PRUlink currency income fund

Important Notice: PRUlink currency income fund Restructuring

Dear Customer,

Please note that we will be restructuring the PRUlink currency income fund (the "Fund") on 6 July 2012.

There will be a number of major changes to the Fund due to this restructuring. The changes are as follows:

  1. There will be a change in the Fund name.
  2. There will be a change of the underlying fund.
  3. The bid price will be reset to $1.00.
  4. All transactions in relation to the Fund will not be available from 5 Jul 2012, 3PM (Singapore Time).
  5. Transactions will resume on 6 July 2012.
  6. No distributions will be made on 31 May 2012 due to the restructuring.

Please refer to the Notice for the details.

Please ensure that you understand the intended changes described in the Notice before you invest into the Fund.

 

Investment Objective

The investment objective of the PRUlink currency income fund is to seek to provide investors with regular income payouts1, capital growth, and optimum risk-adjusted total return by investing in cash, cash-equivalent, high quality bonds and other fixed income securities rated BBB- (BBB Minus) and above by Standard & Poor's (or equivalent ratings of other credit rating agencies) and entering into derivative transactions linking to indices which employ pre-defined multi-currency interest rate arbitrage strategies2.

The Fund Manager intends to make annual distributions1 of up to 5 cents per unit (i.e. up to 5% computed based on the initial bid price of S$1.00) for each year.

 

Launch Date 23 January 2007
Manager of the Fund Eastspring Investments (Singapore) Limited (formerly known as Prudential Asset Management (Singapore) Limited)
Underlying Fund Eastspring Investments Unit Trusts - Income X
Benchmark 12 - month Singapore Dollar Fixed Deposit Rate
Risk Classification
 Medium to High Risk
Subscription Method Cash and Supplementary Retirement Scheme (SRS)
Initial Investment Charge 5%* of premium invested
Continuing Investment Charge 1.5% of bid price per annum** 
Payout Frequency Annually (31 May or the next pricing day)

 

* Please refer to the Product Summary for details of charges incurred on your insurance plan as charges may vary from product to product and may be lower than 5%.
** We reserve the right to vary the continuing investment charge and may increase it up to a maximum of 2% of the bid price per annum, but we will not do so before giving investors 6 months’ written notice.

 

1 Distribution payments shall, at the sole discretion of Eastspring Investments (Singapore) Limited, be made out of either (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination of (a) and/or (b) and/or (c). There is no guarantee that any distributions will be made or that the frequency/timing or amount of distribution as set out in the Fund Information Booklet relating to the Fund will be met. When distributions are declared and paid out (including out of capital) with respect to the Fund, the value of each unit will be reduced. Payout is computed based on per unit. If the Fund's capital growth and income earned is insufficient to pay the declared distributions, it will pay the distribution from capital and policyholders will be notified accordingly of the proportion of the distribution which is made out of the capital. PAM Singapore reserves the right to vary the frequency and/or distributions made based on its experience and judgment.
2 Please note that the income earned by the Fund is dependent on currency movements and interest rates differentials of the currencies to which the Fund has exposure to. Therefore one of the risks which the Fund is exposed to is foreign exchange risk. The strategies followed by the Fund, may result in foreign exchange profits and losses, both of which will be reflected in the value of the Fund. Losses to the Fund will result if the net movements in all the currency pairs are unfavorable and greater than the interest rate differential that is earned from exposure to the various currency pairs by the indices. Please note that the ability of the Fund to pay annual distributions without recourse to capital is subject to actual returns achieved, which may be influenced by a number of factors including national and international currency rates, currency markets movements and other significant local and international events. Due to the nature of the Fund, there are other risks which the investor should be aware of. The major ones being political/regulatory risk, interest rate risk, portfolio management risk, credit risk, counterparty and settlement consideration, liquidity risk, premium risk and derivative risk.

Declaration of Distribution

Declaration of Distribution for PRUlink currency income fund
We are pleased to inform you that the PRUlink currency income fund has declared an annual distribution of $0.05 for each unit held by customers in the Fund as at 31 May 2011. This is for the period between 1 June 2010 and 31 May 2011.
 
Fund Name Declaration Dividend Rate
PRUlink currency income fund 2 June 2008 11.25 cents / unit
PRUlink currency income fund 1 June 2009 5 cents / unit
PRUlink currency income fund 31 May 2010 5 cents / unit
PRUlink currency income fund 31 May 2011 5 cents / unit

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Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than the total premium paid.

Details (including fees and charges; and specific risk) of the Fund may be found in the Fund Information Booklet. Investments are subject to investment risks including the possible loss of the principal amount invested.

Past performances of the Fund, the Underlying Fund, Fund Manager and the Investment Manager are not necessarily indicative of future or likely performance of the Fund, the Underlying Fund, Fund Manager and the Investment Manager. A copy of the Fund Information Booklet in relation to this Fund may be obtained from your Prudential Financial Consultant. You are advised to read the Fund Information Booklet before deciding whether to subscribe for units in this Fund.

The prediction, projections, or forecasts on the economy, securities markets or the economic trends of the markets targeted by the Fund are not necessarily indicative of the future or likely performance of the Fund. The value of the units in the Fund and any income accruing to the units, if any, may fall or rise. Any opinion, management forecast or estimate contained in this presentation is based on information available as at the date of this presentation and reflects prevailing conditions and views as of the date of this presentation, all of which are subject to change at any time without notice.

This webpage is published for information purposes only, without regard to the specific investment objectives, financial situation and particular needs of any specific person and should not be construed as an advice or recommendation to invest in the Fund. You may wish to consult your Prudential Financial Consultant before making a commitment to purchase the Fund and insurance product. In the event that you choose not to consult a Prudential Financial Consultant, you should consider whether the Fund and insurance product in question is suitable for you. Units in the Fund are not available to US persons.

The information contained in this website is not required to be reviewed or endorsed by the Monetary Authority of Singapore.

Information correct as at 14 February 2012.