Building Your Wealth Jack Phang Business Development Executive

1. Building Your Wealth Jack Phang Business Development Executive Ngee Ann Polytechnic Seminar 5 August 2010

2. DISCLAIMERS This presentation is provided to you for information only and does not constitute an offer or solicitation to subscribe for the units in the funds mentioned. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information. Unit trusts distributed by Phillip Securities Pte Ltd are not obligations of, deposits in, or guaranteed by, Phillip Securities Pte Ltd or any of its affiliates. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in this presentation, are not necessarily indicative of future or likely performance of any unit trust. PSPL and its affiliates do not endorse and have no liability for any statements, opinions or information disseminated by the ETF issuers, which are not part of PSPL or its affiliates. All applications for units in a unit trust must be made on application forms accompanying the relevant prospectus. You should read the prospectus before deciding to subscribe for units in the respective fund or invest in the respective ETFs. For unit trusts, a copy of the prospectus can be obtained from Phillip Securities Pte Ltd or online at www.eunittrust.com. For ETFs, a copy of the prospectus can be obtained from SGX or from the issuer. The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange. You may wish to seek advice from a financial adviser before making a commitment to purchase the investment products mentioned. In the event that you choose not to seek advice from a financial adviser, you should consider whether the investment product is suitable for you. The illustrative example is meant for illustrative purposes only and should not be relied upon as advice. The information contained in this presentation has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in this presentation are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this presentation is subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. Any opinion or view herein is made on a general basis and is subject to change without notice. The information provided in this presentation may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of information provided in this presentation.

3. Overview Intro to PhillipCapital Building Wealth Risk and Return Online Fund Trading Platform

4. Intro to PhillipCapital • PhillipCapital comprises a group of companies* who together offer a full range of quality and innovative financial services to individual, corporate and institutional customers • Phillip Securities (the first member of PhillipCapital) was founded in Singapore in 1975 • Operates in financial hubs of 10 countries including Singapore, Malaysia, Thailand, Indonesia, Hong Kong, China, Australia, Japan, France and UK • Extensive branch network with 2800 employees globally • More than US$700 million in shareholders’ equity * The companies in Singapore include Phillip Securities Pte Ltd, Phillip Capital Management (S) Ltd, Phillip Futures Pte Ltd, Phillip Private Equity Pte Ltd, Phillip Securities Research Pte Ltd, POEMS Pte Ltd, Phillip Credit Pte Ltd, Phillip Financial Pte Ltd, Phillip Trading Pte Ltd, Phillip Japan Fund Management Pte Ltd, CyberQuote Pte Ltd and IFS Capital Ltd.

5. Breaking Your Glass Ceiling An Elephant Never Forgets

6. Budgeting A budget allocates or distributes expected income to expected expenses and intended savings. Income – Expenses ---------------- = Savings ---------------- Income – Savings ---------------- = Expenses ----------------

7. Budgeting • What are Your Goals? • How Do You Keep Records? • How Much Do You Earn? • How Much Do You Spend? • Compare Income and Expenses • Changing Your Spending Plan • Stick to Your Plan Save More? Spend Less? Start Investing?

8. Asset Classes • Cash (or Cash Equivalent) • Treasury Bills; Savings Accounts; Money Market Instruments • Equities • Value or Growth Stocks; Large or Small Capitalization; Emerging • Markets; Foreign or Domestic • Fixed Income • Bonds - Investment or Junk (High Yield) Grade ; Government or • Corporate; Short-Term, Mid-Term or Long-Term; Domestic or • Foreign; Emerging Markets • Real Estate • Property • Commodity • Natural Resources; • Precious Metals • Foreign Currency • Luxury Collectibles • Art; Fine Wine; Automobiles Source: www.wikipedia.com

9. Asset Allocation • Some consideration of Asset Allocation within a Portfolio: • Risk Tolerance → Low risk to high risk • Time Horizon → Longer horizon enables higher risk taking • All asset classes move in its own cycle. A well defined asset allocation makes your financial ride smoother • Exact allocation differs and it depends on the risk profile

10. Portfolio Building • Diversification A risk management technique that mixes a wide variety of investments (via different asset classes and varying proportions of those asset classes) within a portfolio • Rebalancing The process of realigning the weightings of one's portfolio of assets Source: www.Investopedia.com

11. How do I decide how to invest? Establish a balance between risk and return that you are comfortable with. When establishing this balance, you should consider: • Your Risk Tolerance The amount of risk you are comfortable with and can afford to take. 2. Your Investment Time Horizon How long will your assets be invested? 3.  Your Overall Financial Situation How much money will you need to sustain your lifestyle during retirement? Do you have other assets set aside for retirement besides your CPF savings? How are all of those assets invested? What are your financial commitments? Source: www.cpf.gov.sg

12. Risk and Return There is a close relationship between risk and return ie Risk vs Returntrade-off The greater the potential return one might seek, the greater the potential risk that one generally assumes If it is too good to be true, chances are, it is not T.I.N.S.T.A.A.F.L.

13. Quote “Risk comes from not knowing what you're doing.” - Warren Buffett

14. Risk Profiling • Risk Tolerance • Risk vs Return Tradeoff • How would you describe your risk appetite? • Aim to preserve capital OR maximize returns? • Volatility • How long can you hold? • How would you react to a drop of 15% in your • investment in a year? • Change portfolio immediately or stay the course? • Investment Horizon • Short Term, Mid Term, Long Term • How long do you intend to stay invested? • Less than 3 years or more than 10 years?

15. Risk Profiling • Savings • How much are you able to save as a percentage of • net monthly income (excluding CPF)? • Between 10% to 50%? • Rate of Return • What yearly returns do you expect from your • investments? • Less than 2%? More than 8%? • Investment • Asset Classes – ie Equity, Fixed Income, etc • How familiar and experienced are you with investing?

16. Conservative Portfolio Balanced Portfolio Aggressive Portfolio Risk Profiling

17. Types of Unit Trust Funds Risk/Return Profile Moderate Risk And Return Lower Risk And Return Higher Risk And Return Source: www.mas.gov.sg Specialised Funds (ie single country equities) Money Market Funds Global Equity Funds Bond Funds Balanced Funds (Mix of bonds, equities and money market instruments) Source: www.mas.gov.sg

18. Comparison / Perspectives • Need a measuring yardstick or a basis of comparison • If it is good, how good? Who do you see? Young Lady or Old Woman?

19. Online Fund Trading Platform

20. New Features New Navigation Bar with New Categories Media Gallery Price Alert Keep Me Posted Online Seminar Registration Site Search Function and many more… Visit for more details

21. New Navigation Bar / Site Search Function For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.

22. Updates / Price Alert / Media Gallery For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.

23. Online Seminar Registration For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.

24. You have access to one of the widest selections * of funds in Singapore We also distribute hedge funds for accredited investors * as of 29 July 2010

25. POEMS(Phillip’s On-line Electronic Mart System) Manage your investment portfolio at a one-stop convenient portal Stocks Warrants ETFs Unit Trusts Futures T- Bills Forex CFD

26. Fund Selection For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.

27. 1. Start a new POEMS online trading account and receive a free gift (while stocks last) 2. Start a new Unit Trust Regular Savings Plan (RSP) and receive a premium free gift (while stocks last) What is a Unit Trust RSP? A systematic investment plan Dollar Cost Averaging concept As low as $100 a month to get started Minimum initial lumpsum investment applies for certain funds Promotions* Visit us at our booth at today Talk to our Investment Consultants to find out more * Terms and conditions apply.

28. utseminars@phillip.com.sg Contact Us Lew Shi Min lewsm@phillip.com.sg Jack Phang jackphangsj@phillip.com.sg Kelvin Ho kelvinhosy@phillip.com.sg

29. Thank You