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AIA FUND INSIGHTS

Maximise your Investments for Retirement

AIA Investments is the exclusive investment management arm of AIA, the world’s largest life insurer, responsible for managing over USD 240 billion.

Our investment approach is global, where we partner with the world’s finest asset managers and apply professional oversight. We call this the AIA Stewardship, aligned with the trust you have come to expect from our products and services for over 100 years. We work with our chosen asset management companies at an institutional level and seek long-term partnerships.

As a life insurer we invest for the long term and do not get distracted by shorter-term trends and fads. At times, we understand that market valuations trade away from the long-term assumptions. We deploy our money patiently, seeking to take advantage of any disequilibrium.

Alongside, our investment strategies are carefully constructed to align with long-term and sustainable themes and our managers have proven expertise and capabilities to capitalize on both strategic and tactical opportunities.

In July 2019, AIA Investments partnered AIA Singapore to curate the AIA Elite funds for their Platinum Wealth Elite. The funds are managed by AIA Investments and sub-managed by 3 Global Institutional managers (Ballie Gifford, Wellington Management and Blackrock), channeling institutional investor capabilities to retail customers.

After coming to a year since launch, the funds are beginning to show their differentiations with many periods of outperformance against benchmarks and peers (see performance below);

Performance of AIA Elite Funds

As a result of the success, AIA Elite Funds will be made available to our newly launched AIA Platinum Retirement Elite as well. AIA Platinum Retirement Elite is a specially crafted retirement investment-linked plan that provides you the flexibility to adapt to your changing aspirations and circumstances. You will gain access to the AIA Elite funds, designed to suit your goals and risk preferences. Each fund comprises a strategic mix of equities and bonds, designed to optimize long-term returns and financial stability to meet your retirement objectives.

AIA Elite Funds

Understanding your needs before putting it all together

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Disclaimer

AIA Singapore Private Limited

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This presentation is for your information only and does not have regards to the specific investment objectives, financial situation and particular needs of any persons. It is intended only to be a simplified description of the product features applicable to these plans and is not exhaustive.

This insurance plan is underwritten by AIA Singapore Private Limited (Reg. No. 201106386R) (“AIA”). All insurance applications are subjected to AIA’s underwriting and acceptance. This publication is not a contract of insurance. The precise terms and conditions of this plan, including exclusions whereby the benefit under your policy may not be paid out, are specified in the policy contract. You are advised to read the policy contract.

The actual Policy Value will depend on the actual performance of the policy as well as any alterations such as variation in the Insured Amount or premium, such as premium holiday or partial withdrawals. There is a possibility that the Policy Value will fall to zero and in this case, policyholder can avoid the policy lapsing by topping up additional premium.

AIA Platinum Retirement Elite is an investment-linked insurance policy which invests in investment-linked policy (ILP) sub-funds(s). Investments in this plan are subject to investment risk including the possible loss of the principal amount invested. The performance of the ILP sub-fund(s) is not guaranteed and the value of the units in the ILP sub-fund(s) and the income accruing to the units, if any, may fall or rise. Past performance is not necessarily indicative of the future performance of the ILP sub-fund(s).

Investment risks include foreign exchange risks for US$ denominated policies, as such the Singapore dollar return will depend on prevailing exchange rate which may be highly volatile.

You should seek advice from a qualified advisor and read the product summary and product highlights sheet(s) before deciding whether the product is suitable for you. A product summary and product highlights sheet(s) relating to the ILP sub-fund(s) are available and may be obtained from your AIA Financial Services Consultant or Insurance Representative. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for the ILP sub-fund(s).

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premium paid. You should consider carefully before terminating the policy or switching to a new one as there may be disadvantages in doing so. The new policy may cost more or have fewer benefits at the same cost. Protected up to specific limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.

The information in this publication is correct as at 5 June 2020.

AIA Investment Management Pte. Ltd.

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This document/presentation has been prepared for information purposes only and does not have regard to the specific investment objectives, financial situation and particular needs of any persons. Neither should this document be construed as an offer or the solicitation of an offer, recommendation or solicitation to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments issued or managed by AIA Investment Management Private Limited (“AIAIM”) or its affiliates (collectively the “AIA Group”) in any jurisdiction in which such offer is not authorised to be made to any person. Nothing in this document/presentation should be construed as investment, tax, legal or other advice. References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered as recommendation by the AIA Group.

The information herein should not be used as the basis of any investment decision. This document/presentation is not research material and it has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All views expressed and references to specific securities are included for illustrations only and does not necessarily represent the views of every function within the AIA Group. No representations or warranties are given as to the reliability, accuracy and completeness of the information. Opinions, projections, estimates and other information presented in this document/presentation are solely those of AIA Group as at the date of this document/presentation and subject to change without notice. The AIA Group may have interests in the securities or instruments mentioned in this document/presentation.

Past performance figures, and any economic and market trends or forecast, are not necessarily indicative of future performance of any strategy or portfolio. Investment is subject to investment risk, including the possible loss of the principal amount invested.

AIAIM and the AIA Group, their respective officers and employees, accept no liability for any damage or loss, including loss of profit, whether direct or indirect or consequential in respect of the use or reliance of any information contained herein and whether arising as a result of AIAIM’s negligence or otherwise.

You may wish to seek advice from a financial adviser before making a commitment to invest. You should consider carefully whether an investment is suitable for you in light of your own circumstances, financial resources and entire investment programme.

This document/presentation may only be used and/or received in accordance with the applicable laws in your jurisdiction.

AIA Investment Management Private Limited (UEN Registration No. 201616304H).

3 things to remember when volatility strikes

Markets have continued to be volatile as the coronavirus continues to bite hard. What had previously been an Asian-centric outbreak is now a global pandemic. During this period of elevated volatility, it is important to remind ourselves of these three key points.

1 Volatility is a normal part of long-term investing

Market volatility is a natural part of investing and is the result of investors (over) reacting to economic, political and corporate change. Being mentally prepared for episodes of volatility is key for long-term investors – it helps us to react rationally, remain focused on our goals and even capture rare opportunities.

2 Avoid stopping and starting investments

Those who remain invested typically benefit from the long-term uptrend in stock markets. When investors try to time the market and stop-and-start their investments, they can run the risk of denting future returns by missing the best recovery days in the market and attractive buying opportunities that become available during periods of pessimism. Missing out on just five of the best performance days in the market can have a significant impact on longer-term returns.

Total return and impact of missing the five and 30 best days in the S&P 500

3 Active investment can be a successful strategy

When volatility increases, the flexibility of active investing can be especially rewarding compared to the rigid allocations of passive investments. In particular, volatility can introduce opportunities for active stock-pickers, especially during times of market overreaction. Remember that the stocks you do not own in a fund can be as important as the ones you do own. There are companies in every stock market that are poorly managed or which suffer from fundamentally difficult outlooks; active managers can avoid these stocks.

Source of volatility messages: Fidelity International

Disclaimer

AIA Singapore Private Limited

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This publication is for your information only and does not have regard to the specific investment objectives, financial situation and particular needs of any persons. You should seek advice from an AIA Financial Services Consultant and read the product summary and product highlights sheet(s) before deciding whether the product is suitable for you. A product summary and product highlights sheet(s) relating to the ILP sub-fund(s) are available and may be obtained from your AIA Financial Services Consultant. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund(s). The information presented is strictly confidential and for internal use only and cannot be reproduced, amended or circulated in whole or in part to anyone, including policyholders, and potential prospects, for whatever purpose or reason.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
The information in this publication is correct as at 6 April 2020.

Fidelity International

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This publication is prepared on a general basis for information only. It does not have regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive it. You should seek advice from a financial adviser. Past performance and any forecasts on the economy, stock or bond market, or economic trends are not necessarily indicative of the future performance. Views expressed are subject to change, and cannot be construed as an advice or recommendation. References to specific securities (if any) are included for the purposes of illustration only. This advertisement has not been reviewed by the Monetary Authority of Singapore. FIL Investment Management (Singapore) Limited (Co. Reg. No.: 199006300E). Fidelity, Fidelity International, and the Fidelity International Logo and F Symbol are trademarks of FIL Limited.
CA-2020-298762-(G)

Extended global growth cycle

Global markets have been in expansion for slightly more than a decade after the Global Financial Crisis. Economic outlook has improved since the later part of 2019, and is expected to remain modest with bouts of uncertainties in 2020. Coupled with loose monetary policy, we should see risk appetite improving with equities outperforming bonds in the first half of 2020.

What are the possible risk ahead?

2020 will continue to be a year of uncertainties and volatility; ranging from global trade war, geopolitical tensions and the US election.

• No doubt, the US/China trade war issue has developed positively with a “Phase one” trade deal expected mid-Jan, we cannot however discount an escalation in trade tensions.
• Geopolitical tensions will continue to plague investors’ sentiments.
• US Presidential election in November 2020 will continue to be the wildcard.
• Misalignments between market expectations against Central Banks policies may evoke financial instability.

How should I navigate my investment portfolio?

Risk remains the constant but we should not lose sleep over it. Staying invested and diversification is key in current environment where valuations are no longer as attractive. To achieve this, it is important to leverage capabilities of best in-class asset managers to stay ahead of the game.

A potential solution for consideration is the Platinum Wealth Elite (PWE) launched in 2019. This bespoke wealth solution is a strategic initiative by AIA which offers protection and accelerate one’s wealth through our investment propositions of Stewardship, Global Expertise and Long-term view, while providing flexibility to meet multiple long-term goals during the different milestones in life (For example: Retirement and Legacy needs).