Nikko AM – Nikko AM Shenton Global Property Securities Fund – Introduction of Swing Pricing Policy & Removal from the Central Provident Fund investment Scheme

Shareholder Notice

The fund manager would like to inform you of the following:

“NIKKO AM ASIA INVESTMENT FUNDS – NIKKO AM SHENTON GLOBAL PROPERTY SECURITIES FUND (THE “FUND”) (ISIN : SGD: SG9999004253 / USD: SG9999004261 )

  1. INTRODUCTION OF SWING PRICING POLICY BY THE FUND

We, Nikko Asset Management Asia Limited as the managers of the Fund (the “Managers”), are writing to you in our capacity as the managers of the Fund to inform you that we will be introducing swing pricing policy in respect of the Fund with effect from 22 April 2021 (or such other date as we may subsequently advise) (the “Effective Date”).

Dilution

The Funds is single priced and the value of a Fund may fall as a result of amongst others the transaction costs (such as broker commissions, custody transaction costs, stamp duties or sales taxes) incurred in the purchase and/or sale of its underlying investments caused by subscriptions, realisations, switches and/or exchanges of units in the Fund and the spread between the buying and selling prices of such underlying investments. This effect is known as “dilution”.

Swing Pricing

With effect from the Effective Date, to protect the interest of existing investors, we, in consultation with the trustee, may apply a technique known as “dilution adjustment” or “swing pricing” (“Swing Pricing”) in certain circumstances that we deem appropriate. Swing Pricing involves adjusting the net asset value (“NAV”) per unit of the Fund so that such transaction costs and dealing spread in respect of the underlying investments are, as far as practicable, passed on to the relevant investors who are subscribing, realising, switching and/or exchanging units on a particular dealing day.

Maximum Adjustment

The amount of adjustment at any future point in time may vary depending on inter alia market conditions, but will under normal circumstances not exceed 2% of the NAV per unit on the relevant dealing day (the

“Maximum Adjustment”). We reserve the right to apply an adjustment of an amount not exceeding the Maximum Adjustment on the relevant dealing day where we deem appropriate and have the discretion to vary the amount of adjustment up to the Maximum Adjustment, in consultation with the trustee, from time to time without giving notice to the relevant investors.

  1. Removal from the Central Provident Fund investment Scheme “CPFIS”

With effect from 22 March 2021, the Fund will no longer be included under the CPFIS. The Fund will continue to be available for subscription via cash or supplementary retirement scheme (“SRS”) monies.

For the avoidance of doubt, please note that the current investment objective, focus and approach of the Fund will remain unchanged. However, as the Fund will no longer be included under the CPFIS it will no longer be required to comply with the Central Provident Fund Investment Guidelines with effect from 22 March 2021.

For all holders of units in the Fund (“Units”), you will have the following three options for consideration prior to 22 March 2021:

Option 1 – Stay invested

Option 2 – Switch before 22 March 2021

You may switch your Units to units in any other fund managed by us which is available from the same distributor from whom you purchased your Units from now until 5pm (Singapore time) on 19 March 2021.

We will not impose any switching fee in respect of such switches. However, you should check with your distributor if there are any other fees or charges payable in connection with the switch.

If you had invested in the Fund using CPF ordinary account (“OA”) monies or SRS monies, please note that you may only switch your Units to units in another fund managed by us which is included under the CPFIS for the OA or which is available for investment using SRS monies respectively. Our funds which are included under the CPFIS and that are currently accepting subscriptions using CPF OA monies are as follows:

  • Nikko AM Shenton Thrift Fund – SGD Class;
  • Nikko AM Shenton Short Term Bond Fund (S$) (a sub-fund of Nikko AM Shenton Short Term Bond Funds) – SGD Class;
  • Nikko AM Shenton Japan Fund – SGD Class;
  • Nikko AM Shenton Global Opportunities Fund – SGD Class;
  • Nikko AM Japan Dividend Equity Fund – SGD Class and SGD Hedged Class.

 

Option 3 – Realisation before 22 March 2021

You may realise your Units by submitting a duly signed and completed realisation form which may be obtained from the distributor from whom you purchased your Units from now until 5pm (Singapore time) on 19 March 2021. No realisation charge is payable for the realisation of Units. However, you should check with your distributor if there are any applicable charges that may be payable.

If you have invested in the Fund using CPF OA monies or SRS monies, we will not be imposing any charges nor will you be required to bear any CPF agent bank charges (for investments using CPF OA monies) or SRS operator charges (for investments using SRS monies) for Option 2 and Option 3 above from now until 5pm (Singapore time) on 19 March 2021.”

For more details, please refer to the shareholder notification letter.

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com