Product Highlights Sheet - Nikko AM Asia Limited

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equivalent to shares listed on stock exchanges globally in Developed Markets and Emerging Markets; (v) Russell Global Bond Fund which aims to provide income and capital growth by investing primarily in investment grade bonds denominated in a variety of currencies and (vi) Russell US Equity Fund, Russell Continental European Equity Fund, Russell Japan Equity Fund, Russell UK Equity Fund and Russell Pacific Basin Equity Fund which aim to achieve capital appreciation by investing in equity securities, including common stock, convertibles and warrants listed on the stock exchanges in the United States, United Kingdom, Europe, Japan and the Asia-Pacific countries (as the case may be). The Underlying Funds in (i) to (iv) are each a sub-fund of Nikko AM Shenton Horizon Investment Funds, while the Underlying Funds in (v) and (vi) are each a sub-fund of the RIC. • A comprehensive investment plan implemented using the Sub-Fund will have 3 levels of diversification: Multi-Asset, Multi-Style and Multi-Manager. • The Underlying Funds may invest in financial derivatives instruments (“FDIs”). WHO ARE YOU INVESTING WITH? Parties Involved • The Manager is Nikko Asset Management Asia Limited and the Trustee/Registrar is BNP Paribas Trust Services Singapore Limited. • The Sub-Fund is a sub-fund of the umbrella unit trust called the Nikko AM Shenton Eight Portfolios. • The Custodian is BNP Paribas Securities Services, Singapore Branch. WHAT ARE THE KEY RISKS OF THIS INVESTMENT? KEY RISKS You should be aware that the price of Units can go down as well as up. The value of the Sub-Fund and its distributions (if any) may rise or fall. The following are key risk factors that may cause you to lose some or all of your investment: Market and Credit Risks • You are exposed to market risk o The price of the securities comprised in the portfolio of the Sub-Fund and the Units, and the income from them, may be influenced by political and economic conditions, changes in interest rates, earnings of the corporations whose securities are comprised in the portfolio, and the market’s perception of the securities. • You are exposed to interest rate risk and credit risk o Investments in debt securities are subject to interest rate fluctuations and credit risks, such as risk of default by the issuer and are subject to adverse changes in general economic conditions, the financial condition of the issuer, or both, or an unanticipated rise in interest rates, which may impair the issuer’s ability to make payments of interest and principal, resulting in a possible default by the issuer. • You are exposed to foreign currency risk o As the investments of the Sub-Fund (which is denominated in SGD) may be denominated in foreign currencies, any appreciation of the SGD against the relevant currencies may negatively affect the value of the Units. Liquidity Risks • The Sub-Fund is not listed and you can redeem only on Dealing Days o There is no secondary market for the Units. All realisation requests must be made to the Manager through its approved distributors. o If there is a surge in realisations at any particular time, the Manager may impose a gate on realisations and payment of realisation proceeds to you may be delayed. o In addition, you may not realise your Units during any period where realisation is suspended. • You are exposed to liquidity risk o The extent of market liquidity depends on the size and state of the markets and therefore affects the Sub-Fund’s ability to acquire or dispose of assets at the desired price and time. Product-Specific Risks • You are exposed to emerging market risk o Certain Underlying Funds may invest in emerging markets securities which are generally more volatile than those of developed countries, with the result that Units may be subject to greater price volatility. • You are exposed to equity risk o The Sub-Fund may invest in stocks and other equity securities, which are subject to Refer to Section II to Section IV on Pg 4-7 and the Appendix of the Prospectus for further information on the role and responsibilities of these entities. Refer to Section IX on Pg 10-16 of the Prospectus for further information on risks of the Sub- Fund. PRODUCT HIGHLIGHTS SHEET Nikko AM Shenton Eight Portfolios - Eight Portfolio A dated 16 December 2013 Page 2 of 4
market risks and are generally more volatile than investment-grade fixed income securities. The Units may therefore be subject to greater price volatility. • You are exposed to the risk associated with the investment strategy of the Sub-Fund o The performance of the Sub-Fund is subject to the performance of the Underlying Funds which the Sub-Fund invests in and also to the proportion of the Sub-Fund’s assets allocated to each of the Underlying Funds. Holders should be aware that the Manager has limited discretion to vary the allocations to equities and bonds for the Sub-Fund and this will in turn limit the Manager’s ability to react to changes in market conditions. • You are exposed to financial derivatives risk o The Manager may in its absolute discretion, invest in FDIs for the purposes of hedging, efficient portfolio management and/or optimising returns. While the prudent and judicious use of derivatives can be beneficial, derivatives involve risks different from, and in some cases, greater than, the risks presented by more traditional investments. You should be aware that your investment in the Sub-Fund may be exposed to other risks of an exceptional nature from time to time. FEES AND CHARGES Payable directly by you • You will need to pay the following fees and charges as a percentage of your gross investment sum: Initial Sales Charge Current: 5% (Maximum 5%) Realisation Charge Current: NIL (Maximum 1%) Conversion Fee (for conversion of Units within Nikko AM Shenton Eight Portfolios) Exchange Fee (for exchange of Units for units of any other Group Trust) Not exceeding 1% of the value converted or S$200, whichever is lower Where Initial Sales Charge for the Units being exchanged is less than the initial sales charge payable for the units of the Group Trust being acquired, the difference will be charged. Payable by the Sub-Fund from invested proceeds • The Sub-Fund will pay the following fees and charges to the Manager, Trustee and other parties: Management Participation Current: 1.25% p.a. ; (Maximum 2.0% p.a.) Trustee’s Fee Fees charged by the Underlying Funds which the Sub-Fund invests in: (i) trustee/custodian fee (ii) Management fee Any other substantial fee/charge Currently below 0.05% p.a. ; (Maximum 0.2% p.a.) Not exceeding 0.1% p.a. Waived* For the financial year ended 31 December 2012: Transaction fees : 0.11% * The management fee charged by each Underlying Fund that the Sub-Fund invests in, is currently borne by the Managers. VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? The issue price and realisation price of Units will be available on the Business Day following each Dealing Day. The issue price and realisation price may be obtained from the Manager’s website (www.nikkoam.com.sg). HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? Cancellation of Units If applicable to you, you may cancel your subscription for Units within 7 calendar days from the date of your subscription or purchase of the Units by sending a cancellation request to the Managers through the approved distributor from whom you purchased your Units. Any Initial Sales Charge paid will be refunded to you. However, you will have to take the risk for any price changes in the NAV of the Sub-Fund since you purchased the Units. Refer to Section VIII on Pg 9-10 of the Prospectus for further information on fees and charges. Refer to Para 23 on Pg 18, Section XII on Pg 18-19 and Section XIV on Pg 20 of the Prospectus for further information on valuation and exiting from the product. PRODUCT HIGHLIGHTS SHEET Realisation of Units You can exit the Sub-Fund by completing a realisation request and forwarding the same to the Managers through the approved distributor from whom you purchased your Units. Nikko AM Shenton Eight Portfolios - Eight Portfolio A dated 16 December 2013 Page 3 of 4
Page 1: Prepared on: 16/12/2013 This Produc

Product Highlights Sheet - Nikko AM Asia Limited

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