Nikko AM Asia Investment Funds POSB InvestSteady Fund

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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
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Nikko AM Asia Investment Funds POSB InvestSteady Fund

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