annual investment-linked funds report · economies like singapore will have to restructure their...

Annual Investment-Linked

Funds Report(January to December 2015)

Annual Report 2015 | 01

CONTENTS02| NOTE FROM THE

CHIEF EXECUTIVE OFFICER

04| TMLS GLOBAL EQUITY FUNDManager Comments Fund Report Financial Statements

11| TMLS ASIAN EQUITY FUNDManager Comments Fund Report Financial Statements

18| TMLS GLOBAL EMERGING MARKETS EQUITY FUND

Manager Comments Fund Report Financial Statements

25| TMLS CHINA EQUITY FUNDManager Comments Fund Report Financial Statements

32| TMLS INDIA EQUITY FUNDManager Comments Fund Report Financial Statements

39| TMLS SINGAPORE EQUITY FUNDManager Comments Fund Report Financial Statements

46| TMLS GLOBAL BOND FUNDManager Comments Fund Report Financial Statements

54| TMLS SINGAPORE BOND FUNDManager Comments Fund Report Financial Statements

61| TMLS SINGAPORE CASH FUNDManager Comments Fund Report Financial Statements

68| TMLS GLOBAL BALANCED FUNDManager Comments Fund Report Financial Statements

74| TMLS RUSSELL MULTI-ASSET 35 FUNDManager Comments Fund Report Financial Statements




102| NOTES TO THE FINANCIAL STATEMENTS

111| INDEPENDENT AUDITOR’S REPORT

02 | Annual Report 2015

NOTE FROM THE CHIEF EXECUTIVE OFFICER

Dear Policyholder,

Thank you for making Tokio Marine your choice of insurer. I am pleased to provide you with our Annual Investment-Linked Funds Report 2015 which will keep you abreast of our range of Investment-Linked Policy sub-funds (“ILP sub-funds”) that can help achieve your financial goals. I would also like to take this opportunity to share several key events in the past year which significantly impacted the financial markets.

With sluggish US growth and massive support from monetary policies in a number of countries, equity markets started strongly into the year 2015. The momentum receded in the second half of the year, as markets threaded sideways with nervous reactions to geopolitical risks, declining oil and commodity prices and the sudden depreciation of the Chinese currency. Towards the end of the year, the US Federal Reserve finally implemented an increase in US interest rate, amid a more upbeat employment outlook. Oil price slumped during the year, as oversupply, on the back of OPEC’s inability to achieve consensus to cut production, and growing tensions in the Middle East saw Brent crude oil price ending below US$40 per barrel.

In Asia, as economies started to stutter, several central banks such as Japan’s and China’s adopted quantitative easing by cutting interest rates to stimulate growth. This policy divergence versus that of the United States’, not only affected capital flows but also cast a long shadow across Asian financial markets. China’s slowing growth also took center stage as its impact was felt by the other export-dependent Asian and emerging economies.

Domestically, Singapore’s economy was weak, with China’s slowdown and a worldwide commodities rout (particularly in oil & gas), leading to an anaemic growth in the local manufacturing, construction and services sectors. In a bid to spur growth, the Monetary Authority of Singapore eased the appreciation of the Singapore dollar. There were also concerns over the impact of rising interest rates on the housing sector as the Singapore Interbank Offered Rate increased sharply.


NOTE FROM THE CHIEF EXECUTIVE OFFICER

Looking ahead, volatility is likely to persist. Although investors appear to have taken in their stride the US Federal Reserve’s landmark shift away from near-zero borrowing costs, the new fiscal environment could exacerbate capital outflows. Global growth in 2016 is expected to be challenging. Asia, and in particular, externally-oriented economies like Singapore will have to restructure their economies in search of more durable growth drivers. Volatile shifts in money flows may continue to weigh on higher risk assets in slowing Asian economies. An ever-worsening commodity rout, led by expected downward trajectory of oil price, will continue to weigh on sentiments as its deeper and wider impact spreads to more commodity-oriented economies.

Against this backdrop of market uncertainties, I would encourage our policyholders to stay invested to leverage any opportunities that may arise. Wide disparity in performance across the funds in 2015 highlights the importance of adopting a prudent investment strategy that is reviewed regularly. You can tap on our portfolio of ILP sub-funds that best match your risk appetite to help you meet your financial objectives.

Thank you for your continued confidence and trust in us with your investments.

Lance Tay Chief Executive Officer Tokio Marine Life Insurance Singapore Ltd.


Manager Comments

Investment and Market Review

Global equities rose during the year under review, as the most anticipated US interest rate increase in a decade was finally implemented in mid-December. The Federal Reserve raised rates by 25 basis points after months of speculation, amid a more upbeat employment outlook. This removed a key source of uncertainty that had dogged markets all year. Meanwhile, the European Central Bank underwhelmed investors with a smaller-than-expected round of monetary stimulus, extending a bond-buying programme and cutting its deposit rate further. Although markets were spooked by China’s decision to marginally devalue the yuan in August, the renminbi was later admitted into the IMF’s global reserve basket, in a major vote of confidence for Beijing’s economic reforms. Concerns over a commodity rout weighed on investor sentiment for much of the year. Markets heavily exposed to resources, such as Russia, Brazil and Nigeria, suffered the most. Oil ended the year 35% down, as oversupply concerns on the back of OPEC’s inability to achieve consensus on a production ceiling trumped growing tensions in the Middle East. The IMF warned of a rising risk of global recession as it downgraded its growth outlook.

The fund’s underperformance was a result of both negative asset allocation and stock selection. Our non-benchmark exposure to Brazil detracted most from performance, as a recession that began in the second quarter worsened, and the real sank to a record low against the dollar after the nation lost its investment-grade credit rating in a downgrade by Standard & Poor’s. This had a knock-on effect on our holding Banco Bradesco’s perceived credit worthiness. The lender’s shares slumped following its biggest-ever acquisition, of HSBC’s money-losing Brazilian operations. Vale also underperformed, with the ongoing low iron-ore price environment compounding difficulties. Our relative overweight to the materials sector also proved costly. Other than Vale, Potash Corporation of Saskatchewan was similarly hit by ongoing oversupply and weak demand concerns. It plans to slash production by permanently closing one of its Canadian mines ahead of schedule.

Market Outlook and Investment Strategy

Looking ahead, volatility is likely to persist. Although investors appear to have taken in their stride the Fed’s landmark shift away from near-zero borrowing costs, the new fiscal environment could exacerbate capital outflows. An ever-worsening commodity rout, led by the expected downward trajectory of oil, continues to weigh on sentiment, along with a potential hard landing in China, which triggered another global sell-off. Disappointing manufacturing data and jitters about further yuan depreciation fuelled the selling panic. However, we see market turmoil as an opportunity to add to well-managed companies with robust balance sheets. We will continue to seek out quality businesses with solid fundamentals that trade at attractive valuations.

TMLS GLOBAL EQUITY FUND


Fund Report

A Fund Objectives/Strategies

TMLS Global Equity Fund (the “Fund”) feeds substantially into the Aberdeen Global Opportunities Fund (the “Underlying Fund”).

The Underlying Fund aims for long-term total return from an internationally diversified portfolio of securities through investing all or substantially all of its assets in the Aberdeen Global - World Equity Fund (the “Underlying Sub-Fund”), a sub-fund of Luxembourg-registered Aberdeen Global, which itself will invest at least two-thirds of its assets in equities or equity-related securities.

B Investments of Underlying Sub-Fund as at 31 December 2015

Market Value USD

% of Net Asset Value

i Country Allocation

United States 296,860,414 30.72

United Kingdom 142,503,936 14.75

Switzerland 105,933,490 10.96

Japan 74,253,092 7.68

Hong Kong 49,762,826 5.15

Canada 34,596,339 3.58

Sweden 30,693,666 3.18

Taiwan 30,344,896 3.14

South Korea 25,854,675 2.68

Germany 25,369,612 2.63

Brazil 24,761,084 2.56

Mexico 19,730,921 2.04

Italy 14,771,211 1.53

France 14,524,318 1.50

Israel 14,022,636 1.45

South Africa 12,108,954 1.25

Singapore 10,589,631 1.10

India 10,175,464 1.05

Others 29,448,226 3.05



Market Value USD


ii Industry Allocation

Consumer Staples 189,885,546 19.65

Financials 155,435,702 16.09

Information Technology 128,437,129 13.29

Industrials 120,244,933 12.44

Healthcare 110,834,875 11.47

Energy 90,553,606 9.37

Materials 74,754,933 7.74

Consumer Discretionary 33,921,420 3.51

Telecommunication Services 32,789,021 3.39

Others 29,448,226 3.05

iii Asset Class

Equities 936,857,165 96.95

Cash 29,448,226 3.05

C Top 10 Holdings of Underlying Sub-Fund as at 31 December 2015

Market Value USD


EOG Resources 36,057,879 3.73

CVS Health Corporation 35,569,406 3.68

Novartis 35,457,974 3.67

Roche Holdings 35,356,018 3.66

Taiwan Semiconductor Manufacturing Co Ltd 30,344,896 3.14

British American Tobacco 30,069,196 3.11

PepsiCo 29,595,926 3.06

Samsung Electronics 25,854,675 2.68

Japan Tobacco 25,007,836 2.59

Shin-Etsu Chemical Co 24,248,675 2.51

Top 10 Holdings of Underlying Sub-Fund as at 31 December 2014

Market Value USD


Roche Holdings 97,114,963 3.70

CVS Health Corporation 85,951,506 3.28

EOG Resources 83,673,216 3.19




Market Value USD


Johnson & Johnson 79,163,275 3.02

Novartis 78,940,530 3.01

Royal Dutch Shell B 78,894,225 3.01

British American Tobacco 78,067,749 2.98

Banco Bradesco 76,553,926 2.92

Philip Morris International 76,542,011 2.92

D Exposure to Derivatives as at 31 December 2015

Nil

E Investment in Collective Investment Scheme as at 31 December 2015

Market Value SGD


Aberdeen Global Opportunities Fund 2,160,416 99.30

F Borrowings

Nil

G Total Subscriptions and Redemptions for the 12 months ended 31 December 2015

SGD

Subscriptions 180,905

Redemptions 218,958

H Fund Performance as at 31 December 2015

Period Fund Benchmark*% %

3 Months 3.14 5.38

6 Months -5.92 2.01

1 Year -6.60 6.70

3 Years^ 4.20 15.90

5 Years^ 3.80 10.40

Since inception - 30 October 2006^ 0.66 3.37

* MSCI World Index^ Annualised returns

Fund returns are calculated on a bid-to-bid basis with dividends reinvested at bid price, in Singapore dollar terms.



I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Equity Fund* 1.70% 1.90%

Underlying Fund:

Aberdeen Global Opportunities Fund** 1.76% 1.75%

* include Underlying Fund expense ratio** based on audited accounts as at 30 September 2015 and 30 September 2014 respectively

Expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received. The expense ratio is calculated for the preceding 12 months in accordance with the Investment Management Association of Singapore (IMAS) guidelines.

J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Equity Fund 9.30% 13.17%

Underlying Fund:

Aberdeen Global Opportunities Fund** 25.52% 20.64%

** based on audited accounts as at 30 September 2015 and 30 September 2014 respectively

The turnover ratio means the number of times per year that a dollar of assets is reinvested. It is calculated based on the lesser of purchases or sales for the 12 months preceding the reporting date expressed as percentage of the daily average NAV.

K Any Material Information That Will Adversely Impact The Valuation Of The Fund

Nil

L Soft Dollars, Commissions or Arrangements

Nil



Financial Statements

Income StatementFor The Financial Year Ended 31 December 2015

2015 2014

S$ S$

Income

Realised gain from sale of investments 30,936 51,322

Interest income 2 4

Fund expense subsidy 38,291 35,697

69,229 87,023

Expenses

Management fees 27,760 27,363

Fund charges 9,211 11,724

36,971 39,087

Net Income For The Year 32,258 47,936



Balance SheetAs At 31 December 2015

2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 2,369,751 2,172,756

Amount paid into the fund for creation of units 180,905 372,931

Amount paid for liquidation of units (218,958) (280,352)

2,331,698 2,265,335

Unrealised (loss)/gain in value of investments (188,315) 56,480

Net income for the year 32,258 47,936

Value of the fund at end of the year 2,175,641 2,369,751

Represented by:

Current Assets

Investments 4 2,160,416 2,323,795

Sundry debtors 12,251 35,197

Bank balances 20,097 35,687

2,192,764 2,394,679

Less:

Current Liabilities

Sundry creditors 10,334 6,862

Accrued expenses 6,789 18,066

17,123 24,928

Net Assets 2,175,641 2,369,751



Manager Comments


Asian equities fell amid an unsettling period for most asset classes. Through the year, investors navigated a perplexing terrain. Most major central banks erred on the side of caution. To stimulate growth, Europe, Japan and, arguably China, adopted quantitative easing in a big way. But the US Federal Reserve telegraphed a potential rate hike, amid signs of a sustained domestic recovery, before finally making its move in December. This policy divergence not only affected capital flows but also cast a long shadow across Asian markets, given concerns about the impact on developing economies. Mainland markets were another source of turbulence for their Asian peers and the broader emerging markets. Volatility notwithstanding, China’s A-shares closed the year as the best regional performers.

Receding inflation enabled most central banks across Asia to cut rates to support faltering growth. Cheaper crude was a mixed blessing. Consumers and companies benefited via lower energy and transport expenses. Energy importers, such as India and Indonesia, scrapped fuel subsidies, diverting more funds towards roads, bridges and other much-needed infrastructure. On the flip side, tumbling oil prices took their toll on some Southeast Asia countries. Commodity exporters Malaysia and Indonesia bore the brunt of it, with steep falls in equities and currencies. In Thailand, sentiment remained fragile despite better-than-expected economic growth. To shore up markets and economies, all three countries pledged billions in stimulus spending.


The start of 2016 has been less than reassuring. Global markets sold off after mainland shares were roiled by disappointing manufacturing data, triggering trading halts. This highlights the persistent nervousness over China’s economic health. It also comes as investors are still assessing the impact of the US rate hike on Asia, with regional currencies bearing the brunt of US dollar strength. We think the Fed move is good, although the market concern is whether the Fed has made the right call on the US recovery. Other headwinds such as sluggish global trade and weak oil prices could yet persist. In addition, political developments bear close watching, with elections in Malaysia’s Sarawak state, Taiwan and the Philippines. Against such a backdrop, we expect policy to remain accommodative with further monetary and fiscal easing likely to support growth.

Valuations of Asian stocks appear reasonable on an absolute and relative basis, although these vary across sectors and countries. With the end of quantitative easing in the US and the potential for rate hikes in the near future, we hope that the relationship between fundamentals and prices would once again re-establish itself. We continue to remain true to our investment process and will capitalise on market volatility to add to our preferred holdings on weakness or initiate new names with compelling valuations and intact long-term growth drivers.

TMLS ASIAN EQUITY FUND


Fund Report


TMLS Asian Equity Fund (the “Fund”) feeds substantially into the Aberdeen Pacific Equity Fund (the “Underlying Fund”).

The investment objective of the Underlying Fund is to provide medium to long-term capital growth from a diversified portfolio of Asian-Pacific equities excluding Japanese equities. As a feeder fund, it invests in the equity-based Asia Pacific sub-funds of the Aberdeen Select Portfolio, namely the Aberdeen China Opportunities Fund, Aberdeen Indonesia Equity Fund, Aberdeen Malaysian Equity Fund, Aberdeen Singapore Equity Fund and Aberdeen Thailand Equity Fund, and invests up to 10% of its deposited property in the Aberdeen Global - Indian Equity Fund, a sub-fund of the Luxembourg-registered Aberdeen Global.

B Investments of Underlying Fund as at 31 December 2015

Market Value SGD


i Country AllocationSingapore 264,530,043 19.08Hong Kong 217,478,893 15.69India 180,867,432 13.05China 146,802,436 10.59Australia 130,663,410 9.43South Korea 88,062,530 6.35Taiwan 77,512,800 5.59Malaysia 60,547,747 4.37Indonesia 55,024,687 3.97Thailand 54,783,971 3.95Philippines 44,859,866 3.24United Kingdom 30,035,995 2.17Sri Lanka 7,375,799 0.53Others 27,782,759 2.00

ii Industry AllocationUnit Trusts 586,266,885 42.29Financials 382,223,980 27.57Information Technology 127,924,015 9.23Industrials 96,029,948 6.93Materials 74,119,838 5.35Telecommunication Services 41,224,162 2.97



Market Value SGD


Healthcare 25,109,489 1.81



Energy 5,393,424 0.39

Others 27,782,759 2.00

iii Asset Class

Equities 1,358,545,609 98.00

Cash 27,782,759 2.00

C Top 10 Holdings of Underlying Fund as at 31 December 2015

Market Value SGD


Aberdeen Singapore Equity Fund 135,773,218 9.79

Aberdeen Global - Indian Equity Fund 135,120,098 9.75

Aberdeen China Opportunities Fund 126,993,719 9.16

Samsung Electronics (Pref) 77,220,085 5.57

Aberdeen Indonesia Equity Fund 55,024,688 3.97

Aberdeen Thailand Equity Fund 54,783,971 3.95

HSBC Holdings 50,875,265 3.67


Aberdeen Malaysian Equity Fund 48,855,279 3.52

AIA Group 45,870,255 3.31

Top 10 Holdings of Underlying Fund as at 31 December 2014

Market Value SGD


Aberdeen Global - Indian Equity Fund 168,132,292 10.22


Aberdeen China Opportunities Fund 155,248,576 9.44

Samsung Electronics (Pref) 82,045,822 4.99

Aberdeen Indonesia Equity Fund 68,314,084 4.15

Aberdeen Thailand Equity Fund 64,057,650 3.89

Rio Tinto 57,154,625 3.47

Aberdeen Malaysian Equity Fund 56,433,177 3.43

AIA Group 56,239,379 3.42

HSBC Holdings 55,471,762 3.37




Nil


Market ValueSGD


Aberdeen Pacific Equity Fund 24,500,305 99.11

F Borrowings

Nil


SGD

Subscriptions 2,131,144

Redemptions 1,859,488



3 Months 1.78 4.98

6 Months -9.49 -7.49

1 Year -8.62 -2.71

3 Years^ -0.55 4.09

5 Years^ 0.71 2.22

10 Years^ 4.58 4.56


* MSCI AC Asia Pacific ex Japan Index^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Asian Equity Fund* 1.61% 1.84%

Underlying Fund:

Aberdeen Pacific Equity Fund** 1.77% 1.79%






J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Asian Equity Fund 5.29% 5.56%

Underlying Fund:

Aberdeen Pacific Equity Fund** 1.62% 0.85%




Nil


Nil




2015 2014

S$ S$

Income


Interest income 23 35


959,761 977,601

Expenses



350,307 344,970





2015 2014

Notes S$ S$

Capital Account


Amount paid into the fund for creation of units 2,131,144 3,822,126

Amount paid for liquidation of units (1,859,488) (2,189,009)

27,047,864 25,107,528

Unrealised (loss)/gain in value of investments (2,936,157) 1,036,049



Represented by:

Current Assets

Investments 4 24,500,305 26,321,461



24,802,728 27,025,105

Less:

Current Liabilities



81,567 248,897

Net Assets 24,721,161 26,776,208



Manager Comments


Emerging market equities fell over the year owing to concerns over economic growth in China. Sentiment was also hurt by the possibility of earlier-than-anticipated interest rate hikes by the US Federal Reserve (Fed). However, when the Fed did raise interest rates in December, markets reacted positively to the announcement. Prices of commodities, including oil, declined on worries that weakening demand from China may lead to a global supply glut, given that it is a large buyer of commodities. In Asia, Chinese stocks fell as disappointing economic data towards the end of the year led to renewed fears of an economic slowdown. Latin American equities declined as weak commodity prices pressured export revenues, budget balances and local currencies. The deteriorating macroeconomic environment in Brazil was further compounded by an ongoing corruption scandal at a large state-owned enterprise and political infighting, which hampered the reform process.

The fund outperformed the index in a falling market, largely due to stock selection in the consumer discretionary, information technology (IT) and financials sectors. From a country perspective, selected holdings in China and South Africa aided returns. Within IT, the position in Chinese internet company NetEase added value on the back of strong performance of its gaming business. The holding in consulting company Cognizant Technology Solutions enhanced gains as it released better-than-expected results for multiple quarters and raised its sales guidance for the full year. In the consumer discretionary sector, shares in New Oriental Education & Technology Group rose owing to its leading position in the overseas examinations preparation market in China. Optimism was also shaped by investor expectations of high growth in student enrolments in the K-12 education category, given the company’s strong brand and high-quality teaching materials. Shares in media company Naspers advanced on account of corporate activity. The company acquired a majority stake in Russia’s largest online classified website Avito, and sold its stake in two internet companies in the Czech Republic. Sentiment was also supported by its robust half-yearly results, driven by the strong performance of its Chinese internet subsidiary.


Emerging market consumers are likely to continue to benefit from rising disposable incomes and improving communications infrastructure. As a result, the fund manager prefers stocks such as Naspers, as its e-commerce business is likely to gain from rising internet usage. Furniture retailer Steinhoff International is another key position in the portfolio. Its integrated business model allows for significant cost control across the supply chain.

TMLS GLOBAL EMERGING MARKETS EQUITY FUND


Fund Report


TMLS Global Emerging Markets Equity Fund (the “Fund”) feeds substantially into the ^Fidelity Funds - Emerging Markets Fund (the “Underlying Fund”), which aims to provide long term capital growth through investing principally in areas experiencing rapid economic growth including countries in Latin America, South East Asia, Eastern Europe (including Russia) and the Middle East.^ Prior to 4 January 2016, the Underlying Fund was Fidelity - Emerging Markets Fund (A-SGD).


Market Value SGD


i Country AllocationChina 1,111,604,389 21.96India 709,641,790 14.02South Africa 587,793,293 11.61Taiwan 469,582,422 9.28Hong Kong 460,857,478 9.11United States 318,252,806 6.29Indonesia 241,495,689 4.77Netherlands 183,945,154 3.63Israel 165,560,253 3.27Mexico 158,409,049 3.13United Kingdom 103,091,355 2.04Philippines 80,393,895 1.59South Korea 61,112,683 1.21United Arab Emirates 58,427,687 1.15Nigeria 54,458,418 1.08Japan 28,106,594 0.56Russia 22,143,840 0.44Brazil 21,031,828 0.42Malaysia 3,379,266 0.07Thailand 2,984,185 0.06Others 218,915,594 4.33


Consumer Discretionary 1,372,133,198 27.11Information Technology 1,330,062,239 26.28Financials 1,111,609,406 21.96



Market Value SGD


Consumer Staples 610,318,906 12.06Healthcare 184,110,829 3.64Industrials 115,330,459 2.28Equity Linked Notes 87,547,997 1.73Materials 22,143,840 0.44Utilities 9,002,459 0.18Others 218,915,594 4.33

iii Asset ClassEquities 4,842,272,074 95.67Cash and Others 218,915,594 4.33


Market Value SGD


HDFC Bank 374,686,462 7.40NetEase 333,863,726 6.60Naspers 304,507,253 6.02Taiwan Semiconductor Manufacturing 284,547,301 5.62AIA Group 274,684,652 5.43Cognizant Technology Solutions (A) 208,669,606 4.12

Steinhoff International Holdings 183,945,154 3.63Bank Rakyat Indonesia Persero 170,725,219 3.37Baidu ADR 166,422,889 3.29

Check Point Software Technologies (H) 165,560,253 3.27


Market Value SGD


Naspers (N) 434,331,180 8.41HDFC Bank 216,863,090 4.19Taiwan Semiconductor Manufacturing 208,349,966 4.03NetEase 191,244,544 3.70AIA Group 180,600,292 3.50Cognizant Technology Solutions (A) 179,160,211 3.47Steinhoff International Holdings 164,037,881 3.18Bank Rakyat Indonesia Persero 147,132,727 2.85Kroton Educacional SA 144,064,489 2.79Tata Motors 141,116,343 2.74




Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD

Forward Contracts (32,135) - (285,228) (32,135)


Market Value SGD


Fidelity Funds - Emerging Markets Fund (A-SGD) 70,007 98.91

F Borrowings

Nil


SGD


Redemptions 7,527



3 Months 5.10 0.43

6 Months -4.57 -12.93

1 Year -0.89 -8.91

Since inception - 18 December 2014^ 0.63 3.51

* MSCI Emerging Markets Free (Net of Luxembourg Tax) Index^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Emerging Markets Equity Fund* 1.70% 1.26%

Underlying Fund:

Fidelity Funds - Emerging Markets Fund (A-SGD)** 1.93% 1.95%

* include Underlying Fund expense ratio** based on audited accounts as at 30 April 2015 and 30 April 2014 respectively




J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Emerging Markets Equity Fund 14.55 % 113.54%

Underlying Fund:

Fidelity Funds - Emerging Markets Fund (A-SGD)** 148.14% 118.80%

** based on audited accounts as at 30 April 2015 and 30 April 2014 respectively



Nil


Nil





2015 2014

S$ S$

Income

Realised gain from sale of investments 247 -

Fund expense subsidy 3,073 5

3,320 5

Expenses

Management fees 676 3

Fund charges 2,314 -

2,990 3

Net Income For The Year 330 2




2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 7,661 -


Amount paid for liquidation of units (7,527) -

74,613 7,575

Unrealised (loss)/gain in value of investments (4,162) 84

Net income for the year 330 2

Value of the fund at end of the year 70,781 7,661

Represented by:

Current Assets

Investments 4 70,007 7,659

Sundry debtors 968 3

Bank balances 779 656

71,754 8,318

Less:

Current Liabilities

Sundry creditors 292 654

Accrued expenses 681 3

973 657

Net Assets 70,781 7,661



TMLS CHINA EQUITY FUND

Manager Comments


Chinese and Hong Kong equities, driven by domestic A-share markets, posted strong returns in the first half of 2015 as market sentiment was buoyed by expectations of more easing and stimulus policies such as further RRR/interest rate cuts and the “One Belt One Road” strategy to counter the slowdown in the economy. However, the markets fell sharply in the third quarter as further tightening measures on margin financing by brokerages, the volatility in Chinese markets, and slowing growth in the world’s second-largest economy led to a global selloff. In the fourth quarter, Chinese equities gained as late October saw another interest rate cut by the People’s Bank of China (PBoC), the sixth such cut in a year. Meanwhile, Hong Kong stocks saw positive returns on the back of hopes of further stimulus measures in China. Valuations in Chinese markets, as represented by the MSCI China index, are trading at levels seen in the past few crises, including the Global Financial Crisis in 2008, with the trailing price-to-book (PB) ratio close to 1.1x.

The fund delivered marginally negative returns but comfortably outperformed the benchmark over the review period. Positive stock selection in the consumer discretionary and technology were the main contributors to outperformance, although this was partially offset by negative stock selection in consumer staples. The fund’s leading contributors over the quarter were our overweight positions in select China internet stocks that trade on US exchanges, including China’s leading internet services company Baidu, China’s private education provider New Oriental Education & Technology and China’s leading e-commerce platform Alibaba.


Although recent data for China have been soft, the services sector of the economy is generally in far better health but the pick-up is not sufficient to offset the slowdown in the manufacturing sector. The pace of fixed-asset investments, which previously functioned as a counter cyclical tool, has also shown signs of deceleration on the back of slower property starts and a lack of incentives for local governments to do fiscal stimulus.

We continue to be overweight in the consumer/service sectors including internet, tourism and education on the back of our positive long-term outlook for consumption demand in China. We have also selectively invested in companies that can benefit from supportive government policies, including railway equipment, environmental protection and renewable/alternative energy stocks. On the other hand, we continue to remain cautious of the banking sector given the rising asset quality risk and declining net interest margins. Meanwhile, we are broadly underweight oil and commodities stocks.



Fund Report


TMLS China Equity Fund (the “Fund”) feeds substantially into Schroder China Opportunities Fund (the “Underlying Fund”).

The Underlying Fund invests substantially into the Schroder ISF China Opportunities (the “Underlying Sub-Fund”), whose investment objective is to provide capital growth primarily through investment in equity and equity-related securities of companies which are headquartered in and/or listed in or have a substantial business exposure to the People’s Republic of China.


Market Value USD



China 1,064,513,197 85.90

Hong Kong 151,188,137 12.20

Australia 14,870,964 1.20

Others 8,674,729 0.70


Financials 334,968,472 27.03




Industrials 89,349,711 7.21

Energy 61,838,427 4.99

Materials 46,967,462 3.79

Health Care 40,895,152 3.30


Utilities 10,037,901 0.81

Others 14,499,190 1.17

iii Asset Class

Equities 1,230,572,299 99.30

Cash and Others 8,674,729 0.70




Market Value USD


Tencent Hldg Ltd 115,869,597 9.35

China Mobile Ltd 102,981,428 8.31

China Construction Bank Corp 90,712,882 7.32

Industrial & Commercial Bank of China Ltd 70,761,005 5.71

Alibaba Group Hldg Ltd 58,244,610 4.70

China Life Insurance Co Ltd 45,356,441 3.66

China Petroleum & Chemical Corp 38,912,357 3.14

Galaxy Entertainment Group Ltd 31,600,799 2.55

China Resources Land Ltd 30,609,402 2.47

Belle Int’l Hldg Ltd 28,998,380 2.34


Market Value USD


China Construction Bank Group 109,117,764 8.94

China Mobile Ltd 103,381,148 8.47

Tencent Hldg Ltd 98,865,088 8.10

Industrial & Commercial Bank of China Ltd 96,301,919 7.89

China Life Insurance Co Ltd 69,205,562 5.67

China Pacific Insurance (Group) Co Ltd 40,156,314 3.29

PetroChina Co Ltd 30,269,805 2.48

Belle Int'l Hldg Ltd 28,927,193 2.37

Bank of China Ltd 27,218,413 2.23

China Overseas Land & Investment Ltd 24,533,189 2.01


Market Value

USD

% of Net Asset

Value

Realised gains/

(losses)USD

Unrealised gains/

(losses) USD

Forward FX Contracts (7,677) - (2,984,620) (7,677)


Market ValueSGD


Schroder China Opportunities Fund 418,577 100.11


F Borrowings

Nil


SGD


Redemptions 72,871



3 Months 7.61 7.59

6 Months -10.59 -10.66

1 Year 4.03 4.48

3 Years^ 7.83 9.36

Since inception - 12 August 2011^ 6.86 8.50

* MSCI TR China Net^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS China Equity Fund* 1.62% 1.31%

Underlying Fund:

Schroder China Opportunities Fund** 1.76% 1.89%

* include Underlying Fund expense ratio** based on unaudited accounts




J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS China Equity Fund 18.61% 61.70%

Underlying Fund:

Schroder China Opportunities Fund** 0.82% 4.65%

** based on unaudited accounts



Nil


Nil





2015 2014

S$ S$

Income



21,891 16,133

Expenses

Management fees 4,723 763


14,052 12,143





2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 139,581 33,250



421,474 128,459




Represented by:

Current Assets

Investments 4 418,577 136,104



429,044 166,846

Less:

Current Liabilities



10,911 27,265

Net Assets 418,133 139,581



Manager Comments


Indian equities were highly volatile in the year under review. Global risk appetites were suppressed early on by several factors, including plummeting commodity prices, Greece’s protracted financial crisis and geopolitical risks in Europe and the Middle East. However, India stayed relatively buoyant at first, as investors remained hopeful that prime minister Narendra Modi could push through crucial reforms, while sharply lower oil prices helped narrow the current account deficit and subdue elevated inflation. Even the Reserve Bank of India felt sufficiently confident to cut interest rates four times, providing a welcome boost to sentiment and the economy’s nascent recovery. While India proved more resilient than its emerging market peers, it did not escape unscathed from August’s rout in global markets either, as wild swings in Chinese equities highlighted the mainland’s economic woes.

The fund outperformed the benchmark. Materials, in which the fund is overweight, was the worst performing sector over the period; however, our stock selection was the key contributor to relative performance. Holding Grasim Industries was beneficial, as was Kansai Nerolac Paints, where falling raw material costs boosted margins. Not holding metals and mining stocks also proved helpful, as many, including Hindalco and Tata Steel, suffered from subdued demand and a drop in global commodity prices. Relative performance further benefited from our stock selection in the financial sector, where we hold the more conservatively-managed privately-owned banks, which boast better asset quality than their state-owned peers. Elsewhere, our healthcare holdings were key contributors, buoyed by the sector’s defensive characteristics.


India remains the brightest spot in an otherwise muted emerging markets landscape. However, it is unlikely to escape unscathed from global investors’ wavering sentiment. A still subdued outlook for world growth and renewed geo-political concerns seem likely to keep markets in check in the near term. Encouragingly, low oil prices should further fuel India’s economy, which continues to move in the right direction, albeit ploddingly given sizeable headwinds. Company earnings have yet to make a discernible recovery and firms’ reluctance to invest in their businesses could pose a threat to economic progress. Nevertheless, Modi remains dedicated to his reform agenda, despite setbacks he faces from the opposition-controlled upper house. His proposed new bankruptcy legislation marked a promising beginning to the new year, while the GST bill remains firmly at the top of the government’s to-do list.

TMLS INDIA EQUITY FUND


Fund Report


TMLS India Equity Fund (the “Fund”) feeds substantially into the Aberdeen India Opportunites Fund (the “Underlying Fund”) which aims to achieve long term capital growth by investing in the Aberdeen Global - Indian Equity Fund (“Underlying Sub-Fund”).

The Underlying Sub-Fund invests at least two-thirds of its assets in equities and equity-related securities of companies with their registered office in India; of companies which have the bulk of their business activites in India; and/or, of holding companies that have the bulk of their assets in companies with their registered office in India. A wholly-owned Mauritian subsidiary is utilised by Aberdeen Global to hold all the investments of Underlying Sub-Fund.


Market Value USD



India 3,834,451,148 99.26

Others 28,446,278 0.74


Financials 829,889,309 21.48


Materials 630,137,366 16.31


Healthcare 392,838,513 10.17


Industrials 196,664,872 5.09

Utilities 106,714,313 2.76


Others 28,446,278 0.74

iii Asset Class

Equities 3,834,451,148 99.26

Cash 28,446,278 0.74




Market Value USD


HDFC 330,048,245 8.54

Tata Consultancy Services 288,985,456 7.48

Infosys 281,831,961 7.30

ICICI Bank 244,903,384 6.34

ITC 194,760,810 5.04

Grasim Industries 176,995,273 4.58

Bosch 154,841,752 4.01

Hindustan Unilever 154,008,199 3.99

Ambuja Cements 145,122,371 3.76

Hero MotoCorp 141,026,260 3.65


Market Value USD


HDFC 467,387,563 8.86

Tata Consultancy Services 376,615,580 7.14

ICICI Bank 346,617,835 6.57

Infosys 337,833,091 6.40

Bosch 286,863,040 5.44

ITC 254,505,543 4.82

Hero MotoCorp 226,050,238 4.28

Hindustan Unilever 202,383,933 3.84

Godrej Consumer Products 185,314,272 3.51

Ambuja Cements 180,629,017 3.42


Nil


Market Value SGD


Aberdeen India Opportunities Fund 256,256 98.95



F Borrowings

Nil


SGD


Redemptions 30,319



3 Months 0.19 -1.14

6 Months -1.05 -2.64

1 Year 5.87 0.50

Since inception - 10 December 2014^ 5.74 3.22

* MSCI India Index^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS India Equity Fund* 1.70% 0.66%

Underlying Fund:

Aberdeen India Opportunities Fund** 1.95% 1.59%





J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS India Equity Fund 17.19% -

Underlying Fund:

Aberdeen India Opportunities Fund** 28.14% 15.58%




Nil


Nil





2015 2014

S$ S$

Income


4,849 2

Expenses

Realised loss from sale of investments 1,037 -


Fund charges 1,370 -

5,386 1

Net (Loss)/Income For The Period (537) 1




2015 2014

Notes S$ S$

Capital Account




274,994 1,111

Unrealised loss in value of investments (15,481) -

Net (loss)/income for the period (537) 1


Represented by:

Current Assets

Investments 4 256,256 -

Sundry debtors 945 -


262,836 1,113

Less:

Current Liabilities

Sundry creditors 2,888 -

Accrued expenses 972 1

3,860 1

Net Assets 258,976 1,112



Manager Comments


Singapore stocks fell in 2015, during a fitful year for global financial markets, mitigated in the last quarter when the US Federal Reserve raised interest rates by 25 basis points, after months of speculation. The domestic economy was weak, given external risks and the sharp increase in the key three-month Sibor or Singapore interbank offered rate, which is used extensively to price home loans. Furthermore, there were concerns over the impact of rising interest rates on the housing sector. Exports slumped, as China’s stuttering growth hampered trade globally, and a worldwide commodities rout, particularly in oil & gas, led to anaemic growth in the local manufacturing, construction and services sectors. In a bid to spur growth, the Monetary Authority of Singapore eased the appreciation of the Singapore dollar. In politics, the People’s Action Party retained its incumbency in the general election, with a higher-than-expected proportion of votes. Half the cabinet ministers are now below the age of 55, following a reshuffle that emphasised leadership renewal.

Our holding KrisEnergy was weighed down by the continued weakness in the oil & gas market, and the gloomy outlook for the oil price this year. Sembcorp Marine was similarly affected. Its share price slumped to a six-year low, after it suffered its first contract cancellation – Marco Polo Marine terminated a US$214 million order; and warned of its first quarterly loss since 2003. Elsewhere, our non-exposure to Hongkong Land Holdings hampered performance. The property developer rebounded following the 2014 political crisis in Hong Kong, as the prime office rent recovery accelerated. It began new developments in Cambodia, China and Vietnam, and kept its interim dividend unchanged. We already have exposure to this company through our position in parent Jardine Strategic. On the other hand, SATS rose on solid results, as its cost reduction initiatives boosted margins. The ground-handling and in-flight catering services provider was promoted to the FTSE Straits Times Index, and weathered turbulent periods for the industry following a spate of terrorist attacks around the world. Raffles Medical Group also performed well, with its expansion in Singapore and China expected to drive growth.


The start of 2016 has been less than reassuring. Singapore equities tracked a global sell-off after mainland shares were roiled by disappointing manufacturing data, triggering trading halts. This highlights the persistent nervousness over China’s economic health. It also comes as investors are still assessing the impact of the US rate hike on the domestic economy. Other headwinds such as sluggish global trade and weak oil prices could yet persist.

TMLS SINGAPORE EQUITY FUND


Fund Report


TMLS Singapore Equity Fund (the “Fund”) feeds substantially into the Aberdeen Singapore Equity Fund (the “Underlying Fund”).

The investment objective of the Underlying Fund is to provide medium to long-term capital growth from a diversified portfolio of Singapore equities.


Market Value SGD



Singapore 642,672,034 88.46

Hong Kong 61,303,693 8.44

Others 22,529,102 3.10


Financials 371,882,957 51.19

Industrials 148,996,256 20.51

Consumer Services 57,533,506 7.92

Oil & Gas 55,840,971 7.69

Telecommunications 35,123,955 4.83

Healthcare 31,378,344 4.32

Basic Materials 3,219,738 0.44

Others 22,529,102 3.10

iii Asset Class

Equities 703,975,727 96.90

Cash 22,529,102 3.10


Market Value SGD


Oversea-Chinese Banking Corporation 79,948,202 11.00

DBS Group 65,414,118 9.00

Jardine Strategic Holdings 61,303,694 8.44

United Overseas Bank 53,077,250 7.31

Keppel Corporation 44,181,417 6.08



Market Value SGD


City Developments 42,709,950 5.88

Singapore Telecommunications 35,123,955 4.83

Singapore Techologies Engineering 33,204,815 4.57

Raffles Medical Group 23,213,832 3.20

Capitaland 22,177,000 3.05


Market Value SGD


Oversea-Chinese Banking Corporation 85,928,450 10.30

DBS Group 77,030,816 9.24

Jardine Strategic Holdings 71,654,636 8.59

United Overseas Bank 70,171,548 8.41

Keppel Corporation 62,451,795 7.49

City Developments 47,786,310 5.73

Singapore Telecommunications 36,018,684 4.32

Singapore Techologies Engineering 33,425,400 4.01

Venture Corporation Ltd 25,931,650 3.11

Singapore Exchange Ltd 24,960,760 2.99


Nil

E Investments in Collective Investment Schemes as at 31 December 2015

Market Value SGD



F Borrowings

Nil


SGD


Redemptions 377,974





3 Months 1.54 3.91

6 Months -11.23 -11.36

1 Year -12.77 -11.21

Since inception - 22 August 2014^ -9.93 -7.15

* Singapore Straits Time TR^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Singapore Equity Fund* 1.71% 1.73%

Underlying Fund:

Aberdeen Singapore Equity Fund** 1.67% 1.66%



J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Singapore Equity Fund 24.50% 181.14%

Underlying Fund:

Aberdeen Singapore Equity Fund** 8.90% 10.78%






Nil


Nil





2015 2014

S$ S$

Income


28,377 4,188

Expenses

Realised loss from sale of investments 14,038 -


Fund charges 3,859 871

43,048 4,345

Net Loss For The Year (14,671) (157)




2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 1,229,794 -


Amount paid for liquidation of units (377,974) (21)

1,971,652 1,209,387


Net loss for the year (14,671) (157)


Represented by:

Current Assets

Investments 4 1,682,664 1,192,563



1,871,862 1,252,194

Less:

Current Liabilities



134,743 22,400

Net Assets 1,737,119 1,229,794



Manager Comments


Markets were generally flat over the review period with the S&P Index trading in a tight range and ending -0.73% down at 2,043, selling off from its record close in May’15. The 10-year US Treasury yield was remarkably resilient in spite of expectations of a rate hike, trading within an 84bps range but ending only +10bps higher at 2.27%. The FOMC (Federal Open Market Committee) waited till the last meeting of the year to hike its benchmark rate by +25bps for the first time since 2008. Much of the justification for the hike was due to strength in the US labour markets and steady, if moderate economic growth. The Unemployment Rate fell to a low of 5% on the back of good Nonfarm Payrolls (+240k average per month), falling Jobless Claims and steady Average Hourly Income growth (+2.5% YoY by Dec’15). Over the course of the year, GDP grew moderately but well below previous recoveries.

The Eurozone just about managed to navigate a tough start keeping Greece within the current structure and avoiding a disorderly exit/default. Growth overall continued to recover as credit conditions were eased by the ECB’s open-ended QE. In Asia, all eyes were focused on a slowing China as investments and exports weakened. The impact on commodity demand hit many exporters in Asia and their FX rates duly sold off. Many Asian economies face tough fiscal and structural reform decisions.

Singapore’s growth stuttered throughout the review period as the external sector suffered with the rest of the region, ending with a tepid 2.1% estimated GDP growth rate. A de-facto tightening of monetary conditions occurred over 2015 on the back of outflows. This resulted in the first monthly falls in bank credit since 2009, damaging fixed investments. Weak external demand also resulted in falling Industrial Production and Non-Oil Domestic Exports – the Manufacturing PMI was below the contraction-expansion threshold of 50 for ten months out of the year. Only Services and Public Construction helped pull GDP into positive territory. Interest rates moved higher in anticipation of the FOMC’s hike with the SGS yield curve moving up ahead of USTs. The underperformance in the short-end of both yield curves was ultimately capped by a dovish policy statement. High quality credits in USD and SGD remained resilient as spreads protected overall performance.


Notwithstanding the FOMC’s determination that the US economic cycle was good enough to warrant a rate hike, global growth is expected by most analysts to experience a difficult year in 2016. Asia and in particular, externally-orientated economies like Singapore will have to restructure their economies in search of more durable growth drivers. Volatile shifts in money flows may continue to weigh on higher risk assets in slowing Asian economies, especially FX. We will continue to focus on security selection amongst high quality credits while controlling the Fund’s overall duration.

TMLS GLOBAL BOND FUND


Fund Report


TMLS Global Bond Fund (the “Fund”) feeds substantially into the Deutsche Lion Bond Fund^ (the “Underlying Fund”).

The investment objective of the Underlying Fund is to achieve an attractive return by investing in assets which are in the Manager’s opinion, equivalent to or better than single A quality investment grade bonds of Singapore and major bond markets such as G7 countries, Australia, New Zealand, Hong Kong and South Korea. The G7 countries are Canada, France, Germany, Italy, Japan, United Kingdom and United States.

^ Prior to 28 November 2014, the Underlying Fund was known as DWS Lion Bond Fund.


Market Value SGD



Singapore 104,091,550 48.60

Malaysia 23,836,824 11.12

Cayman Islands 18,840,724 8.79

South Korea 13,744,192 6.42

China 11,123,118 5.19

Japan 10,492,110 4.90

United States 7,006,650 3.27

British Virgin Islands 5,417,759 2.53

Australia 4,418,149 2.07

Indonesia 2,654,960 1.24

Netherlands 2,473,450 1.15

Switzerland 1,992,560 0.93

Others 8,107,571 3.79


Banks 70,432,966 32.88

Finance 35,438,919 16.54

Real Estate 34,848,215 16.26

Transport 10,900,125 5.09

Internet Service 9,942,040 4.64

City Gas 9,339,417 4.36



Market Value SGD


Education 7,268,700 3.39

Real Estate Investment Trust 5,873,160 2.74

Telecommunications 4,457,450 2.08

Diversified Resources 4,209,419 1.97

Investment 3,105,930 1.45

Shipbuilding 2,566,414 1.20

Electrical/Electronics 2,159,086 1.01

Insurance 2,052,280 0.96

Chemicals 1,985,100 0.93

Government 1,512,825 0.71

Others 8,107,571 3.79

iii Asset Class

Fixed Income 207,720,582 96.21

Cash and Others 8,107,571 3.79

iv Credit Rating of Debt Securities

Aaa 14,388,869 6.72

AA (by S&P) 4,458,550 2.08

AA- (by S&P) 2,654,960 1.24

Aa2 8,826,770 4.12

Aa3 27,209,971 12.70

A+ (by S&P) 9,541,705 4.45

A (by S&P) 1,974,380 0.92

A1 30,831,032 14.39

A- (by S&P) 1,296,475 0.61

A2 20,755,904 9.69

A3 47,156,860 22.02

Unrated 36,996,570 17.27

Others 8,107,571 3.79




Market Value SGD


United Overseas Bank Limited Series EMTN Var 11/07/2022

11,800,995 5.51

DBS Bank Limited Singapore Series MTN 21/02/2022

9,568,210 4.47

Sun Hung Kai Properties Capital Market Limited MTN 3.25% 20/05/2021

7,489,425 3.50

Silver Oak Limited FRN 21/06/2016 7,120,169 3.32

Morgan Stanley EMTN 3.8% 29/01/2016 7,006,650 3.27

Singapore Bus Services MTN 1.8% 12/09/2017 6,948,690 3.24

Bank of Communications HK EMTN 2.1% 24/07/2017

6,680,610 3.12

Petronas Capital Limited 5.25% 12/08/2019 6,128,114 2.86

Singapore Management University MTN 3.155% 07/03/2024

6,039,300 2.82

FCL Treasury Pte Limited 3.7% 05/04/2019 6,015,480 2.81


Market Value SGD


United Overseas Bank Limited Series EMTN Var 11/07/2022

11,955,736 5.17

HK Land Treasury SG 3.65% 05/10/2015 11,744,924 5.08

DBS Bank Limited Singapore Series MTN 21/02/2022

9,671,795 4.18

ANZ National International Limited Series EMTN 2.95% 27/07/2015

9,075,691 3.92

United Overseas Land Limited MTN 2.493% 08/05/2015

7,763,397 3.36

Sun Hung Kai Properties Capital Market Limited MTN 3.25% 20/05/2021

7,625,693 3.30

Morgan Stanley EMTN 3.8% 29/01/2016 7,188,884 3.11

Danga Capital Berhad 2.615% 11/08/2015 7,044,489 3.04

Singapore Press Holdings Limited MTN 2.81% 02/03/2015

7,016,304 3.03

Singapore Bus Services MTN 1.8% 12/09/2017 6,936,882 3.00




Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD

Foreign exchange contracts

(83,430) (0.04) (2,629,499) (83,430)


Market Value SGD


Deutsche Lion Bond Fund 580,820 100.97

F Borrowings

Nil


SGD


Redemptions 230,259



3 Months 0.46 0.22

6 Months 0.63 0.43

1 Year 1.17 0.69

3 Years^ 2.21 0.45

Since inception - 6 June 2011^ 1.82 0.42

* 6M SIBOR Less 12.5bp^ Annualised returns




I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Bond Fund* 0.00% 0.84%

Underlying Fund:

Deutsche Lion Bond Fund** 0.19% 0.19%



J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Bond Fund 26.17% 26.88%

Underlying Fund:

Deutsche Lion Bond Fund** 39.52% 46.68%




Nil


Nil





2015 2014

S$ S$

Income



21,391 14,920

Expenses



14,389 14,076

Net Income For The Year 7,002 844




2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 633,768 230,863



564,476 629,909

Unrealised gain in value of investments 3,739 3,015

Net income for the year 7,002 844


Represented by:

Current Assets

Investments 4 580,820 636,467

Sundry debtors 316 21,208

Bank balances 5,531 126

586,667 657,801

Less:

Current Liabilities



11,450 24,033

Net Assets 575,217 633,768



Manager Comments


In December, the Singapore bond market continued to see losses as the United Overseas Bank Singapore Government Bond All Index declined by 0.13%, bringing year-to-date (YTD) returns to 0.95%.

The advance estimate for 4Q15 GDP beat market expectations and expanded 5.7% quarter-over-quarter (QoQ) at a seasonally-adjusted annualized rate (saar), or 2.0% year-over-year (YoY), against the consensus of 1.0% QoQsaar, or 1.2% YoY.

The prevailing aim for monetary policy continues to be ensuring domestic price stability over the medium term. Policymakers, however, do not want to rely totally on monetary policy to support growth. Going forward, the government will likely introduce fiscal measures, administrative policies detailing more support for lower-wage workers and other policy measures to address structural challenges facing the Singapore economy both in the upcoming budget in February 2016 and in the middle of 2016.

With its diversified drivers of growth, Singapore remains in an attractive position to ride out Asia’s volatile growth prospects in the near term. A lower rate of growth and increased volatility will be the norm in a period of structural adjustments when the policy option to pump prime growth via labour force expansion is no longer available. The government is attempting to shift the economy toward a more sustainable productivity-driven pace of growth, away from labour force growth that has been a key economic driver for the past few decades.


In terms of strategy, we continue to adopt a tactical approach to positioning across the SGS curve in view of global growth headwinds and monetary policy divergence amongst central banks. We will seek to bolster carry-through exposure in high-quality corporate and bank credits.

TMLS SINGAPORE BOND FUND


Fund Report


TMLS Singapore Bond Fund (the “Fund”) feeds substantially into the Legg Mason Western Asset Singapore Bond Fund Class A (the “Underlying Fund”).

The investment objective of the Underlying Fund is to achieve yield enhancement by aiming to outperform the benchmark in Singapore Dollar terms via active but prudent management of a portfolio comprising primarily of Singapore bonds, cash and cash equivalent instruments.


Market Value SGD


i Country AllocationSingapore 75,674,807 82.34Hong Kong 7,398,995 8.05Netherlands 6,974,293 7.59Others 1,856,459 2.02

ii Industry AllocationBank 30,813,954 33.53Government 22,873,166 24.89Real Estate 10,134,239 11.03Finance 5,366,160 5.84Transport & Shipping 3,047,138 3.31Hotel 3,004,635 3.27Utilities 1,987,944 2.16Others 14,677,319 15.97

iii Asset ClassFixed Income 90,048,095 97.98Cash and Others 1,856,459 2.02

iv Credit Rating of Debt SecuritiesAaa 25,253,216 27.48A+ 6,801,760 7.40A 771,983 0.84A2 1,028,395 1.12BBB+ 492,990 0.54



Market Value SGD


Baa2 1,013,435 1.10BBB 15,464,596 16.83Baa3 3,795,525 4.13BBB- 10,552,448 11.48BB+ 1,279,275 1.39Unrated 23,594,473 25.67Others 1,856,459 2.02


Market Value SGD


Singapore (Govt Of) 3% 01/09/2024 11,379,280 12.38Singapore (Govt Of) 3.5% 01/03/2027 7,986,276 8.69DBS Group Holdings Ltd (Reg S) (Reg) Var Perp 7,523,361 8.19Mapletree Treasury Svcs EMTN (Reg S) Var Perp 7,142,940 7.77ABN Amro Bank (Reg S) Var 25/10/2022 6,974,293 7.59United Overseas Bank Ltd (Reg S) Ser EMTN Var 11/07/2022

6,286,375 6.84

OCBC Capital Corp Preference SGD100 5,366,160 5.84Bank Of East Asia Ltd Ser EMTN Var 13/09/2022 3,795,525 4.13Global Logistic Properti EMTN Var Perp 3,578,155 3.89City Developments Ltd Ser MTN (Reg S) (BR) 2.78% 21/09/2018

3,004,635 3.27


Market Value SGD


Singapore (Govt of) 3% 01/09/2024 11,692,600 13.02Mapletree Treasury Svcs EMTN (Reg S) Var Perp 8,474,418 9.45Singapore (Govt of) 3.5% 01/03/2027 8,239,700 9.19DBS Group Holdings Ltd (Reg S) (Reg) Var Perp 7,523,941 8.39ABN Amro Bank (Reg S) Var 25/10/2022 7,058,437 7.87OCBC Capital Corp Preference SGD100 5,408,308 6.03City Developments Ltd Ser MTN (Seg S) (BR) 2.78% 21/09/2018

4,024,476 4.49

Global Logistic Properti EMTN Var Perp 3,641,009 4.06Malayan Banking Berhad EMTN (Reg) Var 28/04/2021

3,312,699 3.69

Bank of East Asia Ltd Ser EMTN Var 13/09/2022 3,095,868 3.45




Nil


Market Value SGD


Legg Mason Western Asset Singapore Bond Fund Class A

1,267,847 100.04

F Borrowings

Nil


SGD


Redemptions 327,566



3 Months 0.28 0.37

6 Months 0.77 1.65

1 Year 1.49 0.95

Since inception - 1 September 2014^ 1.61 0.74

* UOB Singapore Government Bond Index All (S$)^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Singapore Bond Fund* 0.89% 1.02%

Underlying Fund:

Legg Mason Western Asset Singapore Bond Fund Class A **

0.90% 0.95%





J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund

TMLS Singapore Bond Fund 31.15% 0.24%

Underlying Fund:

Legg Mason Western Asset Singapore Bond Fund Class A**

26.88% 10.07%




Nil


Nil





2015 2014

S$ S$

Income

Realised gain from sale of investments 1,420 1


14,505 915

Expenses


Fund charges 5,122 559

12,943 948

Net Income/(Loss) For The Year 1,562 (33)




2015 2014

Notes S$ S$

Capital Account


Amount paid into the fund for creation of units 1,218,844 366,351


1,257,990 366,351

Unrealised gain in value of investments 7,799 394

Net income/(loss) for the year 1,562 (33)

Value of the fund at end of the year 1,267,351 366,712

Represented by:

Current Assets

Investments 4 1,267,847 361,233


Bank balances 11,275 655

1,281,591 367,785

Less:

Current Liabilities

Sundry creditors 11,795 672

Accrued expenses 2,445 401

14,240 1,073

Net Assets 1,267,351 366,712



Manager Comments


The interbank market liquidity remained tight in December with the 3-month interbank rate at 1.185%, on the back of Federal Reserve’s (Fed’s) rate hike. The advance estimate for 4Q15 GDP beat market expectations and expanded 5.7% quarter-over-quarter (QoQ) at a seasonally-adjusted annualized rate (saar), or 2.0% year-over-year (YoY), against the consensus of 1.0% QoQsaar, or 1.2% YoY.

The prevailing aim for monetary policy continues to be ensuring domestic price stability over the medium term. Going forward, the government will likely introduce fiscal measures, administrative policies detailing more support for lower-wage workers and other policy measures to address structural challenges facing the Singapore economy both in the upcoming budget in February 2016 and in the middle of 2016. In the longer term, the government will likely remain focused on structural shifts in the economy towards a more sustainable, albeit slower growth range of around 2%.

Singapore remains in the midst of a structural economic adjustment, heading towards a more sustainable growth model predicated on increasing productivity and diversifying economic drivers as the country reaches its limits of labor force expansion and calls for a more moderate pace of immigration. Shifting growth drivers will likely bring about labour force dislocations as labour-intensive sectors reevaluate commercial viability in light of the policy shifts in immigration. Technological shifts are also likely to result in job losses as skill-biased employment causes further increases in inequality. Structural shifts during episodes of broader cyclical, regional economic weakness could possibly also contribute to further uncertainty. Policymakers thus have to closely mitigate potential increases in unemployment, inequality and social tensions arising from both endogenous shifts and exogenous factors.


With its diversified drivers of growth, Singapore remains in an attractive position to ride out Asia’s volatile growth prospects in the near term. With regard to strategy, we view a neutral duration position as appropriate. We expect broadening safe-haven demand for SGS given a shrinking universe of sovereigns globally rated AAA by all three international rating agencies. We will seek to bolster carry-through exposure in high-quality corporate and bank credits.

TMLS SINGAPORE CASH FUND


Fund Report


TMLS Singapore Cash Fund (the “Fund”) feeds substantially into the Legg Mason Western Asset Singapore Dollar Fund Class B (the “Underlying Fund”).

The investment objective of the Underlying Fund is to invest as a money market fund, in Singapore Dollar dominated money market instruments and debt securities, to achieve a return above short-term cash deposit whilst managing liquidity and risk to preserve capital.


Market Value SGD



Singapore 24,593,177 81.34

South Korea 2,750,801 9.10

India 2,000,000 6.61

Japan 1,800,000 5.95

Malaysia 1,500,000 4.96

Others (2,407,139) (7.96)


Government 16,740,782 55.37

Bank & Finance 15,903,196 52.59

Others (2,407,139) (7.96)

iii Asset Class

Fixed Income 32,643,978 107.96

Cash (2,407,139) (7.96)


Aaa 24,593,177 81.34

Aa3 750,801 2.48

A1 3,800,000 12.57

A3 3,500,000 11.57

Cash (2,407,139) (7.96)



Market Value SGD


v Maturity of investments30 days or less 11,543,594 38.1831-60 days 9,648,535 31.9161-90 days 5,151,849 17.04185-365 days 4,500,000 14.88More than 365 days 1,800,000 5.95Cash (2,407,139) (7.96)


Market Value SGD


MAS Bills (Ser 168) ZCP 16/02/2016 6,740,695 22.29MAS Bills (Ser 84) ZCP 29/01/2016 6,494,107 21.48MAS Bills (Ser 87) ZCP 04/01/2016 2,799,722 9.26MAS Bills (Ser 84) ZCP 28/03/2016 2,793,560 9.24MAS Bills (Ser 84) ZCP 05/02/2016 2,298,681 7.60ICICI Bank UK Plc Ser EMTN 1.6% 05/08/2016 2,000,000 6.61Sumitomo Mitsui Bkg/SG Ser FXCD (Reg S) (BR) 1.9% 27/02/2017

1,800,000 5.95

Malayan Banking Ser EMTN (Reg) 1.32% 11/07/2016

1,500,000 4.96

MAS Bills (Ser 84) ZCP 22/01/2016 1,498,965 4.96Kookmin Bank Ser GMTN (Reg S) (BR) 1.35% 14/03/2016

1,000,000 3.31


Market Value SGD


MAS Bills (Ser 84) ZCP 27/02/2015 6,194,783 20.34MAS Bills (Ser 84) ZCP 20/03/2015 4,992,107 16.39MAS Bills T-BILLS Ser 168 03/03/2015 3,997,589 13.13MAS Bills (Ser 168) ZCP 09/06/2015 3,987,280 13.09MAS Bills (Ser 84) ZCP 16/01/2015 2,699,590 8.87Singapore Press Holdings Ltd MTN 2.81% 02/03/2015

2,508,138 8.24

MAS Bills (Ser 84) ZCP 23/01/2015 1,499,674 4.92HK Land Treasury SG (BR) 3.65% 05/10/2015 1,277,536 4.20MAS Bills (Ser 84) ZCP 30/01/2015 799,785 2.63ANZ National (Intl) Ltd Ser EMTN (BR) 2.95% 27/07/2015

759,763 2.50




Nil


Market Value SGD


Legg Mason Western Asset Singapore Dollar Fund Class B

247,080 100.00

F Borrowings

Nil


SGD


Redemptions -


Period Fund Benchmark% %

Since inception - 30 December 2015 - -


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Singapore Cash Fund* 0.56% -

Underlying Fund:

Legg Mason Western Asset Singapore Dollar Fund Class B**

0.26% 0.46%






J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Singapore Cash Fund - -

Underlying Fund:

Legg Mason Western Asset Singapore Dollar Fund Class B**

306.28% 329.96%




Nil


Nil




2015 2014

S$ S$

Income

Fund expense subsidy 1 -

1 -

Expenses

Management fees 4 -

Fund charges 1 -

5 -

Net Loss For The Period (4) -




2015 2014

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year - -

Amount paid into the fund for creation of units 247,080 -

Amount paid for liquidation of units - -

247,080 -

Unrealised gain in value of investments - -

Net loss for the period (4) -

Value of the fund at end of the year 247,076 -

Represented by:

Current Assets

Investments 4 247,080 -

Bank balances 247,080 -

494,160 -

Less:

Current Liabilities

Sundry creditors 247,079 -

Accrued expenses 5 -

247,084 -

Net Assets 247,076 -



Manager Comments


With sluggish US growth and a massive support by monetary policies in a number of countries equity markets started strongly into the year 2015. Only throughout the middle of the year the momentum recede and markets tended sideways with nervous reactions on geopolitical risks and a decline in prices for oil and other commodities while the US economy seemed to stabilize.

In the course of the year economic data from the US continued to be solid but data from China pointed towards persistent weakness and an unexpected depreciation of the Chinese currency took market participants by surprise. During the end of the year equity markets recovered only slightly.

US Treasuries held up well in the beginning of the year but in the second half became volatile in expectation of the central bank’s first rate hike, but overall interest rates in the US increased only slightly.

The MSCI World slightly declined by 0.9% in 2015 while the MSCI Singapore lost 11.9% (in SGD).

Deutsche Premier Select Trust showed a performance of 0.1% for the year 2015. The Lion Bond Fund was up 1.0% over the period and helped stabilize the portfolio. Deutsche Global Equity Focus Fund returned +7.6%, mainly due to the strength of the US-Dollar against the Singapore Dollar. The DWS Premier Invest Singapore Equity Fund was down 10.3% for the year and the DWS Asian Small/Mid Cap fund declined by 2.6% (all numbers in SGD).


At the end of 2015 the fund’s positioning remains constructive, but to a lesser extent than throughout the rest of the year. We continue to believe in a slow but sustained global recovery, the commodity space and Chinese macroeconomics remain to be closely monitored. We expect equities to show better returns than fixed income investments in 2016 but believe overall returns for most asset classes to be lower than in recent years and volatility to remain elevated.

TMLS GLOBAL BALANCED FUND


Fund Report


TMLS Global Balanced Fund (the “Fund”) feeds substantially into the Deutsche Premier Select Trust^ (the “Underlying Fund”).

The investment objective of the Underlying Fund is to achieve long term capital appreciation through investment in a diversified portfolio of securities which are not prohibited under the CPF Investment Scheme.

^ Prior to 28 November 2014, the Underlying Fund was known as DWS Premier Select Trust Fund.


Market Value SGD



Singapore 119,558,847 62.85

Luxembourg 64,406,781 33.86


Others 840,338 0.44


Unit Trusts / Mutual Funds 189,395,582 99.56

Others 840,338 0.44

iii Asset Class

Collective Investment Schemes 189,395,582 99.56

Cash 840,338 0.44


Market Value SGD


Deutsche Lion Bond Fund Class M 64,968,887 34.15

Deutsche Global Equity Focus Fund 64,406,781 33.86

Deutsche Singapore Equity Fund Class M 37,293,976 19.60

Deutsche Asian Small/Mid Cap Fund Class A 17,295,984 9.09

iShares iBoxx $ High Yield Corporate Bond ETF 5,429,954 2.85




Market Value SGD


Deutsche Lion Bond Fund Class M 61,973,680 30.76

Deutsche Global Equity Focus Fund 51,962,017 25.79

Deutsche Singapore Equity Fund Class M 45,037,869 22.36

Deutsche Asian Small/Mid Cap Fund Class A 15,938,750 7.91

Aberdeen Global Opportunities Fund SGD Class 11,791,530 5.85

iShares MSCI ACWI Index Fund 9,798,319 4.86


Market Value SGD

% of Net Asset

Value

Realised gains/

(losses) SGD

Unrealised gains/

(losses) SGD

Foreign Exchange Contracts

- - 5,687 -


Market Value SGD


Deutsche Premier Select Trust 10,228,408 99.63

F Borrowings

Nil


SGD


Redemptions 2,265,072



3 Months 3.81 3.00

6 Months -2.10 -2.65

1 Year -0.21 -1.19

3 Years^ 4.76 4.99

5 Years^ 2.88 3.65




* 30% MSCI World, 30% MSCI Singapore, 40% 3M SIBOR (With dividend)^ Annualised returns


I Expense Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Balanced Fund* 1.54% 1.45%

Underlying Fund:

Deutsche Premier Select Trust** 1.49% 1.47%



J Turnover Ratios

31 Dec 2015 31 Dec 2014

Local Fund:

TMLS Global Balanced Fund 14.06% 8.48%

Underlying Fund:

Deutsche Premier Select Trust** 21.40% 20.82%




Nil


Nil





2015 2014

S$ S$

Income


Interest income 5 9


349,736 176,804

Expenses



120,606 113,144





2015 2014

Notes S$ S$

Capital Account



Amount paid for liquidation of units (2,265,072) (1,149,657)

10,289,629 10,591,455

Unrealised (loss)/ gain in value of investments (252,022) 402,071



Represented by:

Current Assets

Investments 4 10,228,408 10,961,658



10,410,281 11,258,147

Less:

Current Liabilities



143,544 200,961

Net Assets 10,266,737 11,057,186



Manager Comments


In Russell’s 2015 Annual Global Market Outlook we talked about how the bar for generating investment returns was rising as a result of stretched equity valuations, low bond yields and narrow credit spreads. This reality hit home in 2015. Global equities and fixed income barely posted positive returns for the year and anything related to emerging markets (EM) fared worse. Throughout the year, volatility increased due to uncertainty over the US central bank’s next moves and also growth concerns in EM. Eventually, the Federal Reserve decided to hike the Fed funds cash rate by 25bps in December for the first time since 2008, lifting rates from near zero interest rates.

Russell Multi-Asset 35 Fund outperformed its composite (in USD terms, gross of fees) benchmark by +38bps and peer median by +77bps (net returns vs Morningstar USD Cautious Allocation survey) over the 1 year to 30 Dec 2015. The fund was positioned thoughout the year to capture outperformance in European equities relative to other equity markets. The portfolio maintained an underweight to the energy sector and benefited excess returns. In the defensive portion of the portfolio, a general underweight to duration and overweight to credit paired back some gains in excess returns relative to the benchmark.


Looking ahead to 2016, and we believe it will likely be another year of low returns and higher volatility. The good news is that the outlook for the major developed economies is still reasonably robust. The U.S., Europe and Japan should achieve trend-like growth in 2016. The economic cycle is most advanced in the U.S., and the U.S. Federal Reserve (Fed) is likely to continue a gradual tightening process. But “gradual” is the key word. Inflation is likely to remain low and the next recession is still not on the radar.

The U.S. equity market is expensive and, although Gross Domestic Product (GDP) growth should be near trend, profit margins face downward pressure from the rising U.S. dollar (USD) and a gradual lift in labour costs. Europe and Japan in our view rank ahead of the U.S. with less demanding valuations and more upside to profit growth. The value in emerging markets is tempting. However, falling commodity prices, a rising USD, and the impact of Fed tightening on EM economies mean that the cycle is still a significant headwind. It’s not all negative: China has undertaken stimulus measures and may do more. Also, many EM currencies already have had large adjustments. There may be an opportunity to take advantage of the value in EM assets during the year, and our team will be watching out closely for this. On the fixed income side, government bonds also are expensive with yields near historic lows. Fed tightening and falling unemployment will put upward pressure on yields. Corporate credit will be under pressure from rising debt levels and subdued profit growth. Returns should be positive in 2016, but the upside is limited.

TMLS RUSSELL MULTI-ASSET 35 FUND


Fund Report


TMLS Russell Multi-Asset 35 Fund (the”Fund”) feeds substantially into the Russell Multi-Asset 35 Fund (the “Underlying Fund”).

The investment objective of the Underlying Fund is to maintain capital value and to generate modest levels of long-term capital appreciation while maintaining a high level of risk control. This is achieved by intelligently combining a range of investments in multi-asset classes and actively managing the allocation to achieve a consistent return stream. The fund invests 35% of total value in growth assets (Equities and Real Assets) and the remaining in fixed income and cash based strategies.


Market Value SGD




Japan 6,454,771 6.15


France 3,333,056 3.18

Germany 2,538,366 2.42

Italy 2,341,992 2.23

Spain 2,143,780 2.04


Mexico 2,027,036 1.93

Ireland 1,769,980 1.69

Australia 1,752,283 1.67


Luxembourg 1,569,537 1.50

Canada 1,283,496 1.22

New Zealand 1,224,318 1.17

Hong Kong 1,063,265 1.01

International 958,940 0.91

European Union 952,831 0.91

Norway 910,231 0.87

Brazil 902,053 0.86

Other 9,079,129 8.66



Market Value SGD



Financials 6,801,613 6.49



Health Care 4,086,805 3.90


Consumer Staple 3,374,908 3.22

Materials 1,371,756 1.31

Energy 1,343,266 1.28

Telecommunicatin Services 887,236 0.85

Utilities 529,174 0.50

iii Asset Class

Fixed Income 47,149,145 44.96

Equities 31,810,125 30.33

Cash Based Strategies 23,203,980 22.12

Real Assets 2,716,871 2.59


AAA & Cash 13,697,505 13.06

AA 4,133,358 3.94

A 7,302,624 6.96

BBB 8,976,560 8.56

BB 2,887,113 2.75

B 1,661,628 1.58

CCC 3,150,030 3.00

NR/Other 1,024,224 0.98


Market Value SGD


US Treasury N/B 3,215,897 3.07

Treasury Bill 1,752,562 1.67

Mex Bonos Desarr Fix Rt 1,461,544 1.39

Tsy Infl Ix N/B 1,242,883 1.19

Buoni Poliennali Del Tes 932,490 0.89

Fed Home Ln Discount Nt 838,289 0.80



Market Value SGD


Bonos Y Oblig Del Estado 824,206 0.79

New Zealand Government 782,822 0.75

Japan (30 Year Issue) 646,735 0.62

Malaysia Government 622,759 0.59


Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD

Option position - short call 2100 S&P 500 option

1,111,729 1.06 - 24,720


Market Value SGD


Russell Multi-Asset 35 Fund 839,902 99.98

F Borrowings

Nil


SGD


Redemptions 253,651


Fund Benchmark*% %

3 Months 1.28 1.77

6 Months 3.66 3.00

Since inception - 6 May 2015 3.93 4.84

*17.5% Russell Global Large Cap Index Net, 17.5% Russell Global Large Cap Index US$ Hedged Net, 65% Barclays Global Aggregate US$ Hedged





I Expense Ratios

31 Dec 2015

Local Fund

TMLS Russell Multi-Asset 35 Fund* 1.57%

Underlying Fund:

Russell Multi-Asset 35 Fund** 1.86%



J Turnover Ratios

31 Dec 2015

Local Fund:

TMLS Russell Multi-Asset 35 Fund 96.00%

Underlying Fund:





Nil


Nil



Income StatementFor The Financial Period Ended 31 December 2015

2015

S$

Income

Realised gain from sale of investments 659

Fund expense subsidy 4,143

4,802

Expenses

Management fees 2,133

Fund charges 1,506

3,639

Net Income For The Period 1,163




2015

Notes S$

Capital Account

Value of the fund at the beginning of the period -

Amount paid into the fund for creation of units 1,090,454

Amount paid for liquidation of units (253,651)

836,803

Unrealised gain in value of investments 2,118

Net income for the period 1,163

Value of the fund at end of the period 840,084

Represented by:

Current Assets

Investments 4 839,902

Sundry debtors 250,202

Bank balances 70

1,090,174

Less:

Current Liabilities

Sundry creditors 248,184

Accrued expenses 1,906

250,090

Net Assets 840,084



Manager Comments



Russell Multi-Asset 50 Fund outperformed its composite (in USD terms, gross of fees) benchmark by +131bps and peer median by +128bps (net returns vs Morningstar USD Moderate Allocation survey) over the 1 year to 30 Dec 2015. The fund was positioned thoughout the year to capture outperformance in European equities relative to other equity markets. The portfolio maintained an underweight to the energy sector and benefited excess returns. In the defensive portion of the portfolio, a general underweight to duration and overweight to credit paired back some gains in excess returns relative to the benchmark.







Fund Report


TMLS Russell Multi- Asset 50 Fund (the “Fund”) feeds substantially into the Russell Multi-Asset 50 Fund (the “Underlying Fund”).



Market Value SGD




Japan 13,066,118 6.85


France 7,059,145 3.70

Germany 5,170,884 2.71


Italy 3,901,181 2.05

Spain 3,419,696 1.79

Australia 2,979,488 1.56


Mexico 2,810,105 1.47

Hong Kong 2,564,715 1.34

Ireland 2,537,583 1.33


Canada 1,978,176 1.04

South Korea 1,806,948 0.95

New Zealand 1,706,115 0.89

International 1,517,848 0.80

Norway 1,459,576 0.77

European Union 1,378,242 0.72

Other 15,933,328 8.35



Market Value SGD



Financials 18,770,886 9.84



Health Care 11,290,601 5.92



Materials 3,766,559 1.97

Energy 3,710,329 1.95


Utilities 1,455,097 0.76

iii Asset Class

Equities 87,742,713 46.00

Fixed Income 63,563,308 33.32


Real Assets 5,625,641 2.95


AAA & Cash 17,674,427 9.27

AA 5,273,730 2.76

A 9,349,149 4.90

BBB 11,646,543 6.11

BB 4,252,203 2.23

B 2,685,857 1.41

CCC 4,644,923 2.44

NR/Other 1,431,012 0.75


Market Value SGD





Tsy Infl Ix N/B 1,588,800 0.83

Buoni Poliennali Del Tes 1,244,878 0.65

Fed Home Ln Discount Nt 1,183,783 0.62



Market Value SGD


Bonos Y Oblig Del Estado 1,093,915 0.57

New Zealand Government 1,021,975 0.54

Microsoft Corp 1,013,415 0.53

Apple Inc 895,006 0.47


Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD


2,212,696 1.16 - 49,440


Market Value SGD


Russell Multi-Asset 50 Fund 1,612,279 99.65

F Borrowings

Nil


SGD


Redemptions 88,731



3 Months 2.04 2.56

6 Months 2.57 1.98

Since inception - 22 April 2015 3.17 1.45

*25% Russell Global Large Cap Index Net, 25% Russell Global Large Cap Index US$ Hedged Net, 50% Barclays Global Aggregate US$ Hedged



I Expense Ratios

31 Dec 2015

Local Fund:


Underlying Fund:




J Turnover Ratios

31 Dec 2015

Local Fund:


Underlying Fund:





Nil


Nil





2015

S$

Income


13,412

Expenses

Realised loss from sale of investments 5


Fund charges 2,508

12,203






2015

Notes S$

Capital Account




1,608,713



Value of the fund at end of the period 1,617,905

Represented by:

Current Assets

Investments 4 1,612,279


Bank balances 41,578

1,667,357

Less:

Current Liabilities



49,452

Net Assets 1,617,905



Manager Comments



Russell Multi-Asset 70 Fund outperformed its composite (in USD terms, gross of fees) benchmark by +72bps and peer median by +138bps (net returns vs Morningstar USD Aggressive Allocation survey) over the 1 year to 30 Dec 2015. The fund was positioned thoughout the year to capture outperformance in European equities relative to other equity markets. The portfolio maintained an underweight to the energy sector and benefited excess returns. In the defensive portion of the portfolio, a general underweight to duration and overweight to credit paired back some gains in excess returns relative to the benchmark.





Fund Report


TMLS Russell Multi-Asset 70 Fund (the “Fund”) feeds substantially into the Russell Multi-Asset 70 Fund (the “Underlying Fund”).



Market Value SGD



United States 104,017,578 53.32

Japan 14,497,547 7.43


France 8,255,026 4.23


Germany 5,881,712 3.02

Italy 3,540,768 1.82

Hong Kong 3,265,438 1.67


Spain 2,865,285 1.47

Australia 2,755,539 1.41

South Korea 2,250,576 1.15

Mexico 1,859,716 0.95

Ireland 1,703,561 0.87

Canada 1,601,254 0.82


Sweden 1,509,205 0.77

Norway 1,271,773 0.65

International 1,142,034 0.59

New Zealand 1,141,421 0.59

Other 13,506,405 6.92



Market Value SGD



Financials 26,644,728 13.66



Health Care 16,142,448 8.28



Energy 5,293,746 2.71

Materials 5,290,511 2.71


Utilities 2,061,777 1.06

iii Asset Class

Equities 124,644,615 63.90

Fixed Income 38,096,040 19.53


Real Assets 6,096,329 3.12


AAA & Cash 9,950,207 5.10

AA 2,923,861 1.50

A 5,209,666 2.67

BBB 6,605,790 3.39

BB 2,795,414 1.43

B 1,924,367 0.99

CCC 3,056,566 1.57

NR/Other 890,014 0.46


Market Value SGD





Apple Inc 1,217,895 0.62

Pfizer Inc 1,191,643 0.61




Market Value SGD


Citigroup Inc 1,095,870 0.56


Nestle Sa-Reg (Equity) 1,029,688 0.53

BNP Paribas 1,025,086 0.53


Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD


2,204,219 1.13 - 49,440

E Investments in Collective Investment Scheme as at 31 December 2015

Market Value SGD



F Borrowings

Nil


SGD


Redemptions 110,682



3 Months 2.70 3.62

6 Months 1.74 3.03

Since inception - 21 April 2015 0.42 -1.24






I Expense Ratios

31 Dec 2015

Local Fund:


Underlying Fund:




J Turnover Ratios

31 Dec 2015

Local Fund:


Underlying Fund:





Nil


Nil





2015

S$

Income

Realised gain from sale of investments 1,110


11,262

Expenses


Fund charges 2,897

9,019





2015

Notes S$

Capital Account




1,071,266




Represented by:

Current Assets




1,157,878

Less:

Current Liabilities



80,379



Manager Comments



Russell Multi-Asset 90 Fund outperformed its composite (in USD terms, gross of fees) benchmark by +187bps and peer median by +131bps (net returns vs Morningstar USD Global Large Cap Allocation survey) over the 1 year to 30 Dec 2015. The fund was positioned thoughout the year to capture outperformance in European equities relative to other equity markets. The portfolio maintained an underweight to the energy sector and benefited excess returns. In the defensive portion of the portfolio, a general underweight to duration and overweight to credit paired back some gains in excess returns relative to the benchmark.







Fund Report


TMLS Russell Multi-Asset 90 Fund (the “Fund”) substantially into the Russell Multi-Asset 90 Fund (the “Underlying Fund”).



Market Value SGD




Japan 13,864,816 8.04


France 7,920,997 4.59


Germany 5,463,488 3.17

Hong Kong 3,920,747 2.27


Italy 2,631,640 1.53

South Korea 2,308,765 1.34

Australia 2,134,295 1.24

Spain 1,824,862 1.06

Sweden 1,401,143 0.81

India 1,192,065 0.69

Canada 999,477 0.58

Norway 900,436 0.52

Singapore 813,100 0.47

Denmark 803,291 0.47

Belgium 751,874 0.44

Taiwan 744,324 0.43

Other 7,063,802 4.10



Market Value SGD



Financials 29,594,473 17.46



Health Care 17,914,078 10.39



Energy 5,963,474 3.46

Materials 5,820,053 3.37


Utilities 2,331,517 1.35

iii Asset Class

Equities 138,203,971 80.14


Fixed Income 11,120,735 6.45

Real Assets 5,950,210 3.45


AAA and Cash 1,658,376 0.96

AA 410,245 0.24

A 780,998 0.45

BBB 1,186,963 0.69

BB 1,159,674 0.67

B 1,031,756 0.60

CCC 1,270,951 0.74

NR/Other 296,279 0.17


Market Value SGD



Apple Inc 1,289,779 0.75

Pfizer Inc 1,285,659 0.75

Citigroup Inc 1,128,972 0.65

Nestle Sa-Reg 1,121,017 0.65




Market Value SGD


Wells Fargo & Co 1,104,233 0.64

Alphabet Inc-Cl A 1,085,563 0.63

BNP Paribas 1,082,335 0.63



Market Value

SGD

% of Net Asset

Value

Realised gains/

(losses)SGD

Unrealised gains/

(losses) SGD


1,948,810 1.13 - 43,623


Market Value SGD



F Borrowings

Nil


SGD


Redemptions 54,738



3 Months 3.99 4.67

6 Months 0.79 1.86

Since inception - 22 April 2015 -0.77 -1.16





I Expense Ratios

31 Dec 2015

Local Fund:


Underlying Fund:




J Turnover Ratios

31 Dec 2015

Local Fund:


Underlying Fund:





Nil


Nil





2015

S$

Income


14,573

Expenses

Realised loss from sale of investment 734


Fund charges 2,863

13,009





2015

Notes S$

Capital Account




1,957,110

Unrealised loss in value of investments (11,056)



Represented by:

Current Assets




2,038,152

Less:

Current Liabilities



90,534



These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1 General

The TMLS Asian Equity Fund, TMLS Global Equity Fund, TMLS Global Balanced Fund, TMLS Global Bond Fund, TMLS China Equity Fund, TMLS Singapore Bond Fund, TMLS Singapore Cash Fund, TMLS Singapore Equity Fund, TMLS India Equity Fund, TMLS Global Emerging Markets Equity Fund, TMLS Russell Multi - Asset 35 Fund, TMLS Russell Multi - Asset 50 Fund, TMLS Russell Multi - Asset 70 Fund and TMLS Russell Multi - Asset 90 Fund were launched by Tokio Marine Life Insurance Singapore Ltd. (‘the Company’) as investment-linked life assurance products for offering to its policyholders. The TMLS Asian Equity Fund, TMLS Global Equity Fund, TMLS Singapore Equity Fund and TMLS India Equity Fund Fund are managed by Aberdeen Asset Management Asia Limited, TMLS Global Balanced Fund and TMLS Global Bond Fund are managed by Deutsche Asset Management (Asia) Limited, TMLS China Equity Fund is managed by Schroder Investment Management, TMLS Singapore Bond Fund and TMLS Singapore Cash Fund are managed by Western Asset Management Company Pte Limited, TMLS Global Emerging Markets Equity Fund is managed by FIL Investment Management (Singapore) Limited while TMLS Russell Multi - Asset 35 Fund, TMLS Russell Multi - Asset 50 Fund, TMLS Russell Multi - Asset 70 Fund and TMLS Russell Multi - Asset 90 Fund are managed by Russell Investments Ireland Limited. The Company has appointed the fund managers to manage these funds on its behalf within the investment mandate given to them.

The administrator and custodian of the funds as at 31 December 2015 is DBS Bank Limited, who is responsible for administering and safekeeping the asset of the funds.

2 Tokio Marine Life Insurance Singapore Ltd. Investment Funds

As at 31 December 2015, the company had the following underlying investments:

Sub - Fund Underlying InvestmentTMLS Asian Equity Fund Aberdeen Pacific Equity FundTMLS Global Equity Fund Aberdeen Global Opportunities FundTMLS Global Balanced Fund Deutsche Premier Select TrustTMLS Global Bond Fund Deutsche Lion Bond Fund TMLS China Equity Fund Schroder China Opportunities FundTMLS Singapore Equity Fund Aberdeen Singapore Equity Fund TMLS Singapore Bond Fund Legg Mason Western Asset Singapore Bond Fund Class ATMLS Singapore Cash Fund Legg Mason Western Asset Singapore Dollar Fund Class BTMLS India Equity Fund Aberdeen India Opportunities Fund TMLS Global Emerging Markets Fidelity Funds - Emerging Markets Fund Equity Fund (A-SGD) TMLS Russell Multi-Asset 35 Fund Russell Multi-Asset 35 FundTMLS Russell Multi-Asset 50 Fund Russell Multi-Asset 50 FundTMLS Russell Multi-Asset 70 Fund Russell Multi-Asset 70 FundTMLS Russell Multi-Asset 90 Fund Russell Multi-Asset 90 Fund

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 31 December 2015


4 Investments 2015 2014S$ S$

TMLS Global Equity Fund

Investments, at cost 2,023,220 1,998,284

Appreciation in value 137,196 325,511

Investments, at market value 2,160,416 2,323,795

TMLS Asian Equity Fund


Appreciation in value 5,083,780 8,019,937


TMLS Global Emerging Markets Equity Fund

Investments, at cost 74,085 7,575

(Depreciation)/Appreciation in value (4,078) 84

Investments, at market value 70,007 7,659

3 Summary of Significant Accounting Policies

(a) Basis of preparation

The financial statements (expressed in Singapore dollars), are prepared in accordance with the historical cost convention, as modified by the revaluation of investments.

For the purposes of preparation of these financial statements, the basis used for calculating the ratio of expenses and portfolio turnover ratio are in accordance with the guidelines issued by the Investment Management Association of Singapore and the Code of Collective Investment Schemes (under the Securities and Futures Act (Chapter 289)).

(b) Investments

Purchases of investments are recognised on the trade date and are initially recorded at fair value. Investments are subsequently carried at fair value based on the current market quoted asset value of the underlying funds at the balance sheet date. Net change in fair value of investments are recognised in the Capital Account. Investments are derecognised on the trade date of disposal. The resultant realised gains and losses on the sales of investments are recognised in the Income Statement.

(c) Revenue recognition

Revenue and expenses are recognised on an accrual basis. Interest income is recognised on the time proportion basis using the effective interest method.

(d) Foreign currencies

Foreign currency monetary assets and liabilities are translated at exchange rates prevailing at balance sheet date. Foreign currency transactions are translated at exchange rates prevailing on transaction dates. Differences in exchange rates are included in the Income Statement.



2015 2014S$ S$

TMLS China Equity Fund




TMLS India Equity Fund

Investments, at cost 271,736 -

Depreciation in value (15,480) -

Investments, at market value 256,256 -

TMLS Singapore Equity Fund


(Depreciation)/Appreciation in value (199,298) 20,563


TMLS Global Bond Fund




TMLS Singapore Bond Fund

Investments, at cost 1,259,654 360,829

Appreciation in value 8,193 394

Investments, at market value 1,267,847 361,223

TMLS Singapore Cash Fund


Appreciation in value - -


TMLS Global Balanced Fund


Appreciation in value 891,024 1,143,046




2015 2014S$ S$

TMLS Russell Multi-Asset 35 Fund


Appreciation in value 2,118 -



Investments, at cost 1,604,296 -


Investments, at market value 1,612,279 -







Depreciation in value (11,055) -


5 Related party disclosures

The funds consider Tokio Marine Life Insurance Singapore Ltd., its immediate holding company, Asia General Holdings Limited, its ultimate holding company, Tokio Marine Holdings Inc. and their subsidiaries and associated companies as related companies. The transactions between the fund and the related companies have been summarised below.

Included in the Capital Account are the following units held by the related companies:

2015 2014S$ S$


Management fees payable to Tokio Marine Life Insurance Singapore Ltd.

3,357 13,700

Fund subsidy provided by Tokio Marine Life Insurance Singapore Ltd.

38,291 35,697



2015 2014S$ S$



37,860 152,574


392,737 332,094



271 1


3,073 5



753 281


14,163

13,774



385 -


4,849 2



2,877 1,505


28,377 4,188



803 1,941


15,621 11,776



1,601 259


13,085

914



2015 2014S$ S$



2 -


1 -



64,659 57,575


115,669 91,803



673 -


4,143 -



2,210 -


13,412 -



1,365 -


10,152 -



2,017 -


14,573 -



6 Bid and Offer value per unit 2015 2014


The number of units in issue 2,156,423 2,192,883

The bid value per unit S$1.0089 S$1.0807

The offer value per unit S$1.0620 S$1.1376






The number of units in issue 74,742 7,940





















2015 2014


The number of units in issue 1,306,075 383,524




The number of units in issue 260,084 -








The number of units in issue 850,875 -

The bid value per unit S$0.9873 -

The offer value per unit S$1.0393 -


The number of units in issue 1,650,807 -













7 Comparatives

The following funds have no comparatives as this is the first set of audited financial statements since they were launched.

Sub-Fund Launch Date

TMLS Russell Multi-Asset 35 Fund 9 April 2015






INDEPENDENT AUDITOR’S REPORT

We have audited the accompanying financial statements of TMLS Global Equity Fund, TMLS Asian Equity Fund, TMLS Global Emerging Markets Equity Fund, TMLS China Equity Fund, TMLS India Equity Fund, TMLS Singapore Equity Fund, TMLS Global Bond Fund, TMLS Singapore Bond Fund, TMLS Singapore Cash Fund, TMLS Global Balanced Fund, TMLS Russell Multi-Asset 35 Fund, TMLS Russell Multi-Asset 50 Fund, TMLS Russell Multi-Asset 70 Fund and TMLS Russell Multi-Asset 90 Fund (collectively known as the “Funds”) of Tokio Marine Life Insurance Singapore Ltd. (the “Company”) which comprise the Balance Sheet as at 31 December 2015, the Income Statement for the financial period from 1 January 2015 (or date of commencement of the respective funds, whichever is later) to 31 December 2015 and Notes to the Financial Statements respectively set out on pages 9 to 10, 16 to 17, 23 to 24, 30 to 31, 37 to 38, 44 to 45, 52 to 53, 59 to 60, 66 to 67, 72 to 73, 79 to 80, 86 to 87, 93 to 94, 100 to 101 and 102 to 110 (the “Statements”). The Statements have been prepared by management based on the summary of significant accounting policies set out in Note 3. The Statements do not include the Manager Comments and Fund Report in respect of each fund that is incorporated within pages 4 to 110, which have not been subjected to our audit.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of the Statements in accordance with the accounting policies set out in Note 3. This includes determining that these accounting policies form an acceptable basis for the preparation of the Statements in the circumstances, and for such internal control as management determines is necessary to enable the preparation of the Statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the Statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


INDEPENDENT AUDITOR’S REPORT

Opinion

In our opinion, the Statements of the Funds are prepared, in all material respects, in accordance with the stated accounting policies as set out in Note 3.

Basis of Accounting and Restriction on Distribution and Use

Without modifying our opinion, we draw attention to Note 3 to the Statements, which describes the basis of accounting. The Statements are prepared to assist the Company to comply with MAS Notice 307 Investment-Linked Life Insurance Policies. As a result, the Statements may not be suitable for another purpose.

Our report is intended solely for the use of the Company and our duties are owed solely to the Company. We do not accept responsibility and we expressly disclaim liability for loss occasioned to any third party acting or refraining from acting as a result of our report.

Other Matters

This report relates solely to the Statements of the Funds of the Company and does not extend to the financial statements of the Company taken as a whole.

Public Accountants and Chartered Accountants

Singapore, 23 March 2016


THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046 T: (65) 6592 6100 F: (65) 6223 9120 W: tokiomarine.com

annual investment-linked funds report · economies like singapore will have to restructure their...

Documents