AIA Growth Fund - AIA Singapore

AIA Growth FundMay 2013Investment ObjectiveThis is a balanced fund and is managed with the objective of achieving medium to long term capital appreciation by investing mainly in Singaporeand Malaysian equities and in fixed income instruments. Approximately 70% of the fund is invested in equities and 30% in fixed income securities,although this asset mix may vary, depending on market conditions.Key Fund FactsLaunch Date: 12 September 1995Launch Price: S$ 1.000Manager of ILP Fund: PineBridge Investments Singapore LimitedSales Charge (For Cash and SRS): 5% (included in bid-offer spread)Sales Charge (For CPF OA or SA): 3%Subscription: Cash, CPF (OA & SA) and SRSManagement Fees: 1.25% p.a. of Net Asset ValueBid: S$ 2.370 as of 31 March 2013Offer: S$ 2.495 as of 31 March 2013Fund Size: S$ 689.5m as of 31 March 2013Pricing Frequency: DailyManager’s Commentary* As of 31 March 2013. Source: PineBridge Investments Singapore LimitedThe Singapore stock market posted a modest gain of 1.28% in March, after falling initially due to concerns over the Cyprus crisis. The marketeventually rallied towards the end of the month after U.S. markets registered new highs and confidence returned once the bailout packages inCyprus were concluded. Yield based investment themes continued to dominate in Singapore and remained core to the market's performance.Regionally, sentiment was weaker, primarily hurt by China's renewed imposition of property cooling measures and concerns China's economicmomentum had slowed in recent months. Sector performance wise, telecommunications and industrials were good performers during the monthwhile property lagged due to policy concerns.In the economy, February inflation surprised on the upside, rising by 4.9% year on year due to higher costs in transport and housing. Meanwhile,manufacturing output and non-oil domestic exports were both weaker than expected in February, falling by 30.6% and 16.6% year-over-yearrespectively. The silver lining was the encouraging March Purchasing Manager Index, which rose from 49.4 in February to 50.6. This mirrors therecovery in China's March HSBC manufacturing flash PMI, which also rebounded from 50.4 in February to 51.7.In fixed income, the month ended with interest rates moving lower as a number of global factors impacted sentiments. Europe had a mini flare-upwith the Cyprus bail-out situation and Italy's election impasse. On the economic front, the U.S. and China continued to show improvement, butrecent data has started to show cracks in the growth momentum. In Singapore, as mentioned above, exports and manufacturing is off to a weakstart for the year. Given this weaker tone in the market, UST rates ended the month lower, with the UST 10-year benchmark ending the month at1.85% from a intra-month high of 2.06%. SGD rates followed a similar but more muted move, with the 10-year SGS benchmark ending at 1.54%and the 10-year SGD swap rates ending at 1.84%, 6 basis points and 12 basis points lower than their respective intra-month highs.In SGD corporate credit, supply of new issuances continue to be light, with the only notable issuance being a 5-year S$925 million HDB bond issuedat a yield of 0.943%. This in turn has kept street inventory low. All in all, the lower move in SGD swap rates coupled with favorable technicalindicators benefited the Fund's fixed income portfolio.aia.com.sg

AIA Growth Fund 2The Fund rose 77 bps month-over-month, slightly below the benchmark return of 90 bps. The performance detraction came mainly from equitystock selection and fund expenses.During the month, the Fund added to positions selectively. Equity purchases totaled $29.1 million while sales were $11.4 million. We added toWilmar and OCBC and initiated a new position in Yangzijiang. We continued to take profit in Yanlord Land and Suntec REIT after they exceededour fair value and target prices. For fixed income, the Fund switched out of some of the shorter-dated Singapore government securities, which havebecome too expensive, into the new 5-year Singapore government security benchmark.In equities, we remain cautiously optimistic and expect the Singapore market to be underpinned by the sustenance of the improvement in economicactivity globally. We continue to expect support from positive economic data in U.S. as well as China, following China's weaker February macrodata due to the Chinese New Year holiday. Another positive signpost for Asian equity markets remains Japan, where recent policy action has showna strong focus by the Bank of Japan to resuscitate the Japanese economy via aggressive quantitative easing.In terms of stock selection, we continue to favour companies less exposed to the structurally slowing domestic market due to recent governmentpolicies on productivity and labour. Our overweight bias remains largely focused on companies leveraged towards a cyclical growth recovery aswe see an improving external environment and the potential for earnings upgrades in 2013/2014.In fixed income, recent cooling measures in both housing and private cars should bring down inflation. However, with the government's impositionof stricter immigration policy and the tightening of foreign labour, inflation is expected to remain elevated as higher wage pressures are passedthrough to consumer prices. Given this inflationary concern, the Monetary Authority of Singapore is not likely to loosen monetary policies when theymeet for its semi-annual meeting in April. This is despite Singapore's economic growth looking uncertain, dragged down by weak exports andmanufacturing. The expectations of a strong SGD should therefore continue to encourage flows into SGD rates, which will keep SGD front-endrates anchored. As for the back-end, SGD rates will continue to trend in line with UST rates. Weaker U.S. employment data released in early Aprilwill push out expectations for the likely wind back of quantitative easing by the Federal Reserve, which in turn will cap U.S. rates from going higher,and consequently SGD rates too.Performance Indicator Bid-to-bid, net dividends reinvested, SGD, from Inception to 31 March 2013. Source: AIA SingaporePeriod 1 Month 3 Months 6 Months 1 Year 3 Year^ 5 Year^ 10 Year^ SinceInception^Fund (bid-to-bid) 0.77% 3.22% 6.42% 9.77% 4.16% 3.00% 10.98% 5.37%Benchmark 0.90% 2.68% 5.22% 8.94% 6.16% 4.55% 9.74% 3.90%Note: Performance of the fund is in SGD without taking into considerationthe fees and charges payable through deduction of premium or cancellationof units and with net dividends reinvested.^ Annualised returns# Current benchmark: 70% FTSE AW Sing (Total Return) Index & 30% JPMorgan Sing Govt Bond Index All (The combined benchmark is reflectiveof the fund’s investment focus)Price Indexed2752502252001751501251007550Oct-95Mar-96Aug-96Jan-97Jun-97Nov-97Apr-98Sep-98Feb-99Jul-99Dec-99May-00Oct-00Mar-01Aug-01Jan-02Jun-02Nov-02Apr-03Sep-03Feb-04Jul-04Dec-04May-05Oct-05Mar-06Aug-06Jan-07Jun-07Nov-07Apr-08Sep-08Feb-09Jul-09Dec-09May-10Oct-10Mar-11Aug-11Jan-12Jun-12Nov-12AIA Growth Fund --- Benchmark #Top Ten Holdings* As of 31 March 2013Holding (%)DBS GROUP HOLDINGS LTD COMMON STOCK NPV 7.80OVERSEA-CHINESE BANKING CORP L COMMON STOCK NPV 6.71UNITED OVERSEAS BANK LTD COMMON STOCK NPV 5.62SINGAPORE TELECOMMUNICATIONS L COMMON STOCK NPV 5.60KEPPEL CORP LTD COMMON STOCK NPV 4.89CAPITALAND LTD COMMON STOCK NPV 4.31WILMAR INTERNATIONAL LTD COMMON STOCK NPV 4.29KEPPEL LAND LTD COMMON STOCK NPV 2.68SINGAPORE EXCHANGE LTD COMMON STOCK NPV 2.50EZION HOLDINGS LTD COMMON STOCK NPV 2.03______________________________________________________________Total 46.43%

AIA Growth Fund 3Asset Allocation* As of 31 March 2013Cash & Equivalent 0.95%Fixed Income Instrument 23.89%Equities 75.16%Sector Allocation* (Equity Investments) As of 31 March 2013Others 7.83%Finance 2.50%Transportation 3.59%Oil & Gas 4.46%Industrials 4.48%Reits/Trust 4.79%Resources 5.18%Sovereign 5.84%Conglomerate 7.55%Cash Equivalents 0.95%Banks 23.88%Real Estate 12.11%Property 9.21%Telecommunication 7.62%* Source: PineBridge Investments Singapore LimitedThe AIA Growth Fund is an investment-linked policy (ILP) fund offered by AIA Singapore Private Limited (“AIA Singapore”) and is only available under AIAInvestment-Linked Policies. AIA Singapore is the product provider. This fact sheet is prepared by AIA Singapore and the information presented is forinformational use only. Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance, as wellas the prediction, projection or forecast on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the futureor likely performance of the ILP fund. The performance of the ILP fund is not guaranteed and the value of the units in the ILP fund and the income accruingto the units, if any, may fall or rise. A product summary relating to the ILP fund is available and may be obtained from your AIA Financial Services Consultant.A potential investor should read the product summary before deciding whether to subscribe for units in the ILP fund. AIA Singapore does not warrant ormake any representations regarding the use or the results of the use of the figures generated in terms of their correctness, accuracy, reliability, or otherwise.E. & O. E.AIA Singapore Private Limited (Reg No.201106386R)1 Robinson Road, AIA Tower, Singapore 048542 Monday - Friday: 8.45am - 5.30pm AIA Customer Care Hotline: 1800 248 8000 aia.com.sg