Funds GreatLink - Great Eastern Life

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GREATLINK ASEAN GROWTH FUND report as at 31 December 2005 30 FUND FACTS Inception Date 26 April 1996 Offer Price S$ 1.431 Bid Price S$ 1.360 Fund Size S$ 130.38 mil Fund Manager Lion Capital Management (wef 26 Sep 2005) Bid-Offer Spread 5% Fund Management Fee 1.00% p.a. Valuation Frequency Daily Currency of Fund Singapore Dollar CPF Approved CPFIS – OA Risk Category Higher Risk / Narrowly Focused Mercer Fund Rating as at 31 Dec 2005 N.A S&P Fund Stars as at 31 Dec 2005 N.A FUND OBJECTIVE & INVESTMENT STRATEGY The Fund objective is to achieve long term capital appreciation by investing in equities in the economies of the ASEAN region. PORTFOLIO WEIGHTINGS FUND PERFORMANCE SINCE INCEPTION Price Indexed Singapore 54% 160 140 120 100 80 60 40 20 Thailand 16% Cash & Cash Equivalents 3% Australia 1% Indonesia 10% Performance Review (Apr 1996 To Dec 2005) Malaysia 14% Philippines 2% +43.16 -40.98 Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 96 97 98 99 00 01 02 03 04 05 ––––– Greatlink ASEAN Growth Fund ––––– Benchmark Index Benchmark: Composite of MSCI Singapore/Malaysia/Philippines/Thailand/Indonesia (Gross). For Top 10 Investments refer to page 87. MARKET REVIEW For the half year ended 31 December 2005, the fund gained 3.9% (bid-bid), underperforming the benchmark which is a composite of MSCI Singapore/Malaysia/Philippines/Thailand/Indonesia index which rose 7.03% (bid-bid). All ASEAN markets posted positive gains during the year despite soaring oil prices, rising interest rates and sporadic political unrest. In Singapore, growth momentum of the economy picked up pace throughout 2005, supported by improved domestic confidence and strong job creation. The rise in the stock market was led by property and offshore marine sectors. The government’s decision to proceed with the tender for two integrated resorts lifted the property sector. This move raised hope that the downtown landscape could see a major transformation, prompting a wave of hectic activities among prime residential properties and office space. Further easing of borrowing restrictions for residential property purchases in July provided sustained momentum for property stocks. Offshore companies were sought after as order flow momentum accelerated, resulting in a record order books for Singapore shipyards. Investors were of the view that the sector was at the beginning of a strong up-cycle due to ageing rigs and higher demand for rigs capable of operation in the deeper seas. Banks underperformed the market, owing to challenging operating environment such as flattening yield curve and anaemic loans growth. The Malaysia stock market has a disappointing year. While the market index was marginally higher, most of the smaller companies ended the year lower. Speculation on the Ringgit peg sparked periodic interests in the market. However, this turned out to be a non-event, as interest soon fizzled out when the peg was actually removed. The government-linked company (GLC) restructuring led by Khazanah has entered its second year. However, the pace of restructuring was generally slower than expected, and this was reflected in the pull-back of the share prices of some GLCs. Thailand market started the year well but a slew of negative developments depressed sentiment. Unrest in southern states, pervasive drought that crimped both agricultural and industrial output, and increased criticism of Thaksin’s government, coupled with high oil prices caused the market to fall sharply by the second quarter. Sentiment remained suppressed after that due to escalating inflation, interest rate hikes and a delay in EGAT IPO. The Indonesia market performed well despite a cut in fuel price subsidies which led to sharply higher inflation and interest rates. Optimism on the new administration under SBY underpinned the buoyant sentiment. PERFORMANCE ON BID-BID BASIS (%) 3mths 6 mths 1 year 3 years 3 years 5 years 5 years Since Inception Since Inception (annualised) (annualised) (annualised) Greatlink ASEAN Growth Fund 0.22 3.90 8.45 74.36 20.38 78.95 12.34 43.16 3.78 Benchmark Index 1.99 7.03 14.04 96.03 25.15 80.40 12.52 -40.98 -5.31 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.
GREATLINK ASEAN GROWTH FUND report as at 31 December 2005 The Philippines market was strong owing to improved fiscal position and strong overseas foreign workers’ remittances. The passage of the VAT law was hailed as a positive move to curb the escalating fiscal deficit. Market activity was buoyant with strong foreign participation and more than US$800m was raised in various IPOs like SMIC, Manila Water, BPI and Semirara. MARKET OUTLOOK The economic growth prospect for the region is bright, with real GDP growth forecasts in the range of between 4.5 to 5.5%. With the end of the monetary tightening coming to a halt at around the second quarter of the year, interest rates in ASEAN should peak as well. ASEAN stock market should perform well, after a year of lacklustre performance vis-à-vis its North Asian neighbours. In Singapore, we continue to favour restructuring plays that have significantly stronger balance sheets, improved ROE and the capability to return cash to shareholders. Stock selection will become more important as we look for companies which are unlocking values in their balance sheet. We continue to see upside in the property sector and selective REITs as we position for the end of the rate tightening cycle. Asset reflation is likely to continue and we stay weighted in property companies, with the likelihood of adding weighting to banks later in the year. We overweight conglomerates and remain selective on telecom and technologyrelated stocks. We remain cautious on the outlook of the Malaysia stock market, given the expectation of future interest rate hikes and slower corporate earnings momentum. We remained positioned in businesses that have strong balance sheets, competitive globally and have a reasonable degree of pricing power. After a year of dismal performance, the outlook for Thailand stock market is bright. Key catalyst for market performance this year will hinge on turnaround of domestic investors’ sentiment. With continued economic growth and expectation that interest rates hike may be at the tail-end, sentiments are likely to improve. Sectors such as banking, property and energy are likely to do well. We are turning more positive on the Indonesian stock market, ahead of the easing of interest rates expected in the second half of the year. It appears that investors have factored this event well ahead, as reflected in the strength of the Rupiah. We expect divergence in corporate earnings and stock price performance in the next one to two quarters. The quick response of BI and the cabinet reshuffle are of comfort despite the shortterm hardship. In Philippines, we are more selective on banks and are cautious on consumption-related names. The government’s 2006 GDP target is 6% and the recent deceleration of GFP growth from 5.2% in 2Q05 to 4.1% in 3Q05 is of a concern. However, so long as overseas foreign workers’ remittance remains strong and the budget balance continues to improve, market is expected to remain resilient. 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. 31
Page 1 and 2: MICA (P) 100/02/2006 Statement and
Page 3 and 4: CEO’S MESSAGE GreatLink Funds yie
Page 5 and 6: ANNOUNCEMENTS New CPF Admission Cri
Page 7 and 8: LEAD STORIES High Potential Investm
Page 9 and 10: LEAD STORIES On a quantitative basi
Page 11 and 12: GREATLINK LIFESTYLE PORTFOLIOS repo
Page 17 and 18: GREATLINK GLOBAL SUPREME FUND repor
Page 19 and 20: GREATLINK GLOBAL OPTIMUM FUND repor
Page 21 and 22: GREATLINK GLOBAL EQUITY FUND report
Page 23 and 24: GREATLINK GLOBAL VALUE EQUITY FUND
Page 25 and 26: GREATLINK GLOBAL GROWTH TRENDS PORT
Page 27 and 28: GREATLINK GLOBAL REAL ESTATE SECURI
Page 29 and 30: GREATLINK EUROPEAN EQUITY FUND repo
Page 31: GREATLINK ENHANCER FUND report as a
Page 35 and 36: GREATLINK SINGAPORE EQUITIES FUND r
Page 37 and 38: GREATLINK CASH FUND report as at 31
Page 39 and 40: GREATLINK GLOBAL BOND FUND report a
Page 41 and 42: GREATLINK CHOICE (SEP 2010) & (OCT
Page 43 and 44: GREATLINK CHOICE (SEP 2010) & (OCT
Page 45 and 46: PORTFOLIO STATEMENT as at 31 Decemb
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PORTFOLIO STATEMENT as at 31 Decemb
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SOFT DOLLAR COMMISSIONS as at 31 De
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TOP 10 INVESTMENTS as at 31 Decembe
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CAPITAL ACCOUNT for the period 01 J
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STATEMENT OF ASSETS AND LIABILITIES
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NOTES TO THE ACCOUNTS 2. Significan
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NOTES TO THE ACCOUNTS Fair Value As
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GREATLINK FUND SUMMARY Fund Name In
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Funds GreatLink - Great Eastern Life

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