Download Fund Summary Sheet TMLS Singapore Cash Fund

TMLS SINGAPORE CASH FUND SUMMARY
(SUPPLEMENT TO PRODUCT SUMMARY)
This supplement forms part of the product summary. You should read this together with the
relevant Product Summary.
Description of the Fund
TMLS Singapore Cash Fund (the “Fund”) is an investment-linked policy sub-fund offered by Tokio
Marine Life Insurance Singapore Ltd..
Fund Structure
The Fund is a feeder ILP Sub-Fund which invests substantially into the Legg Mason Western Asset
Singapore Dollar Fund (Class B) (the “Underlying Fund”) managed by Legg Mason Asset Management
Singapore Pte. Limited (the “Underlying Fund Manager”). The sub-manager of the Underlying Fund
(the “Underlying Fund Sub-Manager”) is Western Asset Management Company Pte. Ltd.. The
Underlying Fund is a sub-fund of Legg Mason Funds, an open-ended umbrella unit trust constituted
in Singapore.
The Fund is not classified as an Excluded Investment Product.
Investment Objectives
The investment objective of the Underlying Fund is to invest as a money market fund, in Singapore
Dollar denominated money market instruments and debt securities, to achieve a return above
short-term cash deposit whilst managing liquidity and risk to preserve capital.
Fund Details
Launch Date
15 August 2014
Inception Date
30 December 2015
ILP Sub-Fund Manager
Tokio Marine Life Insurance Singapore Ltd. (w.e.f. 1 July 2016)
Underlying Fund Manager
Underlying Fund
Sub-Manager
Fund Currency
Legg Mason Asset Management Singapore Pte. Limited^
Subscription
Cash / SRS
Risk Classification
Lower Risk – Broadly Diversified
Initial Offer Price
S$1.00
Bid/Offer Spread
5.0%
Fund Size
S$0 (as at 31 March 2017)
Fund Management Fee
0.30% p.a.
Western Asset Management Company Pte. Ltd. (w.e.f. 3 April 2017)
SGD
Valuation Frequency
Daily
Benchmark
Monetary Authority of Singapore Benchmark Govt Bill Yield 3 Month ^^
^ Prior to 3 April 2017, the Underlying Fund Manager was Western Asset Management Company
Pte. Ltd..
^^ The benchmark is changed from the 1-month Singapore Inter-Bank Bid Rate Average to the
Monetary Authority of Singapore Benchmark Govt Bill Yield 3 Month with effect from 3 October
2016.
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01/06/2017
Page 1 of 6
Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg
Note: There is no minimum ILP sub-fund size required in order to launch this Fund. The Offer
Price will be held until the receipt of the first subscription by Tokio Marine Life Insurance
Singapore Ltd.
Fund Performance vs Benchmark (%) (as at 31 March 2017)
#
1 Year
3
Years
3
Years
5
Years
5
Years
10
Years
10
Years
*Since
Inception
Since
Inception
TMLS
Singapore Cash
Fund^
0.57
1.46
0.48
3.05
0.60
7.45
0.72
20.78
1.13
Benchmark**
0.77
2.18
0.72
2.73
0.54
6.50
0.63
19.14
1.05
Period
#
#
*#
#
Annualised returns
^The fund performance of TMLS Singapore Cash Fund is not available as there are no assets in the
Fund as at 31 March 2017. The returns shown above are based on the performance of the
Underlying Fund.
*The Underlying Fund was incepted on 31 May 2000.
**The benchmark is changed from the 1-month Singapore Inter-Bank Bid Rate Average to the
Monetary Authority of Singapore Benchmark Govt Bill Yield 3 Month with effect from 3 October
2016 because the benchmark data for the 1-month Singapore Inter-Bank Bid Rate Average is no
longer published from 30 September 2015. Benchmark performance shown is based on the
Monetary Authority of Singapore Benchmark Govt Bill Yield 3 Month and performance prior to 3
October 2016 is for reference only.
The returns are calculated using bid-to-bid prices, in SGD terms, with all dividends and
distribution reinvested. Fees and charges payable through deduction of premium or cancellation of
units are excluded from this calculation.
Investments are subject to investment risks including the possible loss of the principal amount
invested. Returns on the units of the Fund are not guaranteed. The value of the units in the Fund
and the income accruing to the units, if any, may fall or rise.
Past performance is not indicative of future performance of the Underlying Fund or the Fund.
Source: Legg Mason Asset Management Singapore Pte. Limited.
Information on the Underlying Fund Manager*
The Underlying Fund Manager is Legg Mason Asset Management Singapore Pte. Limited which is a
wholly-owned subsidiary of Legg Mason, Inc. (“Legg Mason”), a US financial services holding
company that provides asset management services through its subsidiaries. Legg Mason was founded
in 1899 and is listed on the New York Stock Exchange, Inc. under the symbol “LM”. As of 31
December 2016, Legg Mason was responsible for approximately US$710.4 billion of assets under
management invested in a broad range of financial instruments including global equities, fixed
interest securities, and currencies. Legg Mason is committed to helping clients reach their financial
goals through long-term, actively managed investment strategies.
Additionally, the Underlying Fund Manager houses the Legg Mason Global Distribution division and is
focused on the distribution of Legg Mason’s Singapore domiciled unit trusts and Legg Mason’s
offshore domiciled mutual fund ranges.
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01/06/2017
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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg
Information on the Underlying Fund Sub-Manager*
The Underlying Fund Sub-Manager is Western Asset Management Company Pte. Ltd., which is also a
wholly-owned subsidiary of Legg Mason. The Underlying Fund Sub-Manager’s strategic goal is to
provide above average returns over the long term by managing diversified, risk controlled, value
oriented portfolios across a range of investment products in major and emerging markets. Portfolios
employ a long-term value orientation that utilises multiple investment strategies to achieve above
market returns while approximating market risk.
The Underlying Fund Sub-Manager advises and manages an extensive range of investments on behalf
of institutions and individuals. Through unit trusts and separate account management, the
Underlying Fund Sub-Manager provides investors with access to fixed interest and currency
investment opportunities that seek to add value and control risk. The Underlying Fund Sub-Manager
has been managing collective investment schemes in Singapore since 2003. As at 30 June 2016, the
Underlying Fund Sub-Manager managed approximately US$4.6 billion of assets on behalf of
institutional and retail clients.
The trustee, who is independent of the Underlying Fund Manager and Underlying Fund Sub-Manager,
is responsible for the safe custody of the Underlying Fund assets and ensures that the Underlying
Fund is managed according to the guidelines laid out in the trust deed to minimise the risk of
mismanagement by the Underlying Fund Manager and Underlying Fund Sub-Manager.
Investors should note that the past performance of the managers is not necessarily indicative of
the future performance of the managers.
* With effect from 3 April 2017, Legg Mason Asset Management Singapore Pte. Limited assumed
the role of Underlying Fund Manager and appointed Western Asset Management Company Pte.
Ltd. as Underlying Fund Sub-Manager.
Investment Focus and Approach
The investment objective of the Underlying Fund is to invest as a money market fund, in Singapore
Dollar denominated money market instruments and debt securities to achieve a return above shortterm cash deposit whilst managing liquidity and risk to preserve capital. Such money market
instruments and debt securities include bank certificates of deposits, fixed deposits, money market
securities, Singapore government and statutory board securities and corporate bonds.
The Underlying Fund does not intend to invest in derivatives.
The Underlying Fund will invest in Singapore Dollar denominated money market instruments and
debt securities taking into account macro-economic factors, interest rate trends, industry trends
and bond specific factors.
Soft Dollar Commissions or Arrangements
The Underlying Fund Sub-Manager currently does not but shall be entitled to receive and enter into
soft-dollar commissions/arrangements in respect of the Underlying Fund. The Underlying Fund SubManager will comply with applicable regulatory and industry standards on soft-dollars. The softdollar commissions which the Underlying Fund Sub-Manager may receive include specific advice as
to the advisability of dealing in, or the value of any investments, research and advisory services,
economic and political analyses, portfolio analyses including valuation and performance
measurements, market analyses, data and quotation services, computer hardware and software or
any other information facilities to the extent that they are used to support the investment decision
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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg
making process, the giving of advice, or the conduct of research or analysis, and custodial service
in relation to the investments managed for clients.
Soft-dollar commissions received shall not include travel, accommodation, entertainment, general
administrative goods and services, general office equipment or premises, membership fees,
employees’ salaries or direct money payment.
The Underlying Fund Sub-Manager will not accept or enter into soft dollar
commissions/arrangements unless such soft-dollar commissions/arrangements would, in the opinion
of the Underlying Fund Sub-Manager, assist the Underlying Fund Sub-Manager in their management
of the Underlying Fund, provided that the Underlying Fund Sub-Manager shall ensure at all times
that best execution is carried out for the transactions, and that no unnecessary trades are entered
into in order to qualify for such soft-dollar commissions/arrangements.
Risks
1. General Risks
Investors should note that investment in the Underlying Fund, which is a collective investment
scheme, will be subject to different degrees of interest rate risk, currency risk, liquidity risk,
sovereign risk, credit risk and exchange control risk. The foregoing list of risks does not purport to
be an exhaustive or complete list of the risks involved in investing in the Underlying Fund.
Investors should be aware that the value of the Units and the income from them may rise as well as
fall and there is the possible loss of the principal amount invested. Past performance figures are
not necessarily indicative of the future performance.
Investment in the Underlying Fund is generally designed to produce returns over the long-term and
is not suitable for short-term speculation. Investors should not expect to obtain short-term gains
from such investment although money market Funds may be suitable for short-term investment.
2. Fund Specific Risks
In addition to the general risk factors set out above, potential investors should be aware of certain
fund specific risks as set out below:
2.1 Market risk
The value of investments made by the Underlying Fund may go up and down due to changing
economic (such as growth, inflation or policy changes), political or market conditions in the
market(s) that the Underlying Fund may invest in, or due to an issuer’s individual situation.
2.2 Interest rate risk
Investments by the Underlying Fund in bonds, debentures, loan stocks, convertibles and other
debt securities may rise or decline in value if interest rates change. In general, the price of
debt securities rises when interest rates fall, and fall when interest rates rise.
2.3 Credit risk
The Underlying Fund is subject to the risk that some issuers of debt securities and other
investments made by the Underlying Fund may not make payments on such obligations.
Alternatively, an issuer may suffer adverse changes in its financial condition that could lower
the credit quality of a security, leading to greater volatility in the price of the security and in
the value of the Underlying Fund. A change in the quality rating of security can also affect the
security’s liquidity and make it more difficult to sell. You may not be able to redeem on a
Dealing Day if a redemption limit is imposed for the Underlying Fund. There may be a 10% limit
on the number of Units that can be redeemed on any Dealing Day. You will not be able to
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01/06/2017
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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg
redeem when redemption is suspended for the Underlying Fund. Your right to redeem Units may
be temporarily suspended under certain circumstances.
Money Market ILP Sub-Fund (“MMF”)
The purchase of a unit in the MMF is not the same as placing funds on deposit with a bank or
deposit-taking financial institution. Although the Underlying Fund Sub-Manager may seek to
maintain or preserve the value of the principal of the MMF, there can be no assurance that the
Fund shall be able to meet this objective. The MMF is not a guaranteed fund, in that there is no
guarantee as to the amount of capital invested or return received.
Potential Conflicts of Interest
The Underlying Fund Sub-Manager may from time to time have to deal with competing or
conflicting interests of the Underlying Fund with other funds managed by the Underlying Fund SubManager. For example, the Underlying Fund Sub-Manager may make a purchase or sale decision on
behalf of some or all of the other funds managed by them without making the same decision on
behalf of the Underlying Fund, as a decision whether or not to make the same investment or sale
for the Underlying Fund depends on factors such as the cash availability and portfolio balance of
the Underlying Fund. However, the Underlying Fund Sub-Manager will use reasonable endeavours at
all times to act fairly and in the interests of the Underlying Fund. In particular, after taking into
account the availability of cash and relevant investment guidelines of the other funds managed by
the Underlying Fund Sub-Manager, the Underlying Fund Sub-Manager will endeavour to ensure that
securities bought and sold will be allocated in an equitable and practical manner among the
Underlying Fund and the other funds managed by the Underlying Fund Sub-Manager.
The factors which the Underlying Fund Sub-Manager will take into account when determining if
there are any conflicts of interest above include the assets and, where applicable, the debt
securities of the Underlying Fund. To the extent that another fund managed by the Underlying Fund
Sub-Manager intends to purchase substantially similar assets, the Underlying Fund Sub-Manager will
ensure that the assets are allocated equitably and that the interests of all investors are treated
equally between the Underlying Fund and the other funds.
The Underlying Fund Sub-Manager may from time to time act as investment manager or investment
adviser in relation to, or be otherwise involved in, other funds which have similar investment
objectives to those of the Underlying Fund. It is, therefore, possible that it may, in the course of
business, have potential conflicts of interests with the Underlying Fund. The Underlying Fund SubManager will, at all times, have regard in such event to their obligations to the Underlying Fund and
will ensure that such conflicts are resolved fairly. In addition, the Underlying Fund Sub-Manager and
each of their affiliated entities will, at all times, have regard to their obligations to the Underlying
Fund and shall ensure that in any transaction carried out with the Underlying Fund, such
transaction will be carried out as if effected on normal commercial terms negotiated at arm’s
length.
Central Provident Fund (“CPF”) Investment Scheme
The Fund is not included under the CPF Investment Scheme.
Expense Ratio
The expense ratio of the Fund, including the Underlying Fund expense ratio as at 31 December 2016
is 0.38%1.
Expense ratio does not include (where applicable) charges for insurance coverage, brokerage and
other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads
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01/06/2017
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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg
arising from the purchase or sale of collective investment schemes and tax deducted at source or
arising out of income received.
The expense ratio is calculated in accordance with the Investment Management Association of
Singapore’s guidelines.
Turnover Ratio
The turnover ratio of the Fund and Underlying Fund as at 31 December 2016 are 141.71%1 and
286.94%1 respectively.
The turnover ratio means the number of times per year that a dollar of assets is reinvested. It is
calculated based on the lesser of purchases or sales for the 12 months preceding the reporting date
expressed as percentage of the daily average Net Asset Value.
1
Source: TMLS Annual Investment-Linked Funds Report (Jan – Dec 2016)
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01/06/2017
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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)
20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046
Tel: 6592 6100 Fax: 6223 9120 www.tokiomarine-life.sg