Prepared on: 21 February 2013 This Product Highlights Sheet is an important document. It highlights the key terms and risks of the ILP sub-fund and complements the Product Summary and Fund Summary. It is important to read the Product Summary and Fund Summary, relating to the investment-linked plan prepared by Manulife (Singapore) Pte Ltd before deciding whether to purchase the ILP sub-fund. If you do not have a copy, please contact usto ask for one. You should not invest in the ILP sub-fund if you do not understand it or are not comfortable with the accompanying risks. Golden International Bond Fund (the Sub-Fund ) Product Type ILP Sub-Fund Launch Date 10 January 1997 Manager Western Asset Management Company Pte. Ltd Custodian Not Applicable Capital Guaranteed No Dealing Frequency Every Business Day Name of Guarantor Not Applicable Expense Ratio for period ended 31 December 2012 SUB-FUND SUITABILITY WHO IS THE SUB-FUND SUITABLE FOR? The Sub-Fund is only suitable for investors who: want to diversify their investments on a worldwide basis; require less volatile returns than those usually associated with that of equity investments; are looking for portfolio diversification and more stable returns. KEY FEATURES OF THE SUB-FUND WHAT ARE YOU INVESTING IN? The Sub-Fund invests all or substantially all its assets into Legg Mason Western Asset Global Bond Trust ( Underlying Fund ), which aims to maximise total returns in Singapore Dollar terms over the longer term by investing in a portfolio of high quality debt securities of Singapore and major global bond markets such as the G10 countries and Australia and New Zealand. Investment Strategy The Underlying Fund aims to outperform the Citigroup World Government Bond Index ex Japan (hedged to Singapore Dollar). The Manager and Sub-Managers will pursue an active but prudent approach which employs fundamental economic and market analysis to take maximum advantage of short and medium to long term investment opportunities in interest rate and currency trends of the global bond markets. The Underlying Fund will invest primarily in debt securities issued by 0.91% Further Information Objective in Appendix 3 information on suitability of the Sub-Fund. Objective in Appendix 3 information on features of the Sub-Fund. Objective and Investment Focus and Approach in Appendix 3 Page 1
governments, government linked companies and corporations (a) in Singapore: (b) in countries as defined by the Citigroup World Government Bond Index ex Japan or (c) in countries with a minimum investment grade credit rating of Aa2 by Moody s, AA by S&P, AA by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency. The Underlying Fund will only invest in debt securities issued by governments of benchmark countries, or of issuers with a minimum credit rating of Aa2 by Moody s, AA by S&P, AA by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency (and for issuers of Japanese debt securities, a minimum credit rating of A2 by Moody's, A by S&P, A by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency).the Underlying Fund s investments in Japanese debt securities have been limited to 10% of its deposited property. The Managers and the Sub-Managers (as the case may be) may employ an active currency hedging programme to manage the non Singapore Dollar currency exposure. Investments in any one corporate issuer will be restricted to no more than 10% of the total value of the deposited property of the Underlying Fund. To ensure greater degree of liquidity, the Underlying Fund will not invest in more than 5% of the aggregate issued and outstanding securities of any single issue. The Underlying Fund currently does not engage in securities lending and/or carry out repurchase transactions although it is permitted to do so. The Underlying Fund may use swaps, forwards, options and futures for the purposes of hedging and efficient portfolio management. Parties Involved WHO ARE YOU INVESTING WITH? The Manager of the Sub-Fund is Western Asset Pte. Ltd. The Manager of the Underlying Fund is Western Asset Management Company Pte. Ltd. The Sub-Managers for the Underlying Fund are Western Asset Management Company and Western Asset Limited. KEY RISKS WHAT ARE THE KEY RISKS OF THIS INVESTMENT? Past performance is not indicative of future performance. These risk factors may cause you to lose some or all of your investment : information on the investment strategy of the Sub-Fund. Refer to sections headed The Fund Manager, Track Record of the Fund Managers and Manager of ILP and Underlying Fund on pages [4] and [26] of the information and what happens if they become insolvent. headed Risks (Relates to Underlying Fund) in Appendix 3 on page [28] of the information on risk of the Sub-Fund. Page 2
Market and Credit Risks You are exposed to market risk. Prices of securities in the Underlying Fund may go down or up in response to changes in economic conditions, political conditions, interest rates and market perception of securities which in turn may cause the price of units to rise or fall. You are exposed to interest rate risk. Any investments by the Underlying Fund in bonds, debentures, loan stocks, convertibles and other debt securities may 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. You are exposed to currency risk. The income earned by the Underlying Fund may be affected by fluctuations in foreign exchange rates. The Manager may actively monitor and manage the Underlying Fund s exposure to adverse foreign exchange risks by hedging through the forwards or futures markets. You are exposed to debt securities risk. Issuers of bonds and other debt securities held by the Underlying Fund may default on their obligations despite careful selection of issuers. Liquidity Risks The Sub-Fund is not listed and you can redeem only on Business Days. There is no secondary market for the Sub-Fund. All redemption requests should be made to Manulife (Singapore) Pte Ltd. Product-Specific Risks You are exposed to derivatives risk. The Underlying Fund may invest in derivatives for purposes of risk management and hedging the underlying investment or currency exposures. Derivatives involve risks different from, and, in some cases, greater than, the risks presented by more traditional securities investments. The value of derivative instruments is subject to market risks and may fall in value as rapidly as it may rise and it may not always be possible to dispose of such instruments during such fall in value. FEES AND CHARGES WHAT ARE THE FEES AND CHARGES OF THIS INVESTMENT? Payable directly by you You will need to pay the following fees and charges: Bid-offer charge Redemption Charge Switching Fee 5% for Manulink Flexi, Manulink Flexi Plus 3% for Manulink Investor, Manulink Payable by the Sub-Fund from invested proceeds: Fund Management Fee* Valuation Fee NIL NIL for policyholders of Manulink Investor, Manulink, Manulink Flexi, Manulink Flexi Plus Currently 0.75% p.a. Maximum 2.50% p.a. Currently 0.025% p.a. Refer to section headed Fees and Charges on page [9] of the Manulife and John Hancock Fund Summary 2013 Vol. 1 (range of funds by Western Asset information on fees and charges. Page 3
*At least thirty (30) days advance notice will be given to you when We revise the fund management fee. Additional expenses will also be charged to the Sub-Fund: o Audit fee o GST which is mainly incurred for valuation fee and audit fee VALUATIONS AND EXITING FROM THIS INVESTMENT HOW OFTEN ARE VALUATIONS AVAILABLE? The Sub-Fund is valued daily, on every Business Day. The Sub-Fund s price is available from our website, www.manulife.com, after close of business on the day the unit price is calculated. The Sub-Fund s price is also published in The Straits Times, Business Times, Lianhe Zaobao and Teletext on a periodic basis. HOW CAN YOU EXIT FROM THIS INVESTMENT AND WHAT ARE THE RISKS AND COSTS IN DOING SO? For a new policy application, you can enjoy a free-look period of 14 days. Should you decide to cancel the Policy during this period, the following will be refunded to you: > For Regular Premium Plans: portion of premium that was paid but not allocated to purchase Units, plus the Account Value based on the Unit Offer Price on the next Valuation Date after the cancellation request, less the expenses (if any) incurred in the underwriting of the Policy. > For Single Premium Plans: the capital amount or the Account Value based on the Unit Offer Price on the next Valuation Date after the cancellation request, whichever is lower, less any medical fees. You may redeem your units by submitting a withdrawal request to Us or Our representative. If the withdrawal application is submitted to Us: a) Before 3pm on a Business Day, the Sub-Fund s Bid price will be calculated the next Business Day. b) After 3pm on a Business Day, the Sub-Fund s Bid price will be calculated 2 Business Days from the date of submission. Redemption Proceeds will be paid within 6 business days from the date that the Sub-Fund s Bid price is calculated. The proceeds is based on the product of the number of units surrendered and the Bid Price. Numerical example of redemption value as follows: Bid Price x Number of units surrender = Surrender Value S$1.250 x 1,000 = S$1,250 HOW DO YOU CONTACT US? Manulife (Singapore) Pte. Ltd. Reg no. 198002116D Tel : (65) 6737 1221 CONTACT INFORMATION Refer to sections headed Redemption of Units, Payment of Redemption Proceeds and Switching/ Surrender/ Withdrawal of Units on pages [11], [12] and [13] of the information on valuation and exiting from the Sub- Fund. Website: http://www.manulife.com.sg Email: service@manulife.com APPENDIX: GLOSSARY OF TERMS Business Day refers to days other than a Saturday, Sunday and gazetted public holiday on which commercial banks are open for business in Singapore. Sub-Fund refers to the Golden International Bond Fund. Page 4
Underlying Fund refers to the Legg Mason Western Asset Global Bond Trust. Valuation Date means the date on which We carry out a valuation to determine the Offer and Bid Prices of a Unit of the Sub-Fund. We, Us or Our refers to Manulife (Singapore) Pte. Ltd. Page 5