annual investment-linked funds report€¦ · hearti est greeti ngs to you and your family! thank...

AnnualInvestment-Linked

Funds Report(January to December 2013)

Annual Report 2013 |01

CONTENTS

02| NOTE FROM CHIEF EXECUTIVE OFFICER

04| TMLS ASIAN EQUITY FUNDManager CommentsFund ReportFinancial Statements

12| TMLS GLOBAL EQUITY FUNDManager CommentsFund ReportFinancial Statements

20| TMLS GLOBAL BALANCED FUNDManager CommentsFund ReportFinancial Statements

26| TMLS GLOBAL BOND FUNDManager CommentsFund ReportFinancial Statements

35| TMLS CHINA EQUITY FUNDManager CommentsFund ReportFinancial Statements

42| TMLS ASIAN BOND FUNDManager CommentsFund ReportFinancial Statements

49| NOTES TO THE FINANCIAL STATEMENTS

53| INDEPENDENT AUDITOR’S REPORT

| Annual Report 201302

NOTE FROM CHIEF EXECUTIVE OFFICER

Dear Policyholder,

Hearti est greeti ngs to you and your family!

Thank you, once again, for your support in Tokio Marine Life Insurance Singapore’s investment-linked plans. As at 31 December 2013, we have a suite of 6 ILP sub-funds that off er opti ons for diff erent risk appeti tes, ranging from the TMLS China Equity Fund for the aggressive investor to the TMLS Global Bond Fund for the cauti ous investor.

Investment climate in 2013 has been challenging. The largest economy in the world, US, struggled with problems of fi scal defi cit, debt ceiling and politi cal deadlock. On a positi ve note, the economy displayed strong signs of recovery in property market, industrial producti on and consumer senti ments throughout the year.

Similarly in Europe, politi cal stability and stress level in the fi nancial system remained in 2013. Market senti ment improved as the European Union relaxed its austerity drive by granti ng deadline extensions for member countries to reach their fi scal targets in the hopes of boosti ng near term growth. European Central Bank’s unexpected rate cut also provided further boost to the market.

In Asia, tapering of quanti tati ve easing (“QE”) in the US has put signifi cant pressure on markets in emerging economies, especially in countries like India and Indonesia which have large budget defi cits. Thailand also performed poorly, plagued by persistent politi cal tensions.

China’s transiti on of politi cal leadership saw clarifi cati on of its medium-term growth strategy and fi rm stance against more credit-driven growth. Reforms announced during China’s Third Plenum of country leaders in November, including easing of one-child policy and pledging for market-driven resource allocati on, boosted senti ments for the China equity market.

Back home, Singapore’s GDP growth managed to recover from a mid-year slowdown as a result of strong growth in services and constructi on sectors, and a ti mely recovery in manufacturing.

Looking ahead, market volati lity is likely to persist as QE tapering conti nues. Market consensus expects US growth to accelerate into 2014 as headwinds from ti ghtening of fi scal policy fade. In Europe, high unemployment is expected to conti nue, but growth recovery may fi nally be under way. While there is risk of capital fl ight from fragile economies like India and Indonesia following QE tapering, Asian economies,


NOTE FROM CHIEF EXECUTIVE OFFICER

in general, are expected to be well-positi oned to ride on improvement in export earnings as external environment improves. In China, short-term pain may be felt when growth slows, but the Chinese Government’s eff ort to pursue more stable, quality growth can be promising over the long term.

Notwithstanding the negati ve eff ects of market forces, we are pleased to announce that TMLS Global Bond Fund and TMLS China Equity Fund have outperformed their respecti ve benchmarks in 2013 by more than 3%.

Headline infl ati on in Singapore is expected to exceed bank deposit rates and is likely to remain for the foreseeable future. With this in mind, we encourage our policyholders to conti nue to stay invested so as to leverage any opportuniti es that may arise. In view of the current environment, we would also like to remind policyholders to review their portf olios regularly and to remain diversifi ed.

Tokio Marine Life Insurance Singapore conti nues to look into expanding our investment-linked portf olio of funds as well as investment-linked products, so that you can conti nue to have a wide choice of investment mix to match your risk appeti te through innovati ve and comprehensive products.

We are pleased to send you this copy of our Annual ILP Fund Report for the period between 1 January and 31 December 2013. We trust this report will keep you abreast of the important and relevant informati on pertaining to the TMLS family of ILP sub-funds, in which you have invested in, to make further informed decisions.

Thank you for your conti nued confi dence and trust in us with your investments.

Lance TayChief Executi ve Offi cerSingapore, 18 March 2014


TMLS ASIAN EQUITY FUND01 January 2013 - 31 December 2013

Manager Comments

Market ReviewCompared with the strong gains of the previous year, Asian equiti es had a muted 2013. Notably, it was concerned over a reducti on in US asset purchases that triggered sharp falls in the middle of the year. Uncertainty prevailed right up to December, when the Federal Reserve decided conclusively that it would reduce its monthly asset purchases starti ng from January. Investors were also cauti ously opti misti c when China ushered in a new leadership, which vowed to restructure the economy and narrow the wealth gap. Some markets, however, were buff eted by domesti c struggles. India and Indonesia faced large defi cits and weakening currencies while Thailand was beset by politi cal tensions.

Portf olio ReviewBoth asset allocati on and stock selecti on were negati ve. At the country level, our overweight to both India and Indonesia were key detractors, mainly because of the negati ve currency impact as both the rupee and rupiah weakened sharply. The overweight to Singapore also hurt returns as the local market rose but lagged the regional benchmark. Losses were partly pared by the overweight to Hong Kong as the market was among the best performing. As bott om-up stock pickers, our country and sector allocati ons are driven by where we can fi nd quality companies with att racti ve valuati ons. This approach may lead to signifi cant deviati ons from the index.

At the stock level, the Aberdeen Indonesia Equity Fund detracted most from performance. Worries over the current account defi cit, infl ati on and slowing growth weighed on the domesti c market, as did concerns over the Fed’s bond-buying programme. The holding in the Aberdeen Singapore Equity Fund also proved negati ve as the local market underperformed most of its regional peers amid ongoing government att empts to cool the buoyant property market, which depressed the real estate sector.

Elsewhere, not holding Tencent detracted. We like its core business but what holds us back, aside from valuati on, is the company’s transiti on from a PC-based business to a mobile one, where competi ti on is more intense. Additi onally, the corporate structure is not appealing. Chinese law restricts foreign ownership of companies in certain strategic industries, including internet businesses. Companies listed off shore, such as Tencent, use variable interest enti ti es to get around the law. Hence, its foreign shareholders do not have direct claims on the fi rm’s assets and earnings. On a positi ve note, stock selecti on in Korea added to performance. Our holdings E-Mart and Samsung Electronics posted strong gains. E-Mart’s margins



improved, helped by cost cuts initi ated by its new CEO, while Samsung conti nued to post record results driven by its mobile division.

OutlookWe expect volati lity to persist as the Fed’s tapering decision may trigger capital fl ight. As well, Asian economies conti nue to face domesti c headwinds. India and Indonesia, encumbered by large defi cits, could face further currency volati lity should fund outf lows accelerate. Additi onal risks include mid-year electi ons in both countries. In Thailand, prolonged politi cal uncertainty would undermine investor confi dence. Against this backdrop, we envisage muted earnings growth for Asian companies. But we believe that our holdings, with their well tested management and solid balance sheets, will be able to weather the lean periods and emerge fi tt er to tap the region’s growing middle class and rising discreti onary spending over the long term.



A Fund Objecti ves/Strategies TMLS Asian Equity Fund feeds substanti ally into the Aberdeen Pacifi c Equity Fund

(the “Underlying Fund”).

The investment objecti ve of the Underlying Fund is to provide medium to long-term capital growth from a diversifi ed portf olio of Asian-Pacifi c equiti es excluding Japanese equiti es. As a feeder fund, it invests in the equity-based Asia Pacifi c sub-funds of the Aberdeen Select Portf olio, namely the Aberdeen China Opportuniti es 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

Market Value % of NAVi By country

China / Hong Kong 465,175,636 26.25Singapore 319,475,089 18.02Australia 237,785,609 13.41India 228,413,914 12.89South Korea 99,953,802 5.64Malaysia 90,037,489 5.08Taiwan 83,044,827 4.68Thailand 72,096,935 4.07Indonesia 71,675,358 4.04United Kingdom 47,497,752 2.68Philippines 44,732,066 2.52Sri Lanka 7,221,255 0.41Others 5,582,219 0.31

ii By industryFinancial 723,612,854 40.83Informati on Technology 226,018,224 12.75Industrial 215,204,803 12.14Material 214,850,264 12.12Consumer Staples 123,556,629 6.97Consumer Discreti onary 109,552,363 6.18Telecommunicati on Services 71,614,982 4.04Energy 38,465,643 2.17


Healthcare 25,246,259 1.42Uti liti es 18,987,711 1.07Others 5,582,219 0.31

iii By asset class Equiti es 1,767,109,732 99.69Cash 5,582,219 0.31

C Top 10 holdings of underlying fund2013

Market Value % of NAVAberdeen China Opportuniti es Fund 174,901,858 9.87Aberdeen Global - Indian Equity Fund* 173,968,359 9.81Aberdeen Singapore Equity Fund 147,410,746 8.32Samsung Electronics (Pref) 84,836,088 4.79Rio Tinto 78,576,073 4.43BHP Billiton PLC 73,947,927 4.17Aberdeen Thailand Equity Fund 72,096,935 4.07Aberdeen Indonesia Equity Fund 71,675,358 4.04Aberdeen Malaysian Equity Fund 64,606,649 3.64HSBC Holdings 58,849,512 3.32* The underlying fund is not authorised for public sale in Singapore.

2012Market Value % of NAV

Aberdeen Singapore Equity Fund 114,699,723 9.56Aberdeen China Opportuniti es Fund 114,624,211 9.55Aberdeen Global - Indian Equity Fund* 104,387,791 8.70Aberdeen Thailand Equity Fund 81,477,560 6.79Aberdeen Indonesia Equity Fund 80,636,886 6.72Aberdeen Malaysian Equity Fund 66,517,279 5.54Samsung Electronics (Pref) 56,868,557 4.74Taiwan Semiconductor Manufacturing Co Ltd 43,721,905 3.64Rio Tinto PLC 42,186,140 3.52QBE Insurance Group Ltd 37,447,184 3.12

* The underlying fund is not authorised for public sale in Singapore.




D Exposure to Derivati vesThe investment manager confi rms there is no derivati ves positi on in the fund.

E Investments in Collecti ve Investment Schemes


Aberdeen Pacifi c Equity Fund 23,075,940 98.30Cash and Others 398,471 1.70


Aberdeen Pacifi c Equity Fund 25,120,768 98.66Cash and Others 340,293 1.34

F BorrowingsNot applicable

G Total Subscripti ons and Redempti onsS$

Total amount of subscripti ons 1,996,692Total amount of redempti ons 4,198,857

H Fund Performance vs BenchmarkFund Benchmark

% %3 Months -0.76 2.306 Months 0.41 9.901 Year -2.67 3.653 Years (annualised) 2.44 2.455 Years (annualised) 18.52 17.2010 Years (annualised) 12.10 11.26Since incepti on - 29 October 1999 (annualised) 11.13 8.72Source: Lipper, based on percentage growth, calculated on a NAV to NAV basis with gross

income reinvested.



I Expense rati os 2013 2012Local Fund* 1.86% 1.89%Underlying Fund: Aberdeen Pacifi c Equity Fund** 1.67% 1.76%* include underlying fund expense rati o** based on audited accounts as at 30 September 2013Expense rati o does not include (where applicable) charges for insurance coverage, brokerage and other transacti on costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collecti ve investment schemes and tax deducted at source or arising out of income received.

The expense rati o is calculated in accordance with the Investment Management Associati on of Singapore’s guidelines. To alleviate the high infl ati on rate in Singapore, we have subsidised expenses amounti ng to 1.20% of the fund’s assets for the year. .

J Turnover rati os2013 2012

Local Fund 7.92% 7.37%Underlying Fund: Aberdeen Pacifi c Equity Fund** 5.35% 2.23%** based on audited accounts as at 30 September 2013

The turnover rati o means the number of ti mes 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 reporti ng date expressed as percentage of the daily average NAV.

K Material changesNil

L Soft Dollars, Commissions or ArrangementsNil


TMLS ASIAN EQUITY FUND For The Financial Year Ended 31 December 2013

Income Statement

2013 2012

S$ S$

Income

Realised gain from sale of investments 1,440,716 1,337,412

Interest income 34 29

Fund expense subsidy 287,068 307,745

1,727,818 1,645,186

Expenses

Management fees 293,450 300,555

Fund charges 39,308 39,669

332,758 340,224

Net Income For The Year 1,395,060 1,304,962


TMLS ASIAN EQUITY FUND as at 31 December 2013

Balance Sheet

2013 2012

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 25,461,061 23,840,863

Amount paid into the fund for creati on of units 1,996,692 1,602,412

Amount paid for liquidati on of units (4,198,857) (4,462,976)

23,258,896 20,980,299

Unrealised (loss)/gain in value of investments (1,179,545) 3,175,800

Net income for the year 1,395,060 1,304,962

Value of the fund at end of the year 23,474,411 25,461,061

Represented by:

Current Assets

Investments 4 23,075,940 25,120,768

Sundry debtors 299,068 403,745

Bank balances 334,186 235,406

23,709,194 25,759,919

Less:

Current Liabiliti es

Sundry creditors 50,443 108,222

Accrued expenses 184,340 190,636

234,783 298,858

Net Assets 23,474,411 25,461,061


TMLS GLOBAL EQUITY FUND01 January 2013 - 31 December 2013

Manager Comments

Market ReviewGlobal equiti es rallied signifi cantly during the year under review, generally thanks to supporti ve monetary policies and improved economic data. Dominati ng investor senti ment was the Federal Reserve’s repeated about-turns with regards to its views on tapering. Towards the end of the period, developed markets applauded the Fed’s long-awaited decision to reduce its asset purchases gradually from January 2014, which ended months of uncertainty. Senti ment also strengthened following loose monetary policy in the developed world, such as the European Central Bank’s unexpected rate cut, as well as the Bank of Japan’s conti nued eff orts to expand the monetary base, which weakened the yen.

Portf olio ReviewThe fund’s underperformance was a result of both negati ve asset allocati on and stock selecti on. The non-benchmark exposure to Brazil cost the fund the most. Brazilian equiti es and the real were generally aff ected by slowing growth and violent protests. As such, our holdings, including Banco Bradesco, Petrobras and Vale, were among the main underperformers. Bradesco also suff ered from concerns over a lawsuit by depositors, which was dated back to the 90s and could cost the domesti c banking sector an esti mated US$65 billion. At present, the top court has suspended judgement on the case. The lender also forecast lower net interest income as a result of high interest rates. Although the government allowed Petrobras to raise fuel prices, it failed to meet the company’s request for a clear policy on phasing out fuel subsidies.

The underweight to Japan detracted from relati ve performance as well. The Japanese market outperformed most stockmarkets worldwide, as the economy responded to prime minister Shinzo Abe’s aggressive expansionary fi scal and monetary policies. Stock selecti on there was weak though. Shin-Etsu Chemical underperformed on concerns over demand for silicon wafers.

Against this, holdings that miti gated losses included UK telco Vodafone, which was the top contributor to relati ve return. Vodafone’s stock price rallied aft er its partner, Verizon, agreed to buy out its stake in their wireless joint venture. Speculati on of a possible takeover by US network company AT&T also boosted its stock. Our health care holdings miti gated losses as well. Roche gained aft er its arthriti s drug was approved for use in the European Union; it also formed a partnership with AstraZeneca to share research data, while Novarti s was supported by healthy operati ng profi ts.


In portf olio acti vity, we introduced US energy group Chevron, a well-managed integrated oil business with a solid asset base and stable growth driven by its upstream operati ons. We also initi ated positi ons in global miner BHP Billiton because of its high quality assets and att racti ve valuati ons, as well as South African-listed telecoms company MTN Group, given its att racti ve growth profi le, cash fl ow generati on and progressive dividend policy. Against this, we sold China Mobile and Japan’s Canon in view of more att racti ve investment opportuniti es elsewhere.

OutlookThe US Federal Reserve’s upcoming reducti on of its asset purchase programme will likely dominate investor senti ment in the fi rst quarter. Its future policy acti ons could add to market volati lity, but this is likely to be temporary. In Europe, economic acti vity could remain dependent on exports, although the euro’s strength portends headwinds ahead. The lack of meaningful signs of job creati on could mean high unemployment trends may conti nue. Additi onally, ongoing fi scal adjustments will hinder a recovery in domesti c demand for some ti me.



A Fund Objecti ves/Strategies TMLS Global Equity Fund feeds substanti ally into the Aberdeen Global Opportuniti es

Fund (the “Underlying Fund”).

The Underlying Fund aims for long-term total return from an internati onally diversifi ed portf olio of securiti es through investi ng all or substanti ally all of its assets in the Aberdeen Global - World Equity Fund*, a sub-fund of Luxembourg-registered Aberdeen Global, which itself will invest at least two-thirds of its assets in equiti es or equity-related securiti es.* This fund is not authorised for public sale in Singapore.


Market Value (USD) % of NAVi By country

United States 1,049,409,548 27.01United Kingdom 719,755,267 18.52Switzerland 449,018,021 11.56Brazil 223,558,154 5.75Italy 209,082,852 5.38Japan 178,533,387 4.59Canada 159,782,457 4.11Sweden 156,759,670 4.03Taiwan 114,213,337 2.94Hong Kong 99,115,587 2.55South Korea 90,537,366 2.33Mexico 77,015,820 1.98China 54,878,202 1.41South Africa 44,953,688 1.16France 41,401,828 1.07Australia 41,230,238 1.06Singapore 36,844,908 0.95Others 139,924,120 3.60

ii By industryEnergy 669,064,079 17.21Financial 661,969,689 17.03Consumer Staples 616,673,546 15.87



HealthCare 510,479,711 13.14Material 339,305,619 8.73Informati on Technology 326,637,298 8.41Industrial 316,963,025 8.16Telecommunicati on Services 182,708,997 4.70Uti liti es 76,922,921 1.98Consumer Discreti onary 45,365,445 1.17Others 139,924,120 3.60

iii By asset class Equiti es 3,746,090,330 96.40Cash 139,924,120 3.60

C Top 10 holdings of underlying fund2013

Market Value (USD) % of NAVRoche Holdings 157,385,881 4.05Vodafone Group PLC 137,755,309 3.54Briti sh American Tobacco 135,103,121 3.48Royal Dutch Shell B 118,948,099 3.06CVS Caremark Corporati on 117,853,242 3.03Novarti s 116,395,043 3.00Standard Chartered PLC 115,242,405 2.97Philip Morris Internati onal 114,761,050 2.95Taiwan Semiconductor Manufacturing Co Ltd 114,213,337 2.94Johnson & Johnson 111,898,553 2.88

2012Market Value (USD) % of NAV

Taiwan Semiconductor Manufacturing Co Ltd 163,176,850 3.98Roche Holdings 161,419,655 3.94Vodafone Group PLC 135,126,952 3.29Johnson & Johnson 133,550,025 3.26Briti sh American Tobacco 132,922,533 3.24Philip Morris Internati onal 127,162,434 3.10



Standard Chartered PLC 125,970,477 3.07Zurich Insurance 125,882,269 3.07Tenaris 123,765,355 3.02Novarti s 121,204,019 2.96

D Exposure to Derivati ves

The investment manager confi rms there is no derivati ves positi on in the fund.


2013

Market Value % of NAV

Aberdeen Global Opportuniti es Fund 2,126,993 97.89

Cash and Others 45,763 2.11

2012


Aberdeen Global Opportuniti es Fund 1,922,759 97.83


F Borrowings

Not applicable

G Total Subscripti ons and Redempti ons

S$

Total amount of subscripti ons 52,106

Total amount of redempti ons 144,040

H Fund Performance vs Benchmark

Fund Benchmark

% %

3 Months 2.54 8.11

6 Months 9.00 17.08



1 Year 11.75 27.37

3 Years (annualised) 7.60 12.12

5 Years (annualised) 13.00 15.67Since incepti on - 30 October 2006 (annualised) 4.16 5.00Source: Lipper, based on percentage growth, calculated on a NAV to NAV basis with gross income reinvested.

I Expense rati os 2013 2012

Local Fund* 1.88% 1.66%

Underlying Fund:

Aberdeen Global Opportuniti es Fund** 1.74% 1.73%* include underlying fund expense rati o** based on audited accounts as at 30 September 2013

Expense rati o does not include (where applicable) charges for insurance coverage, brokerage and other transacti on costs, performance fees, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collecti ve investment schemes and tax deducted at source or arising out of income received.

The expense rati o is calculated in accordance with the Investment Management Associati on of Singapore’s guidelines. To alleviate the high infl ati on rate in Singapore, we have subsidised expenses amounti ng to 1.65% of the fund’s assets for the year.

J Turnover rati os 2013 2012

Local Fund 4.92% 5.69%

Underlying Fund:

Aberdeen Global Opportuniti es Fund** 14.49% 12.71%

** based on audited accounts as at 30 September 2013.






Income Statement

2013 2012

S$ S$

Income

Realised gain from sale of investments 16,251 -

Interest income 3 3


Sundry Income - 32

50,168 36,232

Expenses

Realised loss from sale of investments - 6,858



36,832 41,663

Net Income / (Loss) For The Year 13,336 (5,431)

TMLS GLOBAL EQUITY FUND For The Financial Year Ended 31 December 2013


Balance Sheet

2013 2012

Notes S$ S$

Capital Account


Amount paid into the fund for creati on of units 52,106 79,141

Amount paid for liquidati on of units (144,040) (151,985)

1,873,437 1,821,952

Unrealised gain in value of investments 285,983 148,850

Net income/(loss) for the year 13,336 (5,431)


Represented by:

Current Assets

Investments 4 2,126,993 1,922,759



2,195,542 1,987,837

Less:


Sundry creditors 6,081 7,074


22,786 22,466

Net Assets 2,172,756 1,965,371

TMLS GLOBAL EQUITY FUND as at 31 December 2013


TMLS GLOBAL BALANCED FUND01 January 2013 - 31 December 2013

Manager Comments

Investment and Market Review

2013 proved to be a very strong year for developed markets equiti es although other asset classes were more mixed. The spectacular rally last year helped key indices (MSCI World, S&P 500, Stoxx600) close 2013 at or near record territory. Away from developed markets equiti es, 2013 proved to be a relati vely subdued year for fi xed income performance. With the excepti on of the European periphery, total returns for the core government bond market were generally in the red. Indeed Treasuries, Gilts and Bunds were down -3.4%, -4.2% and -2.2% respecti vely.

The DWS Premier Select Trust delivered a return of 10.28% in 2013. Main contributors to performance were the equity positi ons with the DWS Global Equity Focus Fund returning +24.78%. At the same ti me, the DWS Lion Bond Fund was nearly fl at with +1.59%. However, our positi on in gold was a drag to the portf olio.

Market Outlook and Investment Strategy

The fund started the year with a ti lt towards equiti es as global growth should rebound to trend-level this year with most developed economies cutti ng fi scal defi cits slowly in 2013. The US GDP is poised to accelerate into 2014 as the severe fi scal ti ghtening of 2013 is signifi cantly relaxed.

However, on balance emerging economies are sti ll ti ghtening less than developed markets (-0.2% vs. -0.8% respecti vely). Therefore, emerging markets will grow faster in 2014 but remain vulnerable to the path of global interest rates, commodity prices, and politi cal instability. We expect investors to place a premium on countries that reform to raise growth potenti al.

Last but not least, main central banks can conti nue to sti mulate because infl ati on remains weak and outright defl ati on is unlikely. Summing up, we prefer developed market equiti es over emerging market equiti es.



B Investments of underlying fundMarket Value % of NAV

i By countrySingapore 131,640,144 64.42Luxembourg 63,154,759 30.90United States 3,403,172 1.67Others 6,142,849 3.01

ii By industryUnit Trusts / Mutual Funds 198,198,075 96.99Others 6,142,849 3.01

iii By asset classCollecti ve Investment Schemes 198,198,075 96.99Others 6,142,849 3.01

iv Credit rati ng of debt securiti es Not applicable

C Top 10 holdings underlying fund2013

Market Value % of NAVDWS Global Equity Focus Fund 63,154,759 30.90DWS Lion Bond Fund Class M 60,818,437 29.76DWS Singapore Equity Fund Class M 46,156,529 22.59

Aberdeen Global Opportuniti es Fund SGD Class 11,238,750 5.50Aberdeen Asian Smaller Companies Fund SGD Class 8,273,781 4.05DWS Asian Small/Mid Cap Fund Class A 5,152,647 2.52SPDR Gold Trust 2,268,256 1.11iShares MSCI ACWI Index Fund 1,134,916 0.56

A Fund Objecti ves/Strategies TMLS Global Balanced Fund feeds substanti ally into the DWS Premier Select Trust

Fund (the “Underlying Fund”).

The investment objecti ve of the Underlying Fund is to achieve long term capital appreciati on through investment in a diversifi ed portf olio of securiti es which are not prohibited under the CPF Investment Scheme.



DWS Lion Bond Fund Class M 56,472,282 29.14DWS Singapore Equity Fund Class M 55,992,395 28.89DWS Global Equity Focus Fund 53,096,138 27.40SPDR Gold Trust 10,921,045 5.63

Aberdeen Global Opportuniti es Fund SGD Class 7,973,420 4.11

Aberdeen Asian Smaller Companies Fund SGD Class 6,095,046 3.14

D Exposure to Derivati vesNet realised loss on foreign exchange contracts for the period ended 31 December 2013 is S$3,035.

E Investments in Collecti ve Investment Schemes2013

Market Value % of NAVDWS Premier Select Trust Fund 8,489,631 98.85Cash and Others 99,097 1.15


DWS Premier Select Trust Fund 8,532,102 99.55Cash and Others 38,950 0.45


G Total Subscripti ons and Redempti ons S$

Total amount of subscripti ons 594,222Total amount of redempti ons 1,416,210


% %3 Months 2.52 3.046 Months 5.26 6.421 Year 9.70 10.63



3 Years (annualised) 3.22 4.575 Years (annualised) 7.59 8.82Since incepti on - 30 October 2006 (annualised) 2.37 1.30*Returns are calculated on a NAV to NAV basis with dividends reinvested at NAV price.

I Expense rati os 2013 2012Local Fund* 1.71% 1.33%Underlying Fund: DWS Premier Select Trust Fund** 1.54% 1.32%* include underlying fund expense rati o** based on unaudited accounts as at 31 December 2013



J Turnover rati os 2013 2012Local Fund 5.78% 5.06%Underlying Fund: DWS Premier Select Trust Fund** 27.63% 15.05%** based on unaudited accounts as at 31 December 2013The turnover rati o means the number of ti mes 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 reporti ng date expressed as percentage of the daily average NAV.





Income Statement

2013 2012

S$ S$

Income


Interest income 5 7


161,293 102,807

Expenses

Realised loss from sale of investments - 29,553



105,179 133,229

Net Income / (Loss) For The Year 56,114 (30,422)

TMLS GLOBAL BALANCED FUND For The Financial Year Ended 31 December 2013


Balance Sheet

2013 2012

Notes S$ S$

Capital Account



Amount paid for liquidati on of units (1,416,210) (849,283)

7,749,064 7,843,889


Net income/(loss) for the year 56,114 (30,422)


Represented by:

Current Assets

Investments 4 8,489,631 8,532,102



8,652,749 8,708,525

Less:


Sundry creditors 614 75,101


64,021 137,473

Net Assets 8,588,728 8,571,052

TMLS GLOBAL BALANCED FUND as at 31 December 2013


Manager Comments

Investment and Market Review2013 saw equity markets run up to record levels as recovering developed markets drove risk appeti tes higher, shrugging off the mid-year blip. The S&P Index gained 27% aft er momentum in US GDP growth built up over the second half of the year. US Treasuries yields fell for the fi rst half of the year before rising on the back of expectati ons that monetary policy would fi nally begin to normalise – the quanti tati ve easing (“QE”) taper. SGS yields similarly followed this trend but conti nued to lag behind at ti mes.

The US PMI Index indicated expansion almost throughout 2013, though the usual mid-year slowdown occurred in Apr-Jun’13. Industrial producti on grew steadily throughout, picking up momentum in Nov’13. This set the tone for an improving jobs market as unemployment fell to a cycle low of 7.0% with average hourly earnings rising about 2% year-on-year. Retail sales and housing prices also rose over the year and were supporti ve of the recovery narrati ve. Subdued infl ati on implies that the economy could potenti ally accommodate much more growth before the Fed needs to ti ghten meaningfully.

Meanwhile, the Eurozone also improved as politi cal hurdles were overcome, boosti ng confi dence. Ireland’s formal exit from the bailout could signal the end of more austerity. GDP growth stopped falling as spending and investments began to rise. Even the long-intractable unemployment rate looked poised to fall from its current 12% level.

In Asia, China’s politi cal leadership transiti on clarifi ed its medium term growth strategy whilst fi rmly turning against more credit-driven growth. The impending end of QE drove emerging Asian economies to start adjustments aimed at reversing credit and trade imbalances.

Singapore’s GDP growth was moderately strong, recovering from the mid-year slowdown to end at a 3.5%-4% year-on-year pace on the back of conti nued strong growth in Services and Constructi on, aided by a ti mely recovery in Manufacturing. Exports were relati vely weak over the year but began to recover in line with Manufacturing. Leading indicators such as the PMI indices were choppy as external demand rotated from China to the US and EU.

TMLS GLOBAL BOND FUND01 January 2013 - 31 December 2013


Market Outlook and Investment StrategyRelati ve growth momentum has shift ed decisively to developed economies. The Singapore economy must rebalance growth from investments to exports which may be tricky in the context of the ongoing structural reforms.

Interest rates globally have risen sharply from the May’13 lows and will likely rise further when the “QE taper” starts. Although liquidity will fall, SGD assets should remain in demand as a high quality alternati ve within Asia. Companies could see bett er operati ng environments on bett er external demand, resulti ng in subdued credit risk.

The Fund starts 2014 with a relati vely shorter durati on and will deploy capital in higher yielding instruments as the “QE taper” progresses. Credits remain the preferred overweight but acti ve durati on management will be necessary.



B Investments of underlying fundMarket Value % of NAV

i By countrySingapore 150,783,223 48.05South Korea 36,633,874 11.67Great Britain 19,282,087 6.14Australia 16,132,273 5.14Malaysia 15,155,041 4.83United States 12,246,157 3.90New Zealand 12,237,914 3.90China 9,458,900 3.01Cayman Islands 6,617,999 2.11Supra-Nati onal 3,118,144 0.99Briti sh Virgin Islands 2,617,458 0.84Others 29,554,945 9.42

ii By industryBanks 96,764,995 30.83Real Estate 50,834,777 16.20Finance 50,565,634 16.11Government 16,556,413 5.28Transport 12,925,361 4.12Miscellaneous 12,135,481 3.87Printi ng/Publishing 11,208,875 3.57Oil & Gas 7,827,413 2.49Industrial 5,128,260 1.63

A Fund Objecti ves/Strategies TMLS Global Bond Fund feeds substanti ally into the DWS Lion Bond Fund (the

“Underlying Fund”).

The investment objecti ve of the Underlying Fund is to achieve an att racti ve return by investi ng in assets which are in the Manager’s opinion, equivalent to or bett er than single A quality investment grade bonds of Singapore and major bond markets such as the G7 countries, Australia, New Zealand, Hong Kong and South Korea. The G7 countries are Canada, France, Germany, Italy, Japan, U.K. and U.S.A.



Shipbuilding 5,052,434 1.61Electrical/Electronics 3,826,811 1.22City Gas 2,568,265 0.82Diversifi ed Resources 2,451,035 0.78Autos & Trucks 2,273,817 0.72Airlines 1,525,148 0.49Investment 1,343,164 0.43Sovereign 1,295,187 0.41Others 29,554,945 9.42

iii By asset classBonds 277,284,000 88.35Treasury Bills 6,999,070 2.23Others 29,554,945 9.42

iv Credit rati ng of debt securiti es Aaa 10,833,650 3.45AA (by S&P) 7,562,213 2.41Aa3 43,611,185 13.90Aa2 6,279,166 2.00A3 23,754,561 7.56A2 45,033,080 14.35A1 34,998,808 11.15A (by S&P) 1,244,932 0.40Baa2 12,246,157 3.90N/R 98,719,318 31.46Others 29,554,945 9.42



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

11,867,178 3.78

HK Land Treasury SG 3.65% 05/10/2015 11,857,469 3.78



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

11,208,875 3.57

Danga Capital Berhad 2.615% 11/08/2015 10,135,741 3.23United Overseas Land Limited MTN 2.493% 08/05/2015

7,791,141 2.48

Royal Bank of Scotland PLC Series EMTN 2.85% 31/03/2014

7,766,071 2.47

Lloyds TSB Bank PLC Series EMTN 3.5% 17/09/2014

7,592,520 2.42

DBS Bank Limited Singapore Series MTN 21/02/2022

7,590,527 2.42

Winmall Limited 4.69% 27/04/2014 7,562,213 2.41

Morgan Stanley EMTN 3.8% 29/01/2016 7,225,817 2.30

2012


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

12,070,381 4.17

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

11,365,620 3.93

Danga Capital Berhad 2.615% 11/08/2015 10,226,963 3.54

Winmall Limited 4.69% 27/04/2014 7,817,254 2.70

Lloyds TSB Bank PLC Series EMTN 3.5% 17/09/2014

7,578,108 2.62

HK Land Treasury SG 3.65% 05/10/2015 7,280,230 2.52

ANZ Nati onal Internati onal Limited Series EMTN 2.95% 27/07/2015

7,272,719 2.52

Morgan Stanley EMTN 3.8% 29/01/2016 7,193,978 2.49

Overseas Union Enterprise Limited MTN 3.95% 29/09/2015

7,185,088 2.48

CMT MTN Pte Limited MTN 2.85% 01/09/2014

7,152,068 2.47



D Exposure to Derivati ves


Realised gains/(losses)

Unrealised gains/(losses)

Foreign exchange (367,755) -0.12contracts

(948,118) (367,755)



DWS Lion Bond Fund Class M 231,207 100.15Cash and Others (344) -0.15


DWS Lion Bond Fund Class M 435,012 100.82Cash and Others (3,555) -0.82


G Total Subscripti ons and Redempti onsS$

Total amount of subscripti ons 14,441Total amount of redempti ons 224,339


% %3 Months 1.70 0.086 Months 2.61 0.161 Year 3.52 0.31Since incepti on - 6 June 2011(annualised) 2.01 0.53

* Returns are calculated on a NAV to NAV basis with dividends reinvested at the NAV price.



I Expense rati os 2013 2012Local Fund* 0.00% 0.60%Underlying Fund: DWS Lion Bond Fund Class M** 0.17% 0.16%* include underlying fund expense rati o** based on unaudited accounts as at 31 December 2013



J Turnover rati os 2013 2012Local Fund 6.77% 282.86%Underlying Fund: DWS Lion Bond Fund Class M** 30.08% 42.00%** based on unaudited accounts as at 31 December 2013The turnover rati o means the number of ti mes 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 reporti ng date expressed as percentage of the daily average NAV. .





Income Statement

2013 2012

S$ S$

Income

Realised gain from sale of investments 5,600 22,629


Sundry Income - 703

21,757 39,295

Expenses



12,954 20,175

Net Income For The Year 8,803 19,120

TMLS GLOBAL BOND FUNDFor The Financial Year Ended 31 December 2013


Balance Sheet

2013 2012

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 431,457 49,211

Amount paid into the fund for creati on of units 14,441 2,719,667

Amount paid for liquidati on of units (224,339) (2,364,385)

221,559 404,493

Unrealised gain in value of investments 501 7,844

Net income for the year 8,803 19,120

Value of the fund at end of the year 230,863 431,457

Represented by:

Current Assets

Investments 4 231,207 435,012


Bank balances 126 136

233,539 437,765

Less:


Sundry creditors 6 14


2,676 6,308

Net Assets 230,863 431,457

TMLS GLOBAL BOND FUND as at 31 December 2013


Manager Comments

Investment and Market ReviewThe fund outperformed the benchmark this year mainly due to good asset allocati on. The fund’s overweight positi on in Informati on Technology and positi ve stock selecti on in Health Care were the key contributors. Conversely, our stock selecti on in Informati on Technology and Consumer Discreti onary detracted the relati ve performance.

Chinese equiti es market ended lower in the beginning of the year. China’s new property measures introduced by the central government in early March, in an eff ort to curb red-hot property prices in Chinese citi es, dampened market senti ment. The equity markets declined further on comments concerning tapering of the Federal Reserve’s quanti tati ve easing program. Chinese equiti es were subsequently up strongly in the second half of the year on the back of the China’s Third Plemum of the country’s leaders in November. Announced reforms, from easing the one-child policy to pledging to give markets a ‘decisive role’ in resource allocati on, boosted senti ment for Chinese equiti es.

Market Outlook and Investment Strategy Following on from China’s landmark Third Plenum in November, and subsequent planned reforms, investors should remain conscious that economic rebalancing and reforms are long, drawn-out processes. Short term pain is likely to be felt when growth slows as the economy and companies make adjustments, with earnings and margins as a result coming under pressure. The reform process and its longer term success really rest on eventual policy details and implementati on. Following the initi al market euphoria, whether this momentum can be sustained into the longer term depends on the country’s leadership. Developments will require careful monitoring in 2014 and beyond, including China’s commitment to staying on course with their reform roadmap and plans, parti cularly in the face of growth and unemployment headwinds.

For long-term investors, even as the country’s growth rate slows near term, the transiti on from an investment-driven to consumer-led growth model off ers a promising structural backdrop for a variety of industries. The investment case for domesti c consumpti on and services sectors remains very much intact as urbanisati on conti nues apace, supported further by new tax policies. Opportuniti es in insurance, internet and technology are also driven by the increasing demand for goods and services, while clean energy-related industries, educati on and healthcare will receive further government support.

TMLS CHINA EQUITY FUND01 January 2013 - 31 December 2013



B Investments of ISF China fundMarket Value (USD) % of NAV

i By countryChina 1,091,491,191 86.42Hong Kong 142,088,358 11.25Australia 2,147,113 0.17Others 27,280,965 2.16

ii By industryFinancial 408,835,569 32.37Informati on Technology 182,504,602 14.45Industrial 160,780,871 12.73Energy 76,411,961 6.05Consumer Discreti onary 74,517,450 5.90Telecommunicati on Services 71,991,435 5.70Material 71,233,630 5.64Consumer Staples 70,096,923 5.55Health Care 68,960,216 5.46Uti liti es 35,237,913 2.79Not Classifi ed 15,156,092 1.20Others 27,280,965 2.16

iii By asset classEquiti es 1,220,570,571 96.64Schroders Funds 15,156,092 1.20Cash 27,280,965 2.16

A Fund Objecti ves/Strategies TMLS China Equity Fund feeds substanti ally into Schroder China Opportuniti es Fund

(the “Underlying Fund”).

The Underlying Fund invests substanti ally into the Schroder ISF China Opportuniti es (the “ISF China Fund”), whose investment objecti ve is to provide capital growth primarily through investment in equity and equity related securiti es of companies which are headquartered in and/or listed in or have a substanti al business exposure to the People’s Republic of China.



C Top 10 holdings of ISF China fund


Industrial & Commercial Bank of China Ltd 84,874,113 6.72Tencent Holdings Ltd 81,969,195 6.49China Constructi on Bank Corp 78,306,473 6.20China Mobile (Hong Kong) Ltd 71,991,435 5.70China Life Insurance Co Ltd 65,423,795 5.18CNOOC Ltd 41,931,853 3.32China Petroleum & Chemical Corp 34,353,807 2.72China Pacifi c Insurance (Group) Co Ltd 33,343,401 2.64Longfor Properti es Co Ltd 28,670,273 2.27Anhui Conch Cement Co Ltd 24,881,250 1.97


China Constructi on Bank Corp 67,712,572 7.83China Mobile (Hong Kong) Ltd 64,512,871 7.46Industrial & Commercial Bank of China Ltd 55,173,206 6.38CNOOC Ltd 41,769,058 4.83Tencent Holdings Ltd 37,358,660 4.32China Pacifi c Insurance (Group) Co Ltd 34,677,830 4.01PetroChina 34,331,917 3.97China Life Insurance Co Ltd 31,045,738 3.59Longfor Properti es Co Ltd 30,094,476 3.48China Petroleum & Chemical Corp 26,462,384 3.06

D Exposure to Derivati ves Market Value

(USD) % of NAVRealised

gains/(losses)Unrealised

gains/(losses)Forward FX contracts (14,248) 0.01% 179,995 (14,248)


E Investments in Collecti ve Investment Schemes 2013

Market Value % of NAVSchroder China Opportuniti es Fund 33,289 100.12Cash and Others (39) -0.12


Schroder China Opportuniti es Fund 43,395 99.96Cash and Others 19 0.04





% %3 Months 4.67 4.466 Months 16.56 15.921 Year 10.83 7.13Since incepti on - 12 August 2011 (annualised) 7.29 3.73Source: Morningstar, BID to BID, dividends reinvested in SGD as at 31 December 2013

I Expense rati os 2013 2012*Local Fund 2.01% 1.81%Underlying Fund: **Schroder China Opportuniti es Fund 1.88% 1.85%* include underlying fund expense rati o

** based on unaudited accounts as at 31 December 2013





J Turnover rati os 2013 2012Local Fund 6.10% 0.73%Underlying Fund: **Schroder China Opportuniti es Fund 2.97% 0.00%** based on unaudited accounts as at 31 December 2013






Income Statement

2013 2012

S$ S$

Income



13,415 9,453

Expenses

Realised loss from sale of investments - 4

Management fees 642 567


10,645 9,441

Net Income For The Year 2,770 12

TMLS CHINA EQUITY FUNDFor The Financial Year Ended 31 December 2013


Balance Sheet

2013 2012

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 43,414 35,980


Amount paid for liquidati on of units (17,672) -

28,174 38,180


Net income for the year 2,770 12


Represented by:

Current Assets

Investments 4 33,289 43,395


Bank balances 407 320

35,061 45,005

Less:


Sundry creditors - 199


1,811 1,591

Net Assets 33,250 43,414



TMLS ASIAN BOND FUND01 January 2013 - 31 December 2013

Investment and Market ReviewMost Asian short-dated local currency bonds and currencies fell over the year, as US policy developments held sway over fi nancial markets. Towards the period-end, the Federal Reserve fi nally announced that it will start trimming bond purchases from 2014. The Indonesian market underperformed its regional peers by a wide margin, as hikes in interest rates and cuts in fuel subsidies deepened infl ati on worries. Short-dated yields spiked by more than 300 basis points, while the rupiah fell by almost 20% against the US dollar. In contrast, the Philippine market was resilient amid a supporti ve macroeconomic backdrop, although the peso was weak.

Portf olio Review The fund marginally underperformed the benchmark over the review period. The currency allocati ons weighed down performance, in parti cular, the exposure to the Indian rupee, Malaysian ringgit and Philippine peso. This was miti gated by the positi ve contributi on from interest rate strategies. The overweight to Malaysia and the Philippines contributed most to relati ve return, together with the exposure to the Chinese off shore market.

Outlook The manager remains biased towards reducing risk and positi oning the portf olio for higher rates over the next six months, given the start of the Fed tapering in January. The fund’s short durati on positi on conti nues to support its defensive bias. The manager maintains an underweight to markets with higher correlati ons to US Treasuries, including Hong Kong and Singapore. The manager reduced its Asian currency risk and moved to a long US dollar positi on by trimming the exposure to the Singapore dollar.

Manager Comments



A Fund Objecti ves/Strategies TMLS Asian Bond Fund feeds substanti ally into the Aberdeen Asian Local Currency Short

Durati on Bond Fund (the “Underlying Fund”).

The Underlying Fund aims to provide long-term total return through investi ng all or substanti ally all of its assets in the Aberdeen Global – Asian Local Currency Short Durati on Bond Fund (the “Aberdeen Global – ALCSD Bond Fund”), a sub-fund of the Luxembourg – registered Aberdeen Global. The Aberdeen Global – ALCSD Bond Fund invests at least two thirds of its assets in short durati on (less than three years) local Asian currency denominated debt and debt related securiti es issued predominately by Asian governments, supranati onal insti tuti ons or government related bodies.


Market Value (USD) % of NAVi By country

South Korea 227,934,655 29.43China 129,660,956 16.74Malaysia 107,239,104 13.85Thailand 99,557,677 12.85India 52,842,508 6.82Philippines 31,348,943 4.05Indonesia 29,404,174 3.80Sri Lanka 10,315,783 1.33Others 86,176,077 11.13

ii By industryDomesti c Govt 520,298,783 67.18Sovereign/Supra-Nati onal 139,110,868 17.96Finance 26,898,875 3.47Industrial 1,995,275 0.26Others 86,176,077 11.13

iii By asset classFixed Income Securiti es 688,303,800 88.87Cash 86,176,077 11.13


iv Credit rati ng of debt securiti es AA 212,497,911 27.44A 250,341,530 32.32BBB 196,212,126 25.33BB 18,936,450 2.45B 10,315,783 1.33Others 86,176,077 11.13


Market Value (USD) % of NAVKorea Monetary Stab Bond 2.76% 02/06/15 47,511,701 6.13Malaysian (Govt Of) 3.172% 15/07/16 39,652,486 5.12Korea (Rep Of) 3.25% 10/06/15 39,211,351 5.06Korea Monetary Stab Bond 3.47% 02/02/14 38,144,163 4.93Korea Monetary Stab Bond 2.47% 02/04/15 38,027,985 4.91China (Peoples Rep Of) 1.4% 18/08/16 37,232,142 4.81Korea Monetary Stab Bond 2.84% 02/12/14 35,201,945 4.55Malaysian (Govt Of) 3.197% 15/10/15 31,205,703 4.03Korea (Rep Of) 3.5% 10/06/14 29,837,510 3.85Bank Of Thailand Bond 3.3% 30/04/14 28,520,643 3.68


Korea (Rep Of) 3.5% 10/06/14 88,725,742 9.09Malaysian (Govt Of) 5.094% 30/04/14 47,334,101 4.85Philippines (Rep Of) 7% 27/01/16 45,719,902 4.68Malaysian (Govt Of) 3.461% 31/07/13 43,785,496 4.48Korea Monetary Stab Bond 3.47% 02/02/14 42,460,660 4.35Korea (Rep Of) 3.25% 10/06/15 38,837,827 3.98Korea Monetary Stab Bond 3.9% 02/08/13 36,768,796 3.76China (Peoples Rep Of) 1.4% 18/08/16 35,965,599 3.68Bank Of Thailand Bond 3.3% 30/04/14 34,934,695 3.58Malaysian (Govt Of) 3.741% 27/02/15 30,999,081 3.17



D Exposure to Derivati vesThe investment manager confi rms there is no derivati ves positi on in the fund.

E Investments in Collecti ve Investment Schemes2013


Aberdeen Asian Local CurrencyShort Durati on Bond Fund

8,102 84.89



Aberdeen Asian Local CurrencyShort Durati on Bond Fund

8,065 85.46






% %3 Months -0.42 0.166 Months -0.05 1.421 Year -3.00 -0.68Since incepti on - 30 July 2012 (annualised) -0.28 1.99Source: Lipper, based on percentage growth, calculated on a NAV to NAV basis with gross

income reinvested.



I Expense rati os 2013 2012Local Fund* 1.64% 1.80%Underlying Fund: Aberdeen Asian Local CurrencyShort Durati on Bond Fund**

1.50% 1.50%

* include underlying fund expense rati o

** based on audited accounts as at 30 September 2013



J Turnover rati os 2013 2012Local Fund 0.00% 30.15%Underlying Fund: Aberdeen Asian Local CurrencyShort Durati on Bond Fund**

32.04% 54.77%

** based on audited accounts as at 30 September 2013The turnover rati o means the number of ti mes 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 reporti ng date expressed as percentage of the daily average NAV.





TMLS ASIAN BOND FUND For The Financial Year Ended 31 December 2013

Income Statement

2013 2012

S$ S$

Income

Realised gain from sale of investments - 5

Dividend income 69 -

Interest income - 10

Fund expense subsidy 9,436 814

9,505 829

Expenses

Management fees 95 40

Fund charges 9,355 786

9,450 826

Net Income For The Year 55 3


TMLS ASIAN BOND FUND as at 31 December 2013

Balance Sheet

2013 2012

Notes S$ S$

Capital Account

Value of the fund at the beginning of the year 9,440 -


Amount paid for liquidati on of units (9,466) -

9,520 9,388

Unrealised (loss)/gain in value of investments (31) 49

Net income for the year 55 3


Represented by:

Current Assets

Investments 4 8,102 8,065

Sundry debtors 803 763


10,329 11,198

Less:


Sundry creditors - 1,000

Accrued expenses 785 758

785 1,758

Net Assets 9,544 9,440


NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2013

These notes form an integral part of and should be read in conjuncti on with the accompanying fi nancial statements.

1 General The TMLS Asian Equity Fund, TMLS Global Equity Fund, TMLS Global Balanced Fund, TMLS Global Bond Fund, TMLS China Equity Fund and TMLS Asian Bond Fund were launched by Tokio Marine Life Insurance Singapore Ltd. (‘the Company’) as investment-linked life assurance products for off ering to its policyholders. The TMLS Asian Equity Fund, TMLS Global Equity Fund and TMLS Asian Bond 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 while TMLS China Equity Fund is managed by Schroder Investment Management. 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 are Citi bank, N.A. Singapore, 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 2013, the company had the following underlying investments:

Sub - Fund Underlying InvestmentTMLS Asian Equity Fund Aberdeen Pacifi c Equity Fund TMLS Global Equity Fund Aberdeen Global Opportuniti es Fund TMLS Global Balanced Fund DWS Premier Select Trust Fund TMLS Global Bond Fund DWS Lion Bond Fund TMLS China Equity Fund Schroder China Opportuniti es Fund TMLS Asian Bond Fund Aberdeen Asian Local Currency Short Durati on Bond Fund

3 Summary of Signifi cant Accounti ng Policies(a) Basis of preparati on The fi nancial statements (expressed in Singapore dollars), are prepared in accordance

with the historical cost conventi on, as modifi ed by the revaluati on of investments. For the purposes of preparati on of these fi nancial statements, the basis used for

calculati ng the rati o of expenses and portf olio turnover rati o are in accordance with the guidelines issued by the Investment Management Associati on of Singapore and the Code of Collecti ve Investment Schemes (under the Securiti es and Futures Act (Chapter 289)).

(b) Investments Unit trusts are stated at the bid prices prevailing at the balance sheet date. The

diff erence between the bid price and the original cost is taken to the Capital Account.

(c) Revenue recogniti on Dividends are recognised when the right to receive the payment is established. Interest

income is recognised on ti me proporti on basis using the eff ecti ve interest method.



4 Investments2013 2012

S$ S$TMLS Asian Equity FundInvestments, at cost 16,092,053 16,957,336 Appreciati on in value 6,983,887 8,163,432 Investments, at market value 23,075,940 25,120,768

TMLS Global Equity FundInvestments, at cost 1,857,962 1,939,711 Appreciati on / (Depreciati on) in value 269,031 (16,952)Investments, at market value 2,126,993 1,922,759

TMLS Global Balanced FundInvestments, at cost 7,748,656 8,574,677 Appreciati on / (Depreciati on) in value 740,975 (42,575)Investments, at market value 8,489,631 8,532,102

TMLS Global Bond FundInvestments, at cost 222,936 427,242 Appreciati on in value 8,271 7,770 Investments, at market value 231,207 435,012

TMLS China Equity FundInvestments, at cost 28,170 40,582 Appreciati on in value 5,119 2,813 Investments, at market value 33,289 43,395

TMLS Asian Bond FundInvestments, at cost 8,084 8,016 Appreciati on in value 18 49 Investments, at market value 8,102 8,065

(d) Foreign currencies Foreign currency monetary assets and liabiliti es are translated at exchange rates

prevailing at balance sheet date. Foreign currency transacti ons are translated at exchange rates prevailing on transacti on dates. Diff erences in exchange are included in the Income Statement.



5 Related party disclosuresThe funds consider Tokio Marine Life Insurance Singapore Ltd., its immediate holding company, Asia General Holdings Limited, its ulti mate holding company, Tokio Marine Holdings Inc. and their subsidiaries and associated companies as related companies. The transacti ons between the fund and the related companies have been summarised below.

2013 2012S$ S$

TMLS Asian Equity FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

146,725 150,278

Fund subsidy provided by Tokio Marine Life Insurance Singapore Ltd.

287,068 307,745

TMLS Global Equity FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

12,678 11,633


33,914 36,197

TMLS Global Balanced FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

52,793 52,059


90,275 102,800

TMLS Global Bond FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

1,484 5,209


16,157 15,963

TMLS China Equity FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

321 284


10,586 9,453



TMLS Asian Bond FundManagement fees payable to Tokio Marine Life Insurance Singapore Ltd.

52 22


9,436 814

6 Bid and Off er value per unit2013 2012

TMLS Asian Equity FundThe number of units in issue 7,288,745 7,953,385The bid value per unit S$3.2206 S$3.2013The off er value per unit S$3.3901 S$3.3698

TMLS Global Equity FundThe number of units in issue 2,111,515 2,206,197The bid value per unit S$1.0290 S$0.8908The off er value per unit S$1.0832 S$0.9377

TMLS Global Balanced FundThe number of units in issue 7,623,072 8,367,631The bid value per unit S$1.1237 S$1.0243The off er value per unit S$1.1828 S$1.0782

TMLS Global Bond FundThe number of units in issue 230,860 446,640 The bid value per unit S$1.0000 S$0.9660 The off er value per unit S$1.0526 S$1.0168

TMLS China Equity FundThe number of units in issue 29,583 42,810 The bid value per unit S$1.1239 S$1.0141 The off er value per unit S$1.1831 S$1.0675

TMLS Asian Bond FundThe number of units in issue 9,965 9,879 The bid value per unit S$0.9578 S$0.9553 The off er value per unit S$1.0082 S$1.0056


INDEPENDENT AUDITOR’S REPORT

We have audited the accompanying fi nancial statements of TMLS Asian Equity Fund, TMLS Global Equity Fund, TMLS Global Balanced Fund, TMLS Global Bond Fund, TMLS China Equity Fund and TMLS Asian Bond Fund (collecti vely known as the “Funds”) which comprise the balance sheet as at 31 December 2013, the income statement for the fi nancial period ended 31 December 2013 and Notes to Financial Statements respecti vely set out on pages 10 to 11, 18 to 19, 24 to 25, 33 to 34, 40 to 41 and 47 to 52 (the “Statements”). The Statements have been prepared by management based on the summary of signifi cant accounti ng policies set out in Note 3. The Statements do not include the Manager Comments and Fund report in respect of each fund incorporated within pages 4 to 54, which have not been subject to our audit.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparati on of the Statements in accordance with the accounti ng policies disclosed in Note 3. This includes determining that these accounti ng policies form an acceptable basis for the preparati on of the Statements in the circumstances, and for such internal control as management determines is necessary to enable preparati on of the Statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the Statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditi ng. 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 enti ty’s preparati on 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 eff ecti veness of the enti ty’s internal control. An audit also includes evaluati ng the appropriateness of the accounti ng policies used and the reasonableness of the accounti ng esti mates made by management as well as evaluati ng the overall presentati on of the Statements.

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


INDEPENDENT AUDITOR’S REPORT

OpinionIn our opinion, the Statements are prepared, in all material respects, in accordance with the accounti ng policies set out in Note 3.

Basis of accounti ng and Restricti on of Distributi on and UseWithout modifying our opinion, we draw att enti on to Note 3 to the Statements, which describes the basis of accounti ng. The Statements are prepared to assist the Company to comply with MAS Noti ce 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 duti es are owed solely to the Company. We do not accept responsibility and we expressly disclaim liability for loss occasioned to any third party acti ng or refraining from acti ng as a result of our report.

Other Matt ersThis report relates solely to the fi nancial statements of the Funds of the Company and does not extend to the fi nancial statements of the Company taken as a whole.

Public Accountants and Chartered Accountants

Singapore, 18 March 2014


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Tokio Marine Life Insurance Singapore Ltd. (Company Reg. No.: 194800055D)

20 McCallum Street, #07-01 Tokio Marine Centre, Singapore 069046

T: 6592 6100 F: 6223 9120 W: www.tokiomarine-life.sg

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