Aberdeen Standard Fixed Maturity Fund April 2021 Tranche

1. Will the fund definitely launch?

The fund will launch only if there is a total minimum amount of US$100m from all its investors. So there is a chance that the fund will not launch.

 

2. What happens to my money if The Fund is not launched?

Your monies will be returned to your trading account with no penalties.

 

3. I already have a FAME account tagged to InsureDIY. Do I need another account?

No, you do not need to set up another account unless you wish to use portfolio financing through iFast. However, if you intend to invest less than S$200,000 in The Fund, we will request documentation from you to evidence that you are an Accredited Investor.

 

4. Why do I have to apply for a wrap account? I already have an account with iFast/FAME with another advisor.

* You will be asked to complete the online application form when the Initial Offering Period starts. As part of the application, a wrap account will be opened for you.

The wrap account is on a platform run by iFast if you choose to pledge your assets under the iFast platform for portfolio financing and on FAME if you choose not to portfolio finance with iFast.

The platform is authorised to collect monies during the Initial Offering Period and to execute trades with fund managers like Aberdeen Standard. Your monies will be held in custody in trust. We do not collect your funds or handle your money directly.

As we are working with Aberdeen exclusively to distribute The Fund in Singapore, you would need to open a iFast / FAME account that is tagged to us so that we can help to execute the trade. The Fund is not available through any other distributor in Singapore.

 

5. Can I choose to use the iFast platform if I do not want to use portfolio financing.

We are able to offer a heavily discounted wrap fee under FAME. So if you do not wish to portfolio finance through iFast, then you will be directed to set up an account with FAME.

 

6. Is the return or capital guaranteed?

The Fund invests in about 50 issuers to ensure that it is not overly exposed to any one issuer. While this reduces the risk of defaults, both the return and capital are not guaranteed for this product and the value of the units in the scheme and the income accruing to the units, if any, may fall or rise.

 

7. What is the minimum and maximum invesment amounts?

The minimum invesment is S$20,000. There is no maximum investment amount. 

 

8. Is there a penalty if I redeem my funds during the 4-Year period?

** The penalty is either the redemption charge or the dilution adjustment. The redemption charge is as follows:

Years to Maturity Date	Redemption charge as a percentage of relevant share price (maximum)
4	2.0%
3	1.5%
2	1.0%
1	1.0%

 

If the sum of:

(a) any dealing charges; and/or

(b) any bid/offer spread applied 

is greater than the redemption charge, then the dilution charge will be applied. Please see details in documentation that will be provided during the Initial Offering Period.

 

9. What should I know about using portfolio financing?

++Like any other collateralised loan, there will be a margin call should the value of your assets used as collateral fall below the Loan-to-Value. It is therefore not advisable to drawdown entirely on the loan facility extended to you. The minimum facility limit will be S$50,000 and the maximum S$5m.

In addition, CIMB will be assessing your overall credit worthiness and there is no guarantee that CIMB will extend financing to you prior to their confirmation. CIMB will review your annual salary and other assets, but the collateral will be based on the fund value of the approved unit trusts under the iFast platform.

To qualify, you will need an existing portfolio with iFast that you are willing to pledge and open an iFast account with us and CIMB. If your current adviser has an active re-balancing strategy for you, they should be informed that you have pledged your assets.

You may have other credit facilities that provide you with low financing cost that you may wish to activate for the purposes of investing into The Fund.

 

10. Do I qualify as an Accredited Investor? Are only Accredited Investors allowed to invest in The Fund?

You would qualify as an Accredited Investor if:

• Your income in the last 12 months is not less than $300,000; or
• Your financial assets (net of related liabilities) exceeds $1m; or
• Your net personal assets exceed $2m.

As required by the regulations, we will be requesting documentary proof of the above before you can proceed to invest in The Fund. 

You will also be able to invest in The Fund if you are not an Accredited Investor if your investment amount is S$200,000 and above.

 

11. When should I be thinking about investing into such fixed maturity funds?

If you are keen on savings or investment products and have enough assets such that this investment is not a substantial part of your portfolio, you can consider investing in fixed maturity funds.

In addition, there should not be any factors that are expected to impact you net assets significantly. e.g. expect to use the funds to purchase property soon.

This product provides an indicative return that is higher than guaranteed return products and fixed deposits, but it also has no guarantees.

 

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