details of the Royal Skandia investment-linked fundsskandiainternationalhk.com/eng/pdf/New/Details of...on long term business.Royal Skandia Life Assurance Limited is registered in

SK3908/INT12-0298/January 2013

details of theRoyal Skandiainvestment-linked funds

Skandia International, part of the wealth management business of Old Mutual plc, is the international group of companies which provides offshore and cross-border investment solutions.

www.skandiainternationalhk.com

Calls may be monitored and recorded for training purposes and to avoid misunderstandings.Royal Skandia’s Hong Kong office: 24th Floor, Henley Building, 5 Queen’s Road Central, Hong Kong. Phone: +852 3552 5888 Fax: +852 3552 5889 E-mail: [email protected]

Authorised by the Insurance Authority of Hong Kong to carry on long term business.Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715

Authorised and regulated by the Isle of Man Insurance & Pensions Authority.

Royal Skandia is a member of the Association of International Life Offices.

When printed by Skandia this item is produced on a mixed grade material, which uses a combination of recycled wood or paper fibre from controlled sources and virgin fibre sourced from well managed, sustainable forests.

This document was last reviewed in January 2013. Please confi rm with your fi nancial adviser that this is the most up-to-date document for your product or servicing needs.

Important information• The relevant product is an investment-linked assurance scheme (‘ILAS policy’). It is a life assurance policy issued

by Royal Skandia Life Assurance Limited (‘Royal Skandia’). Your investments are subject to the credit risks of Royal Skandia.

• The contributions you pay towards your ILAS policy, and any investments made by Royal Skandia in the underlying funds you selected, will become and remain the assets of Royal Skandia. You do not have any rights or ownership over any of those assets. Your recourse is against Royal Skandia only.

• The contributions you pay, after deduction of any applicable fees and charges of your ILAS policy, will be invested by Royal Skandia in the underlying funds you selected. Your ILAS policy value will be calculated by Royal Skandia based on the performance of your selected underlying funds.

• Due to the various fees and charges levied by Royal Skandia on your ILAS policy, the return on your ILAS policy as a whole may be lower than the return of the underlying funds you selected.

• The investment-linked funds available under the relevant product can have very different features and risk profiles. Some may be of high risk.

Explanatory notesYou should be aware that the products offered by Royal Skandia are investment-linked life assurance policies and you will be investing in the life assurance policy. Royal Skandia offers a range of Royal Skandia investment-linked funds from which you can select as your investment choice, and these Royal Skandia investment-linked funds in turn invest into the relevant underlying investments.

Your policy will be allocated units in the Royal Skandia investment-linked funds chosen by you, and the value of your policy will be linked to the performance of the investment choice you select and hence your investments are subject to the performance of the underlying investments. However, as you are investing in a life assurance policy and not investing in the underlying investments, please note that those units are purely notional and you have no legal or benefi cial interest in the Royal Skandia investment-linked funds or the underlying investments.

In line with the above, please note that any phrase “Royal Skandia investment-linked fund” utilised or referred to throughout this document merely represents an investment choice you can select, which will be used to calculate the value of your policy. It should not be construed to mean a fund generally structured as a unit trust or mutual fund as referred to in the usual context.

contents

premier provider of investment choices introduction 1

lump sum investment 1

re¯ular investment 1

Royal Skandia 1

breadth of investment opportunities 2

your investments 3

ran¯e of investment-linked funds 4

list of investment-linked funds – char¯es 4

fund mana¯ement ¯roups 7

investment-linked fund information currency details 13

specifi c risk 13

other risk warnin¯s 13

unit prices 14

varyin¯ the unit price 14

deferrin¯ transactions 14

termination of a Royal Skandia investment-linked fund 14

the Royal Skandia investment proposition 15

the Royal Skandia MultiMana¯er investment choices 16

MultiMana¯er 17

¯lossary of investment terms 22

self select 23

further information 43

1

premier provider of investment choicesintroductionThis brochure explains the investment choices available to you through Royal Skandia's investment products. You should read it in conjunction with the relevant product brochure, as together these form part of the Principal Brochure.

You can invest in Royal Skandia's investment-linked funds through the following tax-effi cient products:

lump sum investment• Managed Capital Account

• Executive Wealthbuilder Account

re¯ular investment• Managed Capital Account

• Managed Pension Account

• Managed Savings Account

• Executive Wealthbuilder Account

Royal SkandiaRoyal Skandia is a company within Skandia International. Skandia International, part of the wealth management business of Old Mutual plc, is the international group of companies which provides offshore and cross-border investment solutions.

Originating in South Africa in 1845, the Old Mutual Group has a balanced portfolio of businesses offering asset management, life assurance, banking and general insurance services in 33 countries, primarily in South Africa, Europe, Latin America, Asia and North America. Old Mutual is listed on the London and Johannesburg Stock Exchanges, amongst others.

Being part of Old Mutual makes Skandia International a key division of one of the largest life assurers in Europe, with a strong fi nancial base. The Old Mutual Group has funds under management of £263.3 billion*, serving more than 12 million customers.

We recognise the importance of providing innovative, fl exible investment solutions and local support to our customers. Therefore, we opened our branch offi ces in Hong Kong in 1991 and Singapore in 2008 as our Asia hubs. We have local, dedicated teams with a wealth of experience, local market knowledge and international exposure. You can be assured that you are investing with a company that truly understands the needs of international investors.

* As at 30 September 2012, source: Old Mutual

2

By following our successful MultiManager approach to investment, you can benefi t from the expertise of some of the world's fi nest fund managers.

Our products provide you with a range of investment-linked funds, offering exposure to a wide range of markets, managers and asset types.

Fund managers need to be selected and monitored to ensure they remain at the top of their game, and replaced when they do not.

With this in mind, we offer you a range of leading fund management groups carefully selected based on their expertise and performance.

You can also tailor your investment choices across asset types and geographical sectors.

breadth of investment opportunities

There are many other advantages of investing with Royal Skandia.

You can:

• benefi t from any potential opportunities offered by stock market investment while avoiding the administrative burden of managing a directly held portfolio

• access award-winning investment management expertise and performance

• choose from a wide range of investment-linked funds, some of which may not normally be available to private investors

• switch your investment between the range as your investment objectives change

• access investments which benefi t from tax-free growth, except for certain investment income which may be subject to a tax deduction in its country of origin. (Please seek professional advice regarding your own particular tax circumstances)

• reduce personal risk by spreading investments across a larger number of shares owned collectively by the investment-linked fund compared to direct investment

• benefi t from reduced costs – share dealing on an individual basis can be costly

• monitor your investments by following the prices on our website www.skandiainternationalhk.com.

3

Through investment in a Royal Skandia product, you can benefi t from the knowledge and professionalism of a leading life assurance company, plus the investment expertise of top fund management groups.

You are investing into an investment-linked life assurance policy but not directly into the Royal Skandia investment-linked funds/assets nor the underlying investment.

You can select from the Royal Skandia investment-linked fund range for your policy. The value of benefi ts payable in a policy is based on the performance of the Royal Skandia investment-linked funds, less any applicable charges.

The Royal Skandia investment-linked funds contained in this document are authorised for marketing in Hong Kong. The authorisation by the Securities and Futures Commission is not a recommendation or endorsement of the investment-linked fund nor does it guarantee its commercial merits or performance. It does not mean the investment-linked fund is suitable for all investors nor it is an endorsement of its suitability for any particular investor or class of investors.

your investments

Whatever investment-linked funds you choose to invest in, you should be aware that, as a Royal Skandia policyholder, you will not own units in the Royal Skandia investment-linked funds or in the underlying investments. You have no legal or benefi cial interest in the Royal Skandia investment-linked funds or underlying investment.

Royal Skandia has established thorough monitoring procedures to ensure that the performance of the Royal Skandia investment-linked funds matches the performance of the relative underlying investments as closely as possible.

However, the performance of the Royal Skandia investment-linked funds will not entirely match that of the underlying investment because of Royal Skandia’s charges and Royal Skandia’s investment process.

4

Royal Skandia offers a comprehensive range of investment-linked funds, designed to meet your specifi c needs, all of which are available to Royal Skandia policyholders.

The table on pages 4 to 6 sets out the applied charges. These charges are refl ected in the price of the units. For details of any other charges which apply to specifi c Royal Skandia contracts, and which are taken by cancellation of units, please refer to the relevant product brochure.

For Royal Skandia investment-linked funds which are invested 100% into the underlying fund whose manager is referred to within the name, the external Annual Management Charge specifi ed refers to the Annual Management Charge which is applied by the appropriate fund manager. This charge is refl ected in the price of the investments which Royal Skandia purchase.

ran¯e of investment-linked funds

For other Royal Skandia investment-linked funds which may be invested in a range of investments including underlying funds, the external Annual Management Charge specifi ed refers to the typical charge which could be applied by the appropriate fund managers whose investments Royal Skandia purchase. The actual fee may change on a daily basis depending on where the underlying investments are invested.

The table also lists the Annual Management Charge deducted by Royal Skandia, which is also refl ected within the pricing.

For details of the underlying funds including their fees and charges, please refer to the respective offering documents of the underlying funds.

Past performance is not necessarily a guide to future performance, and the value of investment-linked insurance policy is not guaranteed as the prices of units may fall as well as rise. Where an investment-linked fund holds investments in another currency, or where the denomination of the product is different to the underlying investment, there may be additional risks because of exchange rate fl uctuations.

Investment involves risks. You should always seek the advice of your professional adviser before making investment decisions.

Depending on the nature of any changes, Royal Skandia will use best endeavours to give you advance notice of between one and three months, or shorter as agreed by the relevant regulator.

list of investment-linked funds – char¯es

Royal Skandia Investment-linked Fund Name Sector

External AnnualManagement Charges

Royal SkandiaAnnualManagementCharge

MultiManager

RS USD Aggressive Flexible Managed up to 2.50% 1%

RS USD Balanced Balanced Managed up to 2.50% 1%

RS USD Cautious Cautious Managed up to 2.50% 1%

RS GBP Deposit Money 0.00% 1%

RS HKD Deposit Money 0.00% 1%

RS USD Deposit Money 0.00% 1%

RS USD Diversifi ed Managed Flexible Managed up to 2.50% 1%

RS USD Global Fixed Interest Blend Global Fixed Interest up to 2.50% 1%

RS USD Global Real Estate Securities Property up to 2.50% 1%

RS SEK Swedish Equity Europe Excluding UK up to 2.50% 1%

RS GBP UK Index Tracker UK All Companies up to 2.50% 1%

RS GBP US Index Tracker North America up to 2.50% 1%

5





self select

RS USD Aberdeen Global Chinese Equity Asia Pacifi c Excluding Japan 1.75% 1%

RS USD Aberdeen Global Emerging Markets Equity Global Emerging Markets 1.75% 1%

RS USD Aberdeen Global Technology Specialist 1.75% 1%

RS USD AXA World Funds Framlington Health Global Equities 1.75% 1%

RS USD Baring China Select Asia Pacifi c Excluding Japan 1.50% 1%

RS USD Baring Eastern Europe Global Emerging Markets 1.50% 1%

RS GBP Baring Europe Select Trust Europe Including UK 1.50% 1%

RS USD Baring Global Aggregate Bond Global Fixed Interest 0.75% 1%

RS GBP Baring Global Emerging Markets Global Emerging Markets 1.50% 1%

RS USD Baring Global Emerging Markets Global Emerging Markets 1.50% 1%

RS USD Baring Global Resources Commodity and Energy 1.50% 1%

RS USD Baring Global Select Global Equities 1.50% 1%

RS USD Baring High Yield Bond Global Fixed Interest 1.00% 1%

RS USD Baring Hong Kong China Asia Pacifi c Excluding Japan 1.25% 1%

RS GBP Baring Korea Trust Asia Pacifi c Excluding Japan 1.50% 1%

RS USD BlackRock GF China Asia Pacifi c Excluding Japan 1.50% 1%

RS EUR BlackRock GF Continental European Flexible Europe Excluding UK 1.50% 1%

RS USD BlackRock GF Global Allocation Specialist 1.50% 1%

RS USD BlackRock GF Global Equity Global Equities 1.50% 1%

RS USD BlackRock GF India Asia Pacifi c Excluding Japan 1.50% 1%

RS USD BlackRock GF Latin American Global Emerging Markets 1.75% 1%

RS USD BlackRock GF New Energy Commodity and Energy 1.75% 1%

RS GBP BlackRock GF United Kingdom UK All Companies 1.50% 1%

RS USD BlackRock GF US Flexible Equity North America 1.50% 1%

RS USD BlackRock GF World Bond Global Fixed Interest 0.85% 1%

RS USD BlackRock GF World Energy Commodity and Energy 1.75% 1%

RS USD BlackRock GF World Gold Commodity and Energy 1.75% 1%

RS USD BlackRock GF World Healthscience Global Equities 1.50% 1%

RS USD BlackRock GF World Mining Commodity and Energy 1.75% 1%

RS USD BNP Paribas L1 Bond Best Selection World Emerging Global Fixed Interest 1.50% 1%

RS EUR BNP Paribas L1 Equity Russia Global Emerging Markets 1.75% 1%

RS USD BNP Paribas L1 Equity World Emerging Global Emerging Markets 1.75% 1%

RS EUR BNP Paribas L1 Equity World Materials Global Equities 1.50% 1%

RS EUR BNP Paribas L1 Equity World Utilities Commodity and Energy 1.50% 1%

RS USD BNY Mellon Asian Equity Asia Pacifi c Excluding Japan 2.00% 1%

RS USD BNY Mellon Continental European Equity Europe Excluding UK 2.00% 1%

RS USD BNY Mellon Global Bond Global Fixed Interest 1.00% 1%

RS USD Eastspring Investments Asian Bond Global Fixed Interest 1.25% 1%

RS USD Eastspring Investments Asian Infrastructure Equity Asia Pacifi c Excluding Japan 1.50% 1%

RS USD Fidelity Asian Aggressive Asia Pacifi c Excluding Japan 1.50% 1%

RS USD Fidelity China Focus Asia Pacifi c Excluding Japan 1.50% 1%

RS GBP Fidelity Emerging Europe, Middle East and Africa Global Emerging Markets 1.50% 1%

RS GBP Fidelity Global Financial Services Global Equities 1.50% 1%

RS GBP Fidelity Global Health Care Global Equities 1.50% 1%

RS GBP Fidelity Global Industrials Global Equities 1.50% 1%

RS GBP Fidelity India Focus Global Emerging Markets 1.50% 1%

RS USD Fidelity Latin America Global Emerging Markets 1.50% 1%

RS GBP Fidelity Sterling Bond UK Fixed Interest 0.75% 1%

RS USD Franklin India Asia Pacifi c Excluding Japan 1.50% 1%

RS USD Franklin MENA Global Emerging Markets 2.00% 1%

RS USD Franklin Mutual Beacon North America 1.50% 1%

RS USD Franklin US Equity North America 1.50% 1%

RS USD Franklin US Government Global Fixed Interest 0.95% 1%

RS USD Franklin US Opportunities North America 1.50% 1%

6





RS GBP GAM Star Continental European Equity Europe Excluding UK 1.50% 1%

RS USD GAM Star US All Cap Equity North America 1.60% 1%

RS USD HSBC GIF Brazil Equity Global Emerging Markets 1.75% 1%

RS USD HSBC GIF BRIC Markets Equity Global Emerging Markets 1.50% 1%

RS USD HSBC GIF Chinese Equity Asia Pacifi c Excluding Japan 1.50% 1%

RS USD HSBC GIF Climate Change Global Equities 1.50% 1%

RS EUR HSBC GIF Euroland Equity Europe Excluding UK 1.50% 1%

RS USD HSBC GIF Global Emerging Markets Equity Global Emerging Markets 1.50% 1%

RS USD HSBC GIF Hong Kong Equity Asia Pacifi c Excluding Japan 1.00% 1%

RS USD HSBC GIF Indian Equity Global Emerging Markets 1.50% 1%

RS USD HSBC GIF Korean Equity Asia Pacifi c Excluding Japan 1.50% 1%

RS USD HSBC GIF Russia Equity Global Emerging Markets 1.75% 1%

RS USD HSBC GIF Singapore Equity Asia Pacifi c Excluding Japan 1.00% 1%

RS USD HSBC GIF Thai Equity Asia Pacifi c Excluding Japan 1.50% 1%

RS GBP HSBC GIF UK Equity UK All Companies 1.50% 1%

RS USD INVESCO ASEAN Equity Asia Pacifi c Excluding Japan 1.00% 1%

RS USD INVESCO Asia Balanced Specialist 1.25% 1%

RS USD INVESCO Asia Opportunities Equity Asia Pacifi c Excluding Japan 1.00% 1%

RS USD INVESCO Asian Equity Asia Pacifi c Excluding Japan 1.50% 1%

RS USD INVESCO Bond Global Fixed Interest 0.50% 1%

RS USD INVESCO Emerging Markets Equity Global Emerging Markets 1.50% 1%

RS USD INVESCO Global Healthcare Specialist 1.50% 1%

RS USD Investec GS Continental European Equity Europe Excluding UK 1.50% 1%

RS USD Investec GS Global Dynamic Global Equities 1.00% 1%

RS USD Investec GS Global Energy Commodity and Energy 1.50% 1%

RS USD Investec GS Global Gold Commodity and Energy 1.50% 1%

RS USD Investec GS Global Natural Resources Commodity and Energy 1.50% 1%

RS USD Investec GS Global Strategic Equity Global Equities 1.50% 1%

RS USD JPMorgan ASEAN Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Australia Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Eastern Smaller Companies Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Greater China Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Hong Kong Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Korea Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Pacifi c Securities Asia Pacifi c Including Japan 1.50% 1%

RS USD JPMorgan Taiwan Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPMorgan Thailand Asia Pacifi c Excluding Japan 1.50% 1%

RS USD JPM America Equity North America 1.50% 1%

RS USD Martin Currie GF Global Resources Commodity & Energy 1.50% 1%

RS USD Parvest Equity Brazil Global Emerging Markets 1.75% 1%

RS USD Pictet Timber Specialist 1.60% 1%

RS USD Pictet Water Commodity & Energy 1.60% 1%

RS USD Schroder Global Corporate Bond Global Fixed Interest 0.75% 1%

RS USD Templeton Asian Growth Asia Pacifi c Excluding Japan 1.85% 1%

RS USD Templeton BRIC Global Emerging Markets 2.10% 1%

RS USD Templeton Emerging Markets Global Emerging Markets 2.10% 1%

RS USD Templeton Emerging Markets Smaller Companies Global Emerging Markets 2.10% 1%

RS USD Templeton Global Global Equities 1.50% 1%

RS USD Templeton Global Bond Global Fixed Interest 1.05% 1%

RS GBP Threadneedle American North America 1.50% 1%

RS GBP Threadneedle Dollar Bond Global Fixed Interest 1.00% 1%

RS GBP Threadneedle Latin America Global Emerging Markets 1.50% 1%

RS GBP Threadneedle Strategic Bond UK Fixed Interest 1.25% 1%

7

Aberdeen AssetMana¯ementEstablished – 1983First linked to Royal Skandia – 2000

Aberdeen Asset Management is a global investment management group, managing assets for both institutional and retail clients.

Their clients access their investment expertise in equities, fi xed income, property and alternatives solutions. They invest worldwide and follow a predominantly long-only approach, based on fundamentally sound investments. Their mission is to deliver strong fund performance across diverse asset classes in which they believe they have a sustainable competitive edge.

Aberdeen has 31 offi ces in 23 regions globally, with key investment centres in London, Philadelphia, Singapore and Sydney. The Group is listed on the London Stock Exchange since 1991 and is a FTSE 100 company now.

AXA Framlin¯tonEstablished – 1969 First linked to Royal Skandia – 2001

AXA Framlington is a fundamental bottom-up equity specialist, based in London and Paris, managing over £21 billion of assets as at December 2011. AXA Framlington is part of AXA Investment Managers group (over £428 billion of assets as at December 2011), a multi-expert investment management company backed by the AXA Group. The business has a

fund mana¯ement ¯roups*

dynamic and autonomous investment culture combined with the stability and operational scale that comes with being part of one of the world’s largest investment managers.

AXA Framlington’s portfolio managers apply in-depth company research and analysis to identify the drivers of long-term investment success for their clients. The team benefi ts from the knowledge of over 50 portfolio managers and sector specialists, with an average of 14 years’ industry experience.

The company offers a full range of high conviction equity products across global, regional and thematic strategies aimed at delivering consistent excess returns to clients through fundamental, bottom-up stock selection. The company manages pooled funds, as well as segregated mandates for sovereign wealth funds, pension accounts, charities and corporate clients.

Barin¯ Asset Mana¯ementEstablished – 1762 First linked to Royal Skandia – 1989

Baring Asset Management is a global investment management company with a history close to 250 years. Barings has offi ces, clients and business lines spanning the world’s major markets, operating from 11 countries with professionals from 25 different nations. They provide asset management services in developed and emerging equity and bond

markets on behalf of institutional, retail and private clients worldwide and have US$49.7 billion of assets under management.(1)

Since the foundation of Barings in 1762, the common thread linking their past to present has been their ability to help clients benefi t from changes in the markets. This tradition continues today as they invest client assets across global markets using the proprietary insights generated by a team of 99 investment professionals(2).

Their main business focus in Asia is to manage asset locally and to distribute their range of institutional products and managed funds. Within the region, they manage assets for clients including central banks, pension funds and distribute their retail funds via intermediaries.

Barings operates as a subsidiary of MassMutual Financial Group, a leading diversifi ed fi nancial services organisation. MassMutual has a long history of fi nancial strength and strong performance and is a diversifi ed fi nancial services group and one of the largest life insurance businesses in the US. MassMutual is running its asset management business with US$443.4 billion in assets under management.(3)

1. Source: As of 29 February 2012.2. Investment Professionals as 1 March 20123. Source: MassMutual Financial Group, as of 31 December 2011, Assets Under Management include assets and certain external investment funds managed by MassMutual subsidiaries.

* source: provided by respective external management groups

8

BlackRock Established – 1988 First linked to Royal Skandia – 1998

In a world that is shifting and changing faster than ever before, investors who want answers that unlock opportunity and uncover risk entrust their assets to BlackRock. As an independent, global investment manager, BlackRock has no greater responsibility than to its clients.

It’s why many of the world’s largest pension funds and insurance companies trust BlackRock to understand their unique objectives and why fi nancial advisers and investors partner with BlackRock to help them build the more dynamic, diverse portfolios these times require.

BlackRock has built its offering around its clients’ greatest needs: providing breadth of capabilities and depth of knowledge – across active and passive strategies, including iShares® ETFs. This is combined with a singular focus on delivering strong, consistent performance and an ability to look across asset classes, geographies and investment strategies to fi nd the right solutions.

With deep roots in every region across the globe, some 100 investment teams in 27 countries share their best thinking to gain the insights that can change outcomes. And, with a passion to understand risk in all its forms, BlackRock’s 1,000+ risk professionals dig deep to fi nd the numbers behind the numbers and bring clarity to the most daunting fi nancial challenges. That shapes and strengthens the investment decisions that BlackRock and its clients are making to deliver better, more consistent returns through time.

BNP Paribas Investment PartnersEstablished – 1999First linked to Royal Skandia – 2004

BNP Paribas Investment Partners is the dedicated autonomous asset management business of the BNP Paribas Group. BNP Paribas Investment Partners offers the full range of investment management services to both institutional and retail clients around the world. Central to the way they work is the concept of partnership – both in terms of how they behave as a family of companies and the relationships with their clients. Around 800 investment professionals work across their network of some 60 investment centres, each specialising in a particular asset class or type of product. With total assets under management of EUR 492 billion*, BNP Paribas Investment Partners is the 6th-largest asset manager in Europe*.

* Source: BNPP IP, 31 December 2011

BNY Mellon Asset Mana¯ementEstablished – 1977First linked to Royal Skandia – 1998

The BNY Mellon Global Funds range is managed by the BNY Mellon Asset Management stable of specialist fund management companies.

BNY Mellon Asset Management is the global asset management arm of BNY Mellon, one of the world’s major fi nancial services groups, with operations in 36 countries serving more than 100 markets. With US$1.26 trillion in assets under management*, BNY Mellon Asset Management is a global leader. The company offers a wide variety of strategies that enable

sophisticated investors to meet their objectives, with depth and breadth of expertise in every major sector and asset class.

*As at 31 December 2011

Eastspring InvestmentsEstablished – 1998 First linked to Royal Skandia – 2011

Eastspring Investments, part of Prudential Corporation Asia, is Prudential’s asset management business in Asia. They are one of Asia’s largest and most successful asset managers, with operations in 10 markets, approximately 2,000 employees in Asia.

They manage funds on behalf of a wide range of retail and institutional investors, including life and pension products sold by Prudential in the U.K. and across Asia.

They have investment teams in eight markets, including their regional hub in Singapore. Their clients benefi t from the expertise of their large team of Asia-based investment managers who manage funds across a broad range of asset classes including one of the largest Fixed Income portfolios in Asia, Asia equities (including global emerging market equities) and alternative assets including private equity, property and infrastructure. Their expertise also includes a specialist Global Asset Allocation team which manages portfolios worldwide from the perspective of the world’s fastest growing region.

About half of their total assets are sourced from third party clients. They are the largest multinational onshore mutual fund manager in the region*.

9

Eastspring Investments operates in Japan, Malaysia, Singapore, South Korea, Taiwan, Hong Kong, the United Arab Emirates and Vietnam, and has joint venture operations in India, China and Hong Kong.

*Data as at Dec 2011. Source: Korea (AMAK), India (AMFI), Singapore/Malaysia (Lipper), Japan (ITA), Taiwan (SITCA), China (Wind). Competitors selected based on the largest multi-national players in the following 7 Asian markets: Korea, India, Singapore, Malaysia, Japan, Taiwan, China. 100% FUM accounted for all players, regardless of ownership stake.

Fidelity Worldwide InvestmentEstablished – 1969 First linked to Royal Skandia – 1991

Fidelity Worldwide Investment “Fidelity” is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacifi c.

Fidelity is active manager who put meticulous fundamental research at the heart of the investment process. Fidelity believes that markets are only semi-effi cient, meaning that markets, sectors and stocks can be overvalued or undervalued at any point in time and that research can uncover profi table opportunities.

Fidelity is based on bottom-up fundamental analysis approach. Their portfolios are built from the bottom up, security by security, taking account of general market trends but not being driven by them. Portfolio managers are responsible for their funds and encouraged to develop their individual fl air, while benefi ting from Fidelity’s global research.

Fidelity’s investment professionals across the globe access senior company management, their offi ces, their plants and factory fl oors. They talk to a company’s suppliers, distributors and customers to build a three-dimensional view of every company in which they invest.

Fidelity dedicates to investment management and distinctive bottom-up research has cultivated many accolades which is testimony to our industry leadership:

• Best Overall Fund Management Firm Asia for the fi fth consecutive year in Thomson Reuters Extel Survey Asia Pacifi c 2010.

• Winner of over 150 Lipper Fund Awards across Asia and Europe in 2011.

Franklin Templeton InvestmentsEstablished – 1947 First linked to Royal Skandia – 1998

Franklin Templeton Investments is a global investment management organisation. At the core of their business are multiple world-class investment management groups - Franklin, Templeton, Mutual Series and Franklin Templeton Fixed Income, each operating autonomously and offering clients their unique perspectives. Together, they are fi rmly committed to bringing clients the expertise of many with the strength of one.

The separate management groups at Franklin, Templeton, Mutual Series and Franklin Templeton Fixed Income each started over 50 years ago. Each offers specialised, time-tested expertise, with distinct investment focuses from

fi xed income assets to core equity to global investing. Because their management groups work independently and adhere to distinctly different investment approaches, Franklin, Templeton, Mutual Series and Franklin Templeton Fixed Income funds typically have a low overlap of securities.

They seek to consistently provide investors with exceptional risk adjusted returns over the long term, as well as the reliable, accurate and personal service that has helped Franklin Templeton Investments become one of the most trusted names in fi nancial services.

GAMEstablished – 1983 First linked to Royal Skandia – 2008

Established in 1983, GAM is an independent, active investment manager, delivering solutions to institutions, intermediaries, private clients and charities from offi ces in fi nancial centres around the world.

Their aim is to deliver strong, long-term returns for their clients. They seek to achieve their clients’ investment objectives through a focus on both producing returns and managing risk. Their USD 47.9 billion1 in assets under management spans approximately 60 separate investment strategies across equity, fi xed income, absolute return, funds of hedge fund, discretionary portfolio management and tailored investment solutions.

All their managers – in-house and external – are active investors who have the freedom to invest without having to conform to a single ‘house style’. The common threads that link them are their

10

specialist talent, disciplined investment approaches, intense focus on risk and alignment of interests with clients. Because active investing is about taking well-considered risks, they provide them with extensive risk management and modelling tools and monitor them with independent oversight from a dedicated risk team.

They have an alternative perspective on the world, and they take an entrepreneurial approach that embraces new thinking when they believe it will deliver sustainable returns for clients. It is their focus on performance, risk management, uncompromising investment standards and partnership with their clients that enables us to deliver long-term results.

With investment strategies offered across fi ve product suites, GAM’s investment and client teams around the world have the fl exibility to provide solutions that match clients’ needs, be they straightforward or sophisticated.1 The reported total AuM of GAM of USD 47.9 billion include cross-holding assets of approximately USD 5.1 billion in accordance with Group accounting policy, which follows the principles and guidelines of the Swiss Financial Market Supervisory Authority (FINMA). GAM’s assets under management without cross-holdings as at 31 December 2011 are approximately USD 42.8 billion.

HSBC Global Asset Mana¯ementEstablished – 1975First linked to Royal Skandia – 1999

HSBC Global Asset Management is a leading global asset management fi rm managing assets totaling USD400.2 billion at the end of December 2011. As one of the world’s leading emerging markets asset management businesses, through its network of offi ces in over

35 countries around the world, HSBC Global Asset Management has strong relationships with corporates, institutions and fi nancial intermediaries of all sizes and types.

HSBC Global Asset Management offers clients around the world a diverse and full range of active and quantitative investment products including equity, fi xed income, liquidity and alternative strategies. Their objective is to manage focused investment strategies that are responsive to client needs while delivering long-term value.

Invesco Asset Management Asia LimitedEstablished – 1863First linked to Royal Skandia – 1992

Invesco is one of the most experienced global investment managers in Asia, having invested in the region since 1962. They have a comprehensive coverage in the Asia Pacifi c region, with offi ces in Hong Kong, China*, Singapore, Japan, Taiwan and Australia.

Invesco offers a multi-style, multiproduct approach to providing investment products for their investors worldwide to cater for the varying needs in different regions and economic environment and personal circumstances.

As a leading investment management fi rm, Invesco offers its clients a product range that is characterised by depth, breadth, and a strong overall performance record that not many of its competitors can match. Investment solutions range from major equity and fi xed-income asset classes to non-traditional asset classes including real estate.

These investment capabilities are delivered through a number of distinctive investment teams with clearly articulated philosophies and processes. All teams apply investment disciplines that are underpinned by diligent oversight as well as a rigorous quality control process.

*Through a representative offi ce.

Investec Asset Mana¯ementEstablished – 1991First linked to Royal Skandia – 1992

Investec Asset Management is a specialist provider of active investment products and services to institutional and individual investors. Established in South Africa in 1991, the fi rm has been built from a small start-up into an international business managing US$99.4billion*. Their clients include some of the world’s largest private and public sector pension funds and range from foundations and central banks to intermediated and direct investors.

The business has grown largely organically from domestic roots in Southern Africa to a position where they proudly serve a growing international client base from the Americas, the UK and Continental Europe, Asia, the Middle East, Australia and Africa. They employ over 135 investment professionals.

The fi rm seeks to create a profi table partnership between clients, shareholders and employees and their aim is to exceed their clients’ investment and client service expectations and to manage their money to the highest possible standard.

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Investec Asset Management is a signifi cant component and independently managed entity within the Investec Group, which is listed in London and Johannesburg. The fi rm is still managed by its founding members, representing continuity and stability throughout the fi rm’s successful growth.

* As at end of February 2012.

J P Mor¯an Asset Mana¯ementEstablished – 1837 First linked to Royal Skandia – 1995

J P Mor¯an Asset Management is the asset management division of JPMorgan Chase & Co. and is one of the world’s largest asset managers. With a heritage of more than two centuries, a broad range of core and alternative strategies, and investment professionals operating in every major world market, the company offers investment experience and insight that few other fi rms can match.

The company has a global network of 740 investment professionals located worldwide and assets under management of almost US$1.4 trillion*. This enormous global investment capability is based on a strong local market presence across three regions – Asia Pacifi c, Europe and the US – and brings together an incredible pool of specialist investment knowledge and expertise which further enhances our capabilities to provide clients with the very best products.

With the reputation for innovation and market leadership, the company is committed to helping investors reach their fi nancial goals by providing them with a broad range of professionally

managed funds, excellence in investment performance, and the highest quality of client service.

* As at 30 September 2012.

Martin CurrieEstablished – 1881 First linked to Royal Skandia – 2010

Martin Currie is a specialist investment management business. From its headquarters in Edinburgh, the company manages £5.5 billion in active equity portfolios for a global client base of fi nancial institutions, charities, foundations, endowments, pension funds, family offi ces, government agencies and investment funds. Martin Currie is a private company, owned and managed by its full-time employees. The company believes that employee-ownership confers stability, minimises corporate distractions and helps the company to attract and retain talent. The company is committed to remaining independent, and sees this as critical to their future success. Martin Currie employs a staff of 229 across the fi rm, including 46 investment professionals. The team of portfolio managers constructs and monitors committed, distinctive equity portfolios according to clients’ needs. Their resources include regional and sector research, proprietary stock screening and integrated risk management. Martin Currie describes itself as ‘The Big Boutique’. In its broadest sense, this means having the solidity, professionalism and robustness of process of a large company, combined with the distinctiveness, client focus and personal ownership of a small company.

All fi gures as at 31 December 2011.

Pictet Established – 1805First linked to Royal Skandia – 2009

Pictet was founded in Geneva in 1805 and is today one of the largest private banks in Europe and a leading independent asset and wealth manager. It is an asset management specialist focusing mainly on asset management, investment funds, wealth management and asset services including global custody of expertise.

Pictet Asset Management is the asset management arm of the Pictet Group and provides a range of more than 100 funds and a wide choice of investment strategies which are constantly being enhanced in terms of product variety and innovation. As at March 2012, the asset under management of Pictet Asset Management is USD133.2 billion.

Schroders (Hon¯ Kon¯)Established – 1804First linked to Royal Skandia – 1994

Schroders is a leading independent international asset management company with a history of over 200 years and more than US$291 billion in assets under management. Schroders is one of the largest asset managers listed on the London Exchange. With one of the largest networks of offi ces of any dedicated asset management company, and over 350 portfolio managers and analysts covering the world’s investment markets, offering their clients a comprehensive range of products and services.

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Schroders’ investment capabilities have been recognized by experts across the world and our range of funds has won numerous awards worldwide over the past years. Schroders is highly committed to excellence in risk management. They have a stringent research and investment process which provides security and confi dence in our ability to produce consistent performance for their clients.

In Hong Kong, Schroders has built a strong local presence since 1971. This is evidenced by its extensive list of clients comprising reputable listed companies, pension funds, government bodies, charities, corporations and individual investors throughout the world.

All fi gures as at 31 December 2011.

ThreadneedleEstablished – 1994First linked to Royal Skandia – 2004

Threadneedle is an international investment manager with a strong track record of outperformance across asset classes. They actively manage US$113.5 billion of assets, investing on behalf of individuals, pension funds, insurers and corporations. Threadneedle’s distinctive investment approach is based on creative thinking, sharing of ideas and rigorous debate. Established in 1994 in London, Threadneedle has a presence in 16 countries.

Threadneedle is the international asset management arm of Ameriprise Financial (NYSE: AMP), a leading US diversifi ed fi nancial services company

and one of the 30 largest asset management fi rms globally. Ameriprise has more than US$631 billion in owned, managed and administered assets and is the US leader in fi nancial planning. As its international investment platform, Threadneedle provides Ameriprise and its clients with world class investment solutions.

All fi gures are as at 31 Dec 2011.

13

currency detailsRoyal Skandia investment-linked funds are available in a range of currencies - US$, £, HK$ and ¤. Not all of them are available in all currencies.

Where a currency has * next to it, Royal Skandia investment-linked fund prices are produced using Royal Skandia’s multi-currency pricing system. This means that Royal Skandia takes the price of each investment-linked fund and, by applying an exchange rate to the base currency, produces an equivalent price in each of the other currencies. In these cases, the value of it will be subject to exchange rate fl uctuations.

specifi c riskRoyal Skandia investment-linked fund names followed by numbers are subject to the conditions outlined here. It is important for investors to consider this information before the investment is made.

1. The underlying fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of it may therefore rise and fall as a result of exchange rate fl uctuations.

2. These Royal Skandia investment-linked funds offer pricing alternatives and, as a result, exchange rate movements will affect the price of it compared to the underlying investments.

investment-linked fund information

3. Due to the various fees and charges levied by Royal Skandia, the return on your policy as a whole may be lower than the return of the underlying investment you selected.

4. Investments in the Royal Skandia investment-linked fund are volatile and investors should expect an above average price increase or decrease.

5. Whilst the Royal Skandia investment-linked fund invests in property and will therefore be affected over the longer term by property fundamentals, it holds investments indirectly via property securities. This means that the price of the investment-linked fund will be affected by events in property markets, but also signifi cantly by other factors that affect share prices such as investor sentiment and supply and demand. The price is therefore likely to be more volatile than a directly invested property portfolio and may perform markedly differently over the short to medium term.

other risk warnin¯sSome underlying funds and certain respective underlying investments may use fi nancial instruments such as:

– currency forward contracts

– futures

– options

– debt obligations

– swaps

– over-the-counter derivatives

for hedging purposes, effi cient portfolio management or as part of the investment policy. They may be highly volatile and of high risk.

Underlying funds may be exposed to insolvency risk related to third party institutions.

There may be risk to your investment in the unlikely event that Royal Skandia goes into liquidation. However, there are certain safeguarding measures which can be found in our product brochure.

These are just a few of the general risks in the fi nancial market. For details of all specifi c risks involved, please refer to the respective offering document/prospectus of the underlying fund. You should always discuss your fi nancial requirements and risk tolerance level with your fi nancial adviser in the fi rst instance.

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unit pricesRoyal Skandia normally calculates the value of units once on each working day although it may do this more or less often if considered necessary, for example where prices of the assets contained within the investment-linked fund are themselves priced more or less frequently.

varyin¯ the unit priceMost account transactions will be carried out at a price calculated using a valuation based on buying, or offer, prices of the underlying assets. However, there may be occasions when Royal Skandia has to sell the underlying assets because more money moves out of an investment-linked fund than into it on any one day. If this occurs, Royal Skandia may adjust the basis used for calculating unit prices of the investment-linked fund to protect policyholders who remain in the investment-linked fund. The adjustment will result in a drop in the unit prices of the investment-linked fund that day broadly to refl ect the difference between the buying and selling prices of the investment-linked fund’s underlying assets.

deferrin¯ transactionsTo safeguard all policyholders, Royal Skandia reserves the right to defer any request for a switch or encashment by up to two weeks. If an investment-linked fund holds real property directly or indirectly, Royal Skandia may exercise a longer deferral period (maximum 12 months) because the property in it may not be readily saleable. For an investment-linked

property fund, you should note the value of the property is generally a matter of a valuer’s opinion rather than fact.

Where circumstances prevent Royal Skandia from calculating fair and accurate unit prices for a particular transaction, Royal Skandia may defer the transaction to a date it considers appropriate and equitable. Royal Skandia will consider the circumstances, your interests and the interests of all of its policyholders.

termination of a Royal Skandia investment-linked fundRoyal Skandia has the right to close any of its investment-linked funds if considered necessary. In such circumstances policyholders invested in it would be switched to another alternative on a bid to bid basis.

Royal Skandia will use best endeavours to give you advance notice of not less than one month or such shorter period of notice in compliance with the relevant regulatory requirments. In such event, Royal Skandia will give you the opportunity to select an alternative fund choice. If you do not select an alternative fund Royal Skandia will select one for you, normally the Royal Skandia Deposit investment-linked fund in the same currency as your policy.

15

The Royal Skandia investment-linked fund proposition provides access to an extensive range of world-class investments, covering a multitude of asset classes, investment strategies and geographic regions. We seek to offer ample choice with the fl exibility to refi ne the investment options as the needs of the investor change.

the Royal Skandia investment proposition

The investment proposition is split into two distinct offerings:

Self Select offers a wide choice of investment-linked funds from market-leading managers. This range of investment-linked funds provides full control over investment strategy and gives the freedom to make your own decisions about portfolio construction and investment choice.

MultiManager offers access to the specialist service of ‘managing the managers’ and provides the fl exibility for investors to either retain asset allocation decisions or to delegate them to experts.

The return of each of the investment-linked funds within the MultiManager offering is calculated with reference to a pool of assets internally managed on a discretionary basis by Royal Skandia.

World-class investment proposition

Self SelectAn extensive selection of fund managersand their funds

Comprehensive choice across assettypes, geographic regions and sectors

Freedom to create tailored portfolios

MultiManagerDelegated fund manager and/or asset allocation decisions

Investment experts select, monitor and de-select fund managers

A blend of manager skills to createcomplete investment solutions

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Royal Skandia offers a wide range of investment-linked funds which are ultimately managed by world-class fund managers. This MultiManager approach allows investors to benefi t from varying investment styles, providing access to investment choices across different asset classes and geographic regions. Each investment-linked fund is managed in accordance to a strict investment mandate which dictates the levels of exposure to certain markets and asset classes that it can invest in along with the permissible overweight or underweight tolerance levels. The performance is monitored daily against a set benchmark and is formally reviewed every month by the Investment Committee who carry the overall responsibility for these funds.

The day to day management of the investment-linked funds is carried out by a team of over 50 highly qualifi ed and experienced investment professionals who specialise in the researching and monitoring of investment managers. The performance is monitored and success is measured according to the same ‘4P’ criteria. This ensures that every manager appointed to run a portion of the fund, is selected according to the rigorous 4P process, to ensure that the fund is managed to the high standards expected from Royal Skandia.

the Royal Skandia MultiMana¯er investment choices

The ‘4P Process’

Royal Skandia’s approach to manager selection focuses on gaining a qualitative understanding of a fund manager’s capabilities supported by quantitative evidence gathering. To achieve this, the four fundamental cornerstones of the research process – the ‘4P’s – are assessed:

• Philosophy – how the manager is seeking to add value

• Process – day to day activities that demonstrate a manager’s stated philosophy in action and generate added value

• People – whether the company have enough people, suffi ciently skilled to implement and operate in practice the stated philosophy

• Performance – the evidence that demonstrates the investment approach and levels of manager skill

The investment-linked funds are constantly being reviewed in an attempt to avoid stagnant fund managers, style drift within funds or indeed poor investment decisions.

Whilst the 4P process does not offer a performance guarantee, this high level of due diligence and investment integrity should lead to long term strong performance and the avoidance of some of the pitfalls we have witnessed in markets in recent times.

17

RS USD Aggressive US$/HK$*The Royal Skandia investment-linked fund aims to provide long term capital growth through a diversifi ed portfolio of global securities.

Performance is sought through a combination of stock selection and asset allocation between markets. It should be noted that the precise split of assets may vary but will be controlled within defi ned parameters. The tactical range of the investment portfolio is intended to be:

Equities: 90% - 100%Money market/deposits: 0% - 10%

Investments in emerging markets tend to be volatile and are usually considered to carry a greater degree of risk than investments in established markets. This relates to dealing, settlement and custody practices, the possibility of political or economic instability, and developing legal, fi scal and regulatory structures.

The investment-linked fund invests in fi xed interest securities, which may include non-investment grade bonds, as well as money market instruments (including deposits with banks or other fi nancial institutions). The yield and/or value of the fund will fl uctuate as interest rates change. There is a possibility of default, reducing capital values.

The investment-linked fund may hold derivatives, or borrow up to 10% of the fund assets, to invest (‘gearing’), and the nature of these investments can lead to a higher volatility in the price of

MultiManager

the fund. The use of derivatives, which may include equity futures and interest rate swaps, can be for both, investment and hedging purposes. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. Security lending by the investment-linked fund is not currently allowed.

The investment-linked fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fl uctuations.

RS USD Balanced US$/HK$*The Royal Skandia investment-linked fund aims to provide long term capital growth. It invests in a diversifi ed portfolio with a long term asset allocation of global equities, fi xed interest securities, cash and alternative investments.

The equity exposure within the investment-linked fund is achieved through a diversifi ed portfolio of global equity securities. The global fi xed interest component is diversifi ed across the world’s government and non-government bond markets and can include non-investment grade bonds. The high yield refl ects a higher risk of capital loss through default. The tactical range of the investment portfolio is intended to be:

Equities: 50% - 90%Fixed interest securities: 0% - 30%Alternatives: 0% - 20%Money market/deposits: 0% - 10%

The alternative investments, which include property and derivatives, represent a risk profi le typically between that of equities and fi xed interest. There are no plans for these investments to make up more than 30% of the fund assets.

Property investment may be achieved through investment in direct property and/or property securities. Currency hedging is used to mitigate exposure to exchange rate movements for fi xed interest and alternative assets which are denominated in other currencies. Performance is sought through a combination of stock selection and asset allocation between markets.


The investment-linked fund invests in fi xed interest securities, which may include non-investment grade bonds, as well as money market instruments (including deposits with banks or other fi nancial institutions). The yield and/or value of the investment-linked fund will fl uctuate as interest rates change. There is a possibility of default, reducing capital values.

The investment-linked fund may hold derivatives, or borrow up to 10% of the fund assets, to invest (‘gearing’), and the nature of these investments can lead to a higher volatility in the price of the fund. The use of derivatives, which

Explanation of the word ‘parameters’ can be found in the glossary terms on page 22.* Please refer to currency details on page 13.

18

may include equity futures and interest rate swaps, can be for both, investment and hedging purposes. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. Security lending by the investment-linked fund is not currently allowed.

The value of property is generally a matter of a valuer’s opinion rather than fact. In addition, property investments may not be readily saleable, which could lead to constraints on your ability to sell or switch from the fund.


RS USD Cautious US$/HK$*The Royal Skandia investment-linked fund aims to provide long term capital growth. It invests in a diversifi ed portfolio with a long term asset allocation of global equities, fi xed interest securities, cash and alternative investments. Focus is placed on minimising overall volatility.

The equity exposure within the investment-linked fund is achieved through a diversifi ed portfolio of global equity securities. The global fi xed interest component is diversifi ed across the world’s government and non-government bond markets and can include non-investment grade high-yielding bonds. The high yield refl ects a

higher risk of capital loss through default. The tactical range of the investment portfolio is intended to be:

Equities: 40% - 60%Fixed interest securities: 20% - 40%Alternatives: 0% - 30%Money market/deposits: 0% - 10%

The alternative investments, which include property and derivatives, represent a risk profi le typically between that of equities and fi xed interest. There are no plans for these investments to make up more than 30% of the fund assets.



The investment-linked fund invests in fi xed interest securities, which may include non-investment grade bonds, as well as money market instruments (including deposits with banks or other fi nancial institutions). The yield and/or value of the investment-linked fund will fl uctuate as interest rates change. There

is a possibility of default, reducing capital values.

The investment-linked fund may hold derivatives, or borrow up to 10% of the fund assets, to invest (‘gearing’), and the nature of these investments can lead to a higher volatility in the price of the fund. The use of derivatives, which may include equity futures and interest rate swaps, can be for both, investment and hedging purposes. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. Security lending by the investment-linked fund is not currently allowed.



RS GBP DepositThe Royal Skandia investment-linked fund aims to provide a return, before charges and taxation, equivalent to sterling three month money market rates. It invests in a portfolio of high quality credit institutions and approved securities which are denominated in sterling. The tactical range of the investment portfolio is intended to be:

Money market/deposits: 100%

* Please refer to currency details on page 13.

19

This investment-linked fund will invest in counterparties with a Fitch (or equivalent) credit rating of A or higher. The counterparties are predominantly either UK based institutions with subsidiaries in the Isle of Man and Channel Islands or based in Eire. The investment-linked fund will not be exposed to foreign exchange other than the base currency of the investment-linked fund. The selection of each counterparty requires a formal internal approval process.

This investment-linked fund invests in investment grade bonds or money market instruments (including deposits with banks or other fi nancial institutions). The yield and/or value of the investment-linked fund will fl uctuate as interest rates change. There is a possibility of default, reducing capital values.

This investment-linked fund is not a bank deposit or savings account. It is not a capital guaranteed/protected product and is not a protected deposit for the purpose of Deposit Protection Scheme.

RS HKD DepositThe Royal Skandia investment-linked fund aims to provide a return, before charges and taxation, equivalent to HK Dollar three month money market rates. It invests in a portfolio of high quality credit institutions and in approved securities which are denominated in HK Dollar. The tactical range of the investment portfolio is intended to be:


This investment-linked fund will invest in counterparties with a Fitch (or

equivalent) credit rating of A or higher. The counterparties are predominantly either UK based institutions with subsidiaries in the Isle of Man and Channel Islands or based in Eire. The investment-linked fund will not be exposed to foreign exchange other than the base currency of the investment-linked fund. The selection of each counterparty requires a formal internal approval process.



RS USD DepositThe Royal Skandia investment-linked fund aims to provide a return, before charges and taxation, equivalent to US Dollar three month money market rates. It invests in a portfolio of high quality credit institutions and in approved securities which are denominated in US Dollar. The tactical range of the investment portfolio is intended to be:


This investment-linked fund will invest in counterparties with a Fitch (or equivalent) credit rating of A or higher.

The counterparties are predominantly either UK based institutions with subsidiaries in the Isle of Man and Channel Islands or based in Eire. The investment-linked fund will not be exposed to foreign exchange other than the base currency of the investment-linked fund. The selection of each counterparty requires a formal internal approval process.



RS USD Diversifi ed Managed US$/HK$*/£*/€*The Royal Skandia investment-linked fund aims to provide long term capital growth. It invests in a diversifi ed portfolio with a long term asset allocation of global equities, fi xed interest securities, cash and alternative investments.

The equity exposure within the investment-linked fund is achieved through a diversifi ed portfolio of global equity securities. The global fi xed

Explanation of the word ‘Fitch’ can be found in the glossary terms on page 22.* Please refer to currency details on page 13.

20

interest component is diversifi ed across the world’s government and non-government bond markets and can include non-investment grade bonds. The alternative investments, which include property and derivatives, represent a risk profi le typically between that of equities and fi xed interest. There are no plans for these investments to make up more than 30% of the fund assets. The tactical range of the investment portfolio is intended to be:

Equities: 40% - 60%Fixed interest securities: 30% - 40%Alternatives: 10% - 24% Money market/deposits: 0% - 10%



The investment-linked fund invests in fi xed interest securities, which may include non-investment grade bonds, as well as money market instruments (including deposits with banks or other

fi nancial institutions). The yield and/or value of the fund will fl uctuate as interest rates change. There is a possibility of default, reducing capital values.

The investment-linked fund may hold derivatives, or borrow up to 10% of the fund assets, to invest (‘gearing’), and the nature of these investments can lead to a higher volatility in the price of the fund. The use of derivatives, which may include equity futures and interest rate swaps, can be for both, investment and hedging purposes. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. Security lending by the investment-linked fund is not currently allowed.


RS USD Global Fixed Interest Blend US$/HK$*The Royal Skandia investment-linked fund aims to provide a long term total return from capital growth and income through investment predominantly in global fi xed interest securities. Investment may also be made in currencies and global variable rate debt securities.

This investment-linked fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the

fund may therefore rise and fall as a result of exchange rate fl uctuations.

This investment-linked fund invests in investment grade bonds, or money market instruments (including deposits with banks or other fi nancial institutions). The yield and/or value of the fund will fl uctuate as interest rates change. There is a possibility of default, reducing capital values. The tactical range of the investment portfolio is intended to be:

Fixed interest securities: 80% - 100%Money market/deposits: 0% - 20%

This investment-linked fund invests in non-investment grade high-yielding bonds. The high yield refl ects a higher risk of capital loss through default.

This investment-linked fund may hold derivatives, only where they are reasonably believed to be economically appropriate to the effi cient portfolio management of the fund. The derivatives may include options, futures, or contracts for difference. The investment-linked fund may also borrow to invest, and the nature of these investments can lead to a higher volatility in the price of the fund. No period of borrowing may exceed three months, or exceed 10% of the value of the fund on any business day. In addition, the fund may have some exposure to credit risk if a provider of derivatives fails to honour their obligation. Security lending by the investment-linked fund is not currently allowed.

Some of the investments held by this investment-linked fund can be diffi cult to sell at times, which could affect the price of units.


21

This Royal Skandia investment-linked fund offers pricing alternatives and, as a result, exchange rate movements will affect the price of each fund compared to the underlying investments.

RS USD Global Real Estate Securities US$/€*/HK$*The Royal Skandia investment-linked fund is to provide long-term capital growth and income through investment in a globally diversifi ed portfolio of property related securities. The emphasis of the fund is investment in property related securities of entities which generate rental income. Investment will be in transferable securities which are primarily Real Estate Investment Trusts (REITs) or real estate operating Companies. The tactical range of the investment portfolio is intended to be:


Whilst this investment-linked fund invests in property and will therefore be affected over the longer term by property fundamentals, it holds investments indirectly via property securities. This means that the price of the fund will be affected by events in property markets, but also signifi cantly by other factors that affect share prices such as investor sentiment and supply and demand. The price is therefore likely to be more volatile than a directly invested property portfolio and may perform markedly differently over the short to medium term.

Investments held by this investment-linked fund tend to be volatile and investors should expect an above average price increase or decrease.

This investment-linked fund invests into a relatively small number of assets, or into individual countries or a specifi c market sector. Such concentrated portfolios give rise to more risk than where investments are spread across a larger number of assets, countries or market sectors. Security lending by the investment-linked fund is not currently allowed.

This investment-linked fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fl uctuations.

Some of the investments held by this investment-linked fund can be diffi cult to sell at times, which could affect the price of units.


RS SEK Swedish Equity SEK/US$*/£*/€*/HK$*The Royal Skandia investment-linked fund is to outperform the Effektivt Svenskt Fondforvaltarindex (a capitalisation-weighted index for stocks traded on the Stockholm Stock Exchange whereby the maximum

weighting to any one stock is limited to 10%) over the medium to long term, through investment in a well diversifi ed portfolio of Swedish equities. The tactical range of the investment portfolio is intended to be:


Investments in this investment-linked fund tend to be volatile and investors should expect an above average price increase or decrease. Security lending by the investment-linked fund is not currently allowed.


RS GBP UK Index Tracker £/US$*/€*/HK$*The Royal Skandia investment-linked fund is to track the FTSE® All Share (a general market index for UK equities) over rolling 36-month periods through investment in a well diversifi ed portfolio of UK equities. The tactical range of the investment portfolio is intended to be:

Equities: 100%

Security lending by the investment-linked fund is not currently allowed.



22

RS GBP US Index Tracker £/US$*/€*/HK$*The Royal Skandia investment-linked fund is to track the FTSE World USA Index (a general market index for US Equities) over the medium to long term through investment in a diversifi ed portfolio of US Equities. The tactical range of the investment portfolio is intended to be:

Equities: 100%

This investment-linked fund is denominated in one currency but may hold assets which are priced in other currencies. The performance of the fund may therefore rise and fall as a result of exchange rate fl uctuations. Security lending by the investment-linked fund is not currently allowed.



¯lossary of investment termsParameters: targets set out for each asset class permissible within the portfolio. Each target position has minimum and maximum limits which, if exceeded, will trigger a re-alignment of the portfolio back to the target position.

Fitch: A global rating agency providing the world’s credit markets with independent and prospective credit opinions on the relative ability of an entity to meet its fi nancial commitments. The credit ratings are on a scale from AAA to D. For an explanation of these ratings, consult your fi nancial adviser.

23

RS USD Aberdeen Global Chinese Equity 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Aberdeen Global Chinese Equity Fund, a sub-fund of Aberdeen Global Fund, a Luxembourg SICAV managed by Aberdeen Global Services S.A.

The aim of the underlying fund is to achieve long-term total returns by investing at least two-thirds of the assets in equity and equity-related securities of companies with their registered offi ce in China and/or companies which have the preponderance of their business activities in China, and/or of holding companies that have the preponderance of their assets in companies with their registered offi ce in China.

RS USD Aberdeen Global Emerging Markets Equity 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Aberdeen Global Emerging Markets Equity Fund (A2 USD), a sub fund of Aberdeen Global, a Luxembourg SICAV managed by Aberdeen Global Services S.A.

The aim of the underlying fund is to achieve long term total return by investing at least two thirds of its assets in equities and equity related securities of companies with their registered offi ce in

self select

If the name is followed by numbers, eg RS USD Aberdeen Global Chinese Equity1,2,3,4 please refer to notes on page 13.* Please refer to currency details on page 13.

an Emerging Market country; and/or, of companies which have the preponderance of their business activities in an Emerging Market country; and/or, of holding companies that have the preponderance of their assets in companies with their registered offi ce in an Emerging Market country.

RS USD Aberdeen Global Technolo¯y 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Aberdeen Global Technology Fund, a sub-fund of Aberdeen Global Fund, a Luxembourg SICAV managed by Aberdeen Global Services S.A.

The aim of the underlying fund is to achieve long-term total returns by investing at least two-thirds of the assets in equities and equity-related securities of companies involved in high technology industries; and/or of companies which have the preponderance of their business activities in high technology industries; and/or of holding companies that have the preponderance of their assets in companies involved in high technology industries.

RS USD AXA World Funds Framlin¯ton Health 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the AXA World

Funds – Framlington Health, a sub-fund of AXA World Funds, a Luxembourg SICAV, managed by AXA Funds Management S.A.

The aim of the underlying fund is to achieve long-term capital growth by investing permanently at least two thirds of its total assets in equities and equity-related instruments issued by companies engaged in healthcare and medical services and products worldwide. Investment will be in producers of pharmaceuticals, biotechnology fi rms, medical device and instrument manufacturers, distributors of healthcare products, care providers and managers and other healthcare services companies.

RS USD Barin¯ China Select 1,2,3,4US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Baring China Select Fund, a sub-fund of the Baring Investment Fund Plc, an Ireland authorised Investment Company with Variable Capital, managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying fund is to achieve long-term capital growth in the value of assets by investing in companies which the company believes will benefi t from the economic growth and development of China.

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If the name is followed by numbers, eg RS USD Aberdeen Global Chinese Equity1,2,3,4 please refer to notes on page 13.* Please refer to currency details on page 13.

RS USD Barin¯ Eastern Europe 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Baring Eastern Europe fund, a sub fund of the Dublin based Baring Global Umbrella Fund, managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying fund is to achieve long-term capital appreciation through investment in a diversifi ed portfolio of securities of issuers located in or with a signifi cant exposure to the emerging markets of Europe.

RS GBP Barin¯ Europe Select Trust 1,2,3,4 £/US$*/€*/HK$*The Royal Skandia investment-linked fund invests solely into the Baring Europe Select Trust Fund, a UK authorised Unit Trust, managed by Baring Fund Managers Limited.

The investment objective of the underlying fund is to achieve long term capital growth by investing directly (and, where appropriate, indirectly) in securities of European companies. The manager's policy is to seek growth predominantly through investment in securities of carefully selected companies quoted on the principal European Stock Markets whilst retaining the fl exibility to invest in smaller growth companies or "niche" opportunities should the opportunity arise.

RS USD Barin¯ Global A¯¯re¯ate Bond 1,2,3 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Baring Global Aggregate Bond Fund, a sub fund of the Baring Global Umbrella Fund, a Dublin authorised unit trust, managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying fund is to generate long-term growth in the value of assets from a combination of capital appreciation and income by investing at least 70% of its total assets at any one time in an internationally diversifi ed portfolio of fi xed interest securities.

RS GBP Barin¯ Global Emer¯in¯ Markets 1,2,3,4 £/HK$*The Royal Skandia investment-linked fund invests solely in the Baring Global Emerging Markets Fund, a sub-fund of the Baring Emerging Markets Umbrella Fund, an open-ended Unit Trust managed by Baring International Fund Managers (Ireland) Limited.

The investment objective of the underlying fund is to seek long term capital growth primarily through investment in a diversifi ed portfolio of developing country equity securities.

RS USD Barin¯ Global Emer¯in¯ Markets 1,2,3,4 US$/€*The Royal Skandia investment-linked fund invests solely in the Baring Global Emerging Markets Fund, a sub-fund of the Baring Emerging Markets Umbrella Fund, an open-ended Unit Trust managed by Baring International Fund Managers (Ireland) Limited.

The investment objective of the underlying fund is to seek long term capital growth primarily through investment in a diversifi ed portfolio of developing country equity securities.

RS USD Barin¯ Global Resources 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the Baring Global Resources Fund, a sub-fund of the Baring Global Umbrella Fund, a Dublin based Unit Trust, managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying fund is to achieve long-term capital appreciation through investment in a diversifi ed portfolio of the securities of Commodity Producers, being companies engaged in the extraction, production, processing and/or trading of commodities, eg oil, gold, aluminium, coffee and sugar.

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RS USD Barin¯ Global Select 1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund solely invests in the Baring Global Select Fund, a sub fund of the Baring Global Umbrella Fund, managed by Baring International Fund Managers (Ireland) Limited.

The objective of the underlying fund is to achieve long-term capital growth by investing in equities listed or traded on a wide range of international markets.

RS USD Barin¯ Hi¯h Yield Bond 1,2,3 US$/£*/€*/HK$*The Royal Skandia investment-linked fund solely invests in the Baring High Yield Bond Fund, a sub fund of the Baring Global Umbrella Fund, an open ended Unit Trust managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying investment is to produce a high level of current yield in US dollar terms, commensurate with an acceptable level of risk. Any capital appreciation will be incidental. The policy of the managers is to invest in a combination of debt and loan securities (including credit linked securities) of corporations and governments (including any agency of government or central bank) of any member state of the Organisation for Economic Co-operation and Development and of any developing or emerging markets.

RS USD Barin¯ Hon¯ Kon¯ China 1,2,3,4 US$/£*/HK$*/€*The Royal Skandia investment-linked fund invests solely in the Baring Hong Kong China Fund, an Ireland authorised unit trust managed by Baring International Fund Managers (Ireland) Limited.

The aim of the underlying investment is to achieve long-term capital growth through investment in Hong Kong and China. The Managers may also invest in companies incorporated in Taiwan or quoted on the Taiwan stock exchange or in companies that have a signifi cant proportion of their assets or other interests in Taiwan.

RS GBP Barin¯ Korea Trust 1,2,3,4 £/US$*/€*/HK$*The Royal Skandia investment-linked fund solely invests in the Baring Korea Trust, a UK authorised Unit Trust managed by Baring Fund Managers Limited.

The investment objective of the underlying fund is to achieve capital growth by investing directly or indirectly in securities of Korean companies or other entities or subsidiaries of Korean companies and securities listed or traded on the Korean securities markets.

RS USD BlackRock GF China1,2,3,4 US$/£*/€*/HK$*The Royal Skandia investment-linked fund invests solely in the BlackRock GF China Fund (A2 Acc USD), a sub fund of BlackRock Global Funds, a SICAV incorporated in Luxembourg managed by BlackRock (Luxembourg) S.A.

The aim of the underlying fund is to seek to maximise total return. The underlying fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the People's Republic of China.

RS EUR BlackRock GF Continental European Flexible 1,2,3,4€/US$*/£*/HK$*The Royal Skandia investment-linked fund invests solely in the BlackRock GF Continental European Flexible Fund, a sub-fund of BlackRock Global Funds, a Luxembourg domicil

Documents

details of the Royal Skandia investment-linked fundsskandiainternationalhk.com/eng/pdf/New/Details of...on long term business.Royal Skandia Life Assurance Limited is registered in