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1 Half 2015 A half yearly snapshot of iFAST distribution in Asia

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Half 2015 A half yearly snapshot of iFAST distribution in Asia

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For professional use only Page 2 of 40 Refer to Annex A for common abbreviations
About iFAST
<www.ifastcorp.com>
iFAST Corporation Ltd (��iFAST Corporation��) is a leading internet-based funds and investments distribution platform headquartered in Singapore and was listed on the Singapore Exchange Mainboard (stock code: AIY) in December 2014. iFAST Corporation provides a comprehensive range of services, including investment administration and transactions services, research and investment trainings, IT services and backroom functions to banks, financial advisory firms, financial institutions, multinational companies, as well as retail and high net worth investors in Asia. The company is also present in Hong Kong, Malaysia and China.
About iFAST Institutional Services
<insti.ifastfinancial.com>
iFAST Institutional Services provides back and front office infrastructure support for distribution of over 40,000 funds in 25 countries to financial institutions, fund of funds managers, pension fund managers, family offices and multinational companies. Our services include fund trading and custody, collection and payment of fund rebates, provision of fund information and materials, management of distribution agreements. Through a single point of contact, distributors gain instant access to a large and dynamic fund range, lower transaction costs, reduced operational risk and better commercial terms. For asset managers, our services translate to access to new distribution channels, automated computation and payment of rebates to distributors, minimal servicing costs and cross border distribution. Our back office support includes IT services such as the development of online distribution channel like Fundsupermart and award-winning integrated mobile applications.

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For professional use only Page 3 of 40 Refer to Annex A for common abbreviations
Contents
About iFAST ............................................................................................................................................................................. 1 About iFAST Institutional Services ................................................................................................................................. 2 Contents..................................................................................................................................................................................... 3 1.0 Fund Distribution Statistics ........................................................................................................................................ 5 Table A1 - Top Equity Fund Categories by AUA .................................................................................................... 5 Table A2 - Top Bond Fund Categories by AUA ...................................................................................................... 6 Table A3 - Top Selling Equity Funds .......................................................................................................................... 7 A3SG - SG Top Selling Equity Fund for 1H2015 ............................................................................................... 7 A3HK - HK Top Selling Equity Fund for 1H2015 ............................................................................................ 8 A3MY - MY Top Selling Equity Fund for 1H2015............................................................................................. 9 Table A4 - Top Selling Bond Funds ......................................................................................................................... 10 A4SG - SG Top Selling Bond Fund for 1H2015 ............................................................................................... 10 A4HK - HK Top Selling Bond Fund for 1H2015 ............................................................................................. 11 A4MY - MY Top Selling Bond Fund for 1H2015 ............................................................................................ 12 Table A5SG - iFAST Pensions Top Selling Funds ............................................................................................... 13 2.0 Mutual Funds Flow by Asset Classes ................................................................................................................... 14 Singapore .......................................................................................................................................................................... 14 Charts ASG – Net Funds Flow (total inflow less total outflow) ............................................................... 14 Our Commentary ....................................................................................................................................................... 14 Charts BSG – Mutual Funds Sales Distribution .............................................................................................. 15 Hong Kong ........................................................................................................................................................................ 16 Charts AHK – Net Funds Flow (total inflow less total outflow) .............................................................. 16 Our Commentary ....................................................................................................................................................... 16 Charts BHK – Mutual Funds Sales Distribution ............................................................................................. 17 Malaysia ............................................................................................................................................................................. 18 Charts AMY – Net Funds Flow (total inflow less total outflow) .............................................................. 18 Our Commentary ....................................................................................................................................................... 18 Charts BMY – Mutual Funds Sales Distribution ............................................................................................. 19 3.0 Equity Funds Flow ...................................................................................................................................................... 20 Singapore .......................................................................................................................................................................... 20 Charts CSG – Net Funds Flow (total inflow less total outflow)................................................................ 20 Our Commentary ....................................................................................................................................................... 20 Charts DSG – Mutual Funds Sales Distribution .............................................................................................. 21 Hong Kong ........................................................................................................................................................................ 22 Charts CHK – Net Funds Flow (total inflow less total outflow)............................................................... 22

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For professional use only Page 4 of 40 Refer to Annex A for common abbreviations
Our Commentary ....................................................................................................................................................... 22 Charts DHK – Mutual Funds Sales Distribution ............................................................................................. 23 Malaysia ............................................................................................................................................................................. 24 Charts CMY – Net Funds Flow (total inflow less total outflow) .............................................................. 24 Our Commentary ....................................................................................................................................................... 24 Charts DMY – Mutual Funds Sales Distribution ............................................................................................ 25 4.0 Bond Funds Flow ......................................................................................................................................................... 26 Singapore .......................................................................................................................................................................... 26 Charts ESG – Net Funds Flow (total inflow less total outflow) ............................................................... 26 Our Commentary ....................................................................................................................................................... 26 Charts FSG – Mutual Funds Sales Distribution .............................................................................................. 27 Hong Kong ........................................................................................................................................................................ 28 Charts EHK – Net Funds Flow (total inflow less total outflow) .............................................................. 28 Our Commentary ....................................................................................................................................................... 28 Charts FHK – Mutual Funds Sales Distribution ............................................................................................. 29 Malaysia ............................................................................................................................................................................. 30 Charts EMY – Net Funds Flow (total inflow less total outflow) .............................................................. 30 Our Commentary ....................................................................................................................................................... 30 Charts FMY – Mutual Funds Sales Distribution ............................................................................................. 31 Industry Insights ................................................................................................................................................................. 32 Launch of ETFs and Bonds on iFAST Singapore Platform ............................................................................. 32 What should you know about Mainland-HK Mutual Recognition? ............................................................ 34 Annex A – Category Description ................................................................................................................................... 38 Contact Us .............................................................................................................................................................................. 40 Disclaimer .............................................................................................................................................................................. 40

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For professional use only Page 5 of 40 Refer to Annex A for common abbreviations
1.0 Fund Distribution Statistics
Table A1 - Top Equity Fund Categories by AUA
Table A1a - Top Equity Fund Categories by AUA (iFAST Overall)
Rank SG HK MY
1 Asia Equity Asia Equity Local Equity 2 Global Equity Global Equity Asia Equity 3 GEM Equity Europe Equity Global Equity 4 Europe Equity US Equity Japan Equity 5 US Equity GEM Equity US Equity
Table A1b - Top Equity Fund Categories by AUA (DIY Investors)
Rank SG HK MY
1 Asia Equity Asia Equity Local Equity 2 Global Equity Global Equity Asia Equity 3 Europe Equity Europe Equity Global Equity 4 US Equity GEM Equity US Equity 5 Local Equity Japan Equity Europe Equity
Table A1c - Top Equity Fund Categories by AUA (Adviser Assisted)
Rank SG HK MY
1 Asia Equity Asia Equity Local Equity 2 Global Equity Global Equity Asia Equity 3 GEM Equity Europe Equity Global Equity 4 Europe Equity US Equity Japan Equity 5 US Equity GEM Equity GEM Equity
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 6 of 40 Refer to Annex A for common abbreviations
Table A2 - Top Bond Fund Categories by AUA
Table A2a - Top Bond Fund Categories by AUA (iFAST Overall)
Rank SG HK MY
1 SD and MMF Global Bonds Local Bonds 2 High Yield Bonds High Yield Bonds SD and MMF 3 Global Bonds US Bonds Asia Bonds 4 Local Bonds Asia Bonds GEM Bonds 5 Asia Bonds Local Bonds Global Bonds
Table A2b - Top Bond Fund Categories by AUA (DIY Investors)
Rank SG HK MY
1 SD and MMF High Yield Bonds SD and MMF 2 High Yield Bonds Global Bonds Local Bonds 3 Asia Bonds Asia Bonds Asia Bonds 4 Global Bonds US Bonds GEM Bonds 5 GEM Bonds RMB Bonds Global Bonds
Table A2c - Top Bond Fund Categories by AUA (Adviser Assisted)
Rank SG HK MY
1 SD and MMF Global Bonds Local Bonds 2 High Yield Bonds High Yield Bonds SD and MMF 3 Global Bonds US Bonds Asia Bonds 4 Local Bonds Asia Bonds GEM Bonds 5 Asia Bonds Local Bonds Global Bonds
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 7 of 40 Refer to Annex A for common abbreviations
Table A3 - Top Selling Equity Funds
A3SG - SG Top Selling Equity Fund for 1H2015
Table A3SGa - SG Top Selling Equity Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 Fidelity China Focus CPF ACC SGD Asia Equity 2 First State Dividend Advantage Asia Equity 3 Fidelity China Focus A SGD Asia Equity 4 Allianz Eur Equity Gth Cl AT Acc H2-SGD Europe Equity 5 Aberdeen India Opportunities Asia Equity 6 Fidelity America CPF ACC SGD US Equity 7 PineBridge India Equity A5 SGD Asia Equity 8 First State Regional China Fund Asia Equity 9 Schroder Asian Growth Fund Asia Equity 10 Fidelity America A SGD US Equity
Table A3SGb - SG Top Selling Equity Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 Fidelity China Focus A SGD Asia Equity 2 First State Dividend Advantage Asia Equity 3 Aberdeen India Opportunities Asia Equity 4 Fidelity China Focus CPF ACC SGD Asia Equity 5 Allianz Eur Equity Gth Cl AT Acc H2-SGD Europe Equity 6 PineBridge India Equity A5 SGD Asia Equity 7 First State Regional China Fund Asia Equity 8 United Global Healthcare Fund Global Equity 9 First State Glb Resources Global Equity 10 Fidelity America A SGD US Equity
Table A3SGc - SG Top Selling Equity Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 Fidelity China Focus CPF ACC SGD Asia Equity 2 First State Dividend Advantage Asia Equity 3 Fidelity China Focus A SGD Asia Equity 4 Allianz Eur Equity Gth Cl AT Acc H2-SGD Europe Equity 5 Fidelity America CPF ACC SGD US Equity 6 Aberdeen Pacific Equity Asia Equity 7 Schroder Asian Growth Fund Asia Equity 8 Aberdeen Global Emerging Markets GEM Equity 9 Fidelity America A SGD US Equity 10 Aberdeen India Opportunities Asia Equity
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 8 of 40 Refer to Annex A for common abbreviations
A3HK - HK Top Selling Equity Fund for 1H2015
Table A3HKa - HK Top Selling Equity Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 Jupiter Global Fund - Jupiter European Growth (USD Hedged) L Acc Europe Equity 2 Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc Japan Equity 3 First State Asian Equity Plus Fund (USD) I Dis Asia Equity 4 Manulife Advanced Fund SPC - China A Segregated Portfolio (USD) AA Asia Equity 5 Adequity Trust - Lyxor Selection China A Fund (USD) Asia Equity 6 First State China Growth Fund (USD) I Asia Equity 7 Fidelity Funds - China Focus Fund A-USD Asia Equity 8 Invesco Global Health Care Fund (USD) A Global Equity 9 Fidelity Funds - America Fund A-Acc-USD US Equity 10 Fidelity Funds - European Growth Fund A-EUR Europe Equity
Table A3HKb - HK Top Selling Equity Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 Jupiter Global Fund - Jupiter European Growth (USD Hedged) L Acc Europe Equity 2 Manulife Advanced Fund SPC - China A Segregated Portfolio (USD) AA Asia Equity 3 Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc Japan Equity 4 China Southern Dragon Dynamic Fund - China New Balance Opportunity Fund (USD) A Asia Equity 5 Invesco Japanese Equity Core Fund (USD Hedged) A Acc Japan Equity 6 First State Asian Equity Plus Fund (USD) I Dis Asia Equity 7 Templeton China Opportunities Fund (USD) A (acc) Asia Equity 8 Fidelity Funds - China Focus Fund A-USD Asia Equity 9 Invesco Global Health Care Fund (USD) A Global Equity 10 ChinaAMC China Opportunities Fund (USD) Acc Asia Equity
Table A3HKc - HK Top Selling Equity Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 First State Asian Equity Plus Fund (USD) I Dis Asia Equity 2 Adequity Trust - Lyxor Selection China A Fund (USD) Asia Equity 3 First State China Growth Fund (USD) I Asia Equity 4 Aberdeen Global - Japanese Smaller Companies Fund (USD-Hedged) A2 Acc Japan Equity 5 Jupiter Global Fund - Jupiter European Growth (USD Hedged) L Acc Europe Equity 6 Fidelity Funds - European Growth Fund A-EUR Europe Equity 7 Invesco Global Health Care Fund (USD) A Global Equity 8 Fidelity Funds - Global Technology A-EUR Global Equity 9 Fidelity Funds - China Focus Fund A-USD Asia Equity 10 Principal GIF - Global Equity Fund - A Class Acc Unit (USD) Global Equity
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 9 of 40 Refer to Annex A for common abbreviations
A3MY - MY Top Selling Equity Fund for 1H2015
Table A3MYa - MY Top Selling Equity Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 CIMB-Principal Asia Pacific Dynamic Income Fund Asia Equity 2 Kenanga Growth Fund Local Equity 3 Eastspring Investments Dana Al-Ilham Local Equity 4 Manulife India Equity Fund Asia Equity 5 CIMB-Principal Greater China Equity Fund Asia Equity 6 Eastspring Investments Small-Cap Fund Local Equity 7 CIMB-Principal Global Titans Fund Global Equity 8 Affin Hwang Japan Growth Fund Japan Equity 9 RHB-OSK Big Cap China Enterprise Fund Asia Equity 10 RHB-OSK China-India Dynamic Growth Fund Asia Equity
Table A3MYb - MY Top Selling Equity Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 Kenanga Growth Fund Local Equity 2 CIMB-Principal Asia Pacific Dynamic Income Fund Asia Equity 3 Manulife India Equity Fund Asia Equity 4 CIMB-Principal Greater China Equity Fund Asia Equity 5 Eastspring Investments Small-Cap Fund Local Equity 6 RHB-OSK Big Cap China Enterprise Fund Asia Equity 7 RHB-OSK China-India Dynamic Growth Fund Asia Equity 8 Manulife China Equity Fund Asia Equity 9 Affin Hwang Japan Growth Fund Japan Equity 10 CIMB-Principal Global Titans Fund Global Equity
Table A3MYc - MY Top Selling Equity Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 CIMB-Principal Asia Pacific Dynamic Income Fund Asia Equity 2 Eastspring Investments Dana Al-Ilham Local Equity 3 Kenanga Growth Fund Local Equity 4 CIMB-Principal Global Titans Fund Global Equity 5 Kenanga Syariah Growth Fund Local Equity 6 Affin Hwang Japan Growth Fund Japan Equity 7 Eastspring Investments Global Leaders MY Fund Global Equity 8 AmAsia Pacific REITs - Class B (MYR) Asia Equity 9 Affin Hwang AIIMAN Growth Fund Local Equity 10 Eastspring Investments Asia Pacific Ex-Japan Target Return Fund Asia Equity
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 10 of 40 Refer to Annex A for common abbreviations
Table A4 - Top Selling Bond Funds
A4SG - SG Top Selling Bond Fund for 1H2015
Table A4SGa - SG Top Selling Bond Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 Nikko AM Shenton ShortTerm Bond(S$) SD and MMF 2 United SGD Fund Cl A Acc SD and MMF 3 Cash Fund SD and MMF 4 LionGlobal SGD Money Market SD and MMF 5 Eastspring Investments MIP M High Yield Bonds 6 Allianz US High Yield AM Dis H2-SGD High Yield Bonds 7 United Asian Bond Fund Class SGD Asia Bonds 8 LionGlobal Short Duration Bond Fund Global Bonds 9 Deutsche Lion Bond Cl A Global Bonds 10 Fidelity Asian HY AMDIST SGD Hedged High Yield Bonds
Table A4SGb - SG Top Selling Bond Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 Nikko AM Shenton ShortTerm Bond(S$) SD and MMF 2 Cash Fund SD and MMF 3 United SGD Fund Cl A Acc SD and MMF 4 Eastspring Investments MIP M High Yield Bonds 5 United Asian Bond Fund Class SGD Asia Bonds 6 Fidelity Asian HY AMDIST SGD Hedged High Yield Bonds 7 Allianz US High Yield AM Dis H2-SGD High Yield Bonds 8 LionGlobal SGD Money Market SD and MMF 9 LionGlobal Short Duration Bond Fund Global Bonds 10 Allianz US High Yield AM H2-RMB High Yield Bonds
Table A4SGc - SG Top Selling Bond Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 United SGD Fund Cl A Acc SD and MMF 2 Eastspring Investments MIP M High Yield Bonds 3 Cash Fund SD and MMF 4 Deutsche Lion Bond Cl A Global Bonds 5 Nikko AM Shenton ShortTerm Bond(S$) SD and MMF 6 Allianz US High Yield AM Dis H2-SGD High Yield Bonds 7 Legg Mason WA Global Bond Trst Global Bonds 8 United Asian Bond Fund Class SGD Asia Bonds 9 United Emerging Markets Bond Fund GEM Bonds 10 LionGlobal Short Duration Bond Fund Global Bonds
Source: iFAST Compilations, data as of end 30-Jun-2015

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A4HK - HK Top Selling Bond Fund for 1H2015
Table A4HKa - HK Top Selling Bond Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 Neuberger Berman High Yield Bond Fund (USD) A Mdis High Yield Bonds 2 Franklin U.S. Government Fund (USD) A (Mdis) US Bonds 3 Principal GIF - High Yield Fund A Class Acc (USD) High Yield Bonds 4 Jupiter Global Fund - Jupiter Dynamic Bond (USD) L Q-Inc Global Bonds 5 Allianz US High Yield (USD) A MDis High Yield Bonds 6 Principal GIF - Preferred Securities Fund - A Class QDis Unit (USD) Global Bonds 7 Templeton Global Total Return Fund (USD) A (acc) Global Bonds 8 BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis Asia Bonds 9 Schroder ISF-Global Corporate Bond (USD) A Acc Global Bonds 10 IP Renminbi High Yield Bond Fund (USD) 2A Acc High Yield Bonds
Table A4HKb - HK Top Selling Bond Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 Allianz US High Yield (USD) A MDis High Yield Bonds 2 E Fund RMB Fixed Income Fund (RMB) Class A Dist RMB Bonds 3 BlackRock Global Funds - Asian Tiger Bond Fund (USD) A3 Mdis Asia Bonds 4 AllianceBernstein - Global High Yield Portfolio (HKD) AT High Yield Bonds 5 Fidelity Funds - Asian High Yield Fund A-Mdist-HKD High Yield Bonds 6 Templeton Global Total Return Fund (USD) A (acc) Global Bonds 7 Templeton Global Total Return Fund (HKD) A(Mdis) Global Bonds 8 Principal GIF - Preferred Securities Fund - A Class QDis Unit (USD) Global Bonds 9 BlackRock Global Funds - Global High Yield Bond Fund (USD) A2 High Yield Bonds 10 AllianceBernstein - American Income Portfolio (USD) AT US Bonds
Table A4HKc - HK Top Selling Bond Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 Neuberger Berman High Yield Bond Fund (USD) A Mdis High Yield Bonds 2 Franklin U.S. Government Fund (USD) A (Mdis) US Bonds 3 Principal GIF - High Yield Fund A Class Acc (USD) High Yield Bonds 4 Jupiter Global Fund - Jupiter Dynamic Bond (USD) L Q-Inc Global Bonds 5 Principal GIF - Preferred Securities Fund - A Class QDis Unit (USD) Global Bonds 6 Schroder ISF-Global Corporate Bond (USD) A Acc Global Bonds 7 IP Renminbi High Yield Bond Fund (USD) 2A Acc High Yield Bonds 8 Templeton Global Total Return Fund (USD) A (acc) Global Bonds 9 Jupiter Global Fund - Jupiter Dynamic Bond (AUD-Hedged) L M-Inc Global Bonds 10 Allianz US High Yield (USD) A MDis High Yield Bonds
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 12 of 40 Refer to Annex A for common abbreviations
A4MY - MY Top Selling Bond Fund for 1H2015
Table A4MYa - MY Top Selling Bond Fund for 1H2015 (iFAST Overall)
Rank Fund Name Region
1 RHB-OSK Cash Management Fund 2 SD and MMF 2 Eastspring Investments Bond Fund Local Bonds 3 AmIncome Plus Local Bonds 4 AMB Income Trust Fund Local Bonds 5 RHB-OSK Money Market Fund SD and MMF 6 RHB Asian Total Return Fund Asia Bonds 7 Kenanga Bond Fund Local Bonds 8 AmBon Islam Local Bonds 9 CIMB-Principal Bond Fund Local Bonds 10 KAF Bond Fund Local Bonds
Table A4MYb - MY Top Selling Bond Fund for 1H2015 (DIY Investors)
Rank Fund Name Region
1 RHB-OSK Cash Management Fund 2 SD and MMF 2 AMB Income Trust Fund Local Bonds 3 Eastspring Investments Bond Fund Local Bonds 4 RHB Asian Total Return Fund Asia Bonds 5 Kenanga Bond Fund Local Bonds 6 CIMB-Principal Bond Fund Local Bonds 7 RHB Islamic Bond Fund Local Bonds 8 RHB-OSK Money Market Fund SD and MMF 9 RHB-OSK Emerging Markets Bond Fund GEM Bonds 10 KAF Bond Fund Local Bonds
Table A4MYc - MY Top Selling Bond Fund for 1H2015 (Adviser Assisted)
Rank Fund Name Region
1 RHB-OSK Cash Management Fund 2 SD and MMF 2 Eastspring Investments Bond Fund Local Bonds 3 AmIncome Plus Local Bonds 4 RHB-OSK Money Market Fund SD and MMF 5 AMB Income Trust Fund Local Bonds 6 AmBon Islam Local Bonds 7 RHB Asian Total Return Fund Asia Bonds 8 Pacific Cash Fund SD and MMF 9 KAF Bond Fund Local Bonds 10 Affin Hwang Select Bond Fund - MYR Asia Bonds
Source: iFAST Compilations, data as of end 30-Jun-2015

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Table A5SG - iFAST Pensions Top Selling Funds
Table A5SGa - SG Top Selling Funds for 1H2015 (iFAST Pensions)
Rank Fund Name Region
1 LionGlobal SGD Money Market SD and MMF 2 Infinity Global Stock Index Global Equity 3 Phillip Money Market SD and MMF 4 Cash Fund SD and MMF 5 LionGlobal Short Duration Bond Fund Global Bonds 6 Vanguard U.S. 500 Stock Index Fund US Equity 7 First State Worldwide Leaders Fund Global Equity 8 Aberdeen Global Opportunities Global Equity 9 Vanguard Global Stock Index Fund Global Equity 10 FTIF-Templeton Glb Bond A(mdis) SGD-H1 Global Bonds
Source: iFAST Compilations, data as of end 30-Jun-2015

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For professional use only Page 14 of 40 Refer to Annex A for common abbreviations
2.0 Mutual Funds Flow by Asset Classes
Singapore
Charts ASG – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
The net funds flow trend in 1H15 was generally positive with the exception of January where there was a net out flow in equity and alternative investments for both adviser assisted and DIY investors due to profit taking activities. Net funds flow trend surged in the month of March for DIY Investors where majority of fund flow was into equity funds. The concern of rising interest rates has continued to dampen the flow into bond funds as we saw consecutive months of net outflow in bond funds by adviser assisted investors as seen in Chart A3SG. However, we observed that there was an increase in bond fund flows in Apr and May for DIY investors but the trend was short-lived with negative outflow in bond funds in June. There was a consistent inflow of funds into alternative investments (represented under ��Others�� in the charts above) for adviser assisted investors.

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For professional use only Page 15 of 40 Refer to Annex A for common abbreviations
Charts BSG – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 16 of 40 Refer to Annex A for common abbreviations
Hong Kong
Charts AHK – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
The net funds flow trend was positive for 1H15 with investors continuing to favour equity over bond funds for both adviser assisted and DIY investors, similar to investors in Singapore. There was a record monthly inflow into equity funds in the month of April. Net funds flow into Bond Funds was negative for the last three months as investors continue to be concern about the possibility of rising interest rates. Fund flows into alternative investments and balanced funds are generally positive for 1H15 with slight outflow in the March and April.

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For professional use only Page 17 of 40 Refer to Annex A for common abbreviations
Charts BHK – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 18 of 40 Refer to Annex A for common abbreviations
Malaysia
Charts AMY – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
The net funds flows in Malaysia was positive for 1H15 with record inflow in February. Similar to Singapore and Hong Kong, investors continue to favour equity over bond funds as demonstrated by the higher inflow into equity funds for both adviser assisted and DIY investors. Flows into bonds funds are generally positive with the exception of January. In terms of asset selection, Malaysia investors focuses mainly on equity and bond funds, with little allocation to ��others�� category.

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Charts BMY – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 20 of 40 Refer to Annex A for common abbreviations
3.0 Equity Funds Flow
Singapore
Charts CSG – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Equity funds flow for 1H15 was generally in the positive zone except for January and April where investors exited markets due to market volatility. Similar to previous quarter, the equity fund inflow was dominated by adviser assisted investors. We observed a spike in net outflow in Asia equities in June, possibly due to market correction in China. The overall equity fund sales trend has been quite consistent, with majority of flow going into Asia equities, Developed markets and Global equities for both adviser assisted and DIY investors for the first six months of the year. However, Global equity fund sales have been seeing a downward trend for the past six months.

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For professional use only Page 21 of 40 Refer to Annex A for common abbreviations
Charts DSG – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 22 of 40 Refer to Annex A for common abbreviations
Hong Kong
Charts CHK – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Equity net funds flows in Hong Kong are positive for 1H15 with record inflow in the month of April. The bulk of fund flows are going into Asian equity and local equity funds. Negative fund flows were seen in GEM, Latin America and US equity funds. The overall equity fund sales trend has been quite consistent for both adviser assisted and DIY investors for the first six months of the year.

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For professional use only Page 23 of 40 Refer to Annex A for common abbreviations
Charts DHK – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 24 of 40 Refer to Annex A for common abbreviations
Malaysia
Charts CMY – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Equity net funds flows in Malaysia have displayed a positive trend for 1H15 with record inflow in the month of February. Malaysian investors continued to invest more in Asian equities than local equities for the first half of the year. However, local equities continued to be a big portion of the overall portfolio as can be seen in chart DMY, particularly by adviser assisted investors. The overall equity fund sales trend has been quite consistent, with majority of flow going into Asia equities, local equities and global equities for both adviser assisted and DIY investors for the first six months of the year.

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For professional use only Page 25 of 40 Refer to Annex A for common abbreviations
Charts DMY – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 26 of 40 Refer to Annex A for common abbreviations
4.0 Bond Funds Flow
Singapore
Charts ESG – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Interest in bond funds continued to be weak for 1H15. Net funds flows in Bond funds displayed a downward trend during the first quarter but turned positive for the second quarter of the year. Investors continued to show preference for short duration and money market, high yield and global bond funds for 1H15 as seen by three consecutive months of net inflows into these three categories. A number of officials from the central bank have suggested that there may be two possible interest rate rises this year in September and December. We believe that investors are still adopting a cautious approach in view of the expectation of rising interest rates.

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For professional use only Page 27 of 40 Refer to Annex A for common abbreviations
Charts FSG – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 28 of 40 Refer to Annex A for common abbreviations
Hong Kong
Charts EHK – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Net funds flows in Bond funds have displayed a positive trend for 1H15 with record inflow in the month of April. Unlike Singapore investors, Hong Kong investors demonstrated preference for local bond and high yield bond funds over short duration and money market funds. We observed an improvement in local bond fund sales for 1H15 where it contributed 51% of overall bonds sales, with contribution coming mainly from adviser assisted investors. However, the trend is different for DIY investors where they tend to have a preference for High Yield bond funds. High yield bond funds attributed 42% of total bond fund sales whereas local bond funds only attributed to 16% of total bond fund sales.

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For professional use only Page 29 of 40 Refer to Annex A for common abbreviations
Charts FHK – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

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For professional use only Page 30 of 40 Refer to Annex A for common abbreviations
Malaysia
Charts EMY – Net Funds Flow (total inflow less total outflow)
Source: iFAST Compilations, Total inflow less total outflow
Our Commentary
Net funds flow in bond funds continued to be weak for 1H15 even though the trend was a positive one. Majority of the overall bond funds sales were in short duration and money market bond funds, followed by local bond funds for both adviser assisted and DIY investors. Based on the past observation, Malaysia investors tend to place less emphasis in fixed income assets.

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For professional use only Page 31 of 40 Refer to Annex A for common abbreviations
Charts FMY – Mutual Funds Sales Distribution
Source: iFAST Compilations, relative to total inflow

Page 32
For professional use only Page 32 of 40 Refer to Annex A for common abbreviations
Industry Insights
Launch of ETFs and Bonds on iFAST Singapore Platform
SINGAPORE (21 May 2015) - iFAST Financial Pte Ltd (��iFAST Singapore��), Singapore��s leading platform distributor of investment products, is pleased to announce the launch of the sale of Exchange Traded Funds (ETFs) and bonds to add to the financial products offering on our Business-to-Business (B2B) iFAST platform. With effect from 22 May 2015, a total of 87 ETFs currently listed on the Singapore Exchange Ltd (��SGX��) and more than 300 bonds will be made available for trading on our iFAST platform. ��The launch of ETFs and bonds is in line with iFAST Corporation Ltd (��iFAST Corp��)��s commitment towards providing the wealth advisers and financial institutions on our B2B platform, as well as their clients, with a comprehensive suite of financial products to better serve their investment objectives,�� says Mr Lim Wee Kiong, General Manager, Platform Services of iFAST Singapore. ��SGX welcomes iFAST Singapore��s business expansion to include distribution of ETFs and bonds. The broadened product offering by iFAST Singapore and financial advisers will benefit the investing community,�� adds Ms Jenny Chiam, Senior Vice President and Head of Securities at Singapore Exchange. With the growing popularity of and increasing investments into the global ETF industry, presently estimated to be in excess of US$2 trillion, iFAST Singapore believes that the introduction of ETFs trading onto our iFAST platform represents a timely opportunity for the wealth advisers and financial institutions to help investors tap into this surging trend. Besides offering investors an easily accessible platform to buy and sell ETFs, the iFAST platform also provides comprehensive resources to help investors understand the benefits and risks of buying ETFs, the different types of ETFs available and their historical price performance, and how these ETFs can fit into their existing investment portfolios. They can also make use of tools such as the Chart Center to compare performances between ETFs or between similar ETFs and unit trusts. ��We believe this development will not only create greater awareness but also generate broader interest in ETFs as an important asset class in any investor��s diversified portfolio. The ease of use and wealth of information on our platform will help to make the trading of ETFs easier and more accessible to a greater pool of investors going forward,�� says Mr Lim Wee Kiong. Besides ETFs, iFAST Corp has also officially launched our online bond research portal, Bondsupermart and bonds trading on our iFAST platform, in response to the growing demand for bonds as a fixed income asset allocation. Bondsupermart, a leading global bond information depository, will provide investors with resources on how to invest in bonds including a growing list of more than 300 bond fact sheets, yield and maturity information as well as investing tools such as Bond Selector to help investors choose the right bond that meets their investment profile and financial objectives. Our bond offerings will cover a comprehensive range of government bonds, corporate bonds, high yield bonds and quasi- sovereign bonds from Singapore and other international markets, to suit investors with varying risk profiles and financial objectives. Previously the lack of easily accessible information and distribution channels for bonds have deterred many investors from including this asset class in their portfolios but with the launch of Bondsupermart and bonds trading via our iFAST platform, investors will welcome another user-friendly channel to buy and sell bonds easily.

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��Now that iFAST Singapore has added ETFs and bonds to complement our unit trust offerings, we believe wealth advisers and financial institutions on our iFAST platform will be better equipped to expand their wealth management and advisory services, hence helping their clients to achieve their portfolio diversification objectives,�� concludes Mr Lim Wee Kiong. For more information on our iFAST Platform, please contact us at 65-6557 2000 or email us at ifastadmin@ifastfinancial.com.

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For professional use only Page 34 of 40 Refer to Annex A for common abbreviations
What should you know about Mainland-HK Mutual Recognition?
By Calvin Cheung On May 22, the Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) jointly announced a Memorandum of Regulatory Cooperation on Mainland-Hong Kong Mutual Recognition of Funds, which will allow eligible Mainland and Hong Kong funds to be distributed in each other��s market. Key requirements on Mutual Recognition Eligible Funds Mainland funds entering HK retail market HK funds entering Mainland retail market
• Domiciled on the Mainland as a retail fund
(��ļ����)
• Domiciled in HK as an authorized funds • Established for over one year • Established for over one year • Fund size not less than RMB200 million • Fund size not less than RMB 200 million • Not primarily investing Hong Kong • Not primarily investing in Mainland • Distribution to HK investors doesn��t
exceed 50% of total assets
• Distribution to Mainland investors doesn��t
exceed 50% of total assets The program had been discussed for a long while since 2013. Alexa Lam, the SFC��s deputy CEO announced on 24 January, 2013, that the Mainland and Hong Kong were in the midst of developing a mutual recognition platform for fund products. However, differences in industry practices and regulatory regime in the two jurisdictions brought challenges to the program. Finally, this long-waited program came out with a surprising timeline. The scheme is implemented on 1 July 2015 after its announcement on end May. And the first batch of MRFs is aiming to be recognized in August. Market statistic related to Mutual Recognised Funds (��MRFs��) Mainland Funds Hong Kong Funds Total Market AUM (including locally domiciled mutual funds only) US$60 billion RMB $5,241 billion Total number of mutual funds 1,126 2,027 Total number of mutual funds eligible for MRF About 100 About 850
Source: PWC, information as at 31 March 2015
"The Mutual Recognition of Funds initiative is a major breakthrough in the opening up of the Mainland��s funds market to offshore funds. It will also open up a new frontier for the Mainland and Hong Kong asset management industries and make available a wider selection of fund products to investors in both markets," the SFC��s Chairman, Mr Carlson Tong said. But, the key questions of investors and IFAs are�� what products they can access via this scheme? Does it mean there will be no quota restriction compared with QFII/RQFII? Any specific feature, opportunity or risk they should eye on in relation to the scheme?

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For professional use only Page 35 of 40 Refer to Annex A for common abbreviations
Quick Overview on the MRF Throughout our communications with fund managers and our initial study on the first batch of south bound MRFs, investors and IFAs should also know that:
NUMBER of MRF? Recogition by SFC is required for the MRFs. It means that not all the eligible 850 Mainland funds can be accessible to HK investors and IFAs. It is expected that the first batch will bring in less than 20 Mainland funds to HK investors. WHAT PRODUCT? Only plain-vanillia equity funds, balanced funds, index funds (including physical index-tracking ETFs) are included. Although Yu'E bao type of MMFs catch the eyeballs of the worlds, HK investors may not be able to access to the MMF and other products with special features in Mainland. DIFFERENCES IN HK & MAINLAND PRODUCTS? Investors and IFAs should be aware of the features, management style and product classification of the Mainland funds. There are lots of thematic/sectorial funds in Mainland, which are very different to the existing RQFII/QFII funds in HK. The MRFs will provide a wider range to access the A- share and onshore bond markets. Besides, some Mainland products may be reclassified from its original classification. FEE? The regulators require the fund managers to impose "fair" treatment for HK and Mainland investors Most of the funds in Mainland charges redemption charge. The South bound MRFs will probably charge a flat redemption fee in HK. QUOTA? Fund assets must be above RMB 200 millions. Distribution to HK investors doesn��t exceed 50% of total assets. The requirement on fund size and percentage for distribution act as "quota". If a MRF hits such requirements, the funds will be soft-closed for subscription. Yet, investors can still be able to redeem the fund. TAXATION? The scheme is silent on the potential PRC tax implications on non-resident investors deriving income from a Mainland fund recognised by SFC. HK investors are facing taxation risk for the MRF before the authorities clarify. From the QFII/RQFII experience, the funds will without 10% tax. From the Stock Connect program, there is dedicated rules to waive the Mainland tax for HK investors.

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• Compared with the existing RQFII and QFII funds which invest into onshore instruments, the
south bound MRFs provide more choices and themes which HK investors cannot access previously. For example, one of the funds invested in the stocks listed in Shenzhen Exchange which tabs on the opportunities in the ��New Economy�� stocks.
• Although the news is talking about 850 eligible Mainland Funds, the actual number of
applications should be fewer than that. Other news mentioned that 8 fund houses submitted south bound applications for 14 funds from Mainland. However, our understanding is that there were more applications submitted. But all funds are still subject to SFC approval.
• Majority of the first batch of MRFs will be equity funds in Mainland China, with a minority of
bond funds and balanced funds.
• Equity funds in Mainland have great flexibility for their stock position. For example, some equity
funds can hold more than 30% of their assets in cash and fixed income instruments. It is possible that such funds need to be re-classified as mixed assets funds when they are recognized in HK.
• Similarly, balanced Funds in Mainland may not hold 50:50 allocations on equities and bonds.
These funds may be re-classified as mixed assets funds as well.
• Some bond fund in Mainland can impose significant leverage (the leverage could be over 200%).
And some bond funds in Mainland can invest into stocks and/or IPOs. It is also possible that such bond funds may not be recognized in the first batch of MRFs.
• As such, a lot of MR Eligible funds should probably be re-classified as mixed asset funds in HK. It
is possible that the Mainland funds may change their fund names, classification, or impose new restriction on asset allocation in the fund mandates.
• Due to management style and flexibility for its asset allocation, the funds from Mainland China
may be more volatile in general. The funds can achieve very attractive upside in favourable market environments. However, investors may also face larger downside risks in unfavourable market conditions. In the first half of 2015, many equity Funds, balanced Funds and bond funds in Mainland posted over 100% performance.
• Investors should also be aware of other features of MRFs:
o The MRFs will be a new share class (H Class) of the existing Mainland funds. NAV and performance of such H Class may be different to the existing share class due to differences in fee. o A flat redemption fee with be charged (ranged from 0.125% to 0.25%). The redemption charge will become the funds�� assets. o A maximum subscription amount may be imposed. Large subscription amounts may be rejected by fund managers. o There will be other scenarios to prohibit investors to transact, e.g. holiday in either markets, the offshore distribution percentage reaches 50% of the fund��s AUM, etc. Since Mutual Recognition brings a new set of products with new product features, investment opportunities and risks, investors are advised to look into the product details and relevant offering documents before making the investment decision.

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As a leading wealth management platform, iFAST will work closely with the fund managers in dealing with the operations and settlement matters, as well as to assist investors and IFAs to understand the product features once the first batch of MRFs are recognized.

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Annex A – Category Description
Category Description
Balanced Funds that allocate assets into both bonds and equities. Bonds Asia & GEM Bonds Asia Bonds Such funds invest primarily in Asian debt securities. Consist of both sovereign and corporate issues, as well as both local and hard currency issues. GEM Bonds Such funds invest primarily in global emerging market debt securities. Consist of both sovereign and corporate issues, as well as both local and hard currency issues. Global & Dev. Market Bonds Europe Bonds Such funds invest primarily in mainly in investment-grade issues of European issuers (includes both sovereign and corporate) although some of the funds do have exposure to sovereign issues as well. High yield bonds are not covered under this category. Global Bonds Such funds have a bias towards investment-grade issues from both sovereign and corporate issuers. However, most of these funds operate on flexible global strategic mandates that target to maximise returns based on the fund's reference currency. US Bonds Such funds invest primarily in mainly in investment-grade corporate issues of US issuers (includes both sovereign and corporate) although some of the funds do have exposure to sovereign issues as well. High yield bonds are not covered under this category. High Yield Bonds All high yield bonds funds are included in this category. While dominated by US high yield funds, this category includes both Asian high yield and European high yield bond funds. Local Bonds Local refers specifically to the country in discussion. For example, a local bond for Singapore is one that invest either in Singapore bonds or is bias towards the SGD. SD and MMF Bond funds that are actively managed to reduce interest rate risk. Most of these funds' mandate does not invest in bonds with duration exceeding 5 years. Equity Asia This category includes all Asian equity funds, sub-regional Asian funds (such as Greater China equity funds) and all single Asian country funds with the exception of equity fund specific to the local country. For example, a Singapore equity fund is excluded from this category when compiling for Singapore but not for Hong Kong and Malaysia. Developed Markets Europe Equity All European equity funds. Japan Equity All Japanese equity funds.

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US Equity All US equity funds. GEMs EEMEA Equity Emerging Europe, Middle East and Africa. This category consists of both regional equity funds, as well as single country funds within this region. For example, Russia and Turkey equity funds fall under this category. GEM Equity Specific to only global emerging market funds and does not contain any single emerging market equity fund. Latin America Equity This category consists of both regional equity funds, as well as single country funds within this region. For example, Brazil equity funds fall under this category. Global Specific to only global equity funds and does not contain any single country or regional equity fund. These funds are however biased towards developed market equities. Local Local equity funds refer to equity funds invested their specific local market. For example, a Malaysia equity fund is categorised as local equity when compiling Malaysia data but not so for both Hong Kong and Singapore. Others All other funds that do not fall under bond funds, equity funds and balanced funds.

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For professional use only Page 40 of 40 Refer to Annex A for common abbreviations
Contact Us
Our institutional team is available to discuss your requirements for a tailored solution. For more information or to arrange a meeting, please contact us at:
Singapore iFAST Financial Pte Ltd
10 Collyer Quay #26-01 Ocean Financial Centre Building Singapore 049315
Phone: 65-6557 2000 Fax: 65-6557 2601 Email Address: insti@ifastfinancial.com Malaysia iFAST Capital Sdn. Bhd.
Level 28, Menara Standard Chartered, No 30 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia
Phone: 603-2149 0600 Fax: 603-2143 1218 Email Address: insti.my@ifastfinancial.com Hong Kong iFAST Platform Services (HK) Limited
Suite 4606, Two Exchange Square 8 Connaught Place Central Hong Kong
Phone: 852-3766 4399 Fax: 852-2521 4399 Email Address: insti.hk@ifastfinancial.com
Disclaimer
This report is issued by iFAST Financial Pte Ltd ("IFPL") and iFAST Platform Services (HK) Limited (��IPS��), and has not been reviewed by the Securities and Futures Commission of Hong Kong or other regulators. All materials and contents found herein this article are strictly for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found in this article. While IFPL and IPS have tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this article is made on a general basis and neither IFPL, IPS nor any of its servants or agents have given any consideration to, nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You should consider carefully if the products you are going to purchase into are suitable for your investment objective, investment experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment product. Past performance is not indicative of future performance. The value of the unit trusts and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our full disclaimer in the respective websites (Singapore, Hong Kong, Malaysia).

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