Nikko AM Asia Investment Funds POSB InvestSteady Fund

PRODUCT HIGHLIGHTS SHEET
Prepared on: 31/05/2013
This Product Highlights Sheet is an important document.
It highlights the key terms and risks of this investment product and complements the Prospectus 1 .
It is important to read the Prospectus before deciding whether to purchase units in the product. If you
do not have a copy, please contact us to ask for one.
You should not invest in the product if you do not understand it or are not comfortable with the
accompanying risks.
If you wish to purchase the product, you will need to make an application in the manner set out in the
Prospectus.
Nikko AM Asia Investment Funds
– POSB InvestSteady Fund (the “Fund”)
Product Type Unit Trust Launch Date 7 December 2006
Manager
Nikko Asset Management Asia
BNP Paribas Securities
Custodian
Limited
Services, Singapore Branch
Trustee
BNP Paribas Trust Services
Singapore Limited
Dealing Frequency Every Business Day
Capital Guaranteed No
Expense Ratio for the
financial year ended 30 1.29%
June 2012
Name of Guarantor N/A
PRODUCT SUITABILITY
WHO IS THE PRODUCT SUITABLE FOR?
Further
The Fund is only suitable for investors who:
information
Refer to Para 6.1 on
o seek medium to long term capital appreciation;
Pg 5 of the
o seek exposure to Asia-Pacific fixed income instruments and equities; and
Prospectus for further
o are willing and able to accept that their principal will be at risk.
information on
Investors should consult their financial advisers if in doubt about whether this product is product suitability.
suitable for them.
KEY PRODUCT FEATURES
WHAT ARE YOU INVESTING IN?
Refer to Para 5.3 and
5.4 on Pg 5, Para 6.1
You are investing in a unit trust constituted in Singapore that aims to achieve medium to long on Pg 5 and Para 6.4
term capital appreciation by investing primarily in Asia-Pacific fixed income and equities. on Pg 7 of the
Distributions, if any, will be determined by the Manager. Currently, the Manager intends to Prospectus for further
make semi-annual distributions to Holders around January and July of each year. The information on
Manager will decide whether a distribution is to be made based on various factors, including features of the Fund.
dividend and/or interest income and/or capital gains derived from the investments of the Fund.
In addition, the Manager may make capital distribution to Holders at such time as they deem
fit in accordance with the provisions of the trust deed of the Fund. Where dividends are paid
out of the capital of the Fund, the capital and the NAV of the Fund will be reduced.
The base currency of the Fund is SGD and the Fund will issue Units denominated in SGD.
Investment Strategy
The Manager shall seek to achieve the investment objective by investing all or substantially Refer to Para 6.2 and
all of the assets of the Fund into the Nikko AM Shenton Asia Bond Fund (“SABF”), a subfund
of the Nikko AM Asia Investment Funds and the Nikko AM Asia-Pacific ex-Japan Fund the Prospectus for
6.3 on Pg 5 to 7 of
(“NAPF”), a sub-fund of the Nikko AM Global Umbrella Fund (collectively, the “Underlying further information on
Funds”) in the approximate proportion of 70:30.
the investment
The investment focus of SABF is to invest primarily in transferable debt securities (the strategy of the Fund.
"Securities") issued by issuers based in the Asia-Pacific region. The Manager (who is also
the manager of SABF), at its sole discretion, may invest not more than 30% of SABF in
regions other than the Asia-Pacific region. Such Securities may be in local and/or foreign
currencies and may or may not be issued or guaranteed by governments, government
agencies and corporate borrowers. SABF may also invest in real estate investment trusts
listed or traded on a regulated market. There is no target industry or sector. The Manager has
a rigorous investment process using a top down approach, complemented by its FVT
(Fundamentals, Valuation and Technical) methodology. The Manager adopts a quarterly
investment view, which is crystallized from a series of strategy meetings each quarter. The
strategy meetings will formulate SABF’s macro economic attitude for invested countries,
positions for interest rates and currency outlook for SABF, and identify credit sectors that will
add value to SABF’s portfolio. Apart from the quarterly strategy meetings, the investment
team and specialists of the Manager will meet on a more regular basis to continuously
monitor the ever-changing investment landscape.
NAPF is a multi-country fund for those investors who wish to invest in the Asia-Pacific basin
1 The Prospectus is available for collection at the Manager’s business address at 8 Cross Street, #08-01 PWC
Building, Singapore 048424 during usual business hours. The Prospectus is also available on the Manager’s
website at www.nikkoam.com.sg.
Nikko AM Asia Investment Funds – POSB InvestSteady Fund – 31 May 2013

PRODUCT HIGHLIGHTS SHEET
(ex-Japan). The investment universe includes Taiwan, China, Hong Kong, Singapore,
Malaysia, Thailand, Indonesia, the Philippines, Korea, Australia and New Zealand. Two
thirds of the issuers shall have their registered office or the majority of their business in the
mentioned countries respectively in the Asia-Pacific basin. NAPF will pursue an investment
strategy that blends bottom-up fundamental research and top down views within the context
of a centralized decision-making approach. The portfolio is designed to add value by
exploiting stock price volatility, divergence of company quality and circumstances across the
region. This is captured in the strategy’s top-down approach and portfolio construction
process. NAPF may use financial derivative instruments (“FDIs”) for hedging, efficient
portfolio management and to enhance returns.
The Fund and SABF may use FDIs for the purposes of optimising returns, hedging
and/or efficient portfolio management.
Parties Involved
WHO ARE YOU INVESTING WITH?
Refer to Para (d), (e)
and (f) on Pg 2-3 of
The Fund is a sub-fund of Nikko AM Asia Investment Funds.
the First
The Manager is Nikko Asset Management Asia Limited.
Supplementary
The manager of the SABF is the Manager. The management company of the NAPF is Nikko Prospectus and Para
Asset Management Luxembourg S.A..
2 to 5 on Pg 4-5 of
The Trustee and Registrar is BNP Paribas Trust Services Singapore Limited.
the Prospectus for
The Custodian is BNP Paribas Securities Services, Singapore Branch.
further information on
the role and
responsibilities of
these entities.
KEY RISKS
WHAT ARE THE KEY RISKS OF THIS INVESTMENT?
Refer to Para 6.3 on
Pg 6-7 and Para 9 on
You should be aware that the price of Units can go down as well as up. The value of the Pg 8-16 of the
Fund and its distributions (if any) may rise or fall. The following are key risk factors that Prospectus for further
may cause you to lose some or all of your investment:
information on risks
of the Fund.
Market and Credit Risks
You are exposed to market risk in the Asia-Pacific region.
o The Fund has exposure primarily to Securities issued by issuers based in the Asia-Pacific
region through its investments in the Underlying Funds. Please note that the price of the
securities comprised in the portfolios of the Underlying Funds, and the income from them,
may be influenced by political and economic conditions, changes in interest rates, the
earnings of the corporations whose securities are comprised in the portfolios, and the
market’s perception of the securities.
You are exposed to interest rate and credit risks.
o The SABF’s 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.
Liquidity Risks
The Fund is not listed and you can redeem only on Dealing Days.
o There is no ready secondary market for the Units. All realisation requests should be made
to the Manager or its approved distributors.
o If there is a surge in realisations at any particular time, the Manager may impose a gate on
realisations. If that happens, 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 is dependent on the size and state of the markets and
therefore affects the ability of each Underlying Fund to acquire or dispose of assets at the
price and time it so desires. As a result of the Fund’s investment in the Underlying Funds,
you are exposed to the same risk.
Product-Specific Risks
You are exposed to currency risk.
o The Underlying Funds may have investments that are denominated in foreign currencies.
Fluctuations of the exchange rates of foreign currencies against the respective base
currencies of the Underlying Funds may have an impact on the income of the Underlying
Funds and affect the value of their units.
You are exposed to emerging markets risk.
o Through the Fund’s investment in the Underlying Funds, it has exposure to emerging
markets securities which are in general more volatile than those of developed countries,
with the result that Units may be subject to greater price volatility.
o Some emerging markets do not have well-developed or consolidated bodies of securities
laws and regulatory frameworks, may have less public information on companies listed on
such markets, may use auditing and financial reporting methods that differ from
internationally recognised standards, may experience lower trading volume and liquidity,
Nikko AM Asia Investment Funds – POSB InvestSteady Fund – 31 May 2013

PRODUCT HIGHLIGHTS SHEET
and lack other key characteristics of a developed market.
You are exposed to foreign securities risk.
o Furthermore, the investments of the Underlying Funds may be affected by political
instability as well as exchange controls, changes in taxation, foreign investment policies
and other restrictions and controls which may be imposed by the relevant authorities in the
other countries.
o The legal infrastructure and accounting, auditing and reporting standards in certain
countries in which an investment may be made may not provide the same degree of
investor protection or information to investors as would generally apply in major securities
markets. Foreign ownership restrictions in some markets may mean that corporate action
entitlements in relation to any collective investment schemes or other investments the
Underlying Funds are invested in may not always be secured or may be restricted.
You are exposed to derivatives risk.
o The Manager may invest in FDIs for the purposes of optimising returns, hedging and/or
efficient portfolio management. Derivatives involve risks different from, and in some cases,
greater than, the risks presented by more traditional investments. Some of the risks
associated with derivatives are market risk, management risk, credit risk, liquidity risk,
moratorium risk, capital control risk, tax risk and leverage risk. Kindly note that the
Underlying Funds may use FDIs for hedging and/or for efficient portfolio management as
well.
You should be aware that your investment in the 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 Currently 4% (Maximum 5%)
Realisation Charge Currently NIL (Maximum 1%)
Conversion Fee Currently NIL (Maximum 1%)
Anti-dilution levy
As determined at the discretion of the Manager (Please
refer to the “Appendix: Glossary of Terms” of this PHS for
more information).
Payable by the Fund from invested proceeds
The Fund will pay the following fees and charges to the Manager, Trustee and other parties,
as well as in respect of its investments into the Underlying Funds:
Annual Management Fee Current: 1.25%; Maximum: 2%
Annual Trustee’s Fee Current: less than 0.06%; Maximum: 0.2%
Other Substantial
Nil.
Fees/Charges (for the financial
year ended 30 June 2012):
Fees and charges of the SABF
Initial sales charge Currently: 3%; Maximum: 5%
The current initial sales charge which may be imposed on
subscriptions into SABF will be waived in respect of the
Fund’s investment into SABF.
Realisation charge Current: Nil; Maximum: 1%
Annual management fee
(S$ class B units)
Annual trustee’s fee
Other Substantial
Fees/Charges (for the financial
year ended 30 June 2012):
Fees and charges of the NAPF
Management fee (Class B
shares)
Current: 0.8% p.a.; Maximum: 2.0% p.a.
The annual management fee of SABF will be rebated back
to the Fund in relation to the Fund’s investment into the
SABF.
Current: less than 0.06% p.a.; Maximum: 0.2% p.a.
Custody fees: 0.10%
Current: 0.75% p.a. of NAPF’s asset value
The management fee of NAPF will be rebated back to the
Fund in relation to the Fund’s investment into the NAPF.
Current: 0.15% p.a. of NAPF’s asset value
Custodian and administration
fees
Sales charge Current: Nil; Maximum: 5%
The sales charge which may be imposed on subscriptions
into NAPF will be waived in respect of the Fund’s
investment into NAPF.
Other Substantial
Fees/Charges:
There may be other fees and charges such as transaction
& safekeeping fees and auditors’ fees which may each
exceed 0.1% per annum of NAPF’s asset value,
depending on the proportion that each fee or charge
bears to the NAV of NAPF.
Refer to Para 8 on
Pg 7-8 of the
Prospectus for further
information on fees
and charges.
Nikko AM Asia Investment Funds – POSB InvestSteady Fund – 31 May 2013

PRODUCT HIGHLIGHTS SHEET
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 of Units 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 providing notice in writing to the Manager or
its approved distributor. 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 Fund since you purchased the
Units.
Realisation of Units
You can exit the Fund by writing to the Manager or through its approved distributor.
If your realisation request is received and accepted by 5 p.m. on a Dealing Day, you will be paid
a price based on the value of the Fund for that Dealing Day. If your realisation request is received
and accepted after 5 p.m., you will be paid a price based on the value of the Fund on the
immediate following Dealing Day.
The net realisation proceeds that you will receive are calculated by multiplying the number of
Units to be realised by the realisation price, less any applicable charges. An example is as
follows:
Units to be realised x Realisation Price = Gross Realisation Proceeds
1,000 x S$1.050 = S$1,050.00
Gross Realisation Proceeds - Realisation Charge = Net Realisation Proceeds payable
S$1,050.00 - Nil = S$1,050.00
The cancellation or realisation proceeds will normally be paid within six Business Days after the
relevant Dealing Day on which the cancellation or realisation request is received.
CONTACT INFORMATION
HOW DO YOU CONTACT US?
You can call us, Nikko Asset Management Asia Limited, at 1800 535 8025 if you have queries
regarding your investment in the Fund. You can also visit our website at
(www.nikkoam.com.sg).
Our business address is at 8 Cross Street, #08-01 PWC Building, Singapore 048424.
APPENDIX: GLOSSARY OF TERMS
Anti-Dilution
Levy
Business
Day
Dealing
Day
Holder
Initial
Sales
Charge
Refer to Para 10.11,
12 and 14 on Pg 18-
20 of the Prospectus
for further information
on valuation and
exiting from the
product.
is an amount that the Manager shall be entitled to deduct from the investment amount (in the case of
subscriptions) and from the redemption proceeds (in the case of redemptions). The Anti-Dilution Levy is
to provide for market spreads (the difference between the prices at which assets are valued and/or
bought or sold), duties and charges and other dealing costs relating to the acquisition or disposal of the
investments constituting the assets of the Fund in the event of receipt for processing of large subscription
or redemption requests (as determined at the discretion of the Manager) including subscriptions and/or
repurchases which would be effected as a result of exchange or conversion requests made pursuant to
the trust deed of the Fund or in the event of market dislocation where the liquidity of underlying assets of
the Fund is substantially impaired.
means any day (other than Saturdays, Sundays or public holiday) on which commercial banks in
Singapore are generally open for business, or any other day as the Manager and the Trustee may agree
in writing.
in relation to the subscription and realisation of Units means a Business Day or such other day as
provided in the trust deed of the Fund.
means a holder of units in the Fund.
a charge upon the issue of Units of such amount as the Manager may from time to time determine
generally or in relation to any specific transaction or class of transactions provided that such charge shall
not exceed five per cent. of the gross investment sum, or such other percentage as the Manager and
Trustee may from time to time agree. Such expression in the context of a given date shall refer to the
charge or charges determined by the Manager pursuant to the trust deed of the Fund and applicable on
that date.
Launch Date for the purposes of this Product Highlights Sheet only, means the inception date of the Fund.
NAV means net asset value.
SGD
Units
means Singapore dollars.
means a unit of the Fund.
Nikko AM Asia Investment Funds – POSB InvestSteady Fund – 31 May 2013