Funds GreatLink - Great Eastern Life

GREATLINK LIFESTYLE PORTFOLIOS report as at 31 December 2005
STEADY
FUND FACTS
Offer Price S$ 1.220
Bid Price S$ 1.159
Fund Size
S$ 18.16 mil
CPF Approved
CPFIS – OA & SA
Risk Category Medium to High Risk /
Broadly Diversified
Mercer Fund Rating as at 31 Dec 2005 ★★★★
S&P Fund Stars as at 31 Dec 2005 ★
PORTFOLIO WEIGHTINGS
FUND PERFORMANCE SINCE INCEPTION
Price Indexed
130
125
120
115
110
105
100
95
90
85
Global Equities
(Growth)
15%
Global Equities
(Value)
16%
Far East ex
Japan Equities
5%
Singapore
Equities
6%
Performance Review (Mar 2002 to Dec 2005)
03 04 05
Short-Term
Bonds
9%
Global Bonds
49%
+23.62
+22.00
––––– Greatlink Lifestyle Steady Portfolio ––––– Benchmark Index
Benchmark: Composite of underlying funds’ benchmarks. Off-bid actual prices. Curr-chg uses
bid-bid adjusted for current spread. The values of your units may go down as well as up. Past
performance is not necessarily a guide to the future.
Source: S&P
For Top 10 Investments refer to page 84.
30
25
20
15
10
5
0
-5
-10
-15
Percent Change
MANAGER COMMENTARY
Market Review – The global bonds market did not turn in a
good performance this year following a series of interest rate
hikes from the Federal Reserve, bringing the Fed Fund rate from
2.25% in Jan 2005 to 4.25% in Dec 2005. However, despite the
higher interest rates and the higher energy prices, the US economy
continued to remain firm, as evident by the strong GDP growth
and the improvement in consumer and business spending. Both
Euroland and Japan have also seen signs of economic recovery on
the back of improving corporate profits and business confidence.
Global equity markets performed well in 2005 on a better
than expected GDP of 3.5% for 2005 and as initial fears over a
higher inflationary environment were dispelled. The general
improvement in macroeconomic activities in Europe and the Japanese
economy also helped fuelled the rise in the equity markets.
For the full year 2005, all the lifestyle portfolios
underperformed their benchmarks, which are largely attributed
to the equity performance.
Market Outlook – Global economic growth is expected to
remain firm in the near-term but with a bias towards a slowdown
by end of 2006. Although US monetary policy is expected to reach
a peak soon, consumer spending is expected to moderate on the
back of higher interest rates and the fall in house prices. Economic
growth in Euroland is expected to be on track while Japan is likely
to move away from its zero interest rate policy. The healthy
financial conditions and recovery in capital spending and consumer
confidence could also possibly lead Japan out of deflation.
Global equities is expected to remain buoyant on expectations
that the Federal Reserve may be near the end of the monetary
tightening cycle after eight 0.25% hikes in the Fed Funds rate. The
improving economic environment in Europe and Japan are also
expected to lend support to the markets. Notwithstanding this,
there still exists the risks that the monetary policy could be further
tightened and oil prices could rise further, which could raise the
possibility of a slower economic growth and inflation fears. In
addition, the possibility of an Avian flu pandemic could also disrupt
the performance of the equity markets.
12
PERFORMANCE ON BID-BID BASIS (%)
3mths 6 mths 1 year 3 years 3 years Since Inception Since Inception
(annualised)
(annualised)
Greatlink Lifestyle Steady Portfolio 0.35 2.39 4.79 29.35 8.96 22.00 5.42
Benchmark Index 0.28 2.88 5.76 31.11 9.45 23.62 5.79
NOTE: This factsheet is compiled by Great Eastern Life. The information presented is for informational use only. The performance of the Fund is not guaranteed and the value may increase or
decrease in accordance with the future experience of the Fund. Past returns are not necessarily a guide to future performance.