole discretion.

As certain ILP sub-funds and underlying funds invest in securities in various markets, the net asset

value of these ILP sub-funds and underlying funds will be influenced by the prices of these

investments. This will in turn have an impact on the value of Units of the ILP sub-funds.

The investments of the underlying funds and/ or securities will each be denominated in a number of

different currencies and will be subject to fluctuations in currency exchange rates and in certain cases,

exchange control regulations. There may be state regulations governing the outward remittance by

foreign Policyholders of their share of net profits and dividends and the repatriation of their

investments in a foreign currency.

Investments in emerging markets and some Asian markets may be more volatile than those in the

developed countries. The prices of investments in these markets may be influenced by economic and

political conditions and interest rates. Some of the investments that will be made in smaller markets

may be less liquid and the limited liquidity of these markets may therefore affect the respective

underlying fund‟s ability to acquire or dispose of securities at the price and time it desires. There may

be state regulations governing the outward remittance by foreign Policyholders of their share of net

profits and dividends and the repatriation of their investments in a foreign currency. Many of the

emerging markets and some of the Asian markets may not have well developed consolidated bodies of

securities laws and regulatory frameworks. Disclosure and regulatory standards in these countries may

be less stringent than those in developed markets. Accounting, auditing and financial standards and

requirements may not have been established in some respects or may differ significantly from

international standards and, as a result, information on the company‟s accounts may not be an

accurate reflection of its financial strength.

There can be no guarantee against loss, nor any assurance that the ILP sub-fund‟s investment

objective will be attained. The value of investments and the income from them and therefore the value

of, and income from, the Units of each ILP sub-fund can fall as well as rise and Policyholders may not

realise the same amount that they invest.

Policyholders should be aware that investments in single country, sectoral or regional funds which may

present greater opportunities and potential for capital appreciation, may be subject to higher risks as

they may be less diversified than a global portfolio.

Policyholders should be aware that some of the industries, in which the underlying funds invest, might

be subject to greater government regulations than many other industries in certain countries. Changes

in government policies and the need for regulatory approval may have a material adverse effect on

these industries. The companies that the relevant ILP sub-fund invests in may also be subject to risks

of developing technology and communications, competitive pressures and other factors and are

dependent upon consumer and business acceptance as new technologies evolve. Trading in such

securities may be subject to more abrupt price movements.

Investment in the ILP sub-funds may only be suitable for Policyholders who can accept the associated

volatility and risks and are prepared to take a medium to longer-term view of their investment.

Risks Specific to Each ILP sub-fund

Any risk specific to an ILP sub-fund other than those described in this paragraph 6 are set out in the

relevant schedule for that ILP sub-fund.

The above should not be considered to be an exhaustive list of the general risks which Policyholders

should consider before investing into any of the ILP sub-funds. Policyholders should be aware that an

investment in the ILP sub-funds may be exposed to other risks from time to time.

14

7 soft dollar commissions/arrangements

Cash or commission rebates arising out of transactions for the ILP sub-funds (whether executed in or

outside Singapore) will not be retained by AXA Life or the relevant managers for their own account.

Nevertheless, AXA Life, the relevant managers and the fund managers of the underlying funds (the

“underlying fund managers”) are entitled to receive soft-dollars in respect of the relevant ILP sub-fund or

the respective underlying funds. Soft-dollar commissions / arrangements do not include travel,

accommodation, entertainment, general administrative goods and services, general office equipment or

premises, membership fees, employees‟ salaries or direct money payment.

AXA Life, the relevant managers and the underlying fund managers will comply with applicable regulatory

and industry standards on soft-dollars including its proper documentation and reporting.

The soft-dollar commissions which AXA Life, the relevant managers and the underlying fund managers may

receive include specific advice as to the advisability of dealing in, or the value of any investments, research

and advisory services, economic and political analyses, portfolio analyses including valuation and

performance measurements, market analyses, data and quotation services, computer hardware and

software or any other information facilities to the extent that they are used to support the investment

decision making process, the giving of advice, or the conduct of research or analysis, and custodial service

in relation to the investments managed for clients.

Soft dollar commissions/arrangements will not be accepted or entered into unless soft-dollar

commissions/arrangements would reasonably assist AXA Life and the relevant managers and/or the

underlying fund managers in their management of the relevant ILP sub-fund and the respective underlying

funds, provided that (a) it is ensured at all times that transactions are executed on the best available terms

taking into account the relevant market at the time for transactions of the kind and size concerned, and (b)

no unnecessary trades are entered into in order to qualify for such soft-dollar commissions/arrangements.

15

8 conflicts of interest

Where we issue other investment-linked policies and where the relevant manager manages funds other

than the ILP sub-funds, we and the managers may from time to time have to deal with competing or

conflicting interests between these ILP sub-funds and such other investment-linked policies issued by us or

between the relevant ILP sub-fund and such other funds managed by the relevant manager (as the case

may be). For example, we or the manager may make a decision on behalf of an investment-linked policy or

one fund (as the case may be) without making the same decision on behalf of any other investment-linked

policies or funds, as a decision whether or not to make the same decision in respect of the investment-

linked policies and funds depends on many other factors, for example the investment or sale for any fund

depends on many factors such as the cash availability and portfolio balance of such funds. However, we

and managers will use their reasonable endeavours at all times to act fairly in respect of all investment-

linked policies issued by us and all funds managed by the relevant manger and to balance the interests of

all policyholders/ investors (as the case may be). Currently, we are the issuer of other investment-linked

policies and the managers manage other funds in addition to the relevant ILP sub-funds, where applicable.

We will conduct all transactions with or for each investment-linked policy, and the managers will conduct

all transactions with or for the relevant ILP sub-fund, on an arm‟s length basis.

We or our affiliates or the relevant manager and its affiliates (together the “Parties”) are or may be involved

in other financial, investment and professional activities which may on occasion cause conflict of interest

between the different investment-linked policies issued by AXA Life and such other funds managed by the

relevant manager. Each of the Parties will ensure that the performance of their respective duties will not be

impaired by any such involvement. In the event a conflict of interest does arise, the Parties will endeavour

to ensure that it is resolved as quickly as possible and as far as possible, in the interest of the

Policyholders or otherwise as equitably as possible.

We and the managers may each own, hold, dispose or otherwise deal with Units in the relevant ILP sub-

fund in its own capacity. In the event of any conflict of interest arising as a result of such dealing, We or the

manager (as the case may be) will resolve such conflict in a just and equitable manner as it deems fit.

16

schedule A


Global Secure Fund


Global Growth Fund


1 structure of the ILP sub-funds

The structure of each Lifestyle Fund is set out below:

ILP sub-funds Structure


The Global Defensive Fund is a ILP sub-fund which feeds 100% into the

Legg Mason Western Asset Global Bond Trust, a Singapore constituted

open-ended unit trust. Dividends are reinvested.

Global Secure Fund

The Global Secure Fund is a ILP sub-fund which feeds 100% into Schroder

Multi Asset Revolution 30, which is a Singapore constituted open-ended

unit trust. Dividends are reinvested.


The Global Balanced Fund is a ILP sub-fund which feeds 100% into

Schroder Multi Asset Revolution 50, which is a Singapore constituted open-

ended unit trust. Dividends are reinvested.

Global Growth Fund

The Global Growth Fund is a ILP sub-fund which feeds 100% into Schroder

Multi Asset Revolution 70, which is a Singapore constituted open-ended

unit trust. Dividends are reinvested.


The Global High Growth Fund is a ILP sub-fund which feeds 100% into

Schroder International Selection Fund Global Equity Alpha, which is

domiciled in Luxembourg. Dividends are reinvested.

2 the Manager, Investment Adviser and Securities Managers The Manager, Investment Adviser and Securities Managers of the Strategic Investment Service underlying

sub-funds (“underlying sub-funds”) into which the Lifestyle Funds invest into are as follows:

Underlying sub-funds Manager

Legg Mason Western Asset Global Bond Trust Western Asset Management Company Pte Ltd

Sub-Managers: Western Asset Management

Company and Western Asset Management

Company Limited

Schroder Multi-Asset Revolution 30

Schroder Investment Management (Singapore) Ltd



Schroder International Selection Fund Global

Equity Alpha

Schroder Investment Management Limited

17

2.1 Manager of the underlying sub-funds


Schroder Investment Management (Singapore) Ltd (the “Manager“) was incorporated in Singapore and

has been managing collective investment schemes and discretionary funds since 1992. The Manager

is part of the Schroder group (“Schroders”).

Schroders has been managing collective investment schemes and discretionary funds in Singapore

since the 1970s.

Schroders is a leading global asset management company, whose history dates back over 200 years.

The group‟s holding company, Schroders Plc is and has been listed on the London Stock Exchange

since 1959.

Schroders aims to apply its specialist asset management skills in serving the needs of their clients

worldwide, through its large network of offices and over 300 portfolio managers and analysts covering

the world‟s investment markets.

Source: Schroder Investment Management (Singapore) Ltd.


Schroders is a global asset management company with £236.5 billion under management. We

manage assets on behalf of institutional and retail investors, financial institutions and high net worth

individuals in a diverse range of products covering equities, fixed income, alternatives and multi-asset.

Our aim is to apply our specialist asset management skills in serving the needs of our clients

worldwide and to deliver value to our shareholders. With one of the largest networks of offices of any

dedicated asset management company, and with over 340 portfolio managers and analysts covering

all the major investment markets, we offer our clients a comprehensive range of products and

services.

With a history of over 200 years, we are one of the largest asset managers listed on the London Stock

Exchange where we have been listed since 1959. The Schroder family holds 47.75% of the equity of

the firm, ensuring stability of ownership and providing security for our clients.

Source: Schroders as at 30 June 2013.

Western Asset Management Company Pte Ltd

Western Asset Management Company Pte Ltd (“WAMCPL”) is an ultimately wholly-owned subsidiary of

Legg Mason, Inc. (“Legg Mason”), a U.S. financial services holding company that provides asset

management services through its subsidiaries. Legg Mason has assets of US$664.6 billion under

management as of 31 March 2013. Assets include broad range of financial instruments such as global

equities, fixed interest securities, and currencies.

WAMCPL advises and manages an extensive range of investments on behalf of institutions and

individuals. Through unit trusts and separate account management, WAMCPL provides investors with

access to fixed interest and currency investment opportunities that seek to add value and control risk.

WAMCPL has been managing collective investment schemes in Singapore since 2003. As at 31 March

2013, WAMCPL managed approximately US$4.56 billion of assets on behalf of institutional and retail

clients.

Western Asset Management Company (“WAMC”) and Western Asset Management Company Limited

(“WAMCL”) collectively referred to as the “Sub-Managers”) have been appointed as the sub-managers

of the underlying sub-fund. The Sub-Managers are, like the Manager, subsidiaries of Legg Mason.

WAMC is organised as a corporation under the laws of California, U.S.A. and is registered in the U.S.

with the U.S. Securities and Exchange Commission as an investment adviser pursuant to the U.S.

Investment Advisers Act 1940 and also as a commodity-trading adviser and a commodity pool operator

under the Commodity Exchange Act. WAMC has extensive experience in the mutual funds industry,

having been managing mutual funds and other types of collective investment schemes for over 24

years.

18

WAMCL is organised as a corporation in the United Kingdom and is regulated and supervised in

respect of its investment management activities by the UK Financial Services Authority. WAMCL has

extensive experience in the mutual funds industry, having been managing mutual funds and other

types of collective investment schemes for over 143 years. WAMC manages the North America, South

America and Central America portfolio of debt securities of the underlying sub-fund while WAMCL

manages the Europe, UK, Scandinavia, Middle East and Japan portfolio of debt securities of the

underlying fund.

WAMCPL has appointed Legg Mason Asset Management Singapore Pte. Limited as the principal

distributor for the underlying sub-fund. Legg Mason Asset Management Singapore Pte Limited, also an

ultimately wholly owned subsidiary of Legg Mason, is authorized to market, promote, offer and arrange

for sale and redemption of shares/units in the underlying sub-fund.

Source: Legg Mason, Inc.

3 investment objectives and focus

The investment objective and focus of each Lifestyle Fund are as follows:

ILP sub-funds Investment Objective and Focus

Lifestyle Funds

Global Defensive Fund To maximize total returns in Singapore Dollar terms over the longer term by

investing a portfolio of high quality debt securities of Singapore and major

global bond markets such as the G10 countries and Australia and New

Zealand. The sub-fund aims to outperform the Citigroup World Government

Bond Index ex-Japan, hedged in Singapore Dollar terms.

Global Secure Fund To achieve long term growth of capital by investing primarily in the Global

Secure Fund, whose investment objective is to achieve medium to long

term capital growth through investment in investment funds investing in

equities, bonds and other fixed income securities in global markets, as well

as investment directly in those types of assets. The Global Secure Fund

may also gain exposure to alternative asset classes including but not

limited to real estate and commodities related securities for additional

diversification.

Global Balanced Fund To achieve long term growth of capital by investing primarily in the Global

Balanced Fund, whose investment objective is to achieve medium to long



as investment directly in those types of assets. The Global Balanced Fund



diversification.

Global Growth Fund To achieve long term growth of capital by investing primarily in the Global

Growth Fund, whose investment objective is to achieve medium to long



as investment directly in those types of assets. The Global Growth Fund



diversification.

Global High Growth Fund To achieve long term growth of capital by investing primarily in the Global

High Growth Fund, whose objective is to provide capital growth through

investment in equity securities of companies worldwide. In order to achieve

the objective the Investment Manager will invest in a select portfolio of

securities, which it believes offer the best potential for future growth.

19

4 investment approach

The table below shows the investment approach of each of the ILP sub-funds in respect of the Lifestyle

Funds:

ILP sub-funds Investment Approach

Global Defensive Fund The Managers‟ and (as the case may be) the Sub-Managers‟ investment

policy will be to pursue an active but prudent approach which employs

fundamental economic and market analysis to take maximum advantage of

short and medium to long term investment opportunities in interest rate and

currency trends of the global bond markets.

It is intended that the ILP sub-fund achieves its investment objective by

investing primarily in the following types of debt securities:

(i) Fixed and floating rate government and corporate bonds plus

convertible bonds, commercial papers, bankers acceptances, bills

of exchange, certificates of deposits, promissory notes, bank bills

and treasury bills issued by governments, government linked

companies and corporations in Singapore and in countries as

defined by the Citigroup World Government Bond Index ex Japan.

Currently these countries include USA, Germany, France, UK,

Canada, Italy, the Netherlands, Denmark, Finland, Spain,

Switzerland, Ireland, Austria, Australia, Sweden, Norway, Belgium,

Mexico, Poland, Portugal, Singapore and Malaysia or in countries

that are rated with a minimum of investment grade credit rating of

Aa2 by Moody‟s, AA by Standard & Poor‟s (“S&P”), AA by Fitch Inc.

or its equivalent investment grading by any other internationally

reputable credit rating agency.

Since 3 January 2005, the ILP sub-fund investments in Japanese

debt securities have been limited to 10% of its Deposited Property.

Such investments in Japanese debt securities have been restricted

to a minimum investment grade credit rating of A2 by Moody‟s, A by

S&P, A by Fitch Inc. or its equivalent investment grading by any

other internationally reputable credit rating agency.

(ii) Otherwise, the ILP sub-fund will place its monies on short term fixed

deposits with banks that are rated with a minimum short term

rating of A2 and P2 as defined by S&P and Moody‟s respectively

and long term rating of A and A3 as defined by S&P and Moody‟s

respectively.

To ensure that the ILP sub-fund owns a portfolio of debt securities with high

credit quality, it will only invest in debt securities issued by governments of

benchmark countries or debt securities of issuers with a minimum credit

rating of Aa2 by Moody‟s, AA by S&P, AA by Fitch Inc. or its equivalent

investment grading by any other internationally reputable credit rating

agency (and for issuers of Japanese debt securities, a minimum credit rating

of A2 by Moody‟s, A by S&P, A by Fitch Inc. or its equivalent investment

grading by any other internationally reputable credit rating agency). In the

case of bonds not rated by any international rating agency, the Managers

20

and (as the case may be) the Sub-Managers will use their proprietary credit

research or analysis to determine that such bonds meet the quality criteria

of the ILP sub-fund.

To protect the Singapore Dollar value of the ILP sub-fund‟s investments, the

Managers and (as the case may be) the Sub-Managers may employ an

active currency hedging programme to manage their non Singapore Dollar

currency exposure. For prudent management of the underlying foreign

currency exposures of the bond investments in the ILP sub-fund, the

hedging back into the Singapore Dollar - the base currency of the ILP sub-

fund – may range from 0% to 100% of the ILP sub-fund‟s net asset value at

all times, i.e., the ILP sub-fund may range between being fully unhedged to

fully hedged, but would never be leveraged in foreign currency exposure.

To assist diversification of credit risks, other than sovereign or sovereign

related credit risks, exposure to any one corporate issuer is restricted to no

more than 10% of the total value of the Deposited Property.

In order to ensure a greater degree of liquidity or marketability of the

investments, the ILP sub-fund will not invest in more than 5% of the

aggregate issued and outstanding securities of any single issue.

The Managers and (as the case may be) the Sub-Managers currently do not

intend to engage in securities lending and/or carry out repurchase

transactions. However, should the Managers and (as the case may be) the

Sub-Managers decide to engage in securities lending or repurchase

transactions for the underlying sub-fund, they shall comply with all

applicable laws and regulations relating to securities lending and

repurchase transactions.

Global Secure Fund The Managers recognise that over time, traditional global equities and

global bonds may behave in a similar fashion and therefore may not always

provide investors with a diversified portfolio outcome. By considering a

broad range of asset classes and investment strategies, the Managers

attempt to increase the probability of achieving the investment objective in

a consistent manner, over the long term.

The allocation to equities and bonds in the Global Secure Fund is in the

proportion of approximately 30:70. Different asset classes usually react to

news in various ways so different assets may not move in the same

direction under the same market conditions. In this regard, the Managers

will take a dynamic approach to asset allocation, where the asset mix will

change through time in favour of asset classes that are attractive to add

value and manage downside risk over different market conditions.

It is the Managers‟ present intention to invest the assets of the Global

Secure Fund into various subfunds of the Schroder ISF and other collective

investment schemes and exchange traded funds (collectively known as

“Underlying Funds”). The Managers may from time to time at their sole

discretion vary the percentage of assets of the Global Secure Fund which

may be invested into the Underlying Funds and may, subject to such

regulatory approvals as may be required, vary the jurisdictions and types of

Underlying Funds into which the Global Secure Fund may invest, in

accordance with the investment objective and policy of the Global Secure

21

Fund. The investment managers of the ILP Funds are domiciled in various

countries, including the United Kingdom, the United States, Japan and

Singapore.

Investors should note that the Global Secure Fund may invest in the SPDR

Gold Trust and such other fund(s) investing directly in commodities but

unless otherwise permitted by the MAS, investment in such funds in

aggregate shall limited to 10% of the deposited property of the Global

Secure Fund.

Global Balanced Fund The Managers recognise that over time, traditional global equities and






The allocation to equities and bonds in the Global Balanced Fund is in the








Balanced Fund into various subfunds of the Schroder ISF and other

collective investment schemes and exchange traded funds (collectively

known as “Underlying Funds”). The Managers may from time to time at their

sole discretion vary the percentage of assets of the Global Balanced Fund

which may be invested into the Underlying Funds and may, subject to such


Underlying Funds into which the Global Balanced Fund may invest, in

accordance with the investment objective and policy of the Global Balanced

Fund. The investment managers of the Underlying Funds are domiciled in

various countries, including the United Kingdom, the United States, Japan

and Singapore.

Investors should note that the Global Balanced Fund may invest in the SPDR




Balanced Fund.

Global Growth Fund The Managers recognise that over time, traditional global equities and






The allocation to equities and bonds in the Global Growth Fund is in the




22





Growth Fund into various subfunds of the Schroder ISF and other collective

investment schemes and exchange traded funds (collectively known as

“Underlying Funds”). The Managers may from time to time at their sole

discretion vary the percentage of assets of the Global Growth Fund which

may be invested into the Underlying Funds and may, subject to such


Underlying Funds into which the Global Growth Fund may invest, in

accordance with the investment objective and policy of the Global Growth

Fund. The investment managers of the Underlying Funds are domiciled in

various countries, including the United Kingdom, the United States, Japan

and Singapore.

Investors should note that the Global Growth Fund may invest in the SPDR




Growth Fund.

Global High Growth Fund At least two-thirds of the ILP sub-fund (excluding cash) will be invested in a

concentrated range of shares of companies worldwide.

As an "Alpha" fund, the ILP sub-fund invests in companies in which the

Investment Manager has a high conviction that the current share price does

not reflect the future prospects for that business. The ILP sub-fund will

typically hold fewer than 50 companies and has no bias to any particular

industry or size of company.

The Investment Manager considers investment opportunities that reflect the

importance of themes that drive longer term growth in companies, including

climate change, changes to population demographics and the rising

importance of emerging market countries within the world economy.

The Investment Manager‟s approach takes advantage of the most attractive

investment opportunities, throughout the global investment universe,

without regional constraint. They combine in-depth knowledge with global

expertise to identify attractively-valued, quality growth stocks with a

sustainable competitive advantage. Extensive local research generates

globally-diverse investment ideas which are viewed in a global context,

selecting stocks based on „best in class‟.

The ILP sub-fund may also invest in other financial instruments and hold

cash on deposit. Financial derivative instruments may be used to achieve

the investment objective and to reduce risk or manage the ILP sub-fund

more efficiently.

Source: Schroder Investment Management (Singapore Ltd) and Legg Mason, Inc.

23

5 CPF investment scheme

The risk classification and inclusions under the CPF Investment Scheme (CPFIS) for the Lifestyle funds are:

ILP sub-funds CPFIS Risk Classification Included Under

Lifestyle Funds

Global Defensive Fund Low to Medium Risk (Broadly Diversified)

CPFIS Ordinary Account and

CPFIS Special Account

Global Secure Fund Low to Medium Risk (Broadly Diversified)



Global Balanced Fund Medium to High Risk (Broadly Diversified)



Global Growth Fund Medium to High Risk (Broadly Diversified)



Global High Growth Fund Higher Risk (Broadly Diversified)

CPFIS Ordinary Account

6 fees and charges No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those

reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund Information

Booklet.

Although certain fees and charges are imposed on the underlying sub-funds that the ILP sub-funds invest

into, these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are

charged at the ILP sub-fund level.

Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in paragraph 3 of this Fund

Information Booklet represent the total composite fees and charges that are payable at both the ILP sub-

fund level and the underlying sub-fund level.

7 specific risks

All investments involve risk and the risks inherent to Global Defensive Fund, Global Secure Fund, Global

Balanced Fund, Global Growth Fund and Global High Growth Fund are set out below:


7.1 Market risk

Prices of securities in the sub-fund may go down or up in response to changes in economic conditions,

political conditions, interest rates and market perception of securities which in turn may cause the

price of Units to rise or fall.

7.2 Interest rate risk

Any investments by the sub-fund in bonds, debentures, loan stocks, convertibles and other debt

securities may decline in value if interest rates change. In general, the price of debt securities rises

when interest rates fall, and fall when interest rates rise.

7.3 Currency risk

The income earned by the sub-fund may be affected by fluctuations in foreign exchange rates. The

Manager may actively monitor and manage the sub-fund‟s exposure to adverse foreign exchange risks

by hedging through the forwards or futures markets.

7.4 Debt securities risk

Issuers of bonds and other debt securities held by the sub-fund may default on their obligations

despite careful selection of issuers.

7.5 Liquidity risk

24

There is no secondary market for the sub-fund. All redemption requests should be made to Us or Our

authorized financial advisers. The sub-fund may hold a significant portion of illiquid assets and there

could therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The

sub-fund may end up selling at lower than expected prices or face difficulties in valuing illiquid

securities and meeting redemption request.

7.6 Derivatives risk

The sub-fund may invest in derivatives for purposes of risk management and hedging the underlying

investment or currency exposures. Derivatives involve risks different from, and, in some cases, greater

than, the risks presented by more traditional securities investments. The value of derivative

instruments is subject to market risks and may fall in value as rapidly as it may rise and it may not

always be possible to dispose of such instruments during such fall in value.

Global Secure Fund, Global Balanced Fund and Global Growth Fund

7.1 Market risk

The value of investments by the sub-fund may go up and down due to changing economic, political or

market conditions, or due to an issuer‟s individual situation.

7.2 Credit risks

The sub-fund is subject to the risk that some issuers of debt securities and other investments made by

the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse

changes in its financial condition that could lower the credit quality of a security, leading to greater

volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of a

security can also affect the security‟s liquidity and make it more difficult to sell.

7.3 Liquidity risk







Declining interest rates generally increase the values of existing debt instruments, and rising interest

rates generally reduce the value of existing debt instruments. Interest rate risk is generally greater for

investments with long durations or maturities.

7.5 Emerging and less developed markets securities risks

Investment in emerging and less developed markets securities poses risks different from, and/or

greater than, risks of investing in the securities of developed countries. It may include risks such as

greater social, economic and political uncertainty and instability and more substantial government

involvement in the economy. There may also be less well defined tax laws and procedures.

7.6 Equity risk

The sub-fund may invest in stocks and other equity securities and their derivatives which are subject to

market risks that historically have resulted in greater price volatility than that experienced by bonds

and other fixed income securities. The sub-fund may also invest in convertible instruments which may

be converted into equity. A convertible instrument tends to yield a fairly stable return before

conversion but its price usually has a greater volatility than that of the underlying equity.


The sub-fund may use financial derivatives. The use of futures, options, warrants, forwards, swaps or

swap options involves increased risk. The sub-fund‟s ability to use such instruments successfully

depends on the Manager‟s ability to accurately predict movements in stock prices, interest rates,

currency exchange rates or other economic factors and the availability of liquid markets. If the

Manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund could

suffer greater losses than if the sub-fund had not used the derivatives.

25


7.1 Market risk



7.2 Credit risks


the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse




7.3 Liquidity risk


authorized financial advisers. The liquidity of the sub-fund may be limited if a significant portion of the

assets of the Fund is to be sold to meet redemption requests on a short time frame. During this period,

the portfolio allocation may be modified to prioritise liquidity.

7.4 Market movements in limited sectors/countries

The sub-fund will be subjected to the respective market movements of the limited number of sectors

and/or countries of the investment universe.

7.5 Investing in ADR/GDR

Buying ADR/GDRs may include the inflationary, political and exchange rate risks of the underlying

assets but provide access to some markets without having to invest locally.

7.6 Emerging and less developed markets securities risks

Investment in emerging and less developed markets securities poses risks different from, and/or

greater than, risks of investing in the securities of developed countries. It may include risks such as

greater social, economic and political uncertainty and instability and more substantial government

involvement in the economy. There may also be less well defined tax laws and procedures.


The sub-fund and the Underlying Fund may use financial derivatives and the use of futures, options,

warrants, forwards, swaps or swap options involves increased risk. The sub-fund‟s or Underlying

Fund‟s ability to use such instruments successfully depends on the Manager‟s or investment

manager‟s ability to accurately predict movements in stock prices, interest rates, currency exchange

rates or other economic factors and the availability of liquid markets. If the Manager‟s or investment

manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund or

Underlying Fund could suffer greater losses than if the sub-fund or Underlying Fund had not used the

derivatives.

7.8 Operational risk

The sub-fund‟s operations depend on third parties and it may suffer disruptions or loss in the event of

their failure.

Source: Schroder Investment Management (Singapore Ltd) and Legg Mason, Inc.

26

schedule B

Asian Growth Fund

1 structure of ILP sub-fund

The structure of the Asian Growth Fund is set out below:

ILP sub-fund Structure

Asian Growth Fund The Asian Growth Fund is a single ILP sub-fund managed by AXA Rosenberg

Investment Management Asia Pacific Ltd (“AXA Rosenberg Asia Pacific”).

The Asian Growth Fund is denominated in Singapore Dollars.

2 the Manager

AXA Rosenberg Investment Management Asia Pacific Ltd is a Hong Kong-based investment manager and a

subsidiary of AXA Rosenberg Group LLC, the specialist active global equity investment management firm

within AXA Investment Managers S.A. AXA Rosenberg Group LLC was originally founded in 1985 under the

name Rosenberg Institutional Equity Management. AXA Rosenberg models and predicts company fair

value, future earnings and risk in building portfolios that aim to produce higher future earnings per dollar

than the relevant markets. Our goal is to build a portfolio with an expected future earnings advantage

relative to the market. This process, based on solid economic analysis of company fundamentals, has been

sustainable and repeatable. Today AXA Rosenberg Group LLC and its subsidiaries collectively manage

more than US$22 billion (as of 31st March 2013) in individual country, regional and global strategies for

pension funds, foundations and government entities around the world.

Source: AXA Rosenberg Group LLC.

3 investment objective and focus

The investment objective and focus of the Asian Growth Fund is set out below:

ILP sub-fund Investment Objective and Focus

Asian Growth Fund To provide an attractive level of income and security of capital with potential

long-term growth in the value of assets by investing in a portfolio of

diversified Asian equities and assets.

The Asian Growth Fund seeks to achieve its investment objective by

investing all or substantially all of its assets into Asian Equity and Fixed

Income Securities. Presently, the manager targets to invest the Asian

Growth Fund‟s assets in the following proportions:

• Asian Equities - 80%; and • Asian Fixed Income (excluding Japan) - 20%.

The above percentages only represent targets and the actual asset allocation of the Asian Growth Fund

may deviate from the target percentages, depending on market conditions. We reserved the right to revise

the target asset allocations of the Asian Growth Fund at its discretion from time to time.

27


The investment approach of the Asian Growth Fund is set out below:

ILP sub-fund Investment Approach

Asian Growth Fund AXA Rosenberg Asia Pacific is a fundamental investor that believes in using

the power of comprehensive, definitive and unbiased information to make

sound investment decisions. It analyses nearly 200 balance sheet and

income statement (Profit & Loss or “P&L”) items to identify each company‟s

potential to generate future earnings and draws conclusions on whether

these companies are over or undervalued relative to their peers.

AXA Rosenberg Asia Pacific‟s investment process combines three models.

Its valuation model seeks to identify mis-valued stocks in each industry. Its

earnings forecast model seeks to predict year-ahead earnings, and its risk

model constructs portfolios that are intended to maximise active return

while controlling active risk. Because its investment process is grounded in

fundamental principles and implemented using technology, it has been

sustainable and repeatable.



Details of the following ILP sub-fund‟s inclusion under the CPF Investment Scheme are set out below:

ILP sub-fund CPFIS Risk Classification Included Under

Asian Growth Fund Higher Risk (Narrowly Focused – Asian Region

Focused Securities)


6 fees and charges

No other fees and charges are imposed on Asian Growth Fund except those reflected on paragraph 7 of

the Product Summary Booklet and paragraph 3 of this Fund Information Booklet.

7 specific risks

All investments involve risk and the risks inherent to Asian Growth Fund are set out below:

7.1 Market risk



7.2 Credit risk

As per investment guideline, the maximum credit quality: Baa by Moody‟s, BBB by Standard and Poor‟s

or BBB by Fitch (including Sub-categories or gradations therein). The minimum credit quality does not

apply when AXA Rosenberg invests in debts of Singapore-incorporated issuers and Singapore Statutory

boards that are not rated.

7.3 Liquidity risk







28

schedule C

China Growth Fund


The structure of each of the China Growth Fund is set out below:


China Growth Fund The China Growth Fund is a single ILP sub-fund and invests all or

substantially all of its assets in the LionGlobal China Growth Fund, a

Singapore constituted open-ended standalone unit trust managed by

LionGlobal Investors Limited (“LionGlobal”).

The China Growth Fund is denominated in Singapore Dollars.

2 the Manager of the ILP sub-funds and the Underlying Fund Lion Global Investors, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one

of the largest asset management companies in South East Asia, with total assets under management of

S$31.4 billion as at 31 March 2013. Established as an Asian asset specialist since 1986, Lion Global

Investors offers Asian equities and Asian fixed income funds to institutional and retail investors globally. It

has one of the largest and most experienced investment teams dedicated to regional and global equities

and fixed income markets, with over 40 investment professionals with an average of 14 years of

investment experience. The company's commitment to investment excellence begins with a team-based

and research-intensive approach, combining in-depth market insights with comprehensive sector

knowledge.

Source: Lion Global Investors.


The investment objective and focus of the China Growth Fund is set out below:


China Growth Fund To achieve medium to long-term capital growth of assets by investing

primarily in equity and equity-linked securities of companies in China, Hong

Kong S.A.R. and Taiwan.

The China Growth Fund seeks to achieve its investment objective by

investing all or substantially all of its assets in the LionGlobal China Growth

Fund.

29


The investment approach of each of the China Growth Fund and India Fund is set out below:


China Growth Fund

The Managers‟ investment approach is founded on a rigorous research

methodology aimed at uncovering high conviction stock ideas which are

trading at significant discount to fair value. The underlying philosophy is

that securities prices will ultimately reflect underlying economic

fundamentals. In the short to medium term however, technical factors

including behavioural factors or liquidity may distort prices. By staying

focused on the long term, the Managers avoid the common mistake of

selling too early or overtrading the portfolio.

The Managers believe the key is to design and implement a research

process that would identify businesses that have most, if not all, of the

following characteristics:

- A clearly understandable business model and value add proposition

- Strong and forward looking management

- Sustainable top line and bottom line growth

- Adopt healthy corporate governance practices

- Strong free cash flows or has the potential to generate such

- Exhibit strong profitability in terms of net profit margins and return on

equity

- Strong balance sheets

- Sustainable competitive edge

- A proven track record of growth and profitability through both good and

weak economic conditions.

In order to arrive at an accurate estimation of the fair value it is first and

foremost necessary to have a clear understanding of the business model

and all the key drivers of sales and profits. A thorough look back at the

operating history of the company is essential. This should preferably include

a long enough history that indicates operating performance under both

economic growth periods and slow/recessionary conditions.

An earnings and cash flow model is developed for each stock wherein the

Managers also develop some sensitivity analysis to analyse earnings and

cash flows under varying assumptions. The key is to determine for each

stock that we research, its sustainable earning power and the likely medium

to long term growth rate of those earnings and apply an appropriate

discount rate to derive its intrinsic value. The Managers tend to be skeptical

of the accounting definition of earnings and prefer to look at the cash flow

returns as a more reliable basis for determining investment value. Other

inputs that the Managers use to derive fair value include conventional

measures such as Price-Earnings ratios (PER), Enterprise Value-Earnings

Before Interest, Tax, Depreciation and Amortization (EV-EBITDA),

replacement values and comparable business transactions and dividend

discount model.

The Managers‟ preference is to search for growth stocks in growth

industries although they would also include some “value” stocks as well as

cyclical stocks. While these are widely used valuation tools the Managers

believe they can gain an edge by having deeper insights into understanding

the business fundamentals thus enabling them to make better judgments

on estimating the growth potential and applying the correct discount rate

which reflects the risk level of those earnings appropriately. The Managers

also make it a point to monitor closely all their investments so that mid

course adjustments can be made expeditiously when conditions warrant.


30


Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:


China Growth Fund Higher Risk (Narrowly Focused – Country, Greater

China)


6 fees and charges

No other fees and charges are imposed on the ILP sub-funds covered under this schedule except those


Booklet.

Although certain fees and charges are imposed on the underlying sub-funds that the ILP sub-funds invest

into, these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are

charged at the ILP sub-fund level.



fund level and the underlying fund level.

7 specific risks

All investments involve risk and the risks inherent to China Growth Fund are set out below:

7.1 Market risk

Prices of securities may go up or down in response to changes in economic conditions, interest rates

and the market‟s perception of securities. These may cause the price of Units in the sub-fund to go up

or down as the price of Units in the sub-fund is based on the current market value of the investments

of the sub-fund.

7.2 Liquidity risk







The sub-fund may invest in financial derivative instruments such as futures, options, warrants,

forwards and swaps for hedging purposes or for the purpose of efficient portfolio management. While

the judicious use of derivatives by professional investment managers can be beneficial, derivatives

involve risks different from, and, in some cases, greater than, the risks presented by more traditional

securities investments.

7.4 Emerging markets risk

The sub-fund may invest in emerging markets such as the People‟s Republic of China Region are also

subject to regulatory risks, for example, the introduction of new laws, the imposition of exchange

controls, the adoption of restrictive provisions by individual companies or where a limit on the holding

of the sub-fund in a particular company, sector or country by non-residents (individually or collectively)

has been reached.

31

7.5 Political Risk

The political situation in the countries in which the sub-Fund invests may have an effect on the value of

the securities of companies involved, which may in turn impact on the value of the Units of the sub-

fund.

7.6 Currency Risk

As the investments of the sub-fund may be denominated in foreign currencies, fluctuations of the

exchange rates of foreign currencies against the base currency of the sub-fund (i.e. the Singapore

Dollar) may affect the value of the Units in the sub-fund. The Managers may from time to time employ

currency hedging techniques to manage the impact of the exchange rate fluctuations on the sub-fund

and/or for the purpose of efficient portfolio management


32

schedule D

Fortress Fund A


The structure of Fortress Fund A is set out below:


Fortress Fund A The Fortress Fund is a single ILP sub-fund managed by First State

Investments (Singapore) (“FSIS”).

The Fortress Fund is denominated in Singapore Dollars.

2 the Manager

First State Investments is the international operation of Colonial First State Global Asset Management

(„CFSGAM‟), the specialist asset management business of the Commonwealth Bank of Australia. CFSGAM

has funds under management of US$173.6 billion as at 31 March 2013 and is one of the largest asset

Australian–based managers with offices in Sydney, Melbourne, Auckland, London, Edinburgh, Paris,

Frankfurt, New York, Hong Kong, Singapore, Jakarta and Tokyo.

First State Investments is a signatory to the UN Principles of Responsible Investment since March 2007

with a dedicated sustainability and responsible investments team.

First State Investments offers investment solutions across a diverse range of asset classes, including

global equities, Asia Pacific and global emerging markets, global resources, global property securities,

global listed infrastructure securities, Australian equities, global fixed interest and credit, emerging market

debt, direct property, direct infrastructure investments, multi-asset solutions and asset allocation

strategies.

In Singapore, First State Investments provides access to the Group‟s investment capabilities. In particular,

Asia Pacific equities, multi-asset solutions and asset allocation strategies and Asian Fixed Income are

managed out of Singapore. In addition, we currently offer 14 Singapore registered collective investment

schemes. These include award-winning funds such as First State Bridge, First State GEM Leaders, First

State Regional China Fund and First State Global Resources.

Source: First State Investments (Singapore) as at 31 March 2013.


The investment objective and focus of Fortress Fund A is set out below:


Fortress Fund A To achieve attractive medium-to-long term capital appreciation by investing

in companies listed on the main board of the Singapore Stock Exchange.

The portfolio will have a bias for companies with a large market

capitalisation.

33


The investment approach of Fortress Fund A is set out below:


Fortress Fund A FSIS essentially look to exploit market inefficiencies by purchasing

companies whose sustainable long-term growth rates are underestimated

by the market.

In doing so, it follows an active bottom-up investment approach where the

team aims to invest in quality companies with strong fundamentals using a

disciplined proprietary methodology. The objective of its research is the

identification of sensibly priced, high quality companies that can deliver

sustainable long-term earnings per share growth. Its belief is that the

selection of companies within a portfolio is the most important ingredient in

producing above average long-term performance with relatively low risk.

With a focus on owning quality companies, it regards benchmark indices as

poor representations of potential investment universes. It does not use

benchmarks to drive stock selection or portfolio construction. It realise that

fund managers that consistently do not meet their benchmark index targets

will fail. However, it is convinced that the way to achieve superior long-term

returns is by applying an absolute return mindset to all investment

decisions.

By adopting an absolute return mindset it avoid the risk of being carried

away by indiscriminate market euphoria. This focus on the potential

downside as well as on the upside when making any investment decision

means the risk to long-term client returns is significantly reduced.

Source: First State Investments.




Fortress Fund A Higher Risk (Narrowly Focused – Country, Singapore)


6 fees and charges

No other fees and charges are imposed on Fortress Fund A except those reflected on paragraph 7 of the

Product Summary Booklet and paragraph 3 of this Fund Information Booklet.

7 specific risks

All investments involve risk and the risks inherent to Fortress Fund A are set out below:

7.1 Market risk

Certain situations may have a negative effect on the price of shares within a particular market. These

may include regulatory changes, political changes, economic changes, technological changes and

changes in the social environment.

34

7.2 Investment risk

Investment in the sub-fund involves risk and you may not get back the full amount you have invested.

Past performance is no guarantee of future performance.

7.3 Liquidity risk






Source: First State Investments.

35

schedule E

Global Equity Blend



The structure of the ILP sub-fund is set out below:


Global Equity Blend The Global Equity Blend is a single ILP sub-fund and invests all or

substantially all of its assets in AllianceBernstein - Global Equity Blend

Portfolio, a sub-fund of the AllianceBernstein mutual investment fund

which is structured as an umbrella mutual fund (fonds commun de

placement) organised under the laws of the Grand Duchy of Luxembourg

as an unincorporated co-proprietorship of its securities and qualifies as an

undertaking for collective investment in transferable securities (a “UCITS”)

within the meaning of Article 1(2) of the EC Directive 85/611 of 20

December 1985, as amended.

The Global Equity Blend is denominated in Singapore Dollars.

Emerging Markets Debt

Portfolio

The Emerging Markets Debt Portfolio is a single ILP sub-fund and invests

all or substantially all of its assets in AllianceBernstein - Emerging Markets

Debt Portfolio, a sub-fund of the AllianceBernstein mutual investment fund

which is structured as an umbrella mutual fund (fonds commun de

placement) organised under the laws of the Grand Duchy of Luxembourg

as an unincorporated co-proprietorship of its securities and qualifies as an

undertaking for collective investment in transferable securities (a “UCITS”)

within the meaning of Article 1(2) of the EC Directive 85/611 of 20

December 1985, as amended.

The Emerging Markets Debt Portfolio is denominated in Singapore Dollars. Directives of the European Parliament and of the Council of 21st January, 2002 (2001/107/EC and 2001/108/EC), amending the

Directive 85/611/EEC of the Council on the coordination of laws, regulations and administrative provisions relating to undertakings

for collective investment in transferable securities (“UCITS”).

2 the Manager of the ILP sub-fund and the Underlying Fund

AllianceBernstein L.P. is a leading global investment management firm that offers high-quality research

and diversified investment services to institutional clients, individuals and private clients in major markets

around the world. AllianceBernstein employs more than 400 investment professionals with expertise in

equities, fixed income securities, asset allocation strategies and alternative investments and, through its

subsidiaries and joint ventures, operates in more than 20 countries. AllianceBernstein‟s research

disciplines include fundamental research, quantitative research, economic research and currency

forecasting capabilities. Through its integrated global platform, AllianceBernstein is well positioned to tailor

investment solutions for its clients.

Source: AllianceBernstein L.P.

36


The investment objective and focus of Global Equity Blend and Emerging Markets Debt Portfolio is set out

below:


Global Equity Blend To achieve long-term growth of capital by investing in an equity portfolio that

is designed as a solution for investors who seek equity returns but also want

broad diversification of the related risks across styles, sectors and

geographic regions.


Portfolio

To maximize potential returns from price appreciation and income by

investing in sovereign debt obligations and non-U.S. corporate fixed-income

securities from issuers in emerging and developing countries. The Portfolio

invests in both U.S. dollar and non-U.S. dollar denominated securities. A

significant portion of the portfolios assets may be held in below investment

grade securities at any time. The Investment Manager utilizes the research

of its global fixed income, global economic and global credit teams in

managing the Portfolio.


The investment approach of Global Equity Blend and Emerging Markets Debt Portfolio is set out below:


Global Equity Blend

Global Equity Blend seeks to achieve long-term growth of capital.

Global Equity Blend invests in global equity portfolios that are designed as

solutions for investors who seek equity returns but also want broad

diversification of the related risks across styles, sectors and geographic

regions.

In managing Global Equity Blend, the underlying manager efficiently

diversifies between growth and value equity investment styles. The

underlying manager selects growth and value equity securities by drawing

from a variety of its fundamental growth and value investment disciplines to

produce a blended portfolio.

Normally, the underlying manager‟s targeted allocation for the Global Equity

Blend is an equal weighting of 50% growth stocks and 50% value stocks.

The underlying manager will allow the relative weightings of Global Equity

Blend‟s growth and value components to vary in response to markets, but

ordinarily only within a range of +/- 5% of Global Equity Blend. Beyond those

ranges, the underlying manager will generally rebalance Global Equity Blend

toward the targeted allocation. However, under extraordinary circumstances,

when the underlying manager believes that conditions favoring one or the

other investment are compelling, the range may expand to +/-10% of Global

Equity Blend before rebalancing occurs.


Portfolio

Emerging Markets Debt Portfolio seeks to generate returns in excess of the

benchmark through a combination of country selection, currency allocation,

sector analysis and security selection.

Emerging Markets Debt Portfolio invests in sovereign debt obligations and

non-U.S. corporate fixed-income securities emphasize countries that are

included in the J.P. Morgan Emerging Markets Bond Index Global or are

considered at the time of purchase to be emerging markets or developing

countries. Emerging Markets Debt Portfolio invests at least two-thirds of its

total assets in sovereign and quasi-sovereign (i.e. debt issued by

supranational organizations and other government-related entities) debt

obligations.

37

Emerging Markets Debt Portfolio is non-diversified, meaning it may invest

more of its assets in a fewer number of issuers.

In managing Emerging Markets Debt Portfolio, the underlying manager

expects that at any time at least 80% of the Portfolio's total assets will be

invested in emerging market debt securities, and in no case will the amount

of the Portfolio's total assets invested in such securities be less than two-

thirds of the Portfolio's total assets. Emerging market countries are those

not characterized as high income countries by the World Bank, based on per

capita gross national income.

Furthermore, the Emerging Markets Debt Portfolio will invest no more than

25% of its total assets in convertible bonds, no more than 30% of its total

assets in money market instruments and no more than 10% of its total

assets in equity securities. Fixed-income securities and other assets,

including cash, which the Emerging Markets Debt Portfolio may hold, may

be denominated in various currencies. The Emerging Markets Debt Portfolio

may invest in structured securities (both Investment Grade and non-

Investment Grade) originated by a wide range of originators and sponsors.





Global Equity Blend Higher Risk (Broadly Diversified)


6 fees and charges

No other fees and charges are imposed on Global Equity Blend and Emerging Markets Debt Portfolio

except those reflected on paragraph 7 of the Product Summary Booklet and paragraph 3 of this Fund

Information Booklet.

Although certain fees and charges are imposed on the underlying sub-fund that Global Equity Blend and

Emerging Markets Debt Portfolio invest into, these will be set-off against the Annual Management Fee and

the Fixed Operating Fee that are charged at the ILP sub-fund level.



fund level and the underlying fund level.

7 specific risks

All investments involve risk and the risks inherent to Global Equity Blend and Emerging Markets Debt

Portfolio are set out below:

7.1 Global country risk

Investment in issuers located in a particular country or geographic region may have more market,

political and economic risks because of particular factors affecting that country or region.

7.2 Currency risk

38

Currency movements in the underlying investments of a portfolio that is denominated in a currency

different from that of the portfolio itself may significantly affect the NAV of that portfolio.

7.3 Liquidity risk


authorized advisers. The sub-fund may hold a significant portion of illiquid assets and there could

therefore be a risk arising from the difficulty of selling at a favourable/expected sale price. The sub-

fund may end up selling at lower than expected prices or face difficulties in valuing illiquid securities

and meeting redemption request.


The sub-fund is entitled to use derivatives instruments for hedging and EPM purposes which may

involve addition risks different from, and, in certain cases, greater than, the risks presented by more

traditional investments. Some of the risks associated with derivatives are market risks, management

risk, credit risk, liquidity risk and leverage risk.

In adverse situations, the sub-fund‟s use of derivative instruments may become ineffective in hedging

or EPM and the sub-fund may suffer significant losses.

The failure of counterparty to a derivative contract to comply with the terms of that contract could

cause the sub-fund to suffer a loss.

7.5 Turnover risk

The sub-fund is an actively managed investment fund – a higher rate of portfolio turnover increases

brokerage and other expenses, which must be borne by the sub-fund and its investors.


39

schedule F

Pacific Equity Fund


India Fund


The structure of each of the Pacific Equity Fund and the Singapore Equity Fund is set out below:


Pacific Equity Fund The Pacific Equity Fund is a single ILP sub-fund and invests all or

substantially all of its assets in the Aberdeen Pacific Equity Fund, a sub-

fund under the Singapore domiciled umbrella, Aberdeen Select Portfolio,

managed by Aberdeen Asia.

The Pacific Equity Fund is denominated in Singapore Dollars.

Singapore Equity Fund The Singapore Equity Fund is a single ILP sub-fund managed by Aberdeen

Asset Management Asia Limited (“Aberdeen Asia”).

The Singapore Equity Fund is denominated in Singapore Dollars.

India Fund The India Fund is a single ILP sub-fund and invests all or substantially all of

its assets in the Aberdeen India Opportunities Fund, a sub-fund under the

Singapore domiciled umbrella, Aberdeen Select Portfolio, managed by

Aberdeen Asia.

The India Fund is denominated in Singapore Dollars.

2 the Manager of the ILP sub-funds and the Underlying Fund

Aberdeen Asset Management Asia Limited (“Aberdeen Asia”), a wholly-owned subsidiary of the Aberdeen

Asset Management Group (the “Aberdeen Group”), was established in Singapore in May 1992, as the

regional headquarters of the Aberdeen Group to oversee all of its Asia-Pacific assets, including collective

investment schemes. As at 31 December 2012, Aberdeen Asia had over US$113.7 billion worth of assets

under its management.

The Aberdeen Group

The roots of the Aberdeen Group go back to 1983, when it was formed by a management buy-out. Over the

years, the Aberdeen Group has undergone a series of transformations, but retained its identity as a pure

asset manager. Worldwide, the Aberdeen Group managed over US$314.3 billion as at 31 December 2012

in assets for institutional and retail clients, across different mandate types - equity, fixed income, private

equity and direct property. The Aberdeen Group‟s headquarters are in Aberdeen, Scotland, with principal

investment centres (Edinburgh, London, Philadelphia and Singapore) in the three main time zones. Within

Asia, the Aberdeen Group has offices in Singapore, Hong Kong, Thailand, Malaysia, Australia, Japan and

Taiwan, plus representation in China and Korea. Aberdeen Asset Management PLC was listed on the

London Stock Exchange in 1991.

Source: Aberdeen Asset Management Asia Limited.

40


The investment objective and focus of each of the Pacific Equity, Singapore Equity Fund and India Fund are

set out below:


Pacific Equity Fund To provide investors with medium to long-term capital growth from a

diversified portfolio of Asian-Pacific (excluding Japanese) equities.

The Pacific Equity Fund currently seeks to achieve its investment objective

by investing all or substantially all of its assets in the Aberdeen Pacific

Equity Fund.

Singapore Equity Fund To provide investors with medium to long-term capital growth from a

portfolio of Singapore equities.

India Fund Aims to achieve long term capital growth by investing all or substantially all

of its assets in the Aberdeen Global – Indian Equity Fund* (the “underlying

fund”), a sub-fund of the Luxembourg-registered Aberdeen Global, which

invests at least two-thirds of its assets in equities and equity-related

securities of companies with their registered office in India; and/ or, of

companies which have the preponderance of their business activities in

India; and/or, of holding companies that have the preponderance of their

assets in companies with their registered office in India.

The current investment policy of the underlying fund, into which the

Aberdeen India Opportunities Fund feeds, is to invest in India via a

Mauritian subsidiary. Investors should refer to the prospectus for further

information on the Mauritian subsidiary.


The investment approach of each of the Pacific Equity Fund and India Fund are set out below:


Pacific Equity Fund

India Fund

The Manager‟s and the investment managers‟ investment philosophy is that

markets are not always efficient. Superior returns are therefore attainable

by identifying good securities (defined in terms of the fundamentals which

the Manager believes will drive stock prices over the long term) cheaply.

This is achieved primarily through first-hand research and active

management of portfolios.

In emphasizing the primacy of corporate performance, the Manager and the

investment managers tend to disregard the role of indices and the concept

of relative return. Market capitalization appears an unsound theoretical

basis for a „neutral‟ portfolio position, being an inherently historical

construct, while consensus-driven demand is potentially distorting. Absolute

return is held to be more important over the long term, with risks controlled

primarily at the security level.

In respect of the Aberdeen Pacific Equity Fund, the underlying fund of the Pacific Equity Fund, the

manager‟s policy is to invest all or substantially all of the assets of the Aberdeen Pacific Equity Fund as a

feeder fund to invest in the equity-based Asia Pacific sub-funds in the same umbrella, the Aberdeen Select

Portfolio, and up to 10% in the Aberdeen Global – Indian Equity Fund, a sub-fund of the Luxembourg

domiciled Aberdeen Global.

For the Aberdeen India Opportunities Fund will invest all or substantially all of its assets in the Aberdeen

Global – Indian Equity Fund*, the Underlying Fund, which invests at least two-thirds of its assets in equities

and equity-related securities of companies with their registered office in India; and/ or, of companies which

41

have the bulk of their business activities in India; and/or, of holding companies that have the bulk of their

assets in companies with their registered office in India.


5 CPF investment scheme Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:


Pacific Equity Fund Higher Risk (Narrowly Focused – Regional, Asia)


Singapore Equity Fund Higher Risk (Narrowly Focused – Country, Singapore)


India Fund Higher Risk (Narrowly Focused – Country, Others)


6 fees and charges

No other fees and charges are imposed on each ILP sub-fund covered under this schedule except those


Booklet.

Although certain fees and charges are imposed on the underlying fund(s) that the ILP sub-fund(s) invest

into or charged by the Manager of the ILP sub-fund, these will be set-off against the Annual Management

Fee and the Fixed Operating Fee that are charged at the ILP sub-fund level.



fund level and the underlying fund or manager level.

7 specific risks

All investments involve risk and the risks inherent to the Aberdeen Pacific Equity Fund, Singapore Equity

Fund and the Aberdeen India Opportunities Fund (collectively the “Funds”) are set out below:

General Risks

The value of the Funds may rise or fall. Investments in the Funds are subject to various risks such as

market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange

controls, changes in taxation and foreign investment policies and other restrictions and controls which

may be imposed by the relevant authorities in other countries. The risk factors set out herein may

cause you to lose some or all of your investment. These risks are elaborated upon below.

7.1 Market Risk

The usual risks of investing in listed and unlisted securities apply. Prices of securities may rise or fall in

response to changes in economic conditions, political conditions, interest rates, and market sentiment.

These may cause the price of Units in the Underlying Funds to go up or down as the price of Units is

based on the current market value of the investments of the Funds.

7.2 Political Risk

The Funds invests in countries with less stable political and economic environments and in securities‟

markets with lower levels of regulation and different accounting, commercial and market practices

than those of acceptable international standards are likely to increase the overall risk of the Funds.

42

7.3 Liquidity Risk

The securities markets of some countries lack the liquidity, efficiency, regulatory and supervisory

controls of more developed markets. The lack of liquidity may adversely affect the value or ease of

disposal of assets, thereby increasing the risk of investing in such markets.

7.4 Settlement Risk/Transactions Risk

The property of the Aberdeen Pacific Equity Fund and the Aberdeen India Opportunities Fund are held

by the Trustee on behalf of the Holders, separate from the Trustee‟s assets. It is therefore protected in

the event of the insolvency of the Trustee. There is, however, still a risk that there may be a temporary

delay in subscriptions and redemptions of the Units.

7.5 Regulatory Risk

The investment objectives and parameters of the Funds are restricted by applicable legislation and

regulatory guidelines. There may be a risk that legislative or regulatory changes may make it less likely

for the Funds to achieve their objectives.

7.6 Currency Risk/Exchange Rate Risk

The assets and income of the Funds will be substantially denominated in currencies other than the

Singapore dollar. Currency fluctuations between foreign currencies and the Singapore dollar may affect

the income and valuation of the assets of the Funds in ways unrelated to business performance.

Investors should note that the Manager generally does not hedge the currency position of the Funds

unless circumstances require it.

7.7 Taxation

Investors should note that the proceeds from the sale of securities in some markets or the receipt of

any dividends or other income may be or may become subject to tax, levies, duties or other fees or

charges imposed by the authorities in that market, including taxation levied by withholding at source.

Tax law and practice in certain countries into which the Funds invest or may invest in the future (in

particular other emerging markets) is not clearly established. It is possible therefore that the current

interpretation of the law or understanding of practice might change, or that the law might be changed

with retrospective effect. It is therefore possible that the Funds could become subject to additional

taxation in such countries that is not anticipated either at the date of this Fund Summary or when

investments are made, valued or disposed of.

7.8 Repurchase/Reverse Repurchase or Securities Lending Agreements

Whilst the value of the collateral of repurchase or securities lending agreements will be maintained to

at least equal to the value of the securities transferred, in the event of a sudden market movement

there is a risk that the value of such collateral may fall below the value of the securities transferred.

In relation to repurchase transactions, investors should note that (A) in the event of the failure of the

counterparty with which cash of the Funds have been placed, there is the risk that collateral received

may yield less than the cash placed out, whether because of inaccurate pricing of the collateral,

adverse market movements, a deterioration in the credit rating of issuers of the collateral, or the

illiquidity of the market in which the collateral is traded; that (B) (i) locking cash in transactions of

excessive size or duration, (ii) delays in recovering cash placed out, or (iii) difficulty in realising

collateral may restrict the ability of the Funds to meet redemption requests, security purchases or,

more generally, reinvestment; and that (C) repurchase transactions will, as the case may be, further

expose the Funds to risks similar to those associated with optional or forward derivative financial

instruments, which risks are further described in other sections of the Aberdeen Select Prospectus.

Securities lending involves counterparty risk, including the risk that the loaned securities may not be

returned or returned in a timely manner and/or at a loss of rights in the collateral if the borrower or

the lending agent defaults or fails financially. This risk is increased when the Funds‟ loans are

concentrated with a single or limited number of borrowers. Investors must notably be aware that (A) if

the borrower of securities lent by the Funds fail to return these, there is a risk that the collateral

received may realise less than the value of the securities lent out, whether due to inaccurate pricing,

adverse market movements, a deterioration in the credit rating of issuers of the collateral, or the

illiquidity of the market in which the collateral is traded; that (B) in case of reinvestment of cash

collateral such reinvestment may (i) create leverage with corresponding risks and risk of losses and

volatility, (ii) introduce market exposures inconsistent with the objectives of the Funds, or (iii) yield a

43

sum less than the amount of collateral to be returned; and that (C) delays in the return of securities

on loans may restrict the ability of the Funds to meet delivery obligations under security sales.

7.9 Potential Conflicts of Interest

The Manager and other companies in the Aberdeen Group may effect transactions in which they

have, directly or indirectly, an interest which may involve potential conflicts with their duty to the

Funds. Neither the Manager nor other companies in the Aberdeen Group shall be liable to account to

the Funds for any profit, commission or remuneration made or received from or by reason of such

transactions or any connected transactions nor will the Manager‟s fees, unless otherwise provided,

be abated. The Manager will ensure that such transactions are effected on terms which are not less

favourable to the Funds than if the potential conflict had not existed. Such potential conflicting

interests or duties may arise because the Manager or other members in the Aberdeen Group may

have invested directly or indirectly in the Funds. More specifically, the Manager, under the rules of

conduct applicable to it, must try to avoid conflicts of interests and, where they cannot be avoided,

ensure that its clients (including the Underlying Sub-Funds) are fairly treated.

7.10 Derivative Usage

The Funds may use financial derivative instruments for the purposes of hedging and/or efficient

portfolio management to the extent permitted in the Aberdeen Select Portfolio Trust Deed. In no

event are financial derivative instruments used to lever the Funds.

Total Derivatives Exposure

The Manager will ensure for the Funds that its exposure relating to financial derivative instruments

does not exceed the total net value of its portfolio. The Manager will ensure that the global exposure

of the Funds to financial derivative instruments or embedded financial derivative instruments will

not exceed 100% of the net asset value of the Funds at all times. Such exposure will be calculated

using the commitment approach as described in, and in accordance with the provisions of, the Code

of Investment Collective Scheme issued by the MAS (“Code”).

Execution of Trades

An automated trading system provides for the capture of orders from the fund manager for

transmission to an independent dealing function which facilitates management of the dealing

process and, once executed, onward transmission to the back office trade processing function. It is

used for the execution of fixed and equity securities, exchange-traded derivatives and OTC

derivatives (as defined in paragraph (7.12) below).

Investors should note that there are risks associated with the use of such financial derivative

instruments. Some of the risks associated with financial derivative instruments include market risk

(described in paragraph (7.1)), liquidity risk (described in paragraph (7.3)) and counterparty risk

(described in paragraph (7.12)). Therefore, it is essential that investments in financial derivative

instruments are monitored closely. Description of risk management and compliance procedures and controls adopted by the Manager An electronic Compliance Guideline Monitoring system, which is integrated within the trading

platform, gives pre-deal alerts to fund managers and post-deal exception reports to the Compliance

Department in respect of actual and potential breaches of regulations and guideline restrictions.

This includes total derivatives exposure and counterparty exposure. The Compliance Guideline

Monitoring system is maintained independently of the fund managers by the Compliance

Department. Monitoring for derivatives and physical assets takes place on a pre-trade basis.

The Manager will ensure that the risk management and compliance procedures and controls

adopted are adequate and have been implemented and that it has the necessary expertise to

control and manage the risks relating to the use of financial derivatives.

7.11 Counterparty Risk Where financial derivative instruments are dealt in over-the-counter markets (“OTC derivatives”),

there is a risk that the counterparty may default. It may be necessary to make payment on a

purchase or delivery on a sale before receipt of the securities or, as the case may be, sale proceeds.

44

Subject to the provisions of the Code:

(a) the risk exposure of the Funds to a counterparty in an OTC derivative transaction may not

exceed 10% of its net assets when the counterparty is a credit institution, which has its

registered office in a country which is a EU Member State or if the registered office of the credit

institution is situated in a non-EU Member State provided that it is subject to prudential rules

equivalent to those in EU Member States; and

(b) the Funds are restricted to dealing with OTC counterparties, which are rated between AAA and A-

(S&P/Fitch) or Aaa and A3 (Moody‟s), such ratings as may be allowed by the Code, as may be

amended from time to time. Where multiple external ratings are available, if there is discrepancy

between ratings, the most recently published rating is used. If the rating dates are equal, the

lower of the two ratings is used. In the case that external rating falls below the relevant A-/A3

rating requirement, the OTC counterparty is rated internally using AAM credit model, which

covers both quantitative and qualitative information from a number of sources, i.e. data from

audited financial statements, market-based risk metrics Credit Default Swap (CDS) and

Expected Default Frequency (EDF), and qualitative assessments of counterparty‟s business,

leadership, risk management, regulatory oversight and competitive dynamics.

7.12 Capacity Restrictions

There is a possibility that the Funds may be closed to new subscriptions without prior notice to its

holders in certain circumstances, for instance, where the Funds have reached a size such that the

capacity of the market and/or the capacity of the relevant investment adviser/sub-manager has

been reached, and where to permit further inflows would be detrimental to the performance of the

Funds. In such case, the Manager may also need to restrict or close new subscriptions or switches

into the Funds.

The risk disclosures included in this section are intended to summarise some of the general risks

associated with investment in the Funds, but they are not exhaustive and do not constitute or

purport to offer advice on the suitability of investment in the Funds. Investors should consult their

financial advisors.

(a) Investments in the Funds are designed to produce returns over the long-term and are not

suitable for short-term speculation. Investors should not expect to obtain short-term gains from

such investment.

(b) Investors should be aware that the price of Units in the Funds and the income of the Funds may

fall or rise. Investors may not get back their original investment.

7.13 Specific Risks In addition to the general risk factors set out above, potential investors should be aware of certain fund specific risks as set out below: Pacific Equity Fund

(a) Exposure to specific regional markets increases potential volatility because the concentration in

specific regional markets makes the Funds less diversified compared to exposure to global markets.

(b) Exposure to emerging markets increases potential volatility in your portfolio as emerging markets

tend to be more volatile than mature markets and the value of underlying investments could move

sharply up or down. In some circumstances, the underlying investments may become illiquid which

may constrain the Funds‟ investment managers‟ ability to realise some or all of the assets. The

registration and settlement arrangements in emerging markets may be less developed than in more

mature markets so the operational risks of investing in emerging markets are also higher. In addition,

the legal, judicial and regulatory infrastructures in emerging markets are still developing and political

risks and adverse economic circumstances are also more likely to arise.

(c) Investment in the Aberdeen Pacific Equity Fund which invests in investments in China is subject to

certain additional risks. Investments in local Chinese securities are done through the use of a

Qualified Foreign Institutional investor ("QFII") licence and the QFII licence holder‟s name is used to

set up nominee accounts for which the securities and other assets are held on behalf of the relevant

underlying sub-funds. There is a risk that creditors of the QFII may attempt to assert that the

securities and other assets in the nominee accounts are owned by the QFII and not the relevant

45

underlying sub-fund. If a court upholds such an assertion, the creditors of the QFII may seek payment

from the assets of the relevant underlying sub-funds which could in turn affect the net asset value of

the Underlying Fund


(a) Exposure to a single country market increases potential volatility because the concentration in a

single country market makes it less diversified compared to an exposure to specific regional or

global markets

India Fund

(a) Exposure to a single country market increases potential volatility as it is less diversified compared to

exposure to specific regional or global markets

(b) Exposure to emerging markets increases potential volatility in your portfolio as the legal, judicial and

regulatory infrastructure in emerging markets is still developing and there is much legal uncertainty

both for local market participants and their overseas counterparts.

For efficient portfolio management purposes, a wholly-owned Mauritian subsidiary is utilised by Aberdeen

Global to hold all the investments of the Aberdeen Global – Indian Equity Fund, into which the Aberdeen

India Opportunities Fund and Aberdeen Pacific Equity Fund feed. Mauritius is a widely used jurisdiction for

investing on a collective basis into India and has developed an infrastructure to support such vehicles

encompassing the full range of administration services. The Mauritian subsidiary is governed by the

provisions of the India-Mauritius Double Taxation Avoidance Treaty. If it is no longer beneficial to invest

through the Mauritian subsidiary, the Aberdeen Pacific Equity Fund may elect to invest directly in India.


46

schedule G

Singapore Bond Fund


The structure of the Singapore Bond Fund is set out below:


Singapore Bond Fund

You are investing in an ILP sub-fund that feeds 100% into United Singapore

Bond fund, a unit trust constituted in Singapore, that aims to maximise

returns over the longer term by investing mainly in SGD-denominated

bonds and/or foreign currency-denominated bonds (including, without

limitation, zero coupon bonds, callable bonds, equity linked bonds and

convertible bonds) and fixed income/debt securities of all maturities

issued in Singapore by the government, statutory bodies, public and private

entities, SGD-denominated and/or foreign currency denominated money

market instruments, bond funds (including funds managed by the

Managers) and/or time deposits in accordance with the CPF Investment

Guidelines. There is no target industry or sector.

The initial purchase price of the ILP sub-fund is set at SGD 1.00 at launch.

2 the Manager of the ILP sub-funds and the Underlying Fund

UOBAM is a wholly-owned subsidiary of UOB Group. Established in 1986, UOBAM has been managing

collective investment schemes and discretionary funds in Singapore for 27 years and as of 30 April 2013

manages about S$27.2 billion in clients' assets. UOBAM also has investment operations in Malaysia and

Thailand.

UOBAM offers global investment management expertise to institutions, corporations and individuals,

through customised portfolio management services and unit trusts. As at 30 April 2013, UOBAM manages

53 unit trusts in Singapore, with total assets of about S$27.2 billion under management. UOBAM is one of

the largest unit trust managers in Singapore in terms of assets under management.

In terms of market coverage, UOBAM has acquired specialist skills in equity investment in Asian,

Australian, European and US markets and in major global sectors. In the bond markets, UOBAM covers the

Organisation of Economic Co-operation and Development (OECD) countries to emerging markets. UOBAM's

investment philosophy is to emphasise on securities selection using a bottom-up approach. UOBAM makes

regular company visits and supplements its fundamental investment approach with quantitative tools to

control risks and to aid in the portfolio construction process. UOBAM has also established itself as one of

the leading players in structured credits and investment solutions, managing third party investments in

global emerging market securities as well as global investment grade, non-investment grade and multi-

sector credits.

In addition, UOBAM is committed to achieving consistently good performance. Since 1996, UOBAM has

won 125 awards for investments in local, regional and global markets, and across global sectors such as

Banking and Finance, Technology, Healthcare, as well as Gold and Mining.

As at 30 April 2013, UOBAM and its subsidiaries in the region have a staff strength of over 240 including

about 60 investment professionals in Singapore.

Source: UOBAM.

47


The investment objective and focus of the Singapore Bond Fund is set out below:


Singapore Bond Fund The investment objective of the Singapore Bond Fund is to maximise returns

over the longer term by investing mainly in SGD-denominated bonds and/or

foreign currency-denominated bonds (including, without limitation, zero

coupon bonds, callable bonds, equity-linked bonds and convertible bonds)

and fixed income/debt securities of all maturities issued in Singapore by the

government, statutory bodies, public and private entities, SGD denominated

and/or foreign currency-denominated money market instruments, bond

funds (including funds managed by the Managers) and/or time deposits in

accordance with the CPF Investment Guidelines. There is no target industry

or sector.


The investment approach of the Singapore Bond Fund is set out below:


Singapore Bond Fund

The investment process is principally driven by the Managers‟ assessment

on the fundamental factors which they consider to be important to the

direction of both interest rates and exchange rates. The process involves a

top down approach supplemented by bottom up analysis to arrive at the

final asset allocation.

The sub-fund may use or invest in financial derivative instruments for the

purposes of hedging existing positions in a portfolio or efficient portfolio

management or a combination of both purposes.

Source: UOBAM.

5 fees and charges



Booklet.







48

6 CPF Investment Scheme

The risk classification and inclusions under the CPF Investment Scheme (CPFIS) for the Singapore Bond Fund is:


Singapore Bond Fund Low to Medium Risk

(Narrowly Focused)



7 specific risks

All investments involve risk and the risks inherent to Singapore Bond Fund are set out below:

7.1 Market risk

Investors in the sub-fund should consider and satisfy themselves as to the usual risks of investing

and participating in publicly traded securities. Prices of securities may go up or down in response

to changes in economic conditions, interest rates and the market‟s perception of securities which

in turn may cause the value of units in the sub-fund to rise or fall.

Furthermore, some of the markets or exchanges on which the sub-fund may invest may prove to

be illiquid or highly volatile from time to time and this may affect the price at which the sub-fund

may liquidate its positions to meet realisation requests.

7.2 Foreign exchange / currency risk

Where investments of the sub-fund are denominated in currencies other than the currency in

which the sub-funds or any Class thereof are denominated, fluctuations of the exchange rates of

other foreign currencies against the Singapore Dollar or the US Dollar (as the case may be) may

affect the value of the units. In the management of the sub-fund, the Managers adopt an active

currency management approach. However, the foreign currency exposure of any sub-fund may not

be fully hedged depending on circumstances of each case. Such considerations include but are

not limited to the outlook on the relevant currency, the costs of hedging and the market liquidity of

the relevant currency.

Additionally, a sub-fund may have Classes of Units that are denominated in currencies other than

the base currency of the sub-fund. Changes in the exchange rate between the base currency of the

sub-fund and the currency of denomination of any such Class may lead to a depreciation of the

value of the Units of such Class, as expressed in the currency of denomination of the Class. The

Managers may hedge against such exchange rate risks. Where a class of units in a sub-fund is

designated in a currency other than the base currency of the sub-fund, the Manager may or may

not mitigate the exchange rate risks to extent of the value of the assets of the sub-fund attributed

to such Class by hedging such exchange rate risks. Investors should note that although the

financial instrument used to mitigate such exchange rate risks is not in relation to the other

Classes of Units within the sub-fund, the financial instrument will comprise the assets (or

liabilities) of the sub-fund as a whole. The gains (or losses) on and the costs of the relevant

financial instruments will, however, accrue solely to the relevant Class of Units of the sub-fund.

Exchange control regulations or any changes thereto may cause difficulties in the repatriation of

funds, and the performance of the sub-funds‟ holdings may be affected. Certain countries

maintain their currencies at artificial levels relative to the Singapore Dollar or the US Dollar (as the

case may be), and restrict conversion of their currency into other currencies, including the

Singapore Dollar or the US Dollar (as the case may be), and for some currencies, there is no

significant foreign exchange market. This type of system can lead to sudden and large

adjustments in such currency, which can result in losses to investors.

7.3 Political risk

Investments in each sub-fund may be adversely affected by political instability as well as exchange

controls, changes in taxation, foreign investment policies, restrictions on repatriation of

investments and other restrictions and controls which may be imposed by the relevant authorities

in the relevant countries.

49


As the sub-fund may be investing in derivatives for efficient portfolio management or hedging it will

be subject to risks associated with such investments. These derivatives include foreign exchange

forward contracts and equity index futures contracts. Investments in derivatives may require the

deposit of initial margin and additional deposit of margin on short notice if the market moves

against the investment positions. If no provision is made for the required margin within the

prescribed time, the relevant sub-fund‟s investments may be liquidated at a loss. Therefore, it is

essential that such investments in derivatives are monitored closely. The Managers have the

necessary controls for investments in derivatives and have in place systems to monitor the

derivative positions of the sub-fund.

Risk management procedures of the Managers

(a) The Managers may use or invest in financial derivative instruments (“FDIs” or “derivatives”) for

the purposes of hedging existing positions in a portfolio or efficient portfolio management or a

combination of both purposes.

(b) The Managers will ensure that the global exposure of each sub-fund to FDIs or embedded FDIs

will not at any time exceed 100% of the Net Asset Value of the Deposited Property of the relevant

sub-fund. The Managers will apply a commitment approach to determine the relevant sub-fund‟s

global exposure to FDIs by converting the positions in the FDIs into equivalent positions in the

underlying assets of those FDIs and will calculate such exposure in accordance with the methods

described in the Code on Collective Investment Schemes.

(c) Description of risk management and compliance procedures and controls adopted by the

Managers:

(i) The Managers will implement various procedures and controls to manage the risk of the assets

of each sub-fund. The decision to invest in any particular security or instrument on behalf of a sub-

fund will reflect the Managers‟ judgment of the benefit of such transactions to the relevant sub-

fund and will be consistent with the relevant sub-fund‟s investment objective in terms of risk and

return.

(ii) Execution of Trades. Prior to each trade, the Managers will ensure that the intended trade will

comply with the stated investment objective, focus, approach and restrictions (if any) of the

relevant sub-fund, and that best execution and fair allocation of trades are done. The Managers‟

middle office department will conduct periodic checks to ensure compliance with the investment

objective, focus, approach and restrictions (if any) of the relevant sub-fund. In the event of any

non-compliance, the Managers‟ middle office department is empowered to instruct the relevant

officers to rectify the same. Any non-compliance will be reported to higher management and

monitored for rectification.

(iii) Liquidity. In the event of unexpectedly large realisations of units in a sub-fund, there may be a

possibility that the assets of a sub-fund may be forced to be liquidated at below their fair and

expected value, especially in illiquid public exchanges or over-the-counter markets. The Managers

will ensure that a sufficient portion of each sub-fund will be in liquid assets such as cash and cash

equivalents to meet expected realisations, net of new subscriptions.

(iv) Counterparty exposure. A sub-fund may have credit exposure to counterparties by virtue of

positions in financial instruments (including derivatives) held by the relevant sub-fund. To the

extent that a counterparty defaults on its obligations and the relevant sub-fund is delayed or

prevented from exercising its rights with respect to the investments in its portfolio, it may

experience a decline in the value of its assets and in its income stream and incur extra costs

associated with the exercise of its financial rights. Subject to the provisions of the Code on

Collective Investment Schemes, the Managers will restrict their dealings with counterparties to

entities that have a minimum long-term issuer credit rating of above BB+ by Standard and Poor‟s,

an individual rating of above C by Fitch Inc. or a financial strength rating of above C by Moody‟s

Investors Service. If any approved counterparty fails this criterion subsequently, the Managers will

take steps to unwind the relevant sub-fund‟s position with that counterparty as soon as

practicable.

50

(v) Volatility. To the extent that a sub-fund has exposure to FDIs that allow a larger amount of

exposure to a security for no or a smaller initial payment than the case when the investment is

made directly into the underlying security, the value of the relevant sub-fund‟s assets will have a

higher degree of volatility. A sub-fund may use FDIs for hedging purposes for reducing the overall

volatility of the value of its assets. At the same time, the Managers will ensure that the global

exposure of a sub-fund to FDIs and embedded FDIs will not exceed the Net Asset Value of that

sub-fund, as stated in paragraph (b) above.

(vi) Valuation. A sub-fund may have exposure to over-the-counter FDIs that are difficult to value

accurately, particularly if there are complex positions involved. The Managers will ensure that

independent means of verifying the fair value of such instruments are available, and will conduct

such verification at an appropriate frequency.

(d) The Managers will ensure that the risk management and compliance procedures and controls

adopted by them are adequate and have been implemented, and that they have the necessary

expertise to control and manage the risks relating to the use of FDIs. The Managers may modify

the risk management and compliance procedures and controls as they deem fit and in the

interests of each sub-fund, but subject always to the requirements under the Code on Collective

Investment Schemes.

(e) For the purposes of determining its counterparty exposure under over-the-counter FDIs, each

sub-fund may net its over-the-counter financial derivative positions with a counterparty through

bilateral contracts for novation or other bilateral agreements with the counterparty, provided that

such netting arrangements satisfy the relevant conditions described in the Code on Collective

Investment Schemes, and that the Managers will obtain (where applicable) the required legal

opinions as stipulated in the Code on Collective Investment Schemes.

(f) Where the underlying asset of a FDI consists of commodities, such FDI transaction will be

settled in cash at all times.

7.5 Liquidity risk

Investments by the sub-fund in some Asian and/or emerging markets often involve a greater

degree of risk due to the nature of such markets which do not have fully developed services such

as custodian and settlement services often taken for granted in more developed markets. There

may be greater degree of volatility in such markets because of speculative elements, significantly

lower retail participation and lack of liquidity, which are inherent characteristics of these Asian

and/or emerging markets.

7.6 Default/credit risks

Investments in debt securities are subject to adverse changes in the financial condition of the

issuer, or in general economic conditions, or both, or an unanticipated rise in interest rates, which

may impair the ability of the issuer to make payments of interest and principal especially if the

issuer is highly leveraged. Such issuer‟s ability to meet its debt obligations may also be adversely

affected by specific corporate developments, or the issuer‟s inability to meet specific projected

business forecasts, or the unavailability of additional financing. Also, an economic downturn or an

increase in interest rates may increase the potential for default by the issuers of these securities.


Investments in debt securities are also subject to the risk of interest rate fluctuations, and the

prices of debt securities may go up or down in response to such fluctuations in interest rates.

7.8 Structured products risk

The sub-fund may, directly or indirectly, invest in structured products that provide exposure,

synthetically or otherwise, to underlying assets and the risk/return profile is determined by the

cash flows derived from such assets. Structured products generally involve multiple components

(for example, derivatives and debt instruments) and are therefore exposed to the risks associated

with such components. The price of such an investment could also be contingent on, or highly

sensitive to, changes in the underlying components of the structure product. Some structured

products may employ leverage which can cause the price of such products to be more volatile

than if they had not employed leverage.

51

7.9 Counterparty risk

The sub-fund will be exposed to credit risk on the counterparties with which it trades particularly in

relation to options, futures, contracts and other derivative financial instruments that are not

traded on a recognised market. Such instruments are not afforded the same protections as may

apply to participants trading futures or options on organised exchanges, such as the performance

guarantee of an exchange clearing house. The sub-fund will be subject to the possibility of the

insolvency, bankruptcy or default of a counterparty with which the sub-funds trade, which could

result in substantial losses to the sub-fund.

7.10 Real estate risk

As the sub-fund may invest in real estate investment trust companies, this may entail a higher risk

as real estate investments are subject to risks which are specific to the investment sector or type

of property in which the real estate companies operate or are involved in.

7.11 Exceptional market conditions

Under certain market conditions, it may be difficult or impossible to liquidate or rebalance

positions. For example, this may occur during volatile markets or crisis situations or where trading

under the rules of the relevant stock exchange is suspended, restricted or otherwise impaired.

During such times, the sub-fund may be unable to dispose of certain assets due to thin trading or

lack of a market or buyers. Placing a stop loss order may not necessarily limit a sub-fund‟s losses

to intended amounts as market conditions may make it impossible to execute such an order at the

ideal price. In addition, such circumstances may force a sub-fund to dispose of assets at reduced

prices, thereby adversely affecting that sub-fund‟s performance. Further, such investments may be

difficult to value with any degree of accuracy or certainty. The dumping of securities in the market

could further deflate prices. If the sub-fund incurs substantial trading losses, the need for liquidity

could rise sharply at the same time that access to liquidity is impaired. Further, in a market

downturn, the sub-fund‟s counterparties‟ financial conditions could be weakened, thereby

increasing that sub-fund‟s credit risk.

7.12 Risk of using rating agencies and other third parties

Credit ratings of instruments invested into by a sub-fund represent the Managers‟ and/or rating

agencies‟ opinion regarding the credit quality of the instrument or the institution and are not a

guarantee of quality. Rating methodologies generally rely on historical data, which may not be

predictive of future trends and adjustments to credit ratings in response to subsequent change of

circumstances may take time. When a debt security is rated, the downgrading of such debt

security could decrease the value and liquidity of the security. The Managers are entitled to rely,

without independent investigation, upon pricing information and valuations furnished to a sub-

fund by third parties, including pricing services and independent brokers/dealers. Their accuracy

depends on these parties‟ methodology, due diligence and timely response to changing

conditions. The Managers cannot be held responsible for any failures by such parties in their

valuations.

7.13 Repatriation of capital, dividends, interest and other income risks

It may not be possible for the sub-fund to repatriate capital, dividends, interest and other income

from certain countries, or it may require government consent to do so. The sub-fund could be

adversely affected by the introduction of the requirement for any such consent, or delays in or the

failure to grant any such consent, for the repatriation of funds or by any official intervention

affecting the process of settlement of transactions which may in turn affect the repatriation of

funds. Economic or political conditions could lead to the revocation or variation of consent granted

prior to investment being made in any particular country or to the imposition of new restrictions.

7.14 Settlement, clearing and registration risks

Some of the countries in which the sub-fund may invest are undergoing rapid expansion. There

can be no guarantee of the operation or performance of settlement, clearing and registration of

transactions in some of these markets. Where organised securities markets and banking and

telecommunications systems are underdeveloped, concerns inevitably arise in relation to

settlement, clearing and registration of transactions in securities where these are acquired other

than as direct investments. Furthermore, due to the local postal and banking systems in many less

developed markets, no guarantee can be given that all entitlements attaching to quoted and over-

the-counter traded securities acquired by the sub-fund, including those related to dividends, can

be realised. Some markets currently dictate that a local prime broker receives monies for

52

settlement by a number of days in advance of settlement, and that assets are not transferred until

a number of days after settlement.

7.15 Actions of institutional investors

The Managers may accept subscriptions from institutional investors and such subscriptions may

constitute a large portion of the total investments in a sub-fund. Whilst these institutional

investors will not have any control over the Managers‟ investment decisions, the actions of such

investors may have a material effect on the relevant sub-fund. For example, substantial

realisations of units by an institutional investor over a short period of time could necessitate the

liquidation of the relevant sub-fund‟s assets at a time and in a manner which does not provide the

most economic advantage to the sub-fund and which could therefore adversely affect the value of

the sub-fund‟s assets.

Source: UOBAM.

53

schedule H




The structure of Singapore Dollar Fund and South East Asia Special Situations Trust are set out below:


Singapore Dollar Fund The Singapore Dollar Fund is a single ILP sub-fund and invests all or

substantially all of its assets in the Legg Mason Western Asset Singapore

Dollar Fund, a sub-fund under the Singapore constituted open–ended

umbrella unit trust, Legg Mason Western Asset Funds, managed by

Western Asset Management Company Pte Ltd (WAMCPL).

The Singapore Dollar Fund is denominated in Singapore Dollars and will

not provide any income distribution. It is not offered to AXA‟s policyholder

for new business (including top-ups and recurring single premiums), and is

only available via fund switching from existing AXA‟s INSPIRETM ILP sub-

funds.

South East Asia Special

Situations Trust

The South East Asia Special Situations Trust is a single ILP sub-fund and

invests all or substantially all of its assets in the Legg Mason Western Asset

Southeast Asia Special Situations Trust, a Singapore-constituted open-

ended unit trust managed by Western Asset Management Company Pte Ltd

(WAMCPL) and sub-managed by Havenport Asset Management Pte Limited.

The South East Asia Special Situations Trust is denominated in Singapore

Dollars and will not provide any income distribution.

2 the Manager

Western Asset Management Company Pte Ltd (“WAMCPL”) is an ultimately wholly-owned subsidiary of Legg

Mason, Inc. (“Legg Mason”), a U.S. financial services holding company that provides asset management

services through its subsidiaries. Legg Mason has assets of US$664.6 billion under management as of 31

March 2013. Assets include broad range of financial instruments such as global equities, fixed interest

securities, and currencies.

WAMCPL advises and manages an extensive range of investments on behalf of institutions and individuals.

Through unit trusts and separate account management, WAMCPL provides investors with access to fixed

interest and currency investment opportunities that seek to add value and control risk. WAMCPL has been

managing collective investment schemes in Singapore since 2003. As at 31 March 2013, WAMCPL

managed approximately US$4.56 billion of assets on behalf of institutional and retail clients.

Havenport Asset Management Pte Ltd (“Havenport”) has been appointed as the sub-manager of the

underlying fund Legg Mason Western Asset Southeast Asia Special Trust. Havenport is an independent

employee-owned company incorporated in Singapore on 20 July 2010 and whose founders were

executives of Legg Mason Asset Management Singapore Pte. Limited. Havenport is focused on managing

Asian equity mandates for a broad spectrum of clients. The key investment personnel of Havenport have

been managing collective investment schemes in Singapore since 1995.

WAMCPL has appointed Legg Mason Asset Management Singapore Pte. Limited as the principal distributor

for the underlying sub-funds. Legg Mason Asset Management Singapore Pte Limited, also an ultimately

wholly owned subsidiary of Legg Mason, is authorized to market, promote, offer and arrange for sale and

redemption of shares/units in the underlying sub-funds.


54


The investment objectives and focus of Singapore Dollar Fund and the South East Asia Special Situations

Trust are set out below:


Singapore Dollar Fund To invest as a money market fund, in Singapore Dollar denominated money

market instruments and debt securities to achieve a return above short-

term cash deposit whilst managing liquidity and risk to preserve capital.

The Singapore Dollar Fund does not intend to invest in derivatives.


Situations Trust

To achieve medium to long-term capital appreciation by investing at least

70% of the underlying fund in securities issued by companies that are

incorporated, domiciled or listed, or have a significant economic interest, in

South and South-east Asia countries.


The investment approach of Singapore Dollar Fund is set out below:


Singapore Dollar Fund Western Asset Management Company Pte. Ltd will, through the Underlying

sub-fund, invest in Singapore Dollar denominated money market

instruments and debt securities, such as bank certificates of deposits, fixed

deposits, money market securities, Singapore government and statutory

board securities and corporate bonds so as to achieve a return above short-

term cash deposit whilst managing liquidity and risk to preserve capital. The

Underlying sub-fund is governed by a set of investment guideline, which

restricts the maximum investment allocation to 10% within an issuer,

though the limit for SGD deposits may be increased to 20% or 30%,

depending on the rating of the bank. In addition, the maximum maturity for

a fixed rate asset is such that at least 90% of permissible investments in the

sub-fund must have a remaining term to maturity of not more than 366

calendar days. The remaining 10% may be invested in permissible

investments with a remaining term to maturity of not more than 732

calendar days.

Southeast Asia Special

Situations Trust

The Sub-manager intends to place an emphasis on Asian “Special Situation”

companies (that is, those companies which have yet to gain the attention of

the market) demonstrating strong secular growth trends, reflecting the rich

investment opportunities in the Asian region. Emphasis is placed on

identifying the best investment opportunities and on calibration of the right

investment weight to develop a focused and yet adequately diversified

portfolio. Examples of “Special Situations” can include corporate

restructuring or re-engineering, management change, new product

introduction or innovation, new business injections and changes in the

regulatory and business environment.

The Sub-Manager views the Asian markets as dynamic, high-growth and

rapidly expanding, yet persistently inefficient and volatile, offering long-term

investors the opportunity to exploit such inefficiencies. The Sub-Manager‟s

strategy uses a systematic, thematic approach in information gathering and

analysis to capture periodic market mis-pricing where there are sufficient

market signals and data points available. The Sub-Manager intends to

devote more of their internal research resources to seek out and analyze

mid-cap and small-cap stocks where opportunities for significant securities

mis-pricing are more abundant.

55

Whilst the Managers or (as the case may be) the Sub-Manager may from

time to time enter into foreign exchange transactions to manage the fund‟s

currency exposure, in practice over the longer term, the Managers or (as the

case may be) the Sub-Manager will generally maintain an unhedged strategy

applying tactical, or shorter term currency hedges, only in extreme market

conditions.

Borrowings may be effected on behalf of the fund, of up to 10% of the

Singapore Dollar equivalent of the fund‟s total net asset value. Such

borrowing or gearing is unlikely to take place under normal market

conditions.

To assist diversification of corporate risk exposure, investment in any one

corporation or body or issuer will be restricted to 10% of the total value of

the fund.

Besides equities, the Managers or (as the case may be) the Sub-Manager

may invest in bonds and other debt securities and cash.

The Managers and the Sub-Manager will not invest more than 10% of the

total value of the fund in foreign unit trusts and mutual funds without the

prior approval of the relevant authorities.

The Managers and the Sub-Manager currently do not invest in derivatives

(except for transferable securities embedding a financial derivative), engage

in securities lending and/or carry out repurchase transactions in respect of

the fund although they are permitted to do so.



Details of the following ILP sub-fund‟s (as the case may be) inclusion under the CPF Investment Scheme

are set out below:


Singapore Dollar Fund Lower Risk

(Broadly Diversified)




Situations Trust

Higher Risk

(Narrowly Focused - Asian Region

Stocks)


*The CPF interest rate for the Ordinary Account (OA) is based on the 12-month fixed deposit and month-

end savings rates of the major local banks. Under the CPF Act, the Board pays a minimum interest of 2.5%

per annum when this interest formula yields a lower rate.

From 1 January 2008, the new interest rate for the Special, Medisave and Retirement Accounts (SMRA)

will be pegged to the yield of 10-year Singapore government bond plus 1%. For 2008 and 2009, the

minimum interest rate for the SMRA will be 4.0% per annum. After 2009, the 2.5% per annum minimum

interest rate, as prescribed by the CPF Act, will apply to the SMRA.

In addition, from 1 January 2008, the CPF Board will pay an extra interest rate of 1% per annum on the first

$60,000 of a CPF member's combined balances, including up to $20,000 in the OA. And from 1 April

2008, the first $20,000 in both the Ordinary and Special Accounts will not be allowed to be invested under

the CPF Investment Scheme. The $20,000 investment threshold under the Special Account (SA) has been

raised to $30,000 from 1 May 2009 and further raised to $40,000 from 1 July 2010. There is no change

to the requirement for members to set aside $20,000 in the OA before they can invest their OA monies.

56

6 fees and charges



Booklet.







7 specific risks

All investments involve risk and the risks inherent to Singapore Dollar Fund and South East Asia Special

Situations Trust are set out below:


7.1 Market risk

The value of investments may go up and down due to changing economic (such as growth, inflation or

policy changes), political or market conditions in the market(s) that the sub-fund may invest in, or due

to an issuer‟s individual situation.

7.2 Credit risk


the sub-fund may not make payments on such obligations. Alternatively, an issuer may suffer adverse


volatility in the price of the security and in the value of the sub-fund. A change in the quality rating of

security can also affect the security's liquidity and make it more difficult to sell.

7.3 Liquidity risk







Investments in bonds, debentures, loan stocks, convertibles and other debt securities which the sub-

fund may invest in may decline in value if interest rates change. In general, the price of debt securities

rises when interest rates fall, and fall when interest rates rise.


7.1 Market risk in South and South-East Asian markets

Prices of securities held by the sub-fund may go up and down in response to changes in economic

conditions, political conditions, interest rates in South and South-East Asian markets that the Trust

invests in and the market‟s perception of securities which in turn may cause the price of Units to rise

or fall.

7.2 Currency risk

The sub-fund‟s asset and income will be denominated in a number of different currencies and thus

fluctuations in foreign exchanges may have an impact on the income and the valuation of the assets in

the sub-fund.

7.3 Debt securities risk

57

Issuers of bonds and other debt securities held by the sub-fund may default on their obligations.

7.4 Emerging market risk

The sub-fund may invest in emerging markets. Such investments may involve political, regulatory and

repatriation risks, and risks associated with liquidity, relatively small market capitalisation, relatively

higher price, volatility, lower disclosure standards, susceptibility to financial shocks, and economic and

social uncertainty.

7.5 Liquidity risk






7.6 Derivative risk

The sub-fund may invest in derivatives for purposes of hedging and/or efficient portfolio management

and may invest in transferable securities embedding a financial derivative for purposes of hedging,

efficient portfolio management and/or optimising returns. Derivatives involve risks different from, and,

in some cases, greater than, the risks presented by more traditional securities investments. The value

of derivative instruments is subject to market risks and may fall in value as rapidly as it may rise and it

may not always be possible to dispose of such instruments during such fall in value.

7.7 Risk of investing in “Special Situations” companies

The sub-manager will place emphasis on investment in the securities of companies in “Special

Situations” which may present greater opportunities for capital appreciation but may also involve

greater risk than is customarily associated with the securities of more stable and established

companies.


58

schedule I

Asian Income Fund

Asian Balanced Fund




The structure of the Asian Income Fund, Asian Balanced Fund, Singapore Balanced Fund and Global

Emerging Markets Equity Fund is set out below:


Asian Income Fund

The Asian Income Fund is a ILP sub-fund which feeds 100% into Schroder

Asian Income, which is a Singapore constituted open-ended unit trust.

The Asian Income Fund is denominated in Singapore Dollars.

Asian Balanced Fund

The Asian Balanced Fund is a single ILP sub-fund and invests all or

substantially all of its assets in the Schroder Asian Growth Fund and

Schroder Singapore Fixed Income Fund, which are both Singapore

constituted open-ended standalone unit trusts managed by Schroder

Investment Management (Singapore) Limited (“Schroders”).


The Singapore Balanced Fund is a single ILP sub-fund and invests all or

substantially all of its assets in the Schroder Singapore Trust and Schroder

Singapore Fixed Income Fund, which are both Singapore constituted open-

ended standalone unit trusts managed by Schroder Investment

Management (Singapore) Limited (“Schroders”).

Global Emerging Markets

Equity Fund

To invest substantially into the Schroder ISF Global Emerging Market

Opportunities, whose investment objective is to provide a total return

through investment in equity and equity related securities of emerging

market countries worldwide. The Schroder ISF Global Emerging Market

Opportunities may also invest in fixed income securities worldwide and

liquidities for defensive purposes.

2 the Manager


Schroder Investment Management (Singapore) Ltd (the “Manager“) was incorporated in Singapore and has

been managing collective investment schemes and discretionary funds since 1992. The Manager is part of

the Schroder group (“Schroders”).

Schroders has been managing collective investment schemes and discretionary funds in Singapore since

the 1970s.

Schroders is a leading global asset management company, whose history dates back over 200 years. The

group‟s holding company, Schroders Plc is and has been listed on the London Stock Exchange since 1959.

Schroders aims to apply its specialist asset management skills in serving the needs of their clients

worldwide, through its large network of offices and over 300 portfolio managers and analysts covering the

world‟s investment markets.


59


Schroders is a global asset management company with £236.5 billion under management. We manage

assets on behalf of institutional and retail investors, financial institutions and high net worth individuals in

a diverse range of products covering equities, fixed income, alternatives and multi-asset.

Our aim is to apply our specialist asset management skills in serving the needs of our clients worldwide

and to deliver value to our shareholders. With one of the largest networks of offices of any dedicated asset

management company, and with over 340 portfolio managers and analysts covering all the major

investment markets, we offer our clients a comprehensive range of products and services.

With a history of over 200 years, we are one of the largest asset managers listed on the London Stock

Exchange where we have been listed since 1959. The Schroder family holds 47.75% of the equity of the

firm, ensuring stability of ownership and providing security for our clients.

Source: Schroders as at 30 June 2013.


The investment objective and focus of the Asian Income Fund, Asian Balanced Fund, Singapore Balanced

Fund and Global Emerging Markets Equity Fund is set out below:


Asian Income Fund To provide income and capital growth over the medium to longer term by

investing primarily in Asian equities and Asian fixed income securities.

Asian Balanced Fund*

Aims to seek long-term capital growth through investment in quoted equities

in the Asian market (including Australia and New Zealand but excluding

Japan), and diversified exposure to the Singapore fixed income market

through investment in SGD denominated Bonds.

The Asian Balanced Fund currently seeks to achieve its investment objective

by investing all or substantially all of its assets in the Schroder Asian Growth

Fund and Schroder Singapore Fixed Income Fund, with a target asset

allocation of 60% and 40% respectively.

Singapore Balanced

Fund*

To provide investors with capital growth through investments in securities

listed on Singapore Exchange Securities Trading Limited (“SGX-ST”) and

diversified exposure to the Singapore fixed income market through

investment in SGD denominated bonds.

The Singapore Balanced Fund currently seeks to achieve its investment

objective by investing all or substantially all of its assets in the Schroder

Singapore Trust and Schroder Singapore Fixed Income Fund, with a target

asset allocation of 60% and 40% respectively.

Global Emerging

Markets Equity Fund

To provide capital growth primarily through investment in equity and fixed

income securities of a universe of emerging market countries worldwide.

* The actual asset allocation of each ILP sub-fund may deviate from the target percentages, by not more

than 10%. We reserve the right to revise the target asset allocations of each ILP sub-fund at our discretion

from time to time.

60


The investment approach of Asian Income Fund and Global Emerging Markets Equity Fund is set out below:


Asian Income Fund

Asian Income Fund will actively allocate between Asian equities, Asian fixed

income securities, cash and other permissible investments to achieve its

objective. The sub-fund will use a cyclical approach to asset allocation

where the asset mix will be adjusted according to four phases of the

economic cycle – recovery, expansion, slowdown and recession – based on

a combination of fundamental and quantitative factors such as asset class

valuation, macroeconomic data and liquidity. Cash will be treated as a

separate asset class and will be deployed if necessary to limit downside risk

during adverse market conditions.

In addition to active asset allocation, the sub-fund will also perform active

security selection for its investments in Asian equities, Asian fixed income

and other permissible investments. For the Asian equities portfolio, the sub-

fund intends to focus on companies that are able to create true shareholder

value, have a strong and stable earnings stream and have a strong

sustainable dividend yield. For the Asian fixed income portfolio, the sub-fund

intends to select securities that deliver attractive yield and capital growth

taking into account both fundamental and technical views such as

valuation, demand/supply conditions and liquidity. The sub-fund will also

manage the impact of interest rate movements on the value of the portfolio.

Global Emerging

Markets Equity Fund

The ILP sub-fund will feed 100% into a unit trust which invests in shares of

companies in emerging markets. The ILP sub-fund may also invest in bonds

and cash for defensive purposes. It has no bias to any particular industry or

size of company.

The ILP sub-fund provides focused exposure to the best investment ideas

generated by the Investment Manager‟s global team of emerging market

experts. It has the flexibility to be aggressively positioned to maximise

growth potential when market conditions are favourable and also to be

cautiously positioned when stock markets are expected to be weak. The ILP

sub-fund can have up to 60% in cash and global bonds if necessary in order

to protect returns during such periods. Typically, the majority of the ILP sub-

fund is invested in emerging market equities as the Investment Manager

believes that there are likely to deliver strong returns over the longer term.

The ILP sub-fund may also invest in other financial instruments and hold

cash on deposit. Financial derivative instruments may be used to achieve

the investment objective and to reduce risk or manage the ILP sub-fund

more efficiently.

The net asset value of the ILP sub-fund is likely to have high volatility due to

its investment policies or portfolio management techniques.


The investment approach of the underlying sub-fund in respect of the Singapore Balanced Fund and Asian

Balanced Fund is set out below:

Underlying sub-funds Investment Approach

Schroder Singapore

Trust

The Managers‟ investment approach is based on the belief that

fundamental analysis of companies using local research resources would

give a competitive advantage and that companies with consistent above

average growth produce superior stock market returns.

Schroder Singapore

Fixed Income Fund

To achieve the investment objective, the fund will invest in a diversified

portfolio of Singapore denominated fixed income securities, including debt

61

securities issued by the Singapore government, Singapore statutory boards

and corporates with issuer credit ratings of at least Baa by Moody‟s, BBB by

Standard and Poor‟s or BBB by Fitch Inc (including sub-categories or

gradations therein). The fund may also invest in nonrated debt securities

issued by Singapore incorporated entities and Singapore statutory boards.

In managing the fund, the Manager‟s investment philosophy is that the bond

markets are global, interrelated and generally efficient - but can overreact to

events. A globally integrated team of specialist analysts and portfolio

Managers, researching ideas in local markets, provides a performance

advantage.

The Manager‟s investment approach for SGD denominated bonds combines

both top-down macro-economic analysis and bottom-up sector and security

selection, utilising the resources and strength of its global and regional fixed

income teams to identify opportunities to outperform the benchmark of the

fund and deliver the objectives of the fund. It adopts a methodology based

on fundamental and technical/chart analysis, with an emphasis on relative

value. Portfolios are actively constructed aiming to profit from market

opportunities when they arise.

Schroder Asian

Growth Fund

The portfolio of the Schroder Asian Growth Fund is broadly diversified with

no specific industry or sectoral emphasis. The Manager‟s approach is to

capitalize on Schroders‟ strong in-house research capability and exploit

market inefficiencies.

Over the longer term, the Manager believes that share prices should reflect

the ability of companies in creating value for shareholders. As such, the

distinctive focus of their research is to identify companies that have robust

business models, good corporate governance and strong management

teams to drive shareholder returns.

These are companies that exhibit the following:

• Ability to generate sustainable returns on capital greater than cost

of capital.

• Ability to grow and reinvest cash productively.

• Willingness to return free cash flow to minority investors.

At the industry level, the investment Manager seeks to predict potential

industry developments, focusing on competition, supplier power, barriers to

entry, buyer power and threat of substitution amongst other things. As part

of their analysis, they form a picture of how different companies may find

their place within the longer-term structure of each industry. In this regard,

Schroders‟ global resources are a critical asset in a world where markets are

becoming increasingly globalized.

At the company level, the investment Manager seeks to discern whether a

firm has the tangible and intangible resources to support its position within

its industry. A company‟s stated strategy and its management‟s execution

track record are key inputs in the analysis. They also emphasize profitability

by focusing on a company‟s ability to generate revenue growth and defend

profit margins. A company‟s ability to generate sustainable free cash flows

either to fund business growth or to return to shareholders is also

paramount.


62


Details of the following ILP sub-funds‟ inclusion under the CPF Investment Scheme is set out below:


Asian Balanced Fund Medium to High Risk




Singapore Balanced Fund Medium to High Risk




Global Emerging Markets Equity

Fund

Higher Risk

(Narrowly Focused – Emerging

Market)


6 fees and charges



Booklet.







7 specific risks

All investments involve risk and the risks inherent to Asian Income Fund, Asian Balanced Fund, Singapore

Balanced Fund and Global Emerging Markets Equity Fund are set out below:

Asian Income Fund

7.1 Market Risk



7.2 Credit Risk

The sub-fund is subject to the risk that some issuers of debt securities and other investments made

by the sub-fund may not make payments on such obligations. Further, an issuer may suffer adverse




7.3 Investment grade, below investment grade and unrated debt securities risk

There is a risk that investment grade securities that the sub-fund invests in may be downgraded due

to adverse market conditions. In the event of a down-grading of the credit rating of a security or an

issuer relating to a security that the sub-fund invests in, the value of the sub-fund may be adversely

affected.

The sub-fund may invest in debt securities below investment grade which are generally accompanied

by a higher degree of counterparty risk, credit risk and liquidity risk than higher rated, lower yielding

securities.

Investment in unrated debt securities may be subject to risks similar to those associated with below

investment grade debt securities.

63

7.4 Emerging markets and frontier risk

Emerging markets will generally be subject to greater political, legal, counterparty and operational

risk.

7.5 Financial derivatives risk

The sub-fund may use financial derivatives. The use of futures, options, warrants, forwards, swaps or

swap options involves increased risk. The sub-fund‟s ability to use such instruments successfully

depends on the Manager‟s ability to accurately predict movements in stock prices, interest rates,

currency exchange rates or other economic factors and the availability of liquid markets. If the

Manager‟s predictions are wrong, or if the derivatives do not work as anticipated, the sub-fund could

suffer greater losses than if the sub-fund had not used the derivatives.

7.6 Hedging risk

The currency exposure of the sub-fund will be actively managed by the lead fund manager via hedging.

Majority of the sub-fund is hedged to Singapore dollars, with some tactical exposure to the Asian

currencies. Currency hedging will be implemented mainly via currency forwards.

Asian Balanced Fund and Singapore Balanced Fund

7.1 Market risk



7.2 Currency risk

Schroder Singapore Fixed Income Fund is subject to the risk that some issuers of debt securities and

other investments made by the fund may not make payments on such obligations, or an issuer (or

counterparty) may suffer adverse changes in its financial condition that could lower the credit quality

of a security, leading to greater volatility in the price of the security and subsequently in the value of

the fund.

7.3 Liquidity risk






7.4 Equity risk

The Schroder Asian Growth Fund may invest in stocks and other securities and their derivatives which

are subject to market risks that historically have resulted in greater price volatility than that

experienced by bonds and other fixed income securities.


Deposits in financial institutions and investments in bonds, debentures, loan stocks, convertibles and

other debt securities may decline in value if interest rates change. In general, the price of debt

securities will rise when interest rates fall, and fall when interest rates rise.

7.6 Foreign Securities risk

Investments in securities throughout the world are subject to numerous risks resulting from market

and currency fluctuations, future adverse political and economic developments, the possible

imposition of restrictions on the repatriation of currency or other governmental laws or restrictions,

reduced availability of public information concerning issuers and the lack of uniform accounting,

auditing and financial reporting standards or of other regulatory practices and requirements

comparable to those applicable to companies in the investor‟s domicile. In addition, securities of

companies or governments of some countries may be illiquid and their prices volatile and, with respect

to certain countries, the possibility exists of expropriation, nationalisation, exchange control

restrictions, confiscatory taxation and limitations on the use or removal of funds, or other assets,

including withholding of dividends.

64


The underlying funds‟ use of futures, options, warrants, forwards, swaps or swap options involves

increased risk. In the event the underlying funds invest in such instruments, the ability to use such

instruments successfully depends on the manager‟s ability to accurately predict movements in stock

prices, interest rates, currency exchange rates or other economic factors and the availability of liquid

markets. If the manager‟s predictions wrong, or if the derivatives do not work as anticipated, the

underlying funds could suffer greater losses than if the underlying funds had not used the derivatives.


7.1 Market risk



7.2 Credit risk

The ability, or perceived ability, of an issuer of a debt security to make timely payments of interest and

principal on the security will affect the value of the security. It is possible that the ability of the issuer to

meet obligation will decline or default on its obligations.

7.3 Liquidity risk






7.4 Risks of market movements in limited sectors/countries

The sub-fund will be subjected to the respective market movements of the limited number of sectors

and/or countries of the investment universe.

7.5 Risks of investing in American Deposit Receipts (ADR) / Global Deposit Receipts (GDR)

Buying ADR/GDRs may include the inflationary, political and exchange rate risks of the underlying

assets but provide access to some markets without having to invest locally.

You may lose part or all of the value of the investment when investing in structured products (such as

ADR/GDRs, fully funded participation notes and warrants) due to the default risk of the issuer of the

structured products as well as the inflationary, political and exchange rate risks of the underlying

assets. However those instruments provide access to some markets without having to invest locally.

7.6 Political risk

The investments may be subject to legal and regulatory, execution, counterparty, political, economic

and financial risks. The Fund can be impacted by a higher volatility, inflation, currency, custody and

settlement risks. However the access such markets may provide a higher return for the fund in line

with its risk profile.


65

schedule J

Health Fund

1 structure of ILP Sub-Fund

The structure of the ILP Sub-Fund is set out below:

ILP Sub-Fund Structure

Health Fund The Health Fund is a single ILP Sub-Fund and is wholly invested in the AXA

World Funds – Framlington Health, with some minor amounts of cash kept

aside for liquidity purposes. AXA World Funds – Framlington Health,

managed by AXA Funds Management S.A., is a SICAV incorporated under

Luxembourg law and registered pursuant to Part 1 of the Law of 2010 and

is a UCITS.

The Health Fund is denominated in Singapore Dollars, and the dividends

will be reinvested.

The custodian of the Health Fund is Citibank, N.A., Singapore Branch,

registered address at 8 Marina View, Level 16 Asia Square Tower 1,

Singapore 018960.

The initial purchase price is S$1.00, and the initial offer period is from 5th

to 30th May 2014.

Units in the Health Fund are Excluded Investment Products, and invest only

in deposits or other Excluded Investment Products, and will not engage in

securities lending or repurchase transactions for the ILP Sub-Fund.

2 the Manager AXA Funds Management S.A. (“AFM”) is the Management Company of the Luxembourg based funds of the

AXA IM Group. It is a limited company (société anonyme) incorporated in Luxembourg and whose registered

address is at 49, Avenue J. F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg. AFM is

regulated by the Commission de Surveillance du Secteur Financier (CSSF). AFM was founded in 1989, with

EUR 42.4 billion Asset Under management as of Dec 31 2013.

AFM has delegated the investment management duties to AXA Investment Managers UK Limited, a

company incorporated in the United Kingdom and whose registered address is at 7 Newgate Street,

London EC1A 7NX, United Kingdom. It is regulated by the Financial Conduct Authority and has been

managing funds since 1979.

Source: AXA Investment Managers Asia Limited


The investment objective and focus of Health Fund is set out below:

ILP Sub-Fund Investment Objective and Focus

Health Fund To achieve long-term capital growth by permanently investing at least two

thirds of its total assets in equities and equity related instruments issued by

companies engaged in healthcare and medical services and products

worldwide.

The ILP Sub-Fund will invest not more than 10% of its net assets in units of

UCITS and/or other UCIs. The ILP Sub-Fund may use FDIs for efficient

portfolio management, and may enter into securities lending and

66

repurchase agreement transactions.

Investments will be in producers of pharmaceuticals, biotechnology firms,

medical device and instrument manufacturers, distributors of healthcare

products, care providers and managers and other healthcare services

companies.


The investment approach of Health Fund is set out below:

ILP Sub-Fund Investment Approach

Health Fund The Manager‟s investment process is primarily built upon the fundamental,

bottom-up research. Combining the thematic views, financial perspectives

and specialist field expertise, the result is a diversified portfolio that is truly

reflective of the investment team‟s highest conviction stock ideas,

unrestricted by any regional, sub-sector or capitalisation limitations.

Complementing the unconstrained approach to investment is a robust risk

management structure. This is embedded at every stage of the investment

process to ensure that the risk taken in the portfolio is in line with expected

returns, and that there are no unintended areas of concentrated risk

exposure.


5 fees and charges

No other fees and charges are imposed on Health Fund except those reflected on paragraph 7 of the

Product Summary Booklet and section 3 of this Fund Information Booklet.

Although certain fees and charges are imposed on the underlying Sub-Fund that Health Fund invest into,

these will be set-off against the Annual Management Fee and the Fixed Operating Fee that are charged at

the ILP Sub-Fund level.

Therefore, the Annual Management Fee and the Fixed Operating Fee reflected in section 3 of this Fund

Information Booklet represent the total composite fees and charges that are payable at both the ILP Sub-

Fund level and the underlying fund level.

6 specific risks

All investments involve risk and the risks inherent to Health Fund are set out below:

6.1 Risk linked to investments in emerging markets

Legal infrastructure, in certain countries in which investments may be made, may not provide with the

same degree of investors' protection or information to investors, as would generally apply to major

securities markets (governments‟ influence, social, political and economic instability, different

accounting, auditing and financial report practises). Emerging markets securities may also be less

liquid and more volatile than similar securities available in major markets, and there are higher risks

associated to transactions settlement, involving timing and pricing issues.

6.2 Risk of global investments

Investments in securities issued or listed in different countries may imply the application of different

standards and regulations (accounting, auditing and financial reporting standards, clearance and

settlement procedures, taxes on dividends…). Investments may be affected by movements of foreign

exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange

control regulations or price volatility.

67

6.3 Risks linked to investments in specific sectors or asset classes

The ILP Sub-Fund is exposed to concentration risk on healthcare and medicine service.

6.4 Risks linked to counterparties

Counterparties to over-the-counter FDIs may default or fail to perform its obligations. This may have a

material adverse effect on the net asset value.

6.5 Risks linked to derivatives

The ILP Sub-Fund may use both listed and over-the-counter FDIs, including but not limited to futures,

and forward contracts, swaps, options and warrants. FDIs are volatile and may be subject to risks

including market, liquidity, credit, counterparty, legal and operations risks. Over-the-counter FDIs may

involve additional risks. There may be an imperfect correlation between FDIs used for hedging and the

investments or market sectors being hedged. The use of FDIs may involve leverage, which may

increase the effect of market movements and may involve significant risks of loss.

6.6 Risks on concentration

The ILP Sub-Fund is exposed to concentration risk on healthcare and medicine services.

6.7 Equity risks

Volatility on equity markets has historically been much greater than the volatility of fixed income

markets.

6.8 Political, regulatory, economic and convertibility risks

Geographical areas that the ILP Sub-Fund invests in may be affected by economic or political events

or measures, changes in government policies, laws or tax regulations, currency convertibility, currency

redenomination, restrictions on foreign investments, and economic and financial difficulties, which may

adversely impact the net asset value.

6.9 Exchange rate risks

The ILP Sub-Fund‟s assets may be denominated in currencies other than its Reference Currency and

exchange rate fluctuations may impact the ILP Sub-Fund's performance. The ILP Sub-Fund's assets will

not be hedged against the SGD.


7 soft dollar commissions/arrangements

The entities with the AXA Investment Managers ("AXA IM") group have not entered into soft

dollar or soft commission agreements. Instead, AXA IM has signed Commission Sharing

Agreements ("CSAs") with selected brokers, which allow surplus commissions to generate a

balance of cash with these brokers who will fund, at AXA IM's request, third-party research

and permitted market data services. In no circumstances, will such CSAs allow the Company

to deviate from its obligation of best execution. Additional information on such commissions is

available in the Sub-Funds' annual reports.


Glossary of Terms

“FDIs” means Financial Derivative Instruments

“Reference Currency” means the currency in which each ILP Sub-Fund is denominated

“SICAV” means société d'investissement à capital variable

“UCITS” means Undertaking for Collective Investment in Transferable Securities “UCI” means Undertaking for Collective Investment

68

Product Summary Acknowledgement

Presented to: _______________________________________________________________

(Name and NRIC of Applicant)

Name of Life Assured: ________________________________________________________

Life Assured‟s Nearest Age & Gender: ___________________________________________

_____________________________________________ _________________________

Name & Signature of AXA Financial Date

Planner/Representative

Applicant for a New Policy

Name of new Policy: __________________________________

I _________________________________________________ (name and NRIC of Applicant)

confirm that I have received a copy of the Product Summary (comprising the Fund

Information Booklet, Product Highlight Sheets and a separate Product Summary Booklet).

I confirm that the terms and conditions of the Policy as set out in the Product Summary

have been explained to me. I understand the features of the Policy and the applicable fees

and charges.

Existing Policyholder

Name of existing Policy: _______________________________

I _________________________________________________ (name and NRIC of Applicant)

confirm that I have received a copy of the Fund Information Booklet and the Product

Highlight Sheets.

I understand that the Fund Information Booklet mentioned above describes the sub-funds

available for new investments under my Policy.

______________________________

(Signature of Applicant)

1999003512M 06/2013

product summary - comparefirst · inspiretm flexiprotector is a whole life, ... buying a life...

Documents