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WHO IS THE PRODUCT SUITABLE FOR? |
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● | The Fund is only suitable for investors who: |
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○ | [State return objectives (for example, capital growth, income or capital preservation) which the product will be suitable for.] |
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○ | [State if the principal will be at risk.] |
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○ | [State how long investors should be prepared to hold the investment for products which have lock‑in periods.] |
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○ | [State other key characteristics of the product which will help investors determine whether the product is suitable for them.] |
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| Refer to the “[Relevant Section]” of the Prospectus for further information on product suitability. |
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● | The Fund is only suitable for investors who: |
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○ | seek capital growth over a period of 3 years or longer; |
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○ | also seek regular income through yearly distributions; and |
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○ | are comfortable with the greater volatility and risks of an equity fund. |
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WHAT ARE YOU INVESTING IN? |
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[State key features of the product, such as the legal classification of the product, the broad investment objective of the product, whether it intends to offer regular dividends and when those are paid. If the product is structured to give specific payoffs due to certain trigger events or scenarios, describe those scenarios and provide scenario analysis and numerical examples. Where appropriate, include one or more diagrams or illustrations explaining the features and structure of the product.] |
● | You are investing in a unit trust constituted in [place of constitution] that aims to provide you with returns through long term capital growth by investing in companies set up in the Asia Pacific region. |
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● | You may receive yearly distributions on or around 31 December. The Manager will decide whether a distribution is to be made based on [factors]. |
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| Refer to the “[Relevant Section]” of the Prospectus for further information on features of the product. |
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[Describe how the fund intends to achieve its objective. For instance, describe the eligible assets it may invest in and the management philosophy. Any processes and structures which introduce significant risk should be included in the description. Include diagrams of the structure of the fund if the fund is a structured fund, or pie charts of asset allocation as at a date near the date of Product Highlights Sheet to show sectoral, country or asset type allocation, if applicable.] |
● | The Fund will invest primarily in shares of companies listed on stock exchanges in the Asia Pacific region. The Fund may hold cash or invest in derivatives instruments for purposes of hedging, reducing cost, reducing risk, or generating capital or income for no or minimal increase in risk. |
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| Refer to the “[Relevant Section]” of the Prospectus for the full diagrams of the structure of the Fund. |
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WHO ARE YOU INVESTING WITH? |
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[State all parties involved in the structure of the product, such as the name of the umbrella fund or fund company, manager and sub‑manager, swap counterparty, and the trustee, custodian or depositary, where applicable.] |
● | The Manager is [●], and the Trustee/Custodian/Depositary is [●]. |
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● | The Fund uses [●] as the counterparty for most of its derivative transactions. |
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| Refer to the “[Relevant Section]” of the Prospectus for further information on the role and responsibilities of these entities and what happens if they become insolvent. |
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WHAT ARE THE KEY RISKS OF THIS INVESTMENT? |
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[State key risks which are either commonly occurring events, or which may cause significant losses if they occur, or both. While the risks may overlap into multiple categories below, there is no need to repeat the same risk in more than one section. Product-specific market or liquidity risks should be included under the market or liquidity risks section respectively. If fees may later be increased or new fees introduced, such as fees related to the unwinding of investments, state so here.] |
The value of the product and its dividends or coupons may rise or fall. These risk factors may cause you to lose some or all of your investment: |
| Refer to the “[Relevant Section]” of the Prospectus for further information on risks of the product. |
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[State market risks (including currency risks) and counterparty risks which may result in the loss of capital or affect the payoff of the investment and their consequences.] |
● | You are exposed to the market risks in Asia Pacific markets. |
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○ | Your investments may go up or down due to changing economic, political or market conditions that impact the share price of the companies that the Fund invests in. |
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● | You have greater exposure to market risks as this is an equity fund. |
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○ | Historically, equities have greater volatility than bonds and other fixed income securities. The Fund’s valuation and the price at which you can exit may correspondingly fluctuate more strongly on a day‑to‑day basis compared to funds investing in bonds and other fixed income securities. |
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[State the risks that an investor would face in trying to exit the product, for example, limitations on redemption or factors that may delay the payment of redemption proceeds.] |
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● | The Fund is not listed and you can redeem only on Dealing Days. |
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○ | There is no secondary market for the Fund. All redemption requests should be made to the Manager. |
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[State product-specific risks, which include structure‑related risks, investment objective related risks, potential legal risks, etc.] |
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● | You are exposed to derivatives risks. |
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○ | The Manager may use derivative instruments, including futures, options, warrants, forwards, swaps or swap options, from time to time in managing the investments of the Fund. |
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○ | The usage of derivatives may negatively impact the value of the Fund and the Fund may suffer greater losses than if the Fund had not used derivatives. |
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○ | At the worst case, you may lose all your funds invested if the Fund is fully exposed to derivative positions that move against the Manager’s judgment. |
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WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? |
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[State all fees and charges payable. This includes management fees (including the percentage amount retained by the Manager and the amount paid as trailer fees to a financial adviser), distribution fees, and any other substantial fees of more than 0.1% of NAV or of subscription value. Distinguish between fees payable via the investors’ investments in the fund and fees payable directly by the investors. Indicate if the fees are payable once‑off or on a per‑annum basis. If fees may later be increased or new fees introduced, state so here. Where there is a master‑feeder fund structure, fees payable by the underlying fund should be disclosed. Fees and charges may be disclosed as a range where a master‑feeder fund structure has multiple underlying funds.] |
| Refer to the “[Relevant Section]” of the Prospectus for further information on fees and charges. |
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● | You will need to pay the following fees and charges as a percentage of your gross investment sum: |
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| | ○ | Up to 5% for cash and SRS investment |
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○ | Up to 3% for CPF investment |
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| | ○ | Currently NIL (maximum 5%) |
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| | ○ | Currently NIL (maximum 1%) |
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| Payable by the Fund from invested proceeds |
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● | The Fund will pay the following fees and charges (where applicable) to the Manager, Trustee, Custodian and other parties: |
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| (b) | Paid by Manager to financial adviser (trailer fee) |
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| - | a% to b% of Management Fee |
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- | x% to y%3 of Management Fee |
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| Trustee Fee / Custodian Fee |
| ○ | 0.1% per annum, subject to a minimum of S$15,000 |
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| Accounting and Valuation Fee |
| ○ | 0.025% per annum, subject to a minimum of S$5,000 |
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3 Your financial adviser is required to disclose to you the amount of trailer fee it receives from the Manager. |
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HOW OFTEN ARE VALUATIONS AVAILABLE? |
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[State how often and where valuations are published, for example, provide a website address or the name of local newspapers where the valuation is published.] |
| Refer to the “[Relevant Section]” of the Prospectus for further information on valuation and exiting from the product. |
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HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? |
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[State length of cancellation period and describe how investors can exit from the investment if they change their mind within the cancellation period and the relevant costs. If there is no cancellation period, state so clearly. Subsequent to the cancellation period, describe how investors can exit from the investment and the relevant costs.] |
● | You can exit the Fund at any time by writing to the Manager, either directly or through the financial adviser from whom you purchased the Fund. If you do so within the cancellation period of 7 days from time of purchase, you may do so without incurring the sales charge and fees stated above. However, you will have to take the risk for any price changes in the NAV of the Fund since you purchased it and pay an administration fee of $X. |
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● | You will receive the sale proceeds within 7 business days after the day the Manager receives your request to exit from the Fund. |
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● | Your exit price is determined as follows: |
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○ | If you submit the redemption order before 5pm on a business day, you will be paid a price based on the net asset value of the Fund at the close of that business day. |
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○ | If you submit the redemption order after 5pm, you will be paid a price based on the net asset value at the close of the next business day. |
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● | The sale proceeds that you will receive will be the exit price multiplied by the number of units sold, less any charges. An example is as follows: |
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Exit price × Number of units sold = Gross Sale Proceeds |
S$1.250 × 1,000 = S$1,250 |
Gross Sale Proceeds – Realisation Charge = Net Sale Proceeds |
S$1,250 – S$0.00 = S$1,250 |
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[State contact details of issuers or distributors whom investors can contact if they have enquiries. Include a website address and email address if appropriate.] |
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[This section should explain terms used in the Product Highlights Sheet which may not be understandable to the average investor. Where possible, issuers should simplify the terms used in the main body of the Product Highlights Sheet instead of explaining them in the glossary.] |
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