GreatLink Investment Guidance 1Q2015 Presentation Slides (12th

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Market performance in December
Performance as at 31 Dec 2014
Index
QTD
YTD
MSCI World Index
1.01%
4.94%
S & P 500 Index
4.39%
11.39%
- 0.15%
6.84%
7.90%
7.12%
MSCI Emerging Markets Index
- 4.51%
- 2.19%
MSCI AC Asia Pacific ex Japan Index
- 0.75%
2.82%
MSCI Emerging Markets
Latin America Index
- 13.45%
- 12.30%
Shanghai Composite Index
36.84%
52.87%
Straits Times Index
2.70%
6.24%
MSCI Europe Index
Nikkei 225
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2
GreatLink Investment Guidance
Breakdown of Asset Classes and Regions
Bonds
Global
Singapore
Equities
Developed
Markets
US
Europe
Japan
Emerging Markets
Global
Emerging
Markets
Asia Pacific ex Japan
ASEAN
China
India
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Singapore
3
GreatLink Investment Guidance 1Q 2015
Asset Classes
Asset Class
Outlook
Comments
Bonds
Neutral
Bonds have generated good returns in recent
years. Going forward, coupon is likely to be the
main source of return for bonds. Subdued
inflation will moderate interest rates increases
but bond prices will fall when interest rates
eventually rise
Equities
Positive
Equities remain the preferred asset class as
they are more attractively priced than bonds,
supported by earnings recovery. But prepare for
rising market volatility amid increasing policy
and
macroeconomic
divergence
across
countries
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4
GreatLink Investment Guidance 1Q 2015
Bonds
Comments
GreatLink
Fund
Region
Outlook
Global
Neutral
Bond yields are expected to edge GreatLink
higher in an environment with global Global
economic recovery, but rate rises are Bond Fund
expected to be moderate with subdued
inflation. Increased political tensions
may lead to flight to safer assets as in
bonds
Singapore
Neutral
The low yielding Singapore bonds are GreatLink
not competitively attractive in a Short
prolonged low interest rate environment Duration
Bond Fund
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5
GreatLink Investment Guidance 1Q 2015
Developed Market Equities
Region
Outlook
Comments
Global
Neutral
Macro conditions are broadly
supportive. However, this is a
year
of
divergence
in
economic performance and
central bank policy. Expect
increased market volatility
GreatLink Fund
GreatLink Global
Equity Alpha Fund
(Growth Oriented)
&
GreatLink
Global Opportunities
Fund (Value Style)
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6
GreatLink Investment Guidance 1Q 2015
Developed Market Equities
GreatLink
Fund
Region
Outlook
Comments
USA
Neutral
US stocks remain attractive from a
fundamental perspective due to improving
economic
growth.
However,
equity
valuations are challenging, and stock prices
would require further evidence of earnings
growth to move higher
Europe
Neutral
Growth outlook remains weak. Markets are GreatLink
stressed by cross-country differences over European
the proper balance of monetary stimulus Equity Fund
and structural reforms. But latest QE
program is likely to provide the muchneeded boost to stock prices
Japan
Positive
Sentiment to be boosted by continued GreatLink
aggressive and coordinated government Lion Japan
policy. A net importer of oil, Japan will likely Growth Fund
benefit from lower oil prices
NA
7
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GreatLink Investment Guidance 1Q 2015
Emerging Market Equities
Region
Outlook
Global
Emerging
Markets
Negative
Comments
GreatLink Fund
Region with the greatest GreatLink Global
fundamental challenges, as a Emerging Markets
large number of economies Equity Fund
are impacted by the decline in
oil prices and commodities in
general
Emerging market countries
and companies with significant
borrowings in US dollars are
also adversely affected as
their local currencies continue
to depreciate
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8
GreatLink Investment Guidance 1Q 2015
Asian Equities
Comments
GreatLink
Fund
Region
Outlook
Asia
Pacific ex
Japan
Positive
The strongest region within the EM GreatLink
universe. Asia stands to benefit as a Asia Pacific
manufacturing region, and most Asian Equity Fund
countries are oil importers. Valuations
are not excessive
ASEAN
Neutral
Selective within ASEAN. Prefer GreatLink
Thailand
due
to
government ASEAN
commitment to push infrastructure Growth Fund
projects, as well as Indonesia with
Jokowi’s reform initiatives
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9
GreatLink Investment Guidance 1Q 2015
Asian Equities
Comments
GreatLink
Fund
Region
Outlook
China
Positive
The Chinese government looks to have GreatLink
successfully managed a soft landing for the China
economy and remains committed to Growth Fund
balancing growth and reform. This will bode
well for sustainable growth in the long term
India
Positive
The substantial fall in energy prices has GreatLink
given the Indian government much needed Lion India
breathing space to execute pro-growth Fund
reforms. Money that was previously used to
subsidise fuel prices can now be redirected
to other purposes
Singapore
Neutral
Expected trading to be range-bound with no GreatLink
new catalyst
Singapore
Equities
Fund
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10
GreatLink Investment Guidance 1Q 2015
Summary Table
Asset Class
Region
Outlook
Previous Q
Global
Neutral
Neutral
Singapore
Neutral
Neutral
Developed Markets
Neutral
Positive
US
Neutral
Positive
Europe
Neutral
Negative
Japan
Positive
Positive
Emerging Markets
Negative
Neutral
Asia Pacific ex Japan
Positive
Neutral
ASEAN
Neutral
Negative
China
Positive
Positive
India
Positive
Neutral
Singapore
Neutral
Neutral
Bonds
Neutral
Equities
Positive
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11
GreatLink Investment Guidance 4Q 2014
Summary
■ Equities remain the preferred asset class
■ Bond returns surprisingly exceeded expectations last year but
forecast to be more muted in a rising interest rate environment
■ Within Global equities, remaining positive on Japan due to
attractive relative valuations and coordinated efforts by the
government with regards to economic reform
■ Turning neutral on the US as stock prices have risen
considerably, possibly moving ahead of earnings expectations.
Whether US equities can move even higher this year is
dependent on sustainable increasing earnings momentum
■ As for Europe, turning to neutral as expect stock prices to
receive boost from Quantitative Easing (QE) measures
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12
GreatLink Investment Guidance 4Q 2014
Summary
■ Overall, turning negative on Global Emerging Markets,
although favorable towards Emerging Asia. Remain cautious
towards Eastern Europe & Latin American as most countries
are net exporters of commodities
■ Within Asian Equities, continue to be positive towards China
where reforms are gaining traction and as the government
adopts a more flexible monetary policy. Turning positive
towards India as the government proves to be committed to
reforms to boost foreign investment and revive the economy.
However, investors should hold a long term horizon towards
both markets as reforms take time to exert a positive impact
■ Selective within ASEAN due to differing pace of growth within
the various countries, and hence neutral towards the region
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13
GreatLink Short Duration Bond Fund
Sales and performance update
AUM
Bid price
As @ 30 Sep 2014
As @ 31 Jan 2015
S$65.51 m
S$72.02 m
9.94%!
1.279
1.285
0.47%!
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14
GreatLink Income Focus Fund
Sales and performance update
AUM
Bid price
As @ 30 Sep 2014
As @ 31 Jan 2015
S$6.36 m
S$10.15 m
59.59%!
0.826
0.863
4.48%!
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15
GreatLink Income Focus Fund
A quick recap
GreatLink Income Focus Fund
50% Global Multi Asset Portfolio
Underlying Fund:
JPMorgan Global Income Fund
50% Asia Pacific Multi Asset Portfolio
Underlying Fund:
JPMorgan Asia Pacific Income Fund
Target dividend payout rate:
4.25%* p.a.
paid semi-annually
*Distributions are not guaranteed. The
distributions (if any) and frequency is at the
Manager’s discretion.
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16
Direct crediting of Fund Dividends
■ Form to be used: CS202
(Authorisation Form for Direct Crediting)
■ Policyholder has to select direct credit for “Dividends”
which will be applicable to all dividend payouts in the
policy
■ A photocopy of policyholder’s bank book / bank statement
has to be attached
■ Form & photocopy of policyholder’s bank book / bank
statement have to be submitted at least 14 working days
in advance for the direct credit to be effective
■ Bulletin will be issued on the effective date of use of the
form
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17
Direct crediting of Fund Dividends
CS202
THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT
18
Direct crediting of Fund Dividends
CS202
THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT
19
Introducing…
GreatLink
Model
Portfolio
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20
GreatLink Model Portfolio
Initial portfolio positioning and weights
40%
Bonds
Equities
60%
GreatLink Model Portfolio Assumptions:
1. 100% premium allocated to buy fund units
2. Bid price is used for all subscription and redemption transactions
3. Fund Allocation/Rebalancing is done in multiples of 5%
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21
GreatLink Model Portfolio
Changes since inception as at 31 July 2014
as at 12th Feb 2015
30%
GIG View
Bonds
as at 3rd Nov 2014
70%
Neutral
Equities
35%
Positive
Bonds
Equities
GIG View
Bonds
as at 31st Jul 2014
35%
Neutral
65%
Equities
GIG View
Bonds
Equities
Positive
Bonds
65%
Neutral
Equities
Bonds
Equities
Positive
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22
GreatLink Model Portfolio
as at 12 Feb 2015
Asset Class
Region
Fund
Bonds
Remain
neutral
35%
30%
Quarterly
Changes (%)
Changes in Outlook
(from last GIG)
Global
Global Bond
25%
20%
-5%
Remain neutral
Singapore
Short Dur Bond
10%
10%
-
Remain neutral
65%
70%
Global Eq Alpha
20%
15%
-5%
Positive -> Neutral
Global Opps
10%
5%
-5%
Positive -> Neutral
-
-
-
Positive -> Neutral
Equities
Developed Mkts
USA
Remain
positive
Allocation (%) Allocation (%)
03Nov14
12Feb15
-
Europe
European Fund
-
5%
+5%
Negative -> Neutral
Japan
Japan Growth
5%
5%
-
Remain positive
Emerging Mkts
GEM
10%
5%
-5%
Neutral -> Negative
10%
15%
+5%
Neutral -> Positive
-
-
-
Negative -> Neutral
10%
10%
-
Remain positive
Asia Pac ex Japan Asia Pac Eq
ASEAN
ASEAN
China
China Growth
India
Lion India
-
5%
+5%
Neutral -> Positive
Singapore
Singapore Eq
-
5%
+5%
Remain neutral
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23
GreatLink Model Portfolio
as at 12 Feb 2015
5%
GreatLink Short Duration Bond Fund, 10%
10%
5%
GreatLink Global Bond Fund, 20%
GreatLink Global Equity Alpha Fund, 15%
10%
20%
GreatLink Global Opportunities Fund, 5%
5%
GreatLink Global Emerging Markets
Equity Fund, 5%
GreatLink Asia Pacific Equity Fund, 15%
5%
GreatLink European Equity Fund, 5%
GreatLink Lion Japan Growth Fund, 5%
GreatLink China Growth Fund, 10%
15%
15%
5%
5%
GreatLink Lion India Fund, 5%
GreatLink Singapore Equities Fund, 5%
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24
GreatLink Model Portfolio
Performance since inception till 31 Jan 2015
Portfolio
GreatLink Model Portfolio
GreatLink LifeStyle Balanced Portfolio
3 mths (%)
3.44
3.00
Since Inception* (%)
3.99
3.50
* GreatLink Model Portfolio incepted on 31 Jul 2014.
Performance since inception from 1st Aug 2014 till 31st Jan 2015
Source: MorningStar Direct
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25
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specific securities or fund(s) is included for illustration only, and should not be construed as a recommendation to buy or sell the same. This document does not express
views or opinions or actions on the investments of Great Eastern and its related corporations in respect of their respective funds.
The information on the indices and market reviews contained herein has been obtained from sources believed to be reliable but Great Eastern does not guarantee its
accuracy or completeness. Readers must make their own assessment of the relevance, accuracy, adequacy and reliability of the information provided in this document and
make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment, having taking into considerations their own risk
appetites and preference on the relevant products. Views expressed herein are merely the opinion of Great Eastern and selected fund managers deriving from their
observations of certain past events up to a certain date, and without taking into account developments that occurred subsequent to that date. Further, any opinion including
the foregoing opinion or estimate provided in this document is made on a general basis and is not to be relied on by readers as advice. Opinions expressed are subject to
change without notice. Accordingly, no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of readers acting on any
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prediction, projection, or forecast on the economy, securities market, or the economic trends of the markets are not necessarily, nor is past performance of the manager and
the funds, indicative of the future performance.
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In the event that this document is presented or distributed to a customer by a Distribution Representative of Great Eastern for purposes of sales of any products of Great
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This document does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive or have
access to it. Readers may wish to seek advice from a financial adviser before making a commitment to purchase the relevant insurance products and units in their linked
funds. In the event that a reader chooses not to seek advice from a financial adviser, he or she should consider carefully whether the product and fund in question is suitable
for him or her.
Investments are subject to investment risks including the possible loss of the principal amount invested. A product summary and a product highlights sheet in relation to the
relevant funds may be obtained through Great Eastern or its Distribution Representatives. Potential investors should read the product summary and the product highlights
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26
FundsTeam@greateasternlife.com
12-Feb-15
27
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