If you have received a copy of this document, please request a copy of the Product Highlight Sheet and Product Summary of the relevant fund for which you are interested in from your distribution representative 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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) THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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%! THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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%! THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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. THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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% THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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% THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 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 THE INFORMATION PROVIDED HEREIN IS SUBJECT TO OUR DISCLAIMER SET OUT AT THE END OF THIS DOCUMENT 25 Disclaimer This document is produced solely for informational purposes only and is not an offer or solicitation for the purchase or sale of any securities/investments. Any reference to 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 information, opinion, forecast, or estimate contained in this document. The information provided may contain projections or other forward looking statements regarding future events or future financial performance of countries or markets. Any 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. Additional Note For Distribution Representatives: 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 Eastern, this document shall form part of the offer document (“Offer Document”) including the product highlights sheet and product summary in relation to the aforesaid documents. The customer shall request for a complete copy of the Offer Document if the same has not been provided. When advising the customer, the Distribution Representative should assess whether the product in question is suitable for the customer based on his or her investment objectives, financial situation, particular needs and risk tolerance. Additional Note For Customers: 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 sheet before deciding whether to invest in the funds. Returns on the units of the funds are not guaranteed. The value of the units in the funds and the income accruing to the units, if any, may fall or rise. 26 FundsTeam@greateasternlife.com 12-Feb-15 27