ABF Pan Asia Bond Index Fund

FAQ

	General Questions
	Comparable Investments
	Management of PAIF
	Trading

General Questions

1.	What is PAIF?
2.	What is the iBoxx ABF Pan-Asia Index?
3.	How can I get more information about the bonds included in the iBoxx ABF Pan-Asia Index?
4.	What is the credit rating requirement for the bonds held by PAIF?
5.	What is the duration requirement for the bonds held by PAIF?
6.	What is a Prospectus?
7.	Where can I obtain a copy of PAIF's prospectus?
8.	Will investors receive unit certificates of PAIF?
9.	Will investors receive income?
10.	Is there income reinvestment plan?
11.	How will investors receive income?
12.	What are the risks of investing in PAIF?
13.	What is the EMEAP Group?
14.	Does the EMEAP Group guarantee a minimum investment return?

Comparable Investments

15.	What is a unit trust?
16.	How does PAIF differ from a typical unit trust?
17.	What is an index fund?

Management of PAIF

18.	Who is the Manager of PAIF?
19.	Who is the Trustee of PAIF?
20.	How does the Manager manage PAIF?
21.	How does PAIF track the iBoxx ABF Pan-Asia Index?
22.	What is the management fee for PAIF?
23.	What is the trustee fee for PAIF?

Trading

24.	When and how can I buy/sell PAIF's units?
25.	What is PAIF's base currency?
26.	What is an Authorized Participant (AP)?
27.	How can I find out PAIF's price?
28.	What is Net Asset Value (NAV)?
29.	How can I find out PAIF's NAV per unit?
30.	Do I need to pay stamp duty when I sell PAIF's units?

Answer

Q1. What is PAIF?

PAIF, the abbreviation of ABF Pan Asia Bond Index Fund, is a collective investment fund domiciled in Singapore and listed on the Stock Exchange of Hong Kong Limited (Stock Exchange). PAIF holds a portfolio of Asian government and quasi-government local currency bonds designed to provide investment results that closely correspond to, or track, the performance of the iBoxx ABF Pan-Asia Index. With only a single transaction in PAIF, investors can gain cost-effective exposure to eight bond markets in Asia, namely China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand.

Notes: PAIF is not guaranteed or endorsed by the governments of the eight investment markets. PAIF's units are traded on the stock exchange at market price, which may be different from the net asset value per unit of the fund, and the fund may be delisted from the stock exchange.

Q2. What is iBoxx ABF Pan-Asia Index?

The iBoxx ABF Pan-Asia Index is determined and composed by International Index Company Limited (IIC).

iBoxx ABF Pan-Asia Index includes Asian currency denominated bonds issued by governments and quasi-government organizations in Asia. Currently, the index includes eight Asian markets, namely, China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand. Aside from market capitalization, IIC also considers liquidity of the market, the country's sovereign rating, and the openness of the market, which takes into consideration the regulatory, legal and fiscal environment, and the trading and clearing infrastructure of each local market.

Q3. How can I get more information about the bonds included in the iBoxx ABF Pan-Asia Index?

Please refer to the iBoxx ABF Pan-Asia Index section of this website for the details of the index.

Q4. What is the credit rating requirement for the bonds held by PAIF?

Average credit rating is A+ / A

Q5. What is the duration requirement for the bonds held by PAIF?

PAIF will track the iBoxx ABF Pan-Asia Index and will therefore have characteristics similar to this index. Currently, the average duration of the index is around 4.0.

Notes: The average duration is weighted with market capitalization. The index average duration does not necessarily equal to PAIF's average duration.

Q6. What is a Prospectus?

A Prospectus is an important document providing a fund's details, including its investment objective, policies for achieving the objectives, fees, and other important information that investors may need to make investment decisions. Investors should read the prospectus (including the Risk Factor section) before making their investment decisions.

Q7. Where can I obtain a copy of PAIF's prospectus?

PAIF's prospectus can be accessed and downloaded at the Prospectus section of this website. Hardcopies of the prospectus can be obtained from the manager, State Street Global Advisors Singapore Ltd, in Singapore or at its Hong Kong branch, during normal business hours.

Singapore Office	168 Robinson Road #33-01 Capital Tower, Singapore 068912
HK Office	68th Floor, Two International Finance Centre 8 Finance Street Central, Hong Kong

Q8. Will investors receive unit certificates of PAIF?

PAIF units will be deposited, cleared and settled in book-entry format in the Central Clearing and Settlement System (CCASS) in Hong Kong. All units will be registered in the name of HKSCC Nominees Limited (HKSCC Nominees), which is the registered owner of all outstanding units of PAIF. Investors will not receive any unit certificates. Investors owning PAIF units are beneficial owners as shown on the records of CCASS or its participants, such as brokers and dealers, banks, other institutions etc.

Q9. Will investors receive income?

Unitholders would potentially receive income semi-annually.

Notes: The semi-annual distributions are dependent on PAIF's performance and are not guaranteed.

Q10. Is there reinvestment plan?

There is currently no income reinvestment plan.

Q11. How will investors receive income?

Distributions payable to investors will be paid through Central Clearing and Settlement System (CCASS).

Q12. What are the risks of investing in PAIF?

Investment involves risks; when investing in funds, investors should refer to the funds' prospectus for the details before making investment decisions. PAIF's prospectus sets out a number of risk factors that investors should be aware of. A copy of PAIF's prospectus can be accessed and downloaded at the Prospectus section of this website.

Q13. What is the EMEAP Group?

The EMEAP (Executives' Meeting of East-Asia and Pacific Central Banks) Group refers to the group of 11 central banks or monetary authorities in the East Asia and Pacific region, namely Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, and Thailand. PAIF is one of the Group's initiatives to further develop the Asian bond market.

Notes: The fund is not promoted, sponsored, recommended, issued or guaranteed by any member of the EMEAP member central banks and monetary authorities. The fund is not guaranteed or endorsed by the governments of the eight investment markets.

Q14. Does the EMEAP Group guarantee a minimum investment return?

No, the EMEAP Group does not guarantee the performance of PAIF. The EMEAP Group members are like any other investors in PAIF and they are entitled to dispose units they hold. There is also no guarantee that the members will continue to be investors in PAIF. Please refer to the Risk Factors listed in PAIF's Prospectus, which can be accessed and downloaded from the Prospectus section of this website, for further details.

Q15. What is a unit trust?

A unit trust is a form of collective investment vehicle structured as a trust where investors' contributions to the trust are pooled to enable those investors to participate in all the investments of the trust.

Q16. How does PAIF differ from a typical unit trust?

Unlike many conventional unit trusts, which are only bought and sold at closing net asset values (NAV), PAIF's units are designed to trade on the Stock Exchange of Hong Kong Limited like an ordinary share, and to be created and redeemed principally in a Creation Unit size of 20,000 Units or multiples thereof at the NAV.

Q17. What is an index fund?

An index fund is a fund that seeks to provide returns that closely match the performance of an index such as the iBoxx ABF Pan-Asia Index.

Q18. Who is the Manager of PAIF?

The Manager of PAIF is State Street Global Advisors Singapore Limited.

Q19. Who is the Trustee of PAIF?

The Trustee of PAIF is HSBC Institutional Trust Services (Singapore) Limited.

Q20. How does the Manager manage PAIF?

With passive management, the Manager will rebalance PAIF's portfolio of investments from time to time to reflect any changes to the composition of the iBoxx ABF Pan-Asia Index with a view to minimizing tracking error of PAIF's overall returns relative to the performance of the index.

Q21. How does PAIF track the iBoxx ABF Pan-Asia Index?

PAIF will track the returns of iBoxx ABF Pan-Asia Index by investing primarily in the Index Securities, ie, the constituents of iBoxx ABF Pan-Asia Index. PAIF may also invest in certain non-Index Securities in order to minimize the tracking error. Please refer to the 'Investment Policies and Strategies' in PAIF's Prospectus for more details.

Q22. What is the management fee for PAIF?

Currently, the Manager's fee will not exceed 0.16% per annum of the total net asset value of PAIF. Investors should refer to PAIF's Prospectus for details on the fund's fees and expenses.

Q23. What is the trustee fee for PAIF?

Currently, the Trustee Fees is 0.05% per annum of PAIF's total net asset value. Investors should refer to PAIF's Prospectus for details on the fund's fees and expenses.

Q24. When and how can I buy/sell PAIF's units?

PAIF trades like any other shares listed on the Stock Exchange of Hong Kong Limited. Individual investors may place orders to buy or sell PAIF's units at market prices through their brokers during trading days.

In addition, market professionals may create and redeem in cash through Authorized Participants.

Notes: PAIF's market price on stock exchange may be different from the net asset value per unit of PAIF, and PAIF may be delisted from the stock exchange.

Q25. What is PAIF's base currency?

The base currency of PAIF is US Dollars. This means that the market price and Net Asset Value (NAV) per unit will be reported in US Dollars.

Q26. What is an Authorized Participant (AP)?

An Authorized Participant refers to brokers or dealers who have entered into a Participation Agreement with the Receiving Agent, the Manager and the Trustee with respect to cash creations and redemptions.

Please refer to the list of Authorized Participant for more details. This list is provided for information purpose only and is subject to change from time to time.

Q27. How can I find out PAIF's price?

PAIF trades like any other shares listed on the Stock Exchange of Hong Kong Limited (the Stock Exchange). Investors may refer to financial data providers (such as Bloomberg) or the Stock Exchange for PAIF's current market price during trading days, and business sections of newspapers for previous trading day's closing price. Investors should be aware of that the trading price of PAIF may differ from its Net Asset Value (NAV) per unit.

Q28. What is Net Asset Value (NAV)?

The Net Asset Value (NAV) reflects the market value of PAIF's portfolio of investments less expenses and liabilities and NAV per unit is calculated by dividing PAIF's total NAV by the number of outstanding units. PAIF's NAV will be calculated after the close of trading on the Stock Exchange of Hong Kong Limited (Stock Exchange) at the end of each Dealing Day*. Investors should be aware of that PAIF's NAV per unit may differ from its trading price on the Stock Exchange.

* Dealing day refers to any day on which commercial banks are open for business in Singapore and Hong Kong, the Stock Exchange of Hong Kong is open for trading and the iBoxx ABF Pan-Asia Index is compiled and published.

Q29. How can I find out PAIF's NAV per unit?

PAIF's NAV per unit will be published through the facilities of the Stock Exchange and on PAIF's dedicated website on the following Dealing Day*. Estimated mid-day NAV per unit and estimated closing NAV per unit will be published on the PAIF's website by no later than 1.00 p.m. and 6.00 p.m. respectively on each Dealing Day*.

Notes: The values of estimated mid-day NAV per unit and estimated closing NAV per unit should not be viewed as "real time" updates. The estimated NAV per unit and the actual nAV per unit calculated in accordance with the terms of the Trust Deed and published on the following Dealing Day* may differ.

* Dealing day refers to any day on which commercial banks are open for business in Singapore and Hong Kong, the Stock Exchange of Hong Kong is open for trading and the iBoxx ABF Pan-Asia Index is compiled and published.

Q30. Do I need to pay stamp duty when I sell PAIF's units?

Stamp duty is exempted on trading PAIF's units on the Stock Exchange of Hong Kong Limited.

IMPORTANT NOTES:

Investment involves risks. The fund is not promoted, sponsored, recommended, issued or guaranteed by any member of the EMEAP member central banks and monetary authorities. The fund is not guaranteed or endorsed by the governments of the eight investment markets. Please refer to PAIF's prospectus for further information about the fund. The information on this website is for informational purposes only and is not intended as an offer for the sale of, nor a solicitation of as for the purchase or sale of, securities or investment services, nor an invitation to invest in PAIF.

Investors should be aware of that PAIF is different from a typical Unit Trust. Redemption of PAIF's units could only be executed in substantial size through designated dealers and the listing of PAIF on the Stock Exchange does not guarantee a liquid market for the units. PAIF's units are traded on the stock exchange at market price, which may be different from the net asset value per unit of the fund, and the fund may be delisted from the stock exchange. The semi-annual distributions are dependent on PAIF's performance and are not guaranteed.