Monthly Fund Fact Sheet - March 2021 - HLA Venture Growth Fund (HLAVGF) - Hong Leong Assurance
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HLA Venture Growth Fund (HLAVGF) Monthly Fund Fact Sheet — March 2021
Contents Daily Valuation Funds HLA Venture Growth Fund ........................................................................................................................................................ 1 HLA Venture Blue Chip Fund ....................................................................................................................................................4 HLA Venture Dana Putra ........................................................................................................................................................... 7 HLA Venture Flexi Fund .......................................................................................................................................................... 10 HLA Value Fund ....................................................................................................................................................................... 13 Hong Leong SMART Invest Fund ............................................................................................................................................ 16 Hong Leong SMART Growth Fund .......................................................................................................................................... 19 HLA Venture Global Fund ....................................................................................................................................................... 22 HLA Venture Managed Fund .................................................................................................................................................. 25 HLA Venture Income Fund......................................................................................................................................................28 HLA Dana Suria ....................................................................................................................................................................... 31 HLA Secure Fund ..................................................................................................................................................................... 35 HLA Cash Fund ........................................................................................................................................................................38 Weekly Valuation Funds HLA Horizon Funds .................................................................................................................................................................. 41 HLA EverGreen Funds .............................................................................................................................................................46 Fund Risk Type & Customer Risk Appetite ............................................................................................................................ 52
HLA Venture Growth Fund (HLAVGF)
HLA Venture Growth Fund
Mar 2021
Fund Features
1. Investment Objective
The objective of the fund is to achieve higher returns than the general Historical Performance
stock market by investing into growth stocks which potentially
generate more superior returns. 2.80
HLAVGF Benchmark
2. Investment Strategy & Approach 2.40
This fund focuses on growth stocks listed in Bursa Malaysia and/or I
in any foreign stock exchanges that provide potentially higher capital n 2.00
gains.
d
3. Asset Allocation e 1.60
The fund may invest up to 95% of its NAV in equities. x
e 1.20
4. Target Market d
This fund is suitable for investors with moderate to high-risk appetite 0.80
with a medium to long-term investment horizon.
Fund Details 0.40
6-May-05
25-Mar-21
19-Jan-00
29-Dec-07
8-Dec-15
1-Aug-18
12-Sep-02
22-Aug-10
15-Apr-13
Unit Price (31/3/2021) :RM2.5099
Fund Size (31/3/2021) :RM431.2 mil
Fund Management Fee : 1.39% p.a. (capped at
(effective as at 01/08/2018) 1.50%)
Fund Manager :Hong Leong Assurance
Period
Berhad
Fund Category :Equity
Fund Inception :19 Jan 2000 Since
YTD 1 month 1 year 3 years 5 years 10 years
Benchmark :FTSE Bursa Malaysia KLCI Inception
Index (FBM KLCI) HLAVGF 0.27% -1.54% 32.53% 5.46% 23.93% 38.43% 150.99%
Frequency of Unit Valuation :Daily Benchmark* -3.04% -0.27% 16.48% -15.56% -8.39% 1.84% 68.58%
The Company reserves the right to change the cap of Fund Relative 4.87% -1.27% 16.05% 21.02% 32.32% 36.59% 82.41%
Management Fee (% p.a.) by giving the Policy Owner ninety (90) *Source: Bloomberg
days prior written notice. The Fund Management Fee will be Notice: Past performance of the fund is not an indication of its future
reviewed monthly and will be revised if the previous month end performance.
actual asset allocation deviates by more than ten percent (10%) of
the initial asset allocation.
Asset & Sector Allocation of HLAVGF as at 31
March 2021
Equity - Equity - Cash
Telecommu Utilities 7.3% Equity -
nication 6.0% Foreign
3.5% 23.1%
Equity -
Technology Equity -
11.6% Constructio
n
Equity - 1.5%
Properties
0.6%
Equity -
Consumer
Equity - Products
Plantation 11.0%
1.3%
Equity -
Industrial Equity -
Products Equity - Equity - Energy
6.4% Health Finance 6.0%
4.0% 17.8%
Top 5 Holdings for HLAVGF as at 31 Mar 2021 %
1. TENCENT 6.8
2. CIMB 6.7
3. MAYBANK 6.5
4. TENAGA 5.2
5. INARI 5.0
Total Top 5 30.1
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 1HLA Venture Growth Fund (HLAVGF)
Market Review, Outlook & Strategy
Global equities in March posted mixed returns with US, Europe and Japan seeing strong returns as hopes of economic traction rose (aided by US President
Biden’s stimulus package and the rapid rollout of Covid-19 vaccination) while China underperformed as the technology sector took a hit following a
confluence of negative factors such as the US SEC kicking off the implementation of the Holding Foreign Companies Accountable Act (HFCAA), causing
concerns about potential ADR delistings, Chinese regulators coming out with new rules and regulations and also the implosion of block trades initiated by
Goldman Sachs. The US economy does seem to be on the path of “back to normal” as Covid-19 vaccination efforts intensify following the US President’s
pledge to double his Covid-19 vaccination goal to deliver 100m doses in his first 100 days in office, US$1.9trn stimulus package now in the system and
talks of US$3trn infrastructure spending in the pipeline. These led to the rotation trade from growth into value stocks in March. Policies remain
accommodative with the recent Fed meeting confirming that the FOMC is in no rush to add any hawkish policy and will continue hefty asset purchases until
“substantial further progress has been made” toward its employment and inflation goals. Although the sharp rise in US Treasury 10 YR yields to 1.74%
(+24bps) was a concern due to inflation expectations, it is important to note that yields are still below pre-Covid levels and any inflation this year is likely to
be transitory due to a low base of comparison. Elsewhere, oil prices surged from their intra month lows to US$65/barrel as the difficulties in refloating the
huge Ever Given ship which was blocking the Suez Canal continued until recently, raised fears of supply tightness in oil markets.
In Malaysia, the Prime Minister unveiled a RM20b stimulus package (~1.3% of GDP); dubbed the PEMERKASA package, which focuses on extending
subsidies, cash assistance and to expedite the Covid-19 immunisation programme. The RM20b consists of a RM11b direct fiscal injection and this will
widen the 2021 deficit to 6% from the previous estimate of -5.4%. An additional RM2b was allocated for the Covid-19 vaccination program and the
government now expects herd immunity to be achieved by end 2021 from 1Q22. The Government has also given the commitment that they will avoid
another blanket MCO which augurs well for the recovery and reopening theme. Bank Negara Malaysia (BNM) had also decided to maintain the Overnight
Policy Rate (OPR) at 1.75%. The reimposition of MCO will affect growth in 1Q21 but will be less severe than 2Q20. BNM expects growth to improve from
2Q21 and headline inflation in 2021 is projected to trend higher on the back of higher oil prices.
Retailers were once again net buyers at +RM1.6bn (USD386m) whilst local institutions were net sellers at -RM1.6bn (USD386m). Foreign institutions were
neutral with buy/sell flows evenly balanced. Retailers and local institutions accounted for 36.9% and 26.3% of total value traded while foreign institutions
contributed 16.7% of the value traded. For the month, the best performing index was the Small Cap Index with a +2.3% return. The FBM KLCI saw a decline
of -0.3% mom to 1,573.51pts. FBM Shariah and FBM Emas was -1% mom and flat mom respectively.
The biggest issue dominating the market now is the normalization of yields in the US and the market is also pricing in a persistent inflationary spike. However,
it looks more likely that the inflation would be transitory. Investors will continue to be following closely the fluctuations in Treasury yields and the normalization
back to pre-Covid levels on the back of economic recovery that is not necessarily negative for equities. In any event, sectors that benefit from a rising
interest rate regime would be the banks and insurers. Markets will remain volatile and as such we will continue to maintain our barbell strategy by investing
in both the value and growth sectors, with focus on the recovery/ reopening theme, reflation beneficiaries and 5G/ technology players.
In the near future, the current momentum behind expectations for economic growth and inflation is unlikely to significantly abate. Such view is underpinned
by the progress of vaccine immunisation programmes in the US and Malaysia coupled with the introduction of new economic packages. The progress of
the vaccine immunisation program in the US and Malaysia will be closely monitored to gauge the likely pace and magnitude of economic recovery. UST
yield curve could steepen as a result of the anticipated increase in debt supply to fund the proposed USD2 trillion packages. Close attention will be directed
to the progress of the US’s proposed infrastructure bills and the funding plans for it. The rise in UST yield could potentially spill over to the local bond yields.
As such, we remain defensive and will focus on trading rather than investment in the current volatile trading environment to enhance the portfolio return.
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Benchmark 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0% 2.4%
HLAVGF- Gross 0.5% 10.7% 16.3% -3.2% -0.6% -0.1% 26.0% -16.1% 12.8% 14.2%
HLAVGF - Net -0.9% 8.5% 13.6% -4.4% -1.9% -1.5% 22.5% -16.2% 10.3% 11.7%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Notice: Past performance of the fund is not an indication of its future performance
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
2HLA Venture Growth Fund (HLAVGF)
Risk Management
The company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework covers the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. The potential investment risks
that are taken into consideration in managing the fund include economic conditions, liquidity, qualitative and quantitative aspects of the securities. The
investment manager(s) have put in place the following controls to reduce the risks through:
a) having a flexible tactical asset allocation
b) investing in a wide range of companies across different sectors
c) setting prudent investment limits on various exposures
d) taking into account the liquidity factor in selecting securities
e) engaging in the hedging of foreign currency exposure where appropriate
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Growth Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 3HLA Venture Blue Chip Fund (HLAVBCF)
HLA Venture Blue Chip Fund
Mar 2021
Fund Features
1. Investment Objective
The objective of the fund is to achieve returns comparable to the general Asset & Sector Allocation of HLAVBCF as at 31
stock market by taking average risks, with focus on well-capitalised and March 2021
financially sound “blue chip” stocks to achieve a balance of capital gains
and dividend income.
Equity - Cash
Utilities 9.9%
2. Investment Strategy & Approach Equity - 5.4%
Equity -
This fund provides participation in the stock market without taking Telecommunic Foreign
excessive risk by focusing on fundamentally strong “blue chip” stocks ation 22.3%
listed in Bursa Malaysia and/or in any foreign stock exchanges. This fund 3.9%
is suitable for investors with moderate risk tolerance and expects returns
that are comparable to the market as represented by the FTSE Bursa Equity - Equity -
Technology Construction
Malaysia Kuala Lumpur Composite Index (FBM KLCI).
13.8% 2.0%
3. Asset Allocation
Equity - Reits
The fund may invest up to 95% of its NAV in equities. 2.2% Equity -
Consumer
4. Target Market Equity - Products
This fund is suitable for investors with moderate risk tolerance and Properties 9.8%
expects returns that are comparable to the market as represented by the 0.6%
FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI). Equity -
Equity -
Equity - Energy
Fund Details Plantation Equity - Finance 4.1%
0.9% Industrial
Unit Price (31/3/2021) : RM2.8154 Equity - Health 16.6%
Products 4.4%
Fund Size (31/3/2021) : RM443.8 mil 4.2%
Fund Management Fee : 1.43% p.a. (capped at 1.50%)
(effective as at 01/05/2018)
Top 5 Holdings for HLAVBCF as at 31 Mar 2021 %
Fund Manager : Hong Leong Assurance Berhad
1. CIMB 5.0
Fund Category : Equity 2. TENAGA 4.9
Fund Inception : 19 Jan 2000 3. MAYBANK 4.9
Benchmark : FTSE Bursa Malaysia KLCI Index 4. TENCENT 4.7
(FBM KLCI) 5. RHBBANK 4.6
Frequency of Unit Valuation : Daily Total Top 5 24.1
The Company reserves the right to change the cap of Fund Management
Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written Historical Performance
notice. The Fund Management Fee will be reviewed monthly and will be
revised if the previous month end actual asset allocation deviates by more 2.80
than ten percent (10%) of the initial asset allocation. HLAVBCF Benchmark
2.20
I
n
d
1.60
e
x
e
d 1.00
0.40
19-Feb-07
10-Mar-14
29-Mar-21
31-Jan-00
11-Aug-03
30-Aug-10
18-Sep-17
Period
Since
YTD 1 month 1 year 3 years 5 years 10 years
Inception
HLAVBCF 0.39% -1.72% 31.92% 5.64% 21.83% 62.29% 181.54%
Benchmark* -3.04% -0.27% 16.48% -15.56% -8.39% 1.84% 68.58%
Relative 5.19% -1.46% 15.44% 21.20% 30.22% 60.45% 112.96%
*Source: Bloomberg
Notice: Past performance of the fund is not an indication of its future
performance.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 4HLA Venture Blue Chip Fund (HLAVBCF)
Market Review, Outlook & Strategy
Global equities in March posted mixed returns with US, Europe and Japan seeing strong returns as hopes of economic traction rose (aided by US President
Biden’s stimulus package and the rapid rollout of Covid-19 vaccination) while China underperformed as the technology sector took a hit following a
confluence of negative factors such as the US SEC kicking off the implementation of the Holding Foreign Companies Accountable Act (HFCAA), causing
concerns about potential ADR delistings, Chinese regulators coming out with new rules and regulations and also the implosion of block trades initiated by
Goldman Sachs. The US economy does seem to be on the path of “back to normal” as Covid-19 vaccination efforts intensify following the US President’s
pledge to double his Covid-19 vaccination goal to deliver 100m doses in his first 100 days in office, US$1.9trn stimulus package now in the system and
talks of US$3trn infrastructure spending in the pipeline. These led to the rotation trade from growth into value stocks in March. Policies remain
accommodative with the recent Fed meeting confirming that the FOMC is in no rush to add any hawkish policy and will continue hefty asset purchases until
“substantial further progress has been made” toward its employment and inflation goals. Although the sharp rise in US Treasury 10 YR yields to 1.74%
(+24bps) was a concern due to inflation expectations, it is important to note that yields are still below pre-Covid levels and any inflation this year is likely to
be transitory due to a low base of comparison. Elsewhere, oil prices surged from their intra month lows to US$65/barrel as the difficulties in refloating the
huge Ever Given ship which was blocking the Suez Canal continued until recently, raised fears of supply tightness in oil markets.
In Malaysia, the Prime Minister unveiled a RM20b stimulus package (~1.3% of GDP); dubbed the PEMERKASA package, which focuses on extending
subsidies, cash assistance and to expedite the Covid-19 immunisation programme. The RM20b consists of a RM11b direct fiscal injection and this will
widen the 2021 deficit to 6% from the previous estimate of -5.4%. An additional RM2b was allocated for the Covid-19 vaccination program and the
government now expects herd immunity to be achieved by end 2021 from 1Q22. The Government has also given the commitment that they will avoid
another blanket MCO which augurs well for the recovery and reopening theme. Bank Negara Malaysia (BNM) had also decided to maintain the Overnight
Policy Rate (OPR) at 1.75%. The reimposition of MCO will affect growth in 1Q21 but will be less severe than 2Q20. BNM expects growth to improve from
2Q21 and headline inflation in 2021 is projected to trend higher on the back of higher oil prices.
Retailers were once again net buyers at +RM1.6bn (USD386m) whilst local institutions were net sellers at -RM1.6bn (USD386m). Foreign institutions were
neutral with buy/sell flows evenly balanced. Retailers and local institutions accounted for 36.9% and 26.3% of total value traded while foreign institutions
contributed 16.7% of the value traded. For the month, the best performing index was the Small Cap Index with a +2.3% return. The FBM KLCI saw a decline
of -0.3% mom to 1,573.51pts. FBM Shariah and FBM Emas was -1% mom and flat mom respectively.
The biggest issue dominating the market now is the normalization of yields in the US and the market is also pricing in a persistent inflationary spike. However,
it looks more likely that the inflation would be transitory. Investors will continue to be following closely the fluctuations in Treasury yields and the normalization
back to pre-Covid levels on the back of economic recovery that is not necessarily negative for equities. In any event, sectors that benefit from a rising
interest rate regime would be the banks and insurers. Markets will remain volatile and as such we will continue to maintain our barbell strategy by investing
in both the value and growth sectors, with focus on the recovery/ reopening theme, reflation beneficiaries and 5G/ technology players.
In the near future, the current momentum behind expectations for economic growth and inflation is unlikely to significantly abate. Such view is underpinned
by the progress of vaccine immunisation programmes in the US and Malaysia coupled with the introduction of new economic packages. The progress of
the vaccine immunisation program in the US and Malaysia will be closely monitored to gauge the likely pace and magnitude of economic recovery. UST
yield curve could steepen as a result of the anticipated increase in debt supply to fund the proposed USD2 trillion packages. Close attention will be directed
to the progress of the US’s proposed infrastructure bills and the funding plans for it. The rise in UST yield could potentially spill over to the local bond yields.
As such, we remain defensive and will focus on trading rather than investment in the current volatile trading environment to enhance the portfolio return.
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Benchmark 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0% 2.4%
HLAVBF- Gross 5.4% 11.9% 21.4% 3.2% 1.1% -0.1% 23.6% -15.7% 12.5% 13.4%
HLAVBF - Net 3.6% 9.6% 18.3% 1.5% -0.4% -1.6% 20.3% -15.9% 10.1% 10.9%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Notice: Past performance of the fund is not an indication of its future performance.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
5HLA Venture Blue Chip Fund (HLAVBCF)
Risk Management
The company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework covers the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. The potential investment risks
that are taken into consideration in managing the fund include economic conditions, liquidity, qualitative and quantitative aspects of the securities. The
investment manager(s) have put in place the following controls to reduce the risks through:
a) having a flexible tactical asset allocation
b) investing in a wide range of companies across different sectors
c) setting prudent investment limits on various exposures
d) taking into account the liquidity factor in selecting securities
e) engaging in the hedging of foreign currency exposure where appropriate
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Blue Chip Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
6HLA Venture Dana Putra (HLAVDP)
HLA Venture Dana Putra
Mar 2021
Fund Features
1. Investment Objective
The objective of the fund is to achieve capital growth over the Historical Performance
medium to long term.
3.40
2. Investment Strategy & Approach HLAVDP Benchmark
This fund invests in Syariah-approved securities and money market 3.00
instruments.
I 2.60
3. Asset Allocation
The fund will invest up to 90% but not less than 40% of its NAV in n
2.20
equities. d
e
1.80
4. Target Market x
This fund is suitable for investors who are willing to take moderate risk. e 1.40
d
Fund Details
Unit Price (31/3/2021) : RM3.0380 1.00
Fund Size (31/3/2021) : RM132.9 mil
0.60
Fund Management Fee : 1.34% p.a. (capped at 1.40%)
19/Jul/00
11/Jun/07
30/Dec/03
21/Nov/10
13/Oct/17
25/Mar/21
03/May/14
(effective as at 01/01/2019)
Fund Manager : Hong Leong Assurance Berhad
Fund Category : Equity
Fund Inception : 19 Jul 2000 Period
Benchmark : FBM EmasShariah Index (KL
Shariah Index)
Frequency of Unit Valuation : Daily Since
YTD 1 month 1 year 3 years 5 years 10 years
Inception
The Company reserves the right to change the cap of Fund
HLAVDP 3.45% -3.07% 53.66% 13.69% 26.96% 59.85% 203.80%
Management Fee (% p.a.) by giving the Policy Owner ninety (90) days
Benchmark* -2.36% -1.01% 27.15% -2.89% 2.80% 23.86% 102.89%
prior written notice. The Fund Management Fee will be reviewed
Relative 5.81% -2.06% 26.51% 16.58% 24.16% 35.99% 100.91%
monthly and will be revised if the previous month end actual asset
*Source: Bloomberg
allocation deviates by more than ten percent (10%) of the initial asset Notice: Past performance of the fund is not an indication of its future
allocation. performance.
Asset & Sector Allocation of HLAVDP as at 31
March 2021
Equity -
Equity -
Construction
Equity - Consumer
Cash 4.9%
Utilities Products
6.5% 18.3% 11.5% Equity -
Energy
Equity - 4.5%
Transportati
on & Equity -
Logistics Finance
0.6% 3.7%
Equity - Equity -
Telecommu Health
nications 4.8%
5.3%
Equity -
Equity - Industrial
Equity - Equity -
REITs Products
Technology Plantation
0.6% 16.9%
20.7% 0.8%
Equity -
Properties
1.1%
Top 5 Holdings for HLAVDP as at 31 Mar 2021 %
1. SCIB 5.6
2. MYEG 4.5
3. UWC 4.3
4. TENAGA 4.2
5. INARI 3.7
Total Top 5 22.3
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 7HLA Venture Dana Putra (HLAVDP)
Market Review, Outlook & Strategy
Global equities in March posted mixed returns with US, Europe and Japan seeing strong returns as hopes of economic traction rose (aided by US President
Biden’s stimulus package and the rapid rollout of Covid-19 vaccination) while China underperformed as the technology sector took a hit following a confluence
of negative factors such as the US SEC kicking off the implementation of the Holding Foreign Companies Accountable Act (HFCAA), causing concerns about
potential ADR delistings, Chinese regulators coming out with new rules and regulations and also the implosion of block trades initiated by Goldman Sachs.
The US economy does seem to be on the path of “back to normal” as Covid-19 vaccination efforts intensify following the US President’s pledge to double his
Covid-19 vaccination goal to deliver 100m doses in his first 100 days in office, US$1.9trn stimulus package now in the system and talks of US$3trn
infrastructure spending in the pipeline. These led to the rotation trade from growth into value stocks in March. Policies remain accommodative with the recent
Fed meeting confirming that the FOMC is in no rush to add any hawkish policy and will continue hefty asset purchases until “substantial further progress has
been made” toward its employment and inflation goals. Although the sharp rise in US Treasury 10 YR yields to 1.74% (+24bps) was a concern due to inflation
expectations, it is important to note that yields are still below pre-Covid levels and any inflation this year is likely to be transitory due to a low base of
comparison. Elsewhere, oil prices surged from their intra month lows to US$65/barrel as the difficulties in refloating the huge Ever Given ship which was
blocking the Suez Canal continued until recently, raised fears of supply tightness in oil markets.
In Malaysia, the Prime Minister unveiled a RM20b stimulus package (~1.3% of GDP); dubbed the PEMERKASA package, which focuses on extending
subsidies, cash assistance and to expedite the Covid-19 immunisation programme. The RM20b consists of a RM11b direct fiscal injection and this will widen
the 2021 deficit to 6% from the previous estimate of -5.4%. An additional RM2b was allocated for the Covid-19 vaccination program and the government now
expects herd immunity to be achieved by end 2021 from 1Q22. The Government has also given the commitment that they will avoid another blanket MCO
which augurs well for the recovery and reopening theme. Bank Negara Malaysia (BNM) had also decided to maintain the Overnight Policy Rate (OPR) at
1.75%. The reimposition of MCO will affect growth in 1Q21 but will be less severe than 2Q20. BNM expects growth to improve from 2Q21 and headline
inflation in 2021 is projected to trend higher on the back of higher oil prices.
Retailers were once again net buyers at +RM1.6bn (USD386m) whilst local institutions were net sellers at -RM1.6bn (USD386m). Foreign institutions were
neutral with buy/sell flows evenly balanced. Retailers and local institutions accounted for 36.9% and 26.3% of total value traded while foreign institutions
contributed 16.7% of the value traded. For the month, the best performing index was the Small Cap Index with a +2.3% return. The FBM KLCI saw a decline
of -0.3% mom to 1,573.51pts. FBM Shariah and FBM Emas was -1% mom and flat mom respectively.
The biggest issue dominating the market now is the normalization of yields in the US and the market is also pricing in a persistent inflationary spike. However,
it looks more likely that the inflation would be transitory. Investors will continue to be following closely the fluctuations in Treasury yields and the normalization
back to pre-Covid levels on the back of economic recovery that is not necessarily negative for equities. In any event, sectors that benefit from a rising interest
rate regime would be the banks and insurers. Markets will remain volatile and as such we will continue to maintain our barbell strategy by investing in both
the value and growth sectors, with focus on the recovery/ reopening theme, reflation beneficiaries and 5G/ technology players.
In the near future, the current momentum behind expectations for economic growth and inflation is unlikely to significantly abate. Such view is underpinned
by the progress of vaccine immunisation programmes in the US and Malaysia coupled with the introduction of new economic packages. The progress of the
vaccine immunisation program in the US and Malaysia will be closely monitored to gauge the likely pace and magnitude of economic recovery. UST yield
curve could steepen as a result of the anticipated increase in debt supply to fund the proposed USD2 trillion packages. Close attention will be directed to the
progress of the US’s proposed infrastructure bills and the funding plans for it. The rise in UST yield could potentially spill over to the local bond yields. As
such, we remain defensive and will focus on trading rather than investment in the current volatile trading environment to enhance the portfolio return.
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Benchmark 2.4% 11.9% 13.3% -4.2% 2.4% -6.1% 10.7% -13.5% 3.9% 10.1%
HLAVDP- Gross -3.1% 10.0% 32.6% -1.1% 4.9% -2.4% 20.8% -17.8% 10.5% 22.0%
HLAVDP - Net -4.5% 7.8% 28.6% -2.4% 3.1% -3.6% 17.7% -17.7% 8.3% 18.9%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Notice: Past performance of the fund is not an indication of its future performance.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity date.
The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
Risk Management
The company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework covers the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. The potential investment risks
that are taken into consideration in managing the fund include economic conditions, liquidity, qualitative and quantitative aspects of the securities. The
investment manager(s) have put in place the following controls to reduce the risks through:
a) having a flexible tactical asset allocation
b) investing in a wide range of companies across different sectors
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 8HLA Venture Dana Putra (HLAVDP)
c) setting prudent investment limits on various exposures
d) taking into account the liquidity factor in selecting securities
e) engaging in the hedging of foreign currency exposure where appropriate
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the net
asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund is
invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Dana Putra is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 9HLA Venture Flexi Fund (HLAVFF)
HLA Venture Flexi Fund
Mar 2021
Fund Features
1. Investment Objective
The objective of the fund is to provide investors the opportunity to enjoy Top 5 Holdings for HLAVFF as at 31 Mar 2021 %
medium to long-term capital appreciation from the prevailing sectorial 1. SCIB 5.5
and investment themes in Malaysian equities market. 2. Maybank 5.3
3. CIMB 4.9
2. Investment Strategy & Approach 4. UWC 4.4
The fund would be actively managed, rotating between sectors deemed 5. TENAGA 4.3
to benefit the most at any given point in time, and would comprise Total Top 5 24.3
several Core Sectors and Trading / Rotational Sectors which would
vary depending on prevailing market conditions. The strategy will be to Historical Performance
identify the themes in its early phase to capitalize on its growth. This
fund is suitable for aggressive investors who are willing to take higher
risk and wish to seek higher returns from a diversified portfolio with 2.40
Benchmark HLAVFF
thematic investment opportunities.
3. Asset Allocation I 2.00
The fund will invest a minimum of 30% and up to 95% of its NAV in n
equities.
d
4. Target Market e 1.60
This fund is suitable for aggressive investors who are willing to take x
higher risk and wish to seek higher returns from a diversified portfolio e
with thematic investment opportunities. d
1.20
Fund Details
Unit Price (31/3/2021) : RM1.1051
Fund Size (31/3/2021) : RM131.39 mil 0.80
31-Mar-17
30-Mar-19
28-Mar-21
6-Apr-09
5-Apr-11
3-Apr-13
2-Apr-15
Fund Management Fee : 1.31% p.a. (capped at 1.48%)
(effective as at 01/01/2019)
Fund Manager : Hong Leong Assurance Berhad
Fund Category : Equity
Fund Inception : 06 April 2009 Period
Benchmark : FTSE Bursa Malaysia KLCI
Index (FBM KLCI)
Since
Frequency of Unit Valuation : Daily YTD 1 month 1 year 3 years 5 years 10 years
Inception
The Company reserves the right to change the cap of Fund
HLAVFF 3.39% -2.63% 52.28% 6.05% 24.10% 68.98% 121.02%
Management Fee (% p.a.) by giving the Policy Owner ninety (90) days
Benchmark* -3.30% -0.27% 16.48% -15.56% -8.39% 1.84% 70.34%
prior written notice. The Fund Management Fee will be reviewed
Relative 6.69% -2.36% 35.80% 21.61% 32.49% 67.14% 50.68%
monthly and will be revised if the previous month end actual asset *Source: Bloomberg
allocation deviates by more than ten percent (10%) of the initial asset Notice: Past performance of the fund is not an indication of its future
allocation. performance.
Asset & Sector Allocation of HLAVFF as at 31
March 2021
Equity -
Utilities Cash Equity -
Equity -
6.1% 10.1% Construction
Transport &
4.78%
Logistics Equity -
0.6% Consumer
Products
Equity - 14.0%
Telecommun
Equity -
ications
Energy
2.8%
4.1%
Equity - Equity -
Technology Finance
20.5% 15.6%
Equity - Equity - Equity -
REITS Equity - Industrial Health
1.7% Properties Products 4.3%
0.6% 15.7%
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 10HLA Venture Flexi Fund (HLAVFF)
Market Review, Outlook & Strategy
Global equities in March posted mixed returns with US, Europe and Japan seeing strong returns as hopes of economic traction rose (aided by US President
Biden’s stimulus package and the rapid rollout of Covid-19 vaccination) while China underperformed as the technology sector took a hit following a
confluence of negative factors such as the US SEC kicking off the implementation of the Holding Foreign Companies Accountable Act (HFCAA), causing
concerns about potential ADR delistings, Chinese regulators coming out with new rules and regulations and also the implosion of block trades initiated by
Goldman Sachs. The US economy does seem to be on the path of “back to normal” as Covid-19 vaccination efforts intensify following the US President’s
pledge to double his Covid-19 vaccination goal to deliver 100m doses in his first 100 days in office, US$1.9trn stimulus package now in the system and
talks of US$3trn infrastructure spending in the pipeline. These led to the rotation trade from growth into value stocks in March. Policies remain
accommodative with the recent Fed meeting confirming that the FOMC is in no rush to add any hawkish policy and will continue hefty asset purchases until
“substantial further progress has been made” toward its employment and inflation goals. Although the sharp rise in US Treasury 10 YR yields to 1.74%
(+24bps) was a concern due to inflation expectations, it is important to note that yields are still below pre-Covid levels and any inflation this year is likely to
be transitory due to a low base of comparison. Elsewhere, oil prices surged from their intra month lows to US$65/barrel as the difficulties in refloating the
huge Ever Given ship which was blocking the Suez Canal continued until recently, raised fears of supply tightness in oil markets.
In Malaysia, the Prime Minister unveiled a RM20b stimulus package (~1.3% of GDP); dubbed the PEMERKASA package, which focuses on extending
subsidies, cash assistance and to expedite the Covid-19 immunisation programme. The RM20b consists of a RM11b direct fiscal injection and this will
widen the 2021 deficit to 6% from the previous estimate of -5.4%. An additional RM2b was allocated for the Covid-19 vaccination program and the
government now expects herd immunity to be achieved by end 2021 from 1Q22. The Government has also given the commitment that they will avoid
another blanket MCO which augurs well for the recovery and reopening theme. Bank Negara Malaysia (BNM) had also decided to maintain the Overnight
Policy Rate (OPR) at 1.75%. The reimposition of MCO will affect growth in 1Q21 but will be less severe than 2Q20. BNM expects growth to improve from
2Q21 and headline inflation in 2021 is projected to trend higher on the back of higher oil prices.
Retailers were once again net buyers at +RM1.6bn (USD386m) whilst local institutions were net sellers at -RM1.6bn (USD386m). Foreign institutions were
neutral with buy/sell flows evenly balanced. Retailers and local institutions accounted for 36.9% and 26.3% of total value traded while foreign institutions
contributed 16.7% of the value traded. For the month, the best performing index was the Small Cap Index with a +2.3% return. The FBM KLCI saw a decline
of -0.3% mom to 1,573.51pts. FBM Shariah and FBM Emas was -1% mom and flat mom respectively.
The biggest issue dominating the market now is the normalization of yields in the US and the market is also pricing in a persistent inflationary spike. However,
it looks more likely that the inflation would be transitory. Investors will continue to be following closely the fluctuations in Treasury yields and the normalization
back to pre-Covid levels on the back of economic recovery that is not necessarily negative for equities. In any event, sectors that benefit from a rising
interest rate regime would be the banks and insurers. Markets will remain volatile and as such we will continue to maintain our barbell strategy by investing
in both the value and growth sectors, with focus on the recovery/ reopening theme, reflation beneficiaries and 5G/ technology players.
In the near future, the current momentum behind expectations for economic growth and inflation is unlikely to significantly abate. Such view is underpinned
by the progress of vaccine immunisation programmes in the US and Malaysia coupled with the introduction of new economic packages. The progress of
the vaccine immunisation program in the US and Malaysia will be closely monitored to gauge the likely pace and magnitude of economic recovery. UST
yield curve could steepen as a result of the anticipated increase in debt supply to fund the proposed USD2 trillion packages. Close attention will be directed
to the progress of the US’s proposed infrastructure bills and the funding plans for it. The rise in UST yield could potentially spill over to the local bond yields.
As such, we remain defensive and will focus on trading rather than investment in the current volatile trading environment to enhance the portfolio return.
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Benchmark 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0% 2.4%
HLAVFF- Gross 7.0% 12.7% 24.1% -3.9% 12.2% -2.4% 30.6% -22.2% 8.8% 19.4%
HLAVFF - Net 5.1% 10.2% 20.8% -5.0% 9.8% -3.7% 26.7% -21.9% 6.7% 16.4%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Notice: Past performance of the fund is not an indication of its future performance.
The fund was only launched on 6 April 2009. The actual investment returns are calculated based on unit price from 6 April 2009 to 31 December 2009.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment
.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
11HLA Venture Flexi Fund (HLAVFF)
Risk Management
The company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework covers the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. The potential investment risks
that are taken into consideration in managing the fund include economic conditions, liquidity, qualitative and quantitative aspects of the securities. The
investment manager(s) have put in place the following controls to reduce the risks through:
a) having a flexible tactical asset allocation
b) investing in a wide range of companies across different sectors
c) setting prudent investment limits on various exposures
d) taking into account the liquidity factor in selecting securities
e) engaging in the hedging of foreign currency exposure where appropriate
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Flexi Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
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