Product Key Facts Statement: Swisssmart

PRODUCT KEY FACTS STATEMENT
SwissSmart
AXA Wealth Management (HK) Limited
June 2011
This statement provides you with key information about this product. This statement is a part of the offering document. You should not invest in this product based on this statement alone. There is aGlossarysection at the end of this Product Key Facts Statement. For those italic words, please refer to theGlossarysection for explanation.
Quick facts
Name of insurance company: AXA Wealth Management (HK) Limited (the Company) Single or regular premium: Regular Regular premium frequency: Monthly/Quarterly/Semi-annual/Annual Minimum premium payment term: 8 Benefit Years Period with surrender (encashment) charge: Premium payment term (Benefit Years) 89 10 14 15 19 20 or above Death benefit: Before the Primary Life Insureds 65th birthday, the greater of: (i) 101% of the Total Encashment Value , and (ii) the total premium paid for the relevant Benefit Account(s) without interest less the aggregate of any partial encashment* On or after the Primary Life Insureds 65th birthday, the greater of: (i) 100.1% of the Total Encashment Value and (ii) the total premium paid for the relevant Benefit Account(s) without interest less the aggregate of any partial encashment*
*
Policy currency: USD Minimum premium (per annum): First regular premium: USD3,600 Subsequent regular premium (if applicable): USD1,000 Maximum premium (per annum): Subject to underwriting requirements Governing law of policy: HKSAR
Encashment charge period (Benefit Years) 8 10 15 20
SP_SMT_KFS_201106
Subject to the underwriting decision at policy issuance, you may not be entitled to the benefit option under (ii). In such case, the Company will pay 101% or 100.1% of the Total Encashment Value as the death benefit, depending on when the death occurs.
SwissSmart
What is this product and how does it work?

SwissSmart is an investment-linked insurance plan. It is a life insurance policy issued by the Company. This is not a fund authorised by the SFC pursuant to the Code on Unit Trusts and Mutual Funds (UT Code). Your policy value will be calculated by the Company based on (i) the performance of the reference funds which correspond to the investment options you selected from time to time and (ii) the ongoing fees and charges which will continue to be deducted from your policy value. Note, however, that all premiums you pay towards your SwissSmart policy, and any investment made by the Company in the reference funds which correspond to the investment options you selected, will become and remain the assets of the Company. You do not have any rights or ownership over any of those assets. Your recourse is against the Company only. Due to the various fees and charges levied by the Company on your SwissSmart policy, the return on your SwissSmart policy as a whole may be lower than the return of the reference funds which correspond to the investment options you selected. Please see the section What are the fees and charges? as set out on page 3 for details of fees and charges payable by you. Reference funds, which are linked to the investment options available for selection, are the funds listed in the Investment Options Leaflet. These may include funds authorised by the SFC pursuant to the UT Code, but may also include other portfolios internally managed by the Company on a discretionary basis not authorised by the SFC under the UT Code. Although your SwissSmart policy is a life insurance policy, because the death benefit is linked to the performance of the reference funds which correspond to the investment options you selected from time to time, the death benefit is subject to investment risks and market fluctuations. The death benefit payable may be significantly less than your premiums paid and may not be sufficient for your individual needs. More importantly, you should be aware of the following regarding the death benefit: If the value of your SwissSmart policy becomes insufficient to cover all the ongoing fees and charges, your SwissSmart policy may be terminated early and you could lose all your premiums paid and benefits. You should consult your financial consultant for details, such as how the fees and charges could impact the value of your SwissSmart policy.
What are the key risks?

Investment involves risks. Please refer to the Principal Brochure for details including the risk factors. Credit and insolvency risks SwissSmart is an insurance policy issued by the Company. Your investments are subject to the credit risks of the Company. The investment options available under SwissSmart can have ver y different features and risk profiles. Some may be of high risk. Please read the Principal Brochure of SwissSmart and the offering documents of the reference funds involved for details. Market risks Return of SwissSmart policy is contingent upon the performance of the reference funds and therefore there is a risk of capital loss. Early surrender (total encashment) / withdrawal (partial encashment) penalty SwissSmart policy is designed to be held for a medium/long term period. Early surrender or withdrawal of the policy / suspension of or reduction in premium may result in a significant loss of principal and any extra allocation awarded. Poor per formance of reference funds may fur ther magnify your investment losses, while all charges are still deductible.
SwissSmart
What are the key risks?
(Cont)
Foreign exchange (Currency) risks The investment returns of your SwissSmart policy may be subject to foreign exchange risks as (i) the reference fund(s) may be denominated in a currency which is different from that of your policy; and (ii) the reference fund(s) may be invested in assets denominated in currency(ies) which is different from that of the reference fund(s). Movement in the exchange rates between these currencies may affect the performance of the investment option(s). Premium holiday During premium holiday, premium payments of your SwissSmart policy are suspended and the policy is still subject to applicable charges. Premiums for any supplementar y riders will also continue to be deducted from the account value. This will therefore lead to a significant reduction in the account value and the death benefit will be reduced accordingly. Premium holiday may lead to termination of some supplementary riders, and may possibly lead to termination of your policy (including supplementary riders) if the Total Encashment Value is insufficient to pay the relevant policy charges of the policy and premiums for supplementary riders. If your policy has taken a premium holiday, the premium payment term, the operation charge period (as specified in the What are the fees and charges? section), encashment charge period (as specified in the Quick facts section) and the period for calculating premium adjustment charge will accordingly be extended for such period during which the premium holiday was in effect. Partial encashment Partial encashment may be subject to an encashment charge and will lead to a reduction in the account value, and accordingly the death benefit will be reduced. Partial encashment may possibly lead to termination of your policy (including supplementary riders) if the Total Encashment Value is insufficient to pay the relevant policy charges.
Is there any guarantee?

This product does not have any guarantee of the repayment of principal. You may not get back the full amount of premium you pay and may suffer investment losses.
Other features
Extra allocation The Company will offer extra allocation (as a percentage of the premiums received in the first Benefit Year) if the requirements on the premium payment term and the amount of Annualised Premium are met. Please refer to page 03 of the Product Brochure for details.
What are the fees and charges?

The Company reserves the right to vary the policy charges or impose new charges with not less than three months prior written notice or such shor ter period of notice in compliance with the relevant regulator y requirements. Scheme level Rate Deduct from The Basic Benefit Account on the 1st business day of each month by cancelling units of investment options in proportion to the value of investment options held under the Basic Benefit Account as at the charging date
Policy administration fee
Currently waived
SwissSmart
What are the fees and charges? (Cont)

Scheme level Rate Deduct from Each Benefit Account on the 1st business day of each month by cancelling units of investment options in propor tion to the value of investment options held under the respective Benefit Account as at the charging date
Fund management charge
0.1166% per month (1.4% per annum) on the value of the relevant Benefit Account
No switching fee will be charged for the first 4 switches of investment options per policy for each Policy Year Switching fee For each subsequent switch in a Policy Year, a switching fee of up to 1% of the amount being switched out, subject to a minimum fee of USD12.50 will be imposed on the relevant Benefit Account in which switching is effected. The amount being switched out
0.2333% per month (2.8% per annum) Operation charge on the value of the relevant Benefit Account during the operation charge period, which is the first 8 Benefit Years of each Benefit Account
The relevant Benefit Account on the 1 st business day of each month by cancelling units of investment options in propor tion to the value of investment options held under the respective Benefit Account as at the charging date
It is applicable upon payment during the encashment charge period as specified in the Quick facts section in respect of: (i) total encashment, (ii) death of Primary Life Insured, (iii) termination of any Benefit Account, and (iv) partial encashment The encashment charge is a percentage (as set out below) of: for (i), (ii) and (iii), the Benefit Account Value of relevant Benefit Account(s) before payment; for (iv), the requested encashment amount before payment Such percentages are: in the 1st Benefit Year : 100% starting from the 2nd Benefit Year , equal to: Monthly fund management charge rate Monthly operation charge rate (remaining months in the x encashment charge period as at the date of encashment +1)
x
Encashment charge
For (i), (ii) and (iii), it will be deducted from the Benefit Account Value of the relevant Benefit Account before payment For (iv), it will be deducted from the requested encashment amount before payment
(remaining months in the operation charge period as at the date of encashment +1)
Please refer to the Product Brochure of SwissSmart for the indicative encashment charge rates
SwissSmart
What are the fees and charges? (Cont)

Scheme level Rate 3 0 % o f t h e a m o u n t r e d u c e d ( i . e . dif fer ence in value) in Annualised Premium of the relevant Benefit Account Premium amount can be reduced starting from the 2nd Policy Year, subject to this charge for any decrease in premium during the 2nd and 3rd Policy Years Deduct from
Premium adjustment charge
The relevant Benefit Account the Annualised Premium of which is reduced by cancelling units of investment options in proportion to the value of investment options held under the respective Benefit Account as at the charging date
Bid/offer spread
From premium at the time of premium payment Currently waived From extra allocation at the time when this amount is credited
Please refer to section FEES AND CHARGES (page 07 to 11) of the Product Brochure of SwissSmart for details of the charges. Reference funds level You should note that the reference funds of the investment options may have separate charges on management fee, performance fee, bid-offer spread, etc. You do not pay these fees directly either (1) the fees will be deducted and such reduction will be reflected in the unit price of the reference funds or (2) units will be redeemed from your investment options to pay these fees. For details, please refer to the offering documents of the reference funds and/or the Principal Brochure of SwissSmart policy, which are available from the Company upon request.
What if you change your mind?

Right of Cancellation If you are not fully satisfied with your SwissSmart policy, you have the right to cancel the policy by returning the policy and giving a written cancellation request to us. Your request to cancel must be signed by you and received by us within 21 days after the deliver y of the policy or issue of a notice (informing about the availability of the policy and the expiry date of the cooling-off period) to you or your representative, whichever is earlier. Please refer to the cooling off initiative issued by The Hong Kong Federation of Insurers from time to time for reference. Your request must be signed by you and received directly by AXA Wealth Management (HK) Limited at G/F, 151 Gloucester Road, Wanchai, Hong Kong. We will then refund you all premiums you have paid less a deduction of the amount (if any) by which the value of your investment has fallen at the time when your cancellation request is received by us.
SwissSmart
Insurance companys information

AXA Wealth Management (HK) Limited Address : Tel : Fax : Email : Website : 20/F, 151 Gloucester Road, Wanchai, Hong Kong (852) 2864 5600 (852) 2864 5660 customercare.sp@swissprivilege.com www.swissprivilege.com
Important
AXA Wealth Management (HK) Limited is subject to the prudential regulation of the Insurance Authority. However, the Insurance Authority does not give approval to individual insurance products, including SwissSmart referred to in this statement. If you are in doubt, you should seek professional advice. SwissSmart is authorised by the Securities and Futures Commission (the SFC). Such authorisation is not a recommendation or endorsement of SwissSmart nor does it guarantee the commercial merits of SwissSmart or its performance. It does not mean SwissSmart is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness.
Glossary
Annualised Premium means the amount calculated by multiplying each regular premium payment and its corresponding payment frequency as presented by 12 (monthly), 4 (quarterly), 2 (semi-annual) or 1 (annual), as the case may be. Basic Benefit Account means the Benefit Account created for the first insurance protection selected by the policy owner with the first premium, or the Benefit Account assigned by the Company as the Basic Benefit Account when the existing Basic Benefit Account ceases to exist. Benefit Account means each account formed in respect of each stream of regular premiums, and includes the Basic Benefit Account. Benefit Account Value means in respect of a Benefit Account of your policy on the relevant day, the value which is equal to number of units of the investment options held under the Benefit Account on that day multiplied by the selling price of a unit on such day. Benefit Year means, in relation to a Benefit Account, (i) the period of the first 12 consecutive months starting from the date of formation of the relevant Benefit Account, and (ii) each subsequent period of 12 consecutive months from its anniversary date of a Benefit Account. Encashment Value means the Benefit Account Value after deduction of any applicable encashment charge and outstanding policy charges. Policy Year means in relation to a policy, each 12 consecutive months starting from the commencement date of the policy. Primary Life Insured means, in relation to a death benefit, the life insured named in the policy schedule. Total Encashment Value means the aggregate of the Encashment Value of all Benefit Accounts under the policy.
SwissSmart Product Brochure
A member of the AXA Group
Table of contents
Product Description Insurer Policy Structure Premiums - Regular Premiums Investment Options and Allocation Fees and Charges Features and Conditions General Provisions and Notes Glossary Parties Involved 02 02 02 03 05 07 12 15 16 19
01
The Principal Brochure of SwissSmart ("SwissSmart") consists of this Product Brochure, the Investment Options Leaflet and the Product Key Facts Statement. This Product Brochure is issued and should be read in conjunction with the Investment Options Leaflet and the Product Key Facts Statement. Please refer to the section GLOSSARY as set out on page 16 for definitions of various defined terms. You should not purchase this product unless you understand it and it has been explained to you how it is suitable for you. The final decision is yours. You should not invest based on this document only and should read the Investment Options Leaflet and the Product Key Facts Statement of SwissSmart and the offering documents of the reference funds, which are made available by the Company. If you have any queries on the content of this Product Brochure, the Investment Options Leaflet and the Product Key Facts Statement, please contact your financial consultant for assistance.
Your SwissSmart policy will comprise a Basic Benefit Account and all Benefit Accounts. The Company will have the right to assign a Benefit Account under your SwissSmart policy to be the new Basic Benefit Account if the original Basic Benefit Account ceases to exist. Charges to Benefit Accounts Each Benefit Account runs on its own anniversary based on its date of formation and is subject to its own charges. Policy administration fee is currently waived. However, the Company reserves the right to impose a policy administration fee by giving you prior written notice of not less than three months or such shorter period according to the regulatory requirements. The policy administration fee will be charged on the policy but deducted from the Basic Benefit Account only. Please refer to the section FEES AND CHARGES as set out on page 07 for details about charges. The way a SwissSmart policy works: Your SwissSmart policy comprises a Basic Benefit Account and, if any, Benefit Account(s). First stream of monthly regular premium of USD300 Subsequent stream of monthly regular premium of USD200 Subsequent stream of monthly regular premium of USD100 Basic Benefit Account (for 10 years, 1 Jan 2011 31 Dec 2019) Benefit Account A (for 10 years, 1 Jan 2011 31 Dec 2020) Benefit Account B (for 20 years, 1 Apr 2015 31 Mar 2034)
PRODUCT DESCRIPTION
SwissSmart is a regular premium investment-linked insurance plan under Class C linked long term business in accordance with the Insurance Companies Ordinance ("ICO") offering you a disciplined way of investment through regular premiums.
INSURER
SwissSmart is issued by AXA Wealth Management (HK) Limited (the "Company") as an authorised insurance company in the Hong Kong Special Administrative Region ("Hong Kong") under the ICO. Your investments are subject to the credit risks of the Company.
POLICY STRUCTURE
Formation of Benefit Accounts SwissSmart accepts regular premiums only. The first stream of regular premiums you pay, subject to deduction of applicable charges, will go to the Basic Benefit Account under the policy. You may make additional streams of regular premium payments and a new Benefit Account will be formed separately under the policy for each additional stream of regular premiums. Additional premiums, subject to deduction of applicable charges, will be credited to their relevant Benefit Accounts.
Flexibility of Creating Separate Benefit Accounts With separate Benefit Accounts, you can have different investment strategies among different Benefit Accounts by selecting a different set of investment options available under SwissSmart. Please refer to the section INVESTMENT OPTIONS AND ALLOCATION as set out on page 05 for details about how you can construct your own investment strategies. Additional Protection of SwissSmart Apart from investment-linked insurance plans, the Company offers a wide range of other insurance products. You can attach supplementary riders to your SwissSmart policy to meet the needs of yourself and your family. Please contact your financial consultant for details of the supplementary riders available.
02
PREMIUMS - REGULAR PREMIUMS

SwissSmart is denominated in US dollar ("USD"). You may choose to pay the premiums in Hong Kong dollar ("HKD"). Any payment in HKD will be converted into USD by the Company at the prevailing HKD/USD exchange rate determined by the Company from time to time. Premiums are to be paid at the place designated by the Company from time to time. Please contact the Company or your financial consultant for the available methods of payment as determined by the Company from time to time. Premium Payment You may select the premium payment frequency (monthly, quarterly, semi-annual or annual) at policy issuance. Once selected, it will apply to all regular premium Benefit Accounts subsequently taken out under the same policy. Subject to the approval of the Company, you may change the premium payment frequency. Please contact the Company for such arrangement. The minimum premium payment term for each Benefit Account is eight years. The current minimum level of regular premium is as below: For each For the subsequent first regular premium Benefit regular premium Benefit Account Account USD3,600 USD1,000
Investment Allocation and Encashment Your regular premiums will be used by the Company to notionally allocate to the investment options in the form of units in your relevant Benefit Account(s) according to your latest investment option allocation instruction, subject to applicable charges. If an encashment is made from a Benefit Account before the end of the Encashment Charge period, an Encashment Charge will apply to that Benefit Account. Please refer to Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details. Extra Allocation During the first Benefit Year, the Company will offer extra allocation (as a percentage of the premiums received in the first Benefit Year) in the form of units of the respective investment options in the relevant Benefit Account. The percentage will vary with the premium payment term and the amount of the Annualised Premium as follows: Extra allocation rate based on premium payment term (Benefit Years) Annualised Premium of each (as a percentage of the premiums received in the 1st Benefit Year) regular premium Benefit Account 20 and 8-9 10-14 15-19 thereafter USD3,600 USD7,199 USD7,200 USD11,999 USD12,000 USD17,999 USD18,000 USD23,999 USD24,000 USD35,999 USD36,000 or above 0% 0% 0% 0% 0% 0% 0% 0% 1% 2% 3% 4% 0% 2% 3% 4% 6% 8% 2% 4% 5% 7% 9% 12%
Minimum Annualised Premium amount
The Company may change the minimum level of regular premium by giving you prior written notice of not less than three months or such shorter period according to the regulatory requirements. You may increase the amount of premium in future by creating a new Benefit Account. Any reduction in premium is not allowed in the first Policy Year, but you may request to reduce the premium amount of any Benefit Account from the second Policy Year. However, any reduction in premium in the second and third Policy Years will be subject to a premium adjustment charge, which may result in a significant loss of principal. Please refer to Premium Adjustment Charge as set out in the section FEES AND CHARGES on page 11 for details.
Annualised Premium is calculated as: Premium per x regular payment Corresponding payment frequency (Monthly:12; Quarterly: 4; Semi-annual: 2; Annual: 1)
All extra units from the extra allocation will be notionally allocated to the relevant investment option(s) at the same time as when the original units are allocated.
03
Illustrative example for the calculation of extra allocation: Premium payment term : 15 years First year Annualised Premium : USD15,000 Applicable extra allocation rate : 3% Amount of First year Annualised Premium x = extra allocation Applicable extra allocation rate = USD15,000 x 3% = USD450 The amount of extra allocation will be invested upon receipt of each premium in the first Benefit Year.
During the premium holiday period, the rate of Encashment Charge will remain the same as the applicable rate immediately before the commencement of the premium holiday. Provided the policy is still in effect, you may elect in writing to the Company to end the premium holiday and recommence the payment of premiums, subject to the terms and conditions as determined from time to time by the Company at its sole and absolute discretion. Please note that any premium holiday taken may adversely affect your ability to meet your investment targets. As a result, premium holiday is more suitable for a short period to help you with temporary financial difficulties or needs. Please contact your financial consultant or the Company to obtain an application form for premium holiday and information on the detailed arrangement of premium holiday, and how it would affect your benefits. Automatic Premium Loan If any regular premiums of the policy and/or any related policies are not paid by the expiry of the grace period for their payment, as long as the policy and/or any related policies has acquired an aggregate Total Encashment Value (after deduction of any outstanding loans and accrued interest) which is greater than the required amount to cover the overdue premiums, these unpaid premiums will be deemed to be advanced from an Automatic Premium Loan that will automatically be made to you on the security of the policy. Please refer to the section Grace Period as set out on page 15 for details of grace period. An Automatic Premium Loan will be subject to the following terms: it will bear an interest at such rate as determined from time to time by the Company; you may repay the Automatic Premium Loan and any accrued interest. However, if you do not repay the Automatic Premium Loan and any accrued interest, the Company may deduct the amount of Automatic Premium Loan and any accrued interest from any payment due from the Company under your policy or any related policies (e.g. Total Encashment, etc); and your policy or any related policies will terminate automatically if the total amount of the Automatic Premium Loan and any accrued interest exceeds their aggregate Total Encashment Value.
Premium Holiday Provided that your policy has a sufficient Total Encashment Value, you may elect in writing to the Company to suspend the payment of premium after the end of the second Policy Year. Subject to the Company's approval, you may enjoy a premium holiday as long as the Total Encashment Value of the policy is sufficient to cover the following: (i) Policy Charges of the policy; and/or (ii) premiums of all supplementary riders (as applicable). The Company reserves the right to withhold or decline any request to suspend premium payments as it deems appropriate. During the premium holiday, premium payments of your SwissSmart policy are suspended but the policy is still subject to applicable charges. Premiums of any supplementary riders may also continue to be deducted from the account value of your SwissSmart policy. This will therefore lead to a reduction in the account value and the Death Benefit will be reduced accordingly. Premium holiday may also lead to: i) termination of supplementary rider(s), if any, depending on the terms and conditions of the supplementary rider(s); and ii) termination of your policy (including supplementary riders) if the Total Encashment Value is insufficient to pay the relevant Policy Charges of the policy and premiums of all supplementary riders (as applicable). If your policy has taken a premium holiday, the premium payment term, the operation charge period, the Encashment Charge period and the period for calculating premium adjustment charge will accordingly be extended for such period during which the premium holiday was in effect, save as the Company may otherwise determine at its discretion. Please refer to Operation Charge and Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details.
04
If the payment of premiums is not resumed after: i) 6 months following the due date for the first unpaid premium for policies with monthly, quarterly or semi-annual premium payment frequencies, or ii) 12 months following the due date for the first unpaid premium for policies with annual premium payment frequency, the policy and the related policies will be converted to a paid up policy. Please refer to the section Paid Up Policy as set out on page 05 for details. If the policy and the related policies cease to have any Total Encashment Value or the Total Encashment Value is insufficient to cover outstanding premiums, the policy will terminate without value. Paid Up Policy When the policy has a Total Encashment Value, subject to the conditions described in this section below, you may elect in writing to the Company to treat the policy as a paid up policy after the end of the second Policy Year. No further premiums will be due for the policy. The applicable charges will still apply and the rate of Encashment Charge will remain the same as the applicable rate immediately before the policy was converted to a paid up policy. When the policy has been converted to a paid up policy, (i) Benefit Accounts with an Encashment Value under the policy will remain in effect; (ii) Benefit Accounts with no Encashment Value under the policy will terminate; and (iii) all supplementary riders which are attached to the policy and have no Encashment Value will terminate. If the paid up policy ceases to have any Total Encashment Value, the policy will terminate without value. Subject to the Company's approval, you may at any time choose to resume payment of regular premiums for a paid up policy which is still in force. When this policy is converted to a paid up policy, the applicable rate of Encashment Charge will remain unchanged until you resume premium payment and pay back the unpaid premiums for the paid up policy. Please refer to Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details.
INVESTMENT OPTIONS AND ALLOCATION

Available Investment Options SwissSmart gives you a choice of different investment options across various financial instruments and sectors in global markets. You can diversify your investment by choosing investment options in a range of markets thereby balancing the risk of your investment portfolio. Investment options available for selection under the relevant Benefit Accounts include investment options with their performance determined with reference to the performance of their reference funds which are SFCauthorised funds or are portfolios of underlying assets internally managed by the Company on a discretionary basis not authorised by the SFC under the Code on Unit Trusts and Mutual Funds. A brief description of the investment options currently available and the investment objectives of the investment options or their reference funds are set out in the Investment Options Leaflet. The investment options available under SwissSmart can have very different features and risk profiles. Some may be of high risk. You should read carefully the risk factors, investment and borrowing restrictions as set out in the offering document(s) of the reference fund(s) of these investment options, which are made available by the Company upon request. For investment options with their performance determined with reference to the performance of a portfolio of underlying assets which are internally managed by the Company, their details are set out in the Investment Options Leaflet. Borrowing Power The Investment Options will not borrow more than 25% of its net asset value. Investment Allocation You can construct your own investment portfolio by selecting from a wide range of investment options in SwissSmart. You may select up to 10 investment options for each Benefit Account at any time. The Company reserves the right to change the maximum number of investment options in future by giving you prior written notice of not less than three months or such shorter period according to the regulatory requirements. Subject to Bid/Offer Spread and applicable charges, your premiums paid will be used by the Company to notionally allocate units of the relevant investment option(s) according to your latest investment option allocation instruction for your relevant Benefit Account(s). The assets acquired by the premiums are owned by the Company. You are not investing in the reference funds of the investment options and you do not have any rights or ownership over these reference funds. Your recourse is against the Company only.
05
Allocation of your premiums to investment options is notional in nature. Units of investment options are notionally allocated to your Benefit Account(s) solely for the purpose of determining your Benefit Account Value. The aggregate of your Benefit Account Value is the account value of your SwissSmart policy. The return under SwissSmart will be subject to Policy Charges, and such returns could be lower than the return of the reference funds. Poor performance of reference funds may further magnify your investment losses, while all charges are still deductible. Switch between Investment Options Your investment strategy may change from time to time. To cope with your changing investment needs, SwissSmart gives you the flexibility to switch your investment between investment options. Please note that switching investment options across your Benefit Accounts is not allowed. Currently, the first four switches per policy for each Policy Year are free of switching fee. For each subsequent switch in a Policy Year, a switching fee of up to 1% of the amount being switched out, subject to a minimum switching fee then in force will be imposed. The current minimum amount of switching fee is USD12.50. Please refer to the section FEES AND CHARGES as set out on page 07 for more information. For switches between investment options, a switch request form must be received by the Company before the Relevant Allocation Date on which the switch is to occur, subject to a minimum notice period which currently is three Business Days. Apart from switching, you can also change your investment option allocation instruction for your future premiums, in which case no switching fee will be charged. Unit Allocation Premium(s) credited to your policy will be used by the Company to notionally allocate units of the relevant investment options to the relevant Benefit Account in accordance with your investment option allocation instruction. The number of units of an investment option to be allocated on the Relevant Allocation Date will be determined by dividing the premium by the Buying Price of a unit of the relevant investment option. Please refer to the section Unit Prices as set out on page 06 for details of Buying Price. Unit Cancellation Units of an investment option will be cancelled from your relevant Benefit Account at the Selling Price of such investment option on the Relevant Allocation Date.
Unit Prices Each unit of an investment option will have a Buying Price and a Selling Price. Unit prices are generally determined on a Business Day except otherwise specified in the Investment Options Leaflet. The Buying Price of a unit of an investment option will not exceed the value of such investment option based on the offer price of the reference fund of the investment option increased by relevant taxes and other expenses relating to the investment option, divided by the total number of units in the investment option, with the result being rounded up by not more than 1%. The Selling Price of a unit of an investment option will not be less than the value of such investment option based on the bid price of the reference fund of the investment option decreased by relevant taxes and other expenses relating to the investment option, divided by the total number of units in the investment option, with the result being rounded down by not more than 1%. Units of an investment option will be notionally allocated or cancelled on the Relevant Allocation Date which falls at least two Business Days after receipt by the Company of the premium or notice of encashment from you (as the case may be). In the calculation of number of units of investment options, a fraction of less than one-ten thousandth of a unit will not be notionally allocated to or cancelled from your Benefit Account. Any remaining balance after such rounding will be absorbed by the Company. Unitised Investment Options Valuation The assets of each investment option will be valued by the Company at least once every month. The valuation of securities listed on any stock exchange will be based on their prices quoted on the stock exchange. The value of any holdings in collective investment schemes will be based on the quoted prices. The valuation method may be changed upon events which the Company, at its sole discretion, may consider exceptional, such as temporary closure of any stock exchange on which securities of a reference fund are traded. Closure of Investment Options The Company has the right to temporarily close or terminate any investment option. Reasons for closure or termination may include but are not limited to the termination of a reference fund by the investment manager of the reference fund. The Company may at any time and at its absolute discretion cease to allow the allocation of premium or any switching to any investment option. The policy owner will receive prior written notice of not less than three months or such shorter period according to the regulatory requirements prior to the closure of the investment option selected by the policy owner and be offered alternative investment option(s).
06
FEES AND CHARGES

The types of charges and the details are set out in the summary tables below: Policy Charges on policy level Policy administration fee Switching fee Currently waived No switching fee will be charged for the first 4 switches of investment options per policy each Policy Year. For each subsequent switch in a Policy Year, a switching fee of up to 1% of the amount being switched out, subject to a minimum fee of USD12.50, will be imposed on the relevant Benefit Account in which switching is effected. Switching fee will be deducted from the amount being switched out.
Policy Charges applicable to all regular premium Benefit Accounts Fund management charge A monthly fund management charge of 0.1166% (1.4% per annum) on the value of each Benefit Account will be deducted by cancelling units of investment options in proportion to the value of investment options held under the respective Benefit Account as at the charging date from each Benefit Account on the 1st Business Day of the each month. Currently waived The company reserves the right to impose such fee by giving you prior written notice of not less than three months or such shorter period according to the regulatory requirements. Operation charge A monthly operation charge of 0.2333% (2.8% per annum) on the value of the relevant Benefit Account will be deducted by cancelling units of investment options in proportion to the value of investment options held under the respective Benefit Account as at the charging date from the relevant Benefit Account(s) on the 1st Business Day of each month. The charge will be applied during the operation charge period which is the first 8 Benefit Years of each Benefit Account regardless of the length of its premium payment term. Encashment Charge The encashment charge is applicable upon payment during the encashment charge period (as specified below) in respect of: (i) total encashment, (ii) death of Primary Life Insured, (iii) partial encashment, and (iv) termination of any Benefit Account Premium payment term (Benefit Years) 8-9 10-14 15-19 20 or above Encashment Charge period (Benefit Years) 8 10 15 20
Bid/Offer Spread
The Encashment Charge will be During the Encashment Charge period, payment in respect of calculated as a percentage of deducted from Total Encashment Death of the Primary Life Insured Termination of any Benefit Account Partial Encashment the Benefit Account Value of the relevant Benefit Account(s) before payment
the requested encashment amount before payment
07
Encashment Charge
For the determination of the Encashment Charge rate for a Benefit Account, please refer to the following table: Benefit Year Year 1 Year 2 and thereafter Encashment Charge 100% (Remaining (Remaining Monthly fund months in months in the management Monthly the operation Encashment x + operation charge x charge rate of charge period Charge period the relevant rate as at the date of as at the date of Benefit Account encashment + 1) encashment + 1)
You may refer to the section Indicative Encashment Charge rates as set out on page 18 for more details. Charging of the Encashment Charge on your SwissSmart policy will lead to a reduction in the account value and subsequently the Death Benefit. The earlier the partial encashment, or the termination of the policy, the higher the rate of the Encashment Charge will be imposed and therefore it may result in a significant loss of your principal and any extra allocation awarded. Illustrative examples for the calculation of Encashment Charge: Case 1: premium payment term of 14 years, total encashment in the 9th month Premium payment term Encashment occurs in Account value Applicable Encashment Charge rate in the 1st Benefit Year Encashment Charge : : : : 14 years 9th month USD50,000 100%
= Account value x Applicable Encashment Charge rate = USD50,000 x 100% = USD50,000
Total Encashment Value = Account value - Encashment Charge = USD50,000 - USD50,000 = USD0 Case 2: Total encashment within the operation charge period Premium payment term Encashment occurs in Account value Applicable Encashment Charge period : : : : 19 years 17th month USD100,000 15 years
Remaining months in the = (15 x 12 - 17) months applicable Encashment Charge period = 163 months Applicable operation charge period Remaining months in the applicable operation charge period : 8 years = (8 x 12 - 17) months = 79 months
08
Encashment Charge
Applicable Encashment Charge rate: (Remaining months in the Encashment Charge period as at the date of encashment + 1) (Remaining months in the operation charge period as at the date of encashment + 1)
Monthly fund management charge rate
Monthly operation charge rate
= =
1.4%/12 x (163+1) + 2.8%/12 x (79+1) 37.80% = Account value x Encashment Charge rate = USD100,000 x 37.80% = USD37,800
Encashment Charge
Total Encashment Value = Account value - Encashment Charge = USD100,000 - USD37,800 = USD62,200 Case 3: Total Encashment after the operation charge period Premium payment term Encashment occurs in Account value Applicable Encashment Charge period : : : : 19 years 99th month USD500,000 15 years
Remaining months in the = (15 x 12 - 99) months applicable Encashment Charge period = 81 months Applicable operation charge period Remaining months in the applicable operation charge period Applicable Encashment Charge rate: (Remaining months in the Encashment Charge period as at the date of encashment + 1) (Remaining months in the operation charge period as at the date of encashment + 1) : 8 years = 0 month (not applicable)
= =
1.4%/12 x (81+1) + 2.8%/12 x 0 (not applicable) 9.567% = Account value x Encashment Charge rate = USD500,000 x 9.567% = USD47,835
Encashment Charge
Total Encashment Value = Account value - Encashment Charge = USD500,000 - USD47,835 = USD452,165
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Encashment Charge
Case 4: Total Encashment (with premium holiday) Premium payment term Premium holiday start from Premium holiday last for Encashment occurs in Account value Applicable Encashment Charge period : : : : : : 15 years 30th month's premium 24 months 57th month USD300,000 15 years
Remaining months in the = (15 x 12 - 57 + 24) ) months applicable Encashment Charge period = 147 months Applicable operation charge period Remaining months in the applicable operation charge period Applicable Encashment Charge rate: (Remaining months in the Encashment Charge period as at the date of encashment + 1) (Remaining months in the operation charge period as at the date of encashment + 1) : 8 years = (8 x 12 - 57 + 24) months = 63 months
= =
Encashment Charge
Total Encashment Value = Account value - Encashment Charge = USD300,000 - USD96,600 = USD203,400 Case 5: Partial Encashment Premium payment term Partial Encashment occurs in Requested Encashment amount Applicable Encashment Charge period : : : : 10 years 30th month USD40,000 10 years
Remaining months in the = (10 x 12 - 30) months applicable Encashment Charge period = 90 months Applicable operation charge period Remaining months in the applicable operation charge period Applicable Encashment Charge rate: Monthly fund management charge rate (Remaining months in the Encashment Charge period as at the date of encashment + 1) Monthly operation charge rate (Remaining months in the operation charge period as at the date of encashment + 1) : 8 years = (8 x 12 - 30) months = 66 months
= =
1.4%/12 x (90+1) + 2.8%/12 x (66+1) 26.25%
10
Encashment Charge
Encashment Charge = Requested Encashment amount x Applicable Encashment Charge rate = USD40,000 x 26.25% = USD10,500 Amount payable to policy owner = Requested Encashment amount - Encashment Charge = USD40,000 - USD10,500 = USD29,500
Premium adjustment charge
It is 30% of the amount reduced (i.e. the difference in value) in Annualised Premium of the relevant Benefit Account. Premium amount can be reduced starting from the 2nd Policy Year, subject to this charge for any decrease in premium during the 2nd and 3rd Policy Years. The charge will be deducted from the value of the relevant Benefit Account the Annualised Premium of which is reduced by cancelling units of investment options in proportion to the value of investment options held under the Benefit Account as at the charging date.
Charges on reference funds Fund management fee The fund management fee for a reference fund is currently up to 3.00% per annum. The charge is determined by the investment manager of that reference fund and is not the same for every reference fund. Details of the fund management fees of the reference funds which are SFC-authorised funds are set out in the offering documents for the reference funds and you can obtain these documents from the Company upon request. For details of the fund management fees of underlying assets which are internally managed by the Company, please refer to the Investment Options Leaflet. The current fund management fees are summarised in the Investment Options Leaflet. Other charges The reference funds are subject to the fees and charges levied by the investment managers and other service providers of the reference funds and the expenses of the reference funds. Such fees, charges and expenses will vary from one reference fund to another. Copies of the offering documents of the reference funds which are SFC-authorised funds are made available by the Company upon request.
If your policy has taken a premium holiday, the premium payment term, the operation charge period, the Encashment Charge period and the period for calculating premium adjustment charge will accordingly be extended for such period during which the premium holiday was in effect, save as the Company may otherwise determine at its discretion. If your policy has been converted to a paid up policy, the applicable rate of Encashment Charge will remain unchanged until you resume premium payment and pay back the unpaid premiums for the paid up policy. If the Total Encashment Value becomes insufficient to cover the Policy Charges, your policy may be terminated early and you could lose your investment and all benefits. You should consult your financial consultant for details, such as how the fees and charges of SwissSmart may increase and could impact your investment. Change of Charges The Company reserves the right to revise these charges or impose additional charges. Any variation of charges or addition of new Policy Charges will be subject to prior written notice to you of not less than three months or such shorter period according to the regulatory requirements. If there are changes to the charges of the reference funds, we will give you notice according to the regulatory requirements.
11
FEATURES AND CONDITIONS

A. Total Encashment You may encash the policy (all Benefit Accounts) in exchange for its Total Encashment Value subject to our receipt of: your valid written Total Encashment application in the form specified by us; and the original policy contract for your policy. Total Encashment Value means the aggregate of the Encashment Value of all Benefit Accounts under your policy. Total Encashment during the Encashment Charge period is subject to an Encashment Charge. Please refer to Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details. The Total Encashment Value will normally be payable within 30 days after our receipt of your valid written application and the original of your policy contract at the Company's office. No interest is payable for the period from the date the units are cancelled from your Benefit Account(s) to the date of payment of the Total Encashment Value. SwissSmart is intended for clients who have a medium to long-term investment horizon. Total Encashment in the early years may result in a significant loss of your principal and any extra allocation awarded. B. Partial Encashment Partial Encashment is encashing units in one or more of your Benefit Accounts in exchange for a cash sum, subject to the following conditions: our receipt of your valid written Partial Encashment application in the form specified by us; the minimum amount for each Partial Encashment under each Benefit Account is currently USD250; and after the Partial Encashment, the remaining Encashment Value in that Benefit Account must exceed a minimum amount (currently USD250). The minimum level requirements do not apply if you are encashing all units from a Benefit Account. If there is only one Benefit Account under the policy, any request by you to encash all units of such Benefit Account will be treated as a request for Total Encashment in which event the terms and conditions of Total Encashment as set out in the section FEATURES AND CONDITIONS on page 12 will apply.
These minimum amounts may be revised by the Company from time to time by giving you prior written notice of not less than three months or such shorter period according to the regulatory requirements. A Partial Encashment amount means the aggregate value of the units you encash from your Benefit Account, after the deduction of the Encashment Charge, if any. Partial Encashment during the Encashment Charge period is subject to an Encashment Charge. Please refer to Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details. Partial Encashment will lead to a reduction in the account value and accordingly the Death Benefit will be reduced. Partial Encashment may possibly lead to termination of your policy (including supplementary riders) if the Total Encashment Value is insufficient to pay the relevant Policy Charges. SwissSmart is intended for clients who have a medium to long-term investment horizon. Partial Encashment in the early years may result in a significant loss of your principal and any extra allocation awarded. C. Death Benefit Payment of Death Benefit during the Encashment Charge period is subject to an Encashment Charge (if applicable). Please refer to Encashment Charge as set out in the section FEES AND CHARGES on page 07 for details. On the death of the Primary Life Insured under your SwissSmart policy, the Company will pay to the policy owner or the beneficiary(ies) (as appropriate): (a) where the death occurs before the 65th birthday of the Primary Life Insured, the greater of (i) 101% of the Total Encashment Value; and (ii) the total premium paid without interest less the aggregate of any Partial Encashment*; (b) where the death occurs on or after the 65th birthday of the Primary Life Insured, the greater of (i) 100.1% of the Total Encashment Value; and (ii) the total premium paid without interest less the aggregate of any Partial Encashment*.
*Subject to the underwriting decision at policy issuance, you may not be entitled to the benefit option under item (ii). In such case, the Company will pay 101% or 100.1% of the Total Encashment Value as the Death Benefit, depending on when the death occurs.
Upon receipt of notification of the death of the Primary Life Insured, the Company will terminate the policy and all supplementary riders (if any). The Death Benefit payable by the Company is subject to the provisions in the next section Amounts Payable by the Company as set out on page 14.
12
Illustrative examples for the calculation of Death Benefit: Case 1: Death occurs before the 65th birthday of the Primary Life Insured : : : Total premium paid : Partial Encashment amount : Benefit Account Value : Applicable Encashment Charge period : Remaining months in the applicable Encashment Charge period = = Applicable operation charge period : Remaining months in the applicable operation charge period = = Applicable Encashment Charge rate: Monthly fund management charge rate (Remaining months in the Encashment Charge period as at the date of encashment + 1) Monthly operation charge rate (Remaining months in the operation charge period as at the date of encashment + 1) Premium payment term Death occurs at 15 years Age 55 20th month of the policy USD600,000 USD10,000 USD700,000 15 years (15 x 12 - 20) months 160 months 8 years (8 x 12 - 20) months 76 months
= =
Encashment Charge
Total Encashment Value = Benefit Account value - Encashment Charge = USD700,000 - USD257,250 = USD442,750 Death Benefit = (i) 101% of the Total Encashment Value; or (ii) the total premium paid without interest less the aggregate of any Partial Encashment*, whichever is greater = (i) USD442,750 x 101%; or (ii) USD600,000 - USD10,000, whichever is greater = (i) USD447,177.50; or (ii) USD590,000, whichever is greater = USD590,000
13
Case 2: Death occurs after the 65th birthday of the Primary Life Insured : : : Total premium paid : Partial Encashment amount : Benefit Account Value : Applicable Encashment Charge period : Remaining months in the applicable Encashment Charge period = = Applicable operation charge period : Remaining months in the applicable operation charge period = Applicable Encashment Charge rate: Monthly fund management charge rate (Remaining months in the Encashment Charge period as at the date of encashment + 1) Monthly operation charge rate (Remaining months in the operation charge period as at the date of encashment + 1) Premium payment term Death occurs at 25 years Age 67 200th month of the policy USD600,000 USD10,000 USD1,000,000 20 years (20 x 12 - 200) months 40 months 8 years 0 months (not applicable)
= =
1.4%/12 x (40+1) + 2.8%/12 x 0 (not applicable) 4.783% = Account value x Encashment Charge rate = USD1,000,000 x 4.783% = USD47,830
Encashment Charge
Total Encashment Value = Benefit Account value - Encashment Charge = USD1,000,000 - USD47,830 = USD952,170 Death Benefit = (i) 100.1% of the Total Encashment Value; or (ii) the total premium paid without interest less the aggregate of any Partial Encashment*, whichever is greater = (i) USD952,170 x 100.1%; or (ii) USD600,000 - USD10,000, whichever is greater = (i) USD953,122.20; or (ii) USD590,000, whichever is greater = USD953,122.20
Amounts Payable by the Company All amounts payable by the Company under the policy are payable in the plan currency at the Company's registered office in Hong Kong or at any other place designated by the Company. All Benefit Accounts are denominated in the plan currency. Please refer to the section PREMIUMS - REGULAR PREMIUMS as set out on page 03 for details. Any amounts payable by the Company under the policy may first be applied to repay any outstanding charges, loans and interest thereon under the policy and/or any related policies and/or supplementary riders at the discretion of the Company.
14
GENERAL PROVISIONS AND NOTES

Application SwissSmart is a whole of life investment-linked insurance policy available to proposed insured age up to 70 (age as at next birthday). Application for a proposed insured under age 18 must be made by his or her parent or guardian. To apply for SwissSmart, simply complete and send the application form to us with the premium required. The Company reserves the right to decline any applications for SwissSmart if the information provided by the proposed insured and/or the proposed policy owner during application is insufficient or does not meet our underwriting requirements. Account Value The account value of your policy is the sum of the value of your units in each investment option you select. The value of your units in each investment option is determined by multiplying the number of your units by the latest available Selling Price. Please contact us or visit www. swissprivilege.com for information of unit prices. Your return on investments is calculated with reference to the fluctuation of the performance of the reference funds. Such return will be subject to the fees and charges of SwissSmart and may be lower than the return of the reference funds. Each of these reference funds has its own investment risk profile and associated risks. Please also note that any investment loss will adversely affect the account value of your SwissSmart policy. Right of Cancellation If you are not fully satisfied with your SwissSmart policy, you have the right to cancel the policy by returning the policy and giving a written cancellation request to us. Your request to cancel must be signed by you and received by us within 21 days after the delivery of the policy or issue of a notice (informing about the availability of the policy and the expiry date of the cooling-off period) to you or your representative, whichever is earlier. We will then refund you all premiums you have paid less a deduction of the amount (if any) by which the value of your investment has fallen at the time when your cancellation request is received by us. No refund can be made when a claim has been admitted.
Grace Period The Company allows a grace period of 31 days following the due date for the payment of regular premiums for the policy. No penalty will be imposed for any late payment. If premium payment remains outstanding by the expiry of the grace period but the policy has acquired a Total Encashment Value (after deduction of any outstanding loans and accrued interest) which is greater than the required amount to cover the overdue premiums, these unpaid premiums will be deemed to be advanced from an Automatic Premium Loan that will automatically be made to you on the security of the policy. Please refer to the section Automatic Premium Loan as set out on page 04 for details. Termination The policy will automatically terminate upon occurrence of the earliest of the following: 1. the date when premium due for the policy is not fully paid at the expiry of the relevant grace period and the policy has acquired a Total Encashment Value but an Automatic Premium Loan cannot be taken out in accordance with the section Automatic Premium Loan; or 2. the date of its Total Encashment; or 3. the date of the death of the Primary Life Insured duly notified to us; or 4. the date when the Total Encashment Value falls to zero; or 5. the date when total amount owed to us under the policy and all related policies exceeds the aggregate Total Encashment Value of the policy and all related policies. We may terminate your policy at any time if in our opinion your ownership of it is likely to impose any regulatory or tax obligation on us to which we would not otherwise be subject. On termination, you will be entitled to receive the Total Encashment Value (if any) or, if applicable, the Death Benefit. Once it terminates, your policy will no longer have any effect. SwissSmart is intended for clients who have a medium to long-term investment horizon. Termination in the early years may result in a significant loss of your principal and any extra allocation awarded.
15
Interest In the event of the death of the Primary Life Insured under your SwissSmart policy, interest will be paid in respect of any relevant Benefit Account for the period from the date on which notification of death is received by the Company to the date of payment of the Death Benefit as set out in the section FEATURES AND CONDITIONS on page 12 at a rate to be determined by the Company from time to time. Governing Law and Jurisdiction The policy is issued under and will be construed in accordance with the laws of Hong Kong. The policy will be subject to the non-exclusive jurisdiction of the Hong Kong courts. Taxation Taxation consequences of investing in the policy depend on the applicable tax laws of your particular situation. You are recommended to seek professional advice about your particular tax consequences. Investment Risks Investment involves risks, including fluctuation of market price of investment. The value of the investments and their yield may go down as well as up as a consequence of the general nature of various investments. Past performance is not indicative of future performance. It is important for you to know your risk tolerance level and the level of risks associated with your investment before making any investment decisions. You are strongly recommended to read the offering documents of the respective reference funds carefully for the risks associated with the investment. Copies of the offering documents of the reference funds are made available by the Company upon request. For investment options with their performance determined with reference to the performance of a portfolio of underlying assets which are internally managed by the Company, their details are set out in the Investment Options Leaflet.
GLOSSARY
Annualised Premium means the amount calculated by multiplying each regular premium payment and its corresponding payment frequency as presented by 12 (monthly), 4 (quarterly), 2 (semi-annual) or 1 (annual), as the case may be. Automatic Premium Loan means a loan which is automatically made to the policy owner on the security of the policy if regular premiums are not paid by the expiry of the grace period for their payment and as long as the policy and any all related policies have acquired an aggregate Total Encashment Value (after deduction of any outstanding loans and accrued interest) which is greater than the required amount to cover the overdue premiums. Please refer to the section Automatic Premium Loan as set out on page 04 for details. Basic Benefit Account means the Benefit Account created for the first life insurance protection selected by the policy owner with the first premium, or the Benefit Account assigned by the Company as the Basic Benefit Account when the existing Basic Benefit Account ceases to exist. Benefit Account means each account formed in respect of each stream of regular premiums and includes the Basic Benefit Account. Benefit Account Value means in respect of a Benefit Account of your policy on the relevant day, the value which is equal to the number of units of the investment options held under the Benefit Account on that day multiplied by the Selling Price of a unit on such day. Benefit Year means, in relation to a Benefit Account, (i) the period of the first 12 consecutive months starting from the date of formation of the relevant Benefit Account, and (ii) each subsequent period of 12 consecutive months from the anniversary date of a Benefit Account. Bid/Offer Spread means the fee charged by the Company and expressed as a percentage (as determined by the Company from time to time) of the transaction amount when units are acquired by a policy owner, except that such fee is not applicable to investment option switching. Please refer to Bid/Offer Spread as set out in the section FEES AND CHARGES on page 07 for details.
16
Business Day means a day (other than Saturday) on which banks in Hong Kong are open for normal banking business. Buying Price means the price at which a unit of an investment option will be notionally allocated to the policy on a Dealing Day and as determined in accordance with the section Unit Prices. Death Benefit means the death benefit determined in accordance with the section Death Benefit. Encashment Charge means the charge imposed by us in respect of the payment of Total Encashment, payment on death of the Primary Life Insured, Partial Encashment and termination of the policy as determined in accordance with the section FEES AND CHARGES. Encashment Value means the Benefit Account Value after deduction of any applicable Encashment Charge and outstanding Policy Charges. Partial Encashment means a policy owner's request for us to encash some or all of the units held by the policy owner under a Benefit Account in exchange for a cash sum in accordance with the section Partial Encashment and the expression "partially encash" will be construed accordingly. Policy Charges means the fees and charges imposed by us in respect of this policy, including the Benefit Account(s), as determined and calculated in accordance with the section FEES AND CHARGES. Policy Year means in relation to a policy, each 12 consecutive months starting from the commencement date of the policy. Primary Life Insured means, in relation to a Death Benefit, the life insured named in the policy schedule. Relevant Allocation Date means, the earliest practicable allocation or cancellation date of each premium or encashment, which falls at least two Business Days after receipt by the Company of the premium or encashment notice (as the case may be).
Selling Price means the price at which a unit of an investment option will be cancelled from the policy on a Dealing Day and as determined in accordance with the section Unit Prices. Total Encashment means a policy owner's request for us to encash all the units held by the policy owner under the policy in exchange for a cash sum in accordance with the section Total Encashment. Total Encashment Value means the aggregate of the Encashment Value of all Benefit Accounts under the policy.
17
Indicative Encashment Charge rates The table below sets out an indicative highest Encashment Charge rate applicable during each Benefit Year. In Year 1, the Encashment Charge rate remains the same throughout the year. For each subsequent Benefit Year, the Encashment Charge rate will decrease steadily during the Benefit Year from the rates shown in the table. Monthly Encashment Charge rates for each Benefit Year will be made available by the Company upon request. Benefit Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Premium Payment Term 8 - 9 Years 100.0% 29.4% 25.2% 21.0% 16.8% 12.6% 8.4% 4.2% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 10 - 14 Years 100.0% 32.2% 28.0% 23.8% 19.6% 15.4% 11.2% 7.0% 2.8% 1.4% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 15 - 19 Years 100.0% 39.2% 35.0% 30.8% 26.6% 22.4% 18.2% 14.0% 9.8% 8.4% 7.0% 5.6% 4.2% 2.8% 1.4% N/A N/A N/A N/A N/A 20+ Years 100.0% 46.2% 42.0% 37.8% 33.6% 29.4% 25.2% 21.0% 16.8% 15.4% 14.0% 12.6% 11.2% 9.8% 8.4% 7.0% 5.6% 4.2% 2.8% 1.4%
Please contact your financial consultant if you need assistance in calculating the Encashment Charge.
18
PARTIES INVOLVED
Insurance company AXA Wealth Management (HK) Limited 20/F 151 Gloucester Road Wanchai, Hong Kong Investment Managers/Advisers of Reference Funds For information on the investment managers/advisers of the reference funds, please refer to the offering documents of the reference funds. AXA Wealth Management (HK) Limited is an authorised insurance company in Hong Kong in accordance with the ICO. The Company is subject to the prudential regulation of the Insurance Authority. However, the Insurance Authority does not give approval to individual insurance products, including SwissSmart referred to in this brochure. AXA Wealth Management (HK) Limited accepts full responsibility for the accuracy of the information shown in the Principal Brochure including this Product Brochure, the Investment Options Leaflet and the Product Key Facts Statement, at the date of its publication. We also confirm, having made all reasonable enquiries, that to the best of our knowledge and belief there are no other facts the omission of which would make any statement misleading. SwissSmart is authorised by the Securities and Futures Commission (the "SFC"). Such authorisation is not a recommendation or endorsement of SwissSmart, nor does it guarantee the commercial merits of SwissSmart or its performance. It does not mean SwissSmart is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. The SFC does not take any responsibility for the contents of the offering document, makes no representation as to its accuracy or completeness, expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the offering document. This Product Brochure is issued by AXA Wealth Management (HK) Limited. For any enquiries and complaints in relation to this product or our services, or if you wish to obtain a copy of the policy document of SwissSmart (for which a reasonable price as determined from time to time by the Company may be imposed), please contact us by telephone (852) 2864 5600, fax (852) 2864 5660 or email customercare.sp@swissprivilege.com.
SWISS PRIVILEGE 15/F Luk Kwok Centre 72 Gloucester Road Wanchai, Hong Kong Tel: (852) 2864 5600 Fax: (852) 2864 5660 www.swissprivilege.com If you do not wish to receive any promotional materials from us in future, please email to customercare.sp@swissprivilege.com. (Not for use in Mainland China) June 2011
SP_SS_PB_201106
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Investment Options Leaflet

This investment options leaflet is issued and should be read in conjunction with the Product Brochure and the Product Key Facts Statement of Privilege Personal Portfolio, Formula Suisse or SwissSmart (each the "Product") respectively as these documents together form the Principal Brochure of the relevant Product.
Investment Risks that may be relevant to your investment

Investment involves risks, including fluctuation of market price of investment. The value of the investments and their yield may go down as well as up as a consequence of the general nature of various investments. Past performance is not indicative of future performance. It is important for you to know your risk tolerance level and the level of risks associated with your investment before making any investment decisions. You are strongly recommended to read the offering documents of the respective reference funds carefully for the risks associated with the investment. Copies of the offering documents of the reference funds are made available by AXA Wealth Management (HK) Limited (the Company). In general, the performance of investment options will be affected by a number of risk factors: Market Risk The fund price of reference fund may fluctuate as a result of a variety of changes in the market and the economy, including but not limited to changes in interest rates, exchange rate, credit rating of the issuer or guarantor, inflation (including actual and outlook) and a general decline in the investment market as a whole. Counterparty Risk Investment may be subject to the credit risk and default risk of the issuer or guarantor. Liquidity Risk The reference fund may invest in instruments where the volume of transactions may fluctuate significantly depending on market sentiment. There is a risk that investments made by the reference fund may become less liquid in response to market developments or adverse investor perceptions. Currency Risk The reference fund that holds assets denominated in non-local currency is subject to the risk of exchange rate fluctuation.
You are given a choice of different investment options across various financial instruments and sectors in global markets. It is easy for you to diversify your investment by investing in a range of markets while balancing the risk of your investment portfolio. The currently available investment options are set out as below: Currency of Reference Fund/Internally Managed Investment Option Fund Management Fee of Reference Fund/Internally Managed Investment Option Per Annum (% of Net Asset Value)
Investment Option Name
Reference Fund
Investment Objective of Reference Fund/Internally Managed Investment Option
Manager of Reference Fund/ Internally Managed Investment Option
1 Risk Rating: Low Risk 1.1 AXA Wealth Sfr Money Market Fund Internally Managed by the Company Invests worldwide primarily in SFR-denominated money market instruments (particularly treasury notes, certificates of deposit, commercial paper, medium-term notes and bankers acceptances), short-term treasury bills and/or fixed-interest bonds and floating-rate debt securities The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swaps, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Invests worldwide primarily in EUR-denominated money market instruments (particularly treasury notes, certificates of deposit, commercial paper, medium-term notes and bankers acceptances), short-term treasury bills and/or fixed-interest bonds and floating-rate debt securities The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Invests primarily in Australian Dollar denominated debt securities and other permitted assets SFR Up to 0.60% AXA Wealth Management (HK) Limited
1.2
AXA Wealth Euro Money Market Fund
Internally Managed by the Company
EUR
Up to 0.72%
1.3
1.4
AXA Wealth Fidelity Australian Dollar Currency Fund AXA Wealth US$ Money Market Fund
Fidelity Funds II Australian Dollar Currency Fund Internally Managed by the Company
AUD
1.00%
FIL Limited
Invests worldwide primarily in USD-denominated money market instruments (particularly treasury notes, certificates of deposit, commercial paper, medium-term notes and bankers acceptances), short-term treasury bills and/or fixed-interest bonds and floating-rate debt securities The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Invests worldwide primarily in GBP-denominated money market instruments (particularly treasury notes, certificates of deposit, commercial paper, medium-term notes and bankers acceptances), short-term treasury bills and/or fixed-interest bonds and floating-rate debt securities The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes
USD
Up to 0.72%
1.5
AXA Wealth Sterling Money Market Fund
GBP
Up to 0.72%
Reference Fund
Currency of Reference Fund/Internally Managed Investment Option
Fund Management Fee of Reference Fund/Internally Managed Investment Option Per Annum (% of Net Asset Value)
2 Risk Rating: Low to Medium Risk 2.1 AXA Wealth Pictet Absolute Return Global Diversified Fund AXA Wealth Swiss Bond Fund Pictet - Absolute Return Global Diversified Internally Managed by the Company Aims to provide investors with an absolute positive return primarily by investing in a broad and extremely diversified selection of assets. All the various strategies aim to provide investors with a return greater than its benchmark index, EONIA (the "Euro Over Night Index Average" which reflects the average weighted rate of interbank investments from one day to the next in the eurozone) Maximizes the return from a Swiss Franc denominated bond portfolio The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Maximizes the return by investing mainly in US$ denominated bonds (including convertible bonds) across the entire range of borrower ratings and maturities issued by public, private and semi-private issuers worldwide The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Maximizes the return by investing mainly in readily marketable bonds across the entire range of borrower ratings and maturities. Investments are made globally with no restrictions as to country, currency or sector The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk and financial derivative instrument risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Provides an absolute return of capital growth and income primarily through investment in a portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supra national and corporate issuers in Asia excluding Japan EUR 1.10% Pictet Funds (Europe) S.A.
2.2
SFR
0.90%
2.3
AXA Wealth Dynamic US$ Bond Fund
USD
0.95%
2.4
AXA Wealth Dynamic International Bond Fund
USD
0.95%
2.5
AXA Wealth Schroder ISF Asian Bond Absolute Return Fund AXA Wealth Templeton Global Bond Fund AXA Wealth Fidelity International Bond Fund AXA Wealth BlackRock Local Emerging Markets Short Duration Bond Fund
2.6
2.7
Schroder International Selection Fund Asian Bond Absolute Return Franklin Templeton Investment Funds - Templeton Global Bond Fund Fidelity Funds International Bond Fund BlackRock Global Funds - Local Emerging Markets Short Duration Bond Fund
USD
1.25%
Schroder Investment Management (Luxembourg) S.A. Franklin Templeton Investments
Aims to maximise, consistent with prudent investment management, total investment return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in a portfolio of fixed or floating rate debt securities (including non-investment grade securities) and debt obligations issued by government or government-related issuers worldwide Invests in international markets to maximize performance measured in US Dollars
USD
0.75%
USD
0.75%
FIL Limited
2.8
Seeks to maximize total return. The reference fund invests at least 70% of its total assets in local currency-denominated fixed income transferable securities with a duration of less than five years issued by governments, agencies and companies domiciled in, or exercising the predominant part of their economic activity in, developing markets. The average duration is not more than two years. The full spectrum of available securities, including non-investment grade, may be utilised. Currency exposure is flexibly managed 3
USD
1.00%
BlackRock (Luxembourg) S.A.
Reference Fund
Currency of Reference Fund/Internally Managed Investment Option USD
Fund Management Fee of Reference Fund/Internally Managed Investment Option Per Annum (% of Net Asset Value) 1.10%
2.9
AXA Wealth AllianceBernstein American Income Portfolio Fund
AllianceBernstein - American Income Portfolio#
2.10
2.11
AXA Wealth Pictet Global Emerging Debt Fund AXA Wealth BlackRock Asian Tiger Bond Fund AXA Wealth Templeton Global Total Return Fund
Pictet - Global Emerging Debt BlackRock Global Funds - Asian Tiger Bond Fund Franklin Templeton Investment Funds - Templeton Global Total Return Fund Morgan Stanley Investment Funds Global Convertible Bond Fund Pictet - Latin American Local Currency Debt Fidelity Funds US High Yield Fund
Seeks to provide a high level of current income with the potential for capital appreciation by investing in a diversified portfolio of U.S.dollar-denominated fixed income securities. The reference fund invests solely in U.S. dollar denominated fixed income securities, including investment grade and high yield securities of issuers domiciled within and outside the U.S. Under normal market conditions, a minimum of 50% of the Portfolio assets will be invested in investment grade securities. At least 65% of the assets must be issued by issuers domiciled within the United States Seeks revenue and capital growth by investing its portfolio in bonds and money market instruments in emerging countries, within the limits allowed by the investment restrictions Seeks to maximize total return. The reference fund invests at least 70% of its total assets in the fixed income transferable securities of issuers domiciled in, or exercising the predominant part of their economic activity in, Asian Tiger countries. The reference fund may invest in the full spectrum of available securities, including non-investment grade. The currency exposure of the reference fund is flexibly managed Aims to maximize, consistent with prudent investment management, total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and/or floating rate debt securities and debt obligations issued by government and government-related issuers or corporate entities worldwide Seeks long-term capital appreciation, measured in US Dollars, through investment primarily in convertible bonds issued by companies organised or operating in either the developed or emerging markets which will be denominated in global currencies Seeks revenue and capital growth by investing a minimum of two-thirds of its total assets or wealth in a diversified portfolio of bonds and other debt securities linked to local Latin American emerging countries
AllianceBernstein (Luxembourg) S.A.
USD
1.10%
Pictet Funds (Europe) S.A. BlackRock (Luxembourg) S.A.
USD
1.00%
2.12
USD
0.75%
Franklin Templeton Investments
2.13
2.14
2.15
AXA Wealth Morgan Stanley Global Convertible Bond Fund AXA Wealth Pictet Latin American Local Currency Debt Fund AXA Wealth Fidelity US High Yield Fund
USD
1.00%
USD
1.20%
Morgan Stanley Investment Management Limited Pictet Funds (Europe) S.A.
2.16
AXA Wealth AllianceBernstein Global High Yield Portfolio Fund
AllianceBernstein - Global High Yield Portfolio#
Seeks a high level of current income and capital appreciation by investing primarily in high-yielding, sub investment grade securities of issuers that have their head office or exercise a predominant part of their economic activity in the United States. The type of debt securities in which the reference fund will primarily invest will be subject to high risk and will not be required to meet a minimum rating standard and may not be rated for creditworthiness by any internationally recognised rating agency. Sub investment grade securities mean securities with a rating of BB+ or less from Standard and Poor's (S&P) or equivalent rating from an internationally recognised rating agency Seeks to produce high current income as well as overall total return by investing primarily in a portfolio of high yield debt securities of issuers located throughout the world, including the U.S. and emerging countries. The reference fund invests in both U.S. dollar and non-U.S. dollar denominated securities. The Investment Manager utilizes the investment research of both its global fixed income and high yield teams
USD
1.00%
FIL Limited
USD
(1) 1.70%^ (2) 1.50%^
Reference Fund
2.17
AXA Wealth BNP Paribas Bond Best Selection World Emerging Fund
BNP Paribas L1 Bond Best Selection World Emerging
Invests at least 2/3 of its assets in a limited number of bonds and debt securities or other securities issued by emerging countries (Chile, Korea, Hungary, Mexico, Poland, the Slovak Republic, the Czech Republic and Turkey, and the countries that do not belong to OECD) or by companies characterised by a strong financial structure and/or potential for profitable growth that have their registered offices or conduct a majority of their business activities in these countries, as well as in derivative financial instruments on this type of asset The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other transferable securities, money market instruments, derivative financial instruments or cash, and up to 5% of its assets in other UCITs or UCIs Certain markets are not currently considered regulated markets, so direct investments on these markets must be limited to 10% of net assets. Russia is one of these non-regulated markets, except for the Russian Trading System Stock Exchange ("RTS Stock Exchange") and the Moscow Interbank Currency Exchange ("MICEX") which are considered regulated Russian markets and on which investments can exceed 10% of net assets Seeks a high level of current income and capital appreciation by investing primarily in high-yielding, sub investment grade securities of issuers that have their principal business activities in the Asian region. This reference fund will suit those investors seeking high income and capital appreciation and who are prepared to accept the risks associated with this type of investment. The type of debt securities in which the reference fund will primarily invest will be subject to high risk and will not be required to meet a minimum rating standard. Most but not all will be rated for creditworthiness by an internationally recognised rating agency. Sub investment grade securities mean securities with a rating of BB+ or less from Standard and Poor's (S&P) or equivalent rating from an internationally recognised rating agency
BNP Paribas Investment Partners Luxembourg
2.18
AXA Wealth Fidelity Asian High Yield Fund
Fidelity Funds Asian High Yield Fund
USD
1.00%
FIL Limited
3 Risk Rating: Medium Risk 3.1 AXA Wealth Global Balanced Fund Internally Managed by the Company Seeks to maximize capital growth over the medium to long-term through investment in a global portfolio of fixed income securities and equities. The broad investment policy across securities markets and by asset allocation is designed to produce a balanced portfolio for investors The investment is subject to country risk, currency risk, fixed-income securities risk, structured debt securities risk, financial derivative instrument risk and equity securities risk. The investment may use financial derivative instruments (e.g. forwards, futures, options, swap, etc.) for investments purposes and/or efficient portfolio management and/or hedging purposes Seeks to maximize total return. The reference fund invests globally in equity, debt and short-term securities, of both corporate and governmental issuers, with no prescribed limits. In normal market conditions the reference fund will invest at least 70% of its total assets in the securities of corporate and governmental issuers. The reference fund generally will seek to invest in securities that are, in the opinion of the Investment Adviser, undervalued. The reference fund may also invest in the equity securities of small and emerging growth companies. The reference fund may also invest a portion of its debt portfolio in high yield fixed income transferable securities. Currency exposure is flexibly managed Generates income from investment in Asia-Pacific equities and debt securities (excluding Japan). The reference fund will also aim to provide long-term capital appreciation USD 1.25% AXA Wealth Management (HK) Limited
3.2
AXA Wealth BlackRock Global Allocation Fund
BlackRock Global Funds - Global Allocation Fund
USD
1.50%
3.3
AXA Wealth Invesco Asia Balanced Fund
Invesco Funds Invesco Asia Balanced Fund
USD
1.25%
Invesco Management S.A.
Reference Fund
Currency of Reference Fund/Internally Managed Investment Option EUR
3.4
AXA Wealth BNP Paribas Equity World Utilities Fund
BNP Paribas L1 Equity World Utilities
Invests at least 2/3 of its assets in shares or other securities of companies that conduct the majority of their business activities in the local authorities services sector and in related or connected sectors and in derivative financial instruments on this type of asset The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other transferable securities, money market instruments, derivative financial instruments or cash, provided that the investments in debt securities of any kind do not exceed 15% of its assets and up to 10% of its assets in other UCITs or UCIs Seeks long-term growth of capital through investments primarily in common stocks using a "value" approach, which emphasizes investments in companies Janus believes are undervalued relative to their intrinsic worth
3.5
AXA Wealth Janus US Strategic Value Fund
3.6
AXA Wealth Invesco Japanese Equity Fund AXA Wealth Franklin Mutual Beacon Fund
3.7
Janus Capital Funds Plc Perkins US Strategic Value Fund Invesco Funds Series 1 - Invesco Japanese Equity Fund Franklin Templeton Investment Funds - Franklin Mutual Beacon Fund
USD
1.50%
Janus Capital International Limited
Achieves long-term capital growth by investing in securities of Japanese companies
USD
1.50%
Invesco Global Asset Management Limited Franklin Templeton Investments
3.8
3.9
3.10
AXA Wealth Fidelity European Growth Fund AXA Wealth Fidelity America Fund AXA Wealth Schroder ISF Euro Equity Fund AXA Wealth AllianceBernstein Global Growth Trends Portfolio Fund AXA Wealth Templeton Global Fund
Fidelity Funds European Growth Fund Fidelity Funds America Fund Schroder International Selection Fund EURO Equity AllianceBernstein - Global Growth Trends Portfolio#
Primarily aims for capital appreciation with income as a secondary objective; pursues its objectives principally through investments in common stock, preferred stock, and debt securities convertible or expected to be convertible into common or preferred stock. The reference fund may also seek to invest in the securities of companies involved in mergers, consolidations, liquidations and reorganizations or as to which there exist tender or exchange offers, and may participate in such transactions. To a lesser extent, the reference fund may also purchase debt securities, both secured and unsecured, of companies involved in reorganisation or financial restructuring Invests principally in equity securities quoted on European stock exchanges
USD
1.00%
EUR
1.50%
FIL Limited
Invests primarily in US equity securities
USD
1.50%
FIL Limited
Provides capital growth primarily through investment in equity securities of companies in countries participating in Economic and Monetary Union (EMU)
EUR
1.50%
Schroder Investment Management (Luxembourg) S.A. AllianceBernstein (Luxembourg) S.A.
3.11
3.12
Franklin Templeton Investment Funds - Templeton Global Fund
Seeks long-term capital growth by investing in a global portfolio of equity securities. The reference fund currently consists of six sub-portfolios, each managed by an in-house, senior sector analyst-manager. Currently, these sectors consist of health care, infrastructure, consumer growth, information technology, energy & natural resources and finance. Applying a research-driven, bottom-up stock selection process, each of the sub-portfolio analyst-managers uses the investment manager's proprietary research to seek attractive companies in their sectors Seeks to achieve capital appreciation through a policy of investing in equity and debt obligations of companies and governments of any nation throughout the world, including emerging markets. The reference fund invests principally in common stocks
USD
(1) 1.70%^^ (2) 1.50%^^
USD
1.00%
Reference Fund
3.13
3.14
3.15
3.16
AXA Wealth Fidelity Germany Fund AXA Wealth Morgan Stanley European Property Fund AXA Wealth Henderson Global Property Equities Fund AXA Wealth Janus Global Real Estate Fund
Fidelity Funds Germany Fund Morgan Stanley Investment Funds European Property Fund Henderson Horizon Fund Global Property Equities Fund* Janus Capital Funds Plc - Janus Global Real Estate Fund
Invests principally in German equity securities
FIL Limited
Seeks long-term capital appreciation, measured in Euro, through investment in the equity securities of companies in the European real estate industry
EUR
1.40%
Seeks long-term capital appreciation by investing in the quoted equity securities of companies or Real Estate Investment Trusts (or its equivalents) listed or traded on a regulated market which derive the main part of their revenue from the ownership, management and/or development of real estate, throughout the world Seeks total return through a combination of capital appreciation and current income from both US and non-US securities. It invests primarily in companies engaged in or related to the property industry, or which own significant property assets. These can include real estate operating and service companies as well as REITs (Real Estate Investment Trusts)
USD
1.20%
Morgan Stanley Investment Management Limited Henderson Fund Management (Luxembourg) S.A. Janus Capital International Limited
USD
1.25%
4 Risk Rating: High Risk 4.1 AXA Wealth Invesco Global Health Care Fund AXA Wealth Pictet Water Fund Invesco Funds Series 3 - Invesco Global Health Care Fund Pictet - Water Achieves long-term capital growth by investing in healthcare companies throughout the world; the reference fund is invested principally in four different sectors of the healthcare markets, these being pharmaceuticals, biotechnology, healthcare services and medical technology and supplies Aims to invest in equities issued by companies operating in the water and air sector worldwide. The companies targeted in the water sector will include water production companies, water conditioning and desalination companies, water suppliers, water bottling, transport and dispatching companies, companies specialising in the treatment of waste water, sewage and solid, liquid and chemical waste, companies operating sewage treatment plants and companies providing equipment, consulting and engineering services in connection with the above-described activities. The companies targeted in the air sector will include companies responsible for inspecting air quality, suppliers of air-filtration equipment and manufacturers of catalytic converters for vehicles Invests principally in Australian equity securities USD 2.00% Invesco Global Asset Management Limited Pictet Funds (Europe) S.A.
4.2
EUR
1.60%
4.3
4.4
AXA Wealth Fidelity Australia Fund AXA Wealth Pictet Security Fund
Fidelity Funds Australia Fund Pictet - Security
AUD
1.50%
FIL Limited
4.5
AXA Wealth BNP Paribas Equity High Dividend Pacific Fund
BNP Paribas L1 Equity High Dividend Pacific
Applies a capital growth strategy by investing primarily in shares or similar securities issued by companies that contribute to providing integrity, health, and freedom, whether it be individual, corporate or political. The reference fund will invest at least two-thirds of its total assets or wealth in equities issued by companies operating in this sector Invests at least 2/3 of its assets in shares or other securities representing equity in the capital of companies that have their registered offices or conduct the majority of their business activities in the Pacific region and whose dividend return is greater than the average of the Pacific market, as well as in derivative financial instruments on this type of asset May also invest a maximum of 1/3 of its assets in any other transferable securities, money market instruments, derivative financial instruments or cash, provided that the investments in debt securities of any kind do not exceed 15% of its assets and the investments in other UCITS or UCI do not exceed 5% 7
USD
1.60%
Pictet Funds (Europe) S.A.
EUR
1.50%
Reference Fund
4.6
4.7
AXA Wealth Fidelity Global Financial Services Fund AXA Wealth Invesco Japanese Small/Mid Cap Equity Fund
Fidelity Funds Global Financial Services Fund Invesco Funds Series 4 - Invesco Japanese Small/Mid Cap Equity Fund Pictet - Generics
Provides investors with long-term capital growth, principally through investment in the equity securities of companies throughout the world which are involved in providing financial services to consumers and industries
FIL Limited
Achieves long-term capital growth by investing in small to medium sized Japanese companies
USD
1.50%
Invesco Global Asset Management Limited
4.8
AXA Wealth Pictet Generics Fund AXA Wealth Pictet Digital Communication Fund AXA Wealth Pictet Biotech Fund
4.9
Pictet - Digital Communication
Achieves capital growth by investing at least two-thirds of its total assets or wealth in equities or similar securities issued by companies that are active in the field of generic drugs. Geographically, its investment universe is not restricted to a particular area Aims to achieve capital growth by investing at least two-thirds of its total assets or wealth in equities or any other securities related to securities issued by companies using digital technology to offer interactive services and/or products related to interactive services in the communications sector Aims to achieve growth by investing in equities or similar securities issued by biopharmaceutical companies that are at the forefront of innovation in the medical sector. The reference fund will invest at least two-thirds of its total assets or wealth in equities issued by companies operating in this sector. Geographically, the reference fund's investment universe is not restricted to a particular area. However, in light of the particularly innovative nature of the pharmaceutical industry in North America and Western Europe, the vast majority of investments will focus on these regions Provides capital growth primarily through investment in equities securities of worldwide issuers which will benefit from efforts to accommodate or limit the impact of global climate change
USD
1.60%
Pictet Funds (Europe) S.A. Pictet Funds (Europe) S.A.
USD
1.60%
4.10
Pictet - Biotech
USD
1.60%
4.11
AXA Wealth Schroder Global Climate Change Equity Fund AXA Wealth Pictet Premium Brands Fund
4.12
Schroder International Selection Fund Global Climate Change Equity Pictet - Premium Brands
USD
1.50%
Schroder Investment Management (Luxembourg) S.A. Pictet Funds (Europe) S.A.
4.13
4.14
4.15
AXA Wealth Invesco Global Leisure Fund AXA Wealth Fidelity European Smaller Companies Fund AXA Wealth Janus Global Technology Fund
Invesco Funds Invesco Global Leisure Fund Fidelity Funds European Smaller Companies Fund Janus Capital Funds Plc - Janus Global Technology Fund
Applies a capital growth strategy by investing at least two-thirds of its total assets or wealth in equities issued by companies operating in the premium brands sector, which offer high quality services and products. These companies benefit from strong market recognition because they have the ability to create or channel consumer trends. They may also have a certain capacity to set prices. These companies are particularly specialised in high-end products and services or in financing this type of activity. The reference fund's investment universe will not be limited to any particular region Aims to provide long-term capital growth from an international portfolio of investments in companies predominantly engaged in the design, production or distribution of products and services related to the leisure time activities of individuals Invests principally in equity securities of small and medium-sized European companies
EUR
1.60%
USD
1.50%
Invesco Management S.A. FIL Limited
EUR
1.50%
Seeks long-term growth of capital by investing primarily in technology-related equity securities of companies located anywhere in the world and selected for their growth potential
USD
1.50%
Janus Capital International Limited
Reference Fund
4.16
AXA Wealth Aberdeen Global Asia Pacific Equity Fund AXA Wealth Aberdeen Global Emerging Markets Equity Fund AXA Wealth Templeton Global Smaller Companies Fund AXA Wealth Fidelity ASEAN Fund AXA Wealth Morgan Stanley EM Europe, Middle East and Africa Fund AXA Wealth Investec GSF Global Energy Fund AXA Wealth Fidelity Asian Special Situations Fund AXA Wealth Aberdeen Global Chinese Equity Fund AXA Wealth Invesco Asia Infrastructure Fund AXA Wealth Morgan Stanley Asian Property Fund
Aberdeen Global Asia Pacific Equity Fund
4.17
Aberdeen Global Emerging Markets Equity Fund
4.18
4.19
Franklin Templeton Investment Funds - Templeton Global Smaller Companies Fund Fidelity Funds ASEAN Fund Morgan Stanley Investment Funds Emerging Europe, Middle East and Africa Equity Fund Investec Global Strategy Fund Global Energy Fund Fidelity Funds Asian Special Situations Fund Aberdeen Global Chinese Equity Fund Invesco Funds Invesco Asia Infrastructure Fund Morgan Stanley Investment Funds Asian Property Fund
Achieves long-term total return by investing at least two-thirds of the reference fund's assets in equities and equity-related securities of companies with their registered office in Asia Pacific countries (excluding Japan); and/or, of companies which have the preponderance of their business activities in Asia Pacific countries (excluding Japan); and/or, of holding companies that have the preponderance of their assets in companies with their registered office in Asia Pacific countries (excluding Japan) Achieves long-term total return by investing at least two-thirds of the reference fund's assets in equities and equity-related securities of companies with their registered office in 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 office in an emerging market country Achieves long-term capital appreciation by investing in equity and debt obligations of smaller companies throughout the world, including emerging markets. The reference fund invests principally in common stocks
Aberdeen Global Services S.A.
USD
1.75%
USD
1.00%
Invests principally in equity securities quoted on stock exchanges in Singapore, Malaysia, Thailand, Philippines, Indonesia Seeks long-term capital appreciation, measured in Euro, by investing primarily in equity securities of issuers in Central, Eastern and Southern Europe (including the Russian Federation), the Middle East and Africa
USD
1.50%
FIL Limited
4.20
EUR
1.60%
Morgan Stanley Investment Management Limited Investec Global Strategy Fund
4.21
Achieves capital growth by investing in the equity instruments of internationally quoted companies throughout the world involved in the exploration, production or distribution of oil, gas and other energy sources. In addition, investments may also be made in companies which service the energy industry Invests principally in special situations stocks and smaller growth companies in Asia, excluding Japan. Special situations stocks generally have valuations which are attractive in relation to net assets or earnings potential with additional factors which may have a positive influence on the share price. Up to 25% of the portfolio can consist of investments other than special situations stocks and smaller growth companies Achieves long-term total return by investing at least two-thirds of the reference fund's assets in equities and equity-related securities of companies with their registered office in China; and/or, of 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 office in China Aims to achieve long-term capital growth from investments in a diversified portfolio of Asian securities of issuers which are predominantly engaged in infrastructure activities
USD
1.50%
4.22
USD
1.50%
FIL Limited
4.23
USD
1.75%
4.24
USD
1.50%
4.25
Seeks long-term capital appreciation, measured in US Dollars, through investment in the equity securities of companies in the real estate industry located throughout Asia and Oceania
USD
1.40%
Morgan Stanley Investment Management Limited
Reference Fund
Currency of Reference Fund/Internally Managed Investment Option USD EUR
Fund Management Fee of Reference Fund/Internally Managed Investment Option Per Annum (% of Net Asset Value) 1.50% 1.50%
4.26 4.27
AXA Wealth Fidelity Thailand Fund AXA Wealth BNP Paribas Equity World Materials Fund
Fidelity Funds Thailand Fund BNP Paribas L1 Equity World Materials
Invests principally in equity securities quoted on the stock exchange in Thailand Invests at least 2/3 of its assets in shares or other securities of companies that conduct the majority of their business activities in the materials sector (e.g. among others, in building and packaging materials, base chemicals, metals, forestry, paper etc.) and related or connected sectors, as well as in derivative financial instruments on this type of asset The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other transferable securities, money market instruments, derivative financial instruments or cash, provided that the investments in debt securities of any kind do not exceed 15% of its assets and up to 10% of its assets in other UCITs or UCIs Provides capital growth primarily through investment in equity securities of Hong Kong SAR companies
FIL Limited BNP Paribas Investment Partners Luxembourg
4.28
4.29
4.30
4.31
4.32
AXA Wealth Schroder ISF Hong Kong Equity Fund AXA Wealth Schroder ISF Greater China Fund AXA Wealth Fidelity South East Asia Fund AXA Wealth Fidelity Taiwan Fund AXA Wealth BlackRock New Energy Fund AXA Wealth Pictet Clean Energy Fund AXA Wealth Fidelity China Focus Fund AXA Wealth Templeton Frontier Markets Fund
Schroder International Selection Fund Hong Kong Equity Schroder International Selection Fund Greater China Fidelity Funds South East Asia Fund Fidelity Funds Taiwan Fund BlackRock Global Funds - New Energy Fund Pictet - Clean Energy Fidelity Funds China Focus Fund Franklin Templeton Investment Funds - Templeton Frontier Markets Fund
HKD
1.50%
Provides capital growth primarily through investment in equity securities of the People's Republic of China, Hong Kong SAR and Taiwan companies
USD
1.50%
Invests principally in equity securities quoted on stock exchanges in the Pacific Basin excluding Japan. The reference fund may invest up to 10% of its net assets in China A Shares Invests principally in Taiwanese equities
USD
1.50%
Schroder Investment Management (Luxembourg) S.A. Schroder Investment Management (Luxembourg) S.A. FIL Limited
USD
1.50%
FIL Limited
4.33
4.34
4.35
Seeks to maximize total return. The reference fund invests globally at least 70% of its total assets in the equity securities of new energy companies. New energy companies are those which are engaged in alternative energy and energy technologies including renewable energy, alternative fuels, automotive and on-site power generation, materials technology, energy storage and enabling energy technologies Applies a capital growth strategy by investing at least two-thirds of its total assets or wealth in shares issued by companies that contribute to the reduction of carbon emissions (by encouraging the production and use of clean energy, for example). The investment universe is not limited to a specific geographic region Primarily focuses on China through investment in securities of Chinese companies listed in China and Hong Kong, as well as securities in non-Chinese companies which have a significant portion of their activities in China. The reference fund may invest up to 10% of its net assets in China A Shares Provides long-term capital appreciation. The reference fund invests principally in transferable equity securities of companies incorporated in the Frontier Markets countries, and/or which have their principal business activities in Frontier Markets countries across the market capitalisation spectrum. The Frontier Markets countries are smaller, less developed and less accessible Emerging Markets countries, but with "investable" equity markets and include those defined as Frontier Markets by the International Finance Corporation as well as included in Frontier Markets related indices (including but not limited to MSCI Frontier Markets Index, Merrill Lynch Frontier Index, S&P Frontier Broad Market Index), for example Bahrain, Bulgaria, Egypt, Kazakhstan, Nigeria, Pakistan, Qatar, Vietnam etc
USD
1.75%
USD
1.60%
Pictet Funds (Europe) S.A. FIL Limited
USD
1.50%
USD
1.60%
10
Reference Fund
4.36
4.37
AXA Wealth Invesco Asia Consumer Demand Fund AXA Wealth Schroder ISF BRIC Fund
4.38
AXA Wealth Franklin MENA Fund
Invesco Funds Invesco Asia Consumer Demand Fund Schroder International Selection Fund BRIC (Brazil, Russia, India, China) Franklin Templeton Investment Funds - Franklin MENA Fund BNP Paribas L1 Equity Europe Emerging
Achieves long-term capital appreciation by investing at least 70% of the total assets of the reference fund (without taking into account ancillary liquid assets) in equity securities of Asian companies whose business is likely to benefit from, or is related to growth in domestic consumption in Asian economies, excluding Japan Provides capital growth primarily through investment in equity securities of Brazilian, Russian, Indian and Chinese companies
USD
1.50%
Schroder Investment Management (Luxembourg) S.A.
4.39
AXA Wealth BNP Paribas Equity Europe Emerging Fund
Provides long-term capital appreciation by investing primarily in transferable securities such as equity securities and fixed income securities of companies (i) incorporated in the Middle East and North Africa countries ("MENA countries") including, but not limited to Kingdom of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Egypt, Jordan and Morocco, and/or (ii) which have their principal business activities in MENA countries across the market capitalization spectrum as well as in financial derivative instruments Invests at least 2/3 of its assets in shares or other securities of companies that have their registered offices or conduct the majority of their business activities in emerging countries in Europe (Hungary, Poland, the Slovak Republic, the Czech Republic and Turkey, and all the countries that do not belong to OECD), as well as in derivative financial instruments on this type of asset The remaining portion, namely a maximum of 1/3 of its assets, may be invested in any other transferable securities, money market instruments, derivative financial instruments or cash, provided that the investments in debt securities of any kind do not exceed 15% of its assets and up to 5% of its assets in other UCITs or UCIs Some of these markets are not currently considered regulated markets, so direct investments on these markets must be limited to 10% of net assets. Russia is one of these non-regulated markets, except for the Russian Trading System Stock Exchange ("RTS Stock Exchange") and the Moscow Interbank Currency Exchange ("MICEX") which are considered regulated Russian markets and on which investments can exceed 10% of net assets Achieves long-term capital growth in the value of assets. The reference fund will seek to achieve its investment objective by investing in equities and equity-related securities of companies incorporated in Hong Kong or China, or in companies exercising the predominant part of their economic activity in Hong Kong or China. The managers may also invest in companies incorporated in Taiwan or quoted on the Taiwan stock exchange or in companies that have a significant proportion of their assets or other interests in Taiwan Seeks to maximize total return. The reference 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 Achieves long-term capital growth in the value of assets by investing in companies which the investment manager believes will benefit from the economic growth and development of China. The policy of the investment manager is to invest primarily in equities in companies quoted on Recognised Exchanges in China and Hong Kong and incorporated in China and Hong Kong, or which have a significant proportion of their assets or other interests in China and Hong Kong. The investment manager may also invest in equities in companies elsewhere in the Asia Pacific ex-Japan region with the potential, in the opinion of the investment manager, to benefit from the development of China 11
USD
1.50%
EUR
1.75%
4.40
AXA Wealth Baring Hong Kong China Fund
4.41
4.42
AXA Wealth BlackRock China Fund AXA Wealth Baring China Select Fund
Baring International Umbrella Fund Baring Hong Kong China Fund BlackRock Global Funds - China Fund Baring Investment Funds Plc. - Baring China Select Fund
USD
1.25%
Baring International Fund Managers (Ireland) Limited BlackRock (Luxembourg) S.A. Baring International Fund Managers (Ireland) Limited
USD
1.50%
USD
1.50%
Reference Fund
4.43
AXA Wealth BNP Paribas China Everywhere Fund
4.44
AXA Wealth Parvest Equity Latin America Fund
BNP Paribas Cayman Investment Funds SPC - BNP Paribas China Everywhere Fund Segregated Portfolio*** Parvest Equity Latin America
Seeks to achieve total return from an actively managed portfolio of companies that are positioned to benefit from the strong economic growth potential in the Greater China Region, which is the Mainland China, Hong Kong, Macau and Taiwan. The reference fund will invest primarily in China related companies listed in the PRC, Hong Kong and other overseas markets, it will also invest in non-PRC companies which could expect to benefit from the increasing significance of business with China in their operations
BNP Paribas Investment Partners Asia Limited
Invests at least two-thirds of its assets in equities and/or securities treated as equivalent to equities issued by companies that have their registered office in and/or conduct a significant proportion of their business in, Latin America (all American countries except the USA and Canada), and also in derivatives on this type of asset The remainder, namely one-third of its assets maximum, may be invested in any other transferable securities, money market instruments, derivatives, and/or cash, and also, within a limit of 15% of the assets, in debt securities of any kind and, within a limit of 10% of the assets, in UCITS or UCIs The provisions of the investment policy as described above may be departed from during a two-month period prior to the liquidation or merger of the reference fund Provides long-term capital appreciation through investment primarily in companies whose shares are listed on the Korea Stock Exchange or traded on the Korean over-the-counter market Seeks to maximize total return. The reference 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, Latin America Invests at least two-thirds of its assets in equities and/or securities treated as equivalent to equities issued by companies that have their registered office in, or conduct a significant proportion of their business in, Brazil, and also in derivatives on this type of asset The remainder, namely one-third of its assets maximum, may be invested in any other transferable securities, money market instruments, derivatives or cash, and also, within a limit of 15% of the assets, in debt securities of any kind and, within a limit of 10% of the assets, in UCITS or UCIs The provisions of the investment policy as described above may be departed from during a two-month period prior to the liquidation or merger of the reference fund Achieves long-term capital growth primarily through investment in equities issued by companies around the globe involved in gold mining. The reference fund may also invest, up to one-third, in companies around the globe that are involved in mining for other precious metals and other minerals and metals Seeks to maximize total return. The reference fund invests globally at least 70% of its total assets in the equity securities of mining and metals companies whose predominant economic activity is the production of base metals and industrial minerals such as iron ore and coal. The reference fund may also hold the equity securities of companies whose predominant economic activity is in gold or other precious metal or mineral mining. The reference fund does not hold physical gold or metal
USD
1.75%
4.45
AXA Wealth JF Korea Fund AXA Wealth BlackRock Latin American Fund AXA Wealth Parvest Equity Brazil Fund
JF Korea Fund
USD
1.50%
4.46
4.47
BlackRock Global Funds - Latin American Fund Parvest Equity Brazil
USD
1.75%
JF Asset Management Limited BlackRock (Luxembourg) S.A. BNP Paribas Investment Partners Luxembourg
USD
1.75%
4.48
4.49
AXA Wealth Investec GSF Global Gold Fund AXA Wealth BlackRock World Mining Fund
Investec Global Strategy Fund Global Gold Fund BlackRock Global Funds - World Mining Fund
USD
1.50%
Investec Global Strategy Fund BlackRock (Luxembourg) S.A.
USD
1.75%
12
Reference Fund
4.50
4.51
AXA Wealth Fidelity Indonesia Fund AXA Wealth Baring Eastern Europe Fund AXA Wealth Pictet Timber Fund
Fidelity Funds Indonesia Fund Baring Global Umbrella Fund Baring Eastern Europe Fund Pictet - Timber
Invests principally in Indonesian equity securities
FIL Limited
Achieves long-term capital appreciation through investment in a diversified portfolio of securities of issuers located in or with a significant exposure to the emerging markets of Europe. Investors should be aware of the additional risks associated with funds which invest in emerging and developing markets Applies a strategy for capital growth by investing at least two-thirds of its total assets/ wealth in shares or any other securities related to shares issued by companies active in the financing, planting, and management of forests and wooded areas and/or in the processing, production and distribution of wood for construction and other services and products derived from wood contained in the silviculture value chain Seeks to maximize total return. The reference fund invests globally at least 70% of its total assets in the equity securities of companies whose predominant economic activity is gold-mining. It may also invest in the equity securities of companies whose predominant economic activity is other precious metal or mineral and base metal or mineral mining. The reference fund does not hold physical gold or metal Generates growth in the long term through investment in gold and precious metal related commodity instruments, as well as the equities of those companies involved in precious metal related industries globally
USD
1.50%
4.52
USD
1.60%
Baring International Fund Managers (Ireland) Limited Pictet Funds (Europe) S.A.
4.53
AXA Wealth BlackRock World Gold Fund AXA Wealth Schroder AS Gold and Precious Metals Fund AXA Wealth Henderson China Fund AXA Wealth Fidelity India Focus Fund AXA Wealth AllianceBernstein India Growth Fund AXA Wealth Pictet Russian Equities Fund
BlackRock Global Funds - World Gold Fund Schroder Alternative Solutions Gold and Precious Metals Fund* Henderson Horizon Fund China Fund* Fidelity Funds India Focus Fund AllianceBernstein - India Growth Portfolio## Pictet - Russian Equities
USD
1.75%
4.54
USD
1.50%
Schroder Investment Management (Luxembourg) S.A. Henderson Fund Management (Luxembourg) S.A. FIL Limited
4.55
4.56
4.57
4.58
4.59
AXA Wealth AHL Diversified Futures Fund###
Man AHL Diversified Futures Ltd**###
Seeks long-term capital appreciation through investment in securities listed primarily in China, Hong Kong and Taiwan. The investment manager may also invest in companies incorporated elsewhere that have significant assets, business, production, trading activity or other interests in China, Hong Kong or Taiwan Aims to provide long-term growth, principally through investment in equity securities of Indian companies listed in India, as well as securities in non-Indian companies which have a significant portion of their activities in India Achieves long-term capital appreciation through investment primarily in a portfolio of equity and/or equity-related securities of Indian companies, which the reference fund believes are best positioned to benefit from accelerating growth in the rapidly deregulating Indian economy and have demonstrated ability to adapt and compete in the new environment Invests a minimum of two-thirds of its total assets or wealth in equities or any other kind of "equity"-type security issued by companies that are headquartered in Russia or that conduct the majority of their activity in Russia. These other "equity"-type securities may be American depositary receipts (ADRs), European depositary receipts (EDRs) and Global depositary receipts (GDRs), whose underlying assets are issued by companies domiciled in Russia then traded on regulated markets outside these countries, mainly in the US and in Europe Through the investment in a diversified portfolio of international futures contracts, the reference fund targets substantial medium-term capital growth while aiming to restrict the associated risk
USD
1.20%
USD
1.50%
USD
1.75%
USD
1.60%
USD
3.00%
Man Investments Limited
13
Notes: # The reference fund is a portfolio under "ACMBernstein", which is an UCITS umbrella fund. AllianceBernstein is the trading name of this mutual investment fund (fonds commun de placement) organized under the laws of Luxembourg, while its legal name is ACMBernstein. ## The reference fund is a portfolio under "ACMBernstein SICAV ", which is an UCITS umbrella fund. AllianceBernstein is the trading name of this open-ended investment company with variable capital (socit dinvestissement capital variable) incorporated under the laws of Grand Duchy of Luxembourg, while its legal name is ACMBernstein SICAV. ### The investment option/ reference fund is valued on a weekly basis. The Fund Management Fee is calculated as an annual percentage of average daily Net Asset Value. Consecutive fee levels listed apply with respect to (1) the first USD 5,000,000,000 of the net assets of the reference fund and (2) the amount of the net assets of the reference fund over USD 5,000,000,000. ^^ The Fund Management Fee is calculated as an annual percentage of average daily Net Asset Value. Consecutive fee levels listed apply with respect to (1) the first USD 1,250,000,000 of the net assets of the reference fund and (2) the amount of the net assets of the reference fund over USD 1,250,000,000. * A Performance Fee is levied in addition to annual Fund Management Fee in the event of outperformance. The Performance Fee is calculated at the rate of 10% of the Relevant Amount payable annually, where the "Relevant Amount" is equal to the amount by which the increase in total net asset value per share during the relevant performance period exceeds the increase in the relevant benchmark over the same period (or the growth in value of the net assets per share where the benchmark has declined). For details of fees and charges of the reference fund, please refer to its offering documents. ** An Incentive Fee is levied in addition to annual Fund Management Fee in the event of outperformance. The Incentive Fee is calculated at the rate of 20% on net appreciation (after deduction of the management fee) in the Net Asset Value payable annually in arrears. For details of fees and charges of the reference fund, please refer to its offering documents. *** A Performance Fee is levied in addition to annual Fund Management Fee in the event of outperformance. The Performance Fee is calculated at the rate of 10% of the performance exceeding higher of (a) the High Water Mark and (b) the Hurdle at 8% per annum above net asset value of previous year end and payable annually. For details of fees and charges of the reference fund, please refer to its offering documents. ^ i) ii) iii) Investment involves risk. Past performance is not indicative of future performance, and unit prices and rates of investment return may fall as well as rise. Assets of reference funds denominated in non-policy currencies may be subject to exchange rate fluctuation. If the reference fund of an AXA Wealth Investment Option is suspended from purchase, your investment allocation to the corresponding AXA Wealth Investment Option (the "Suspended Investment Option") will be deemed to be changed without charge to a money market investment option that we select within the AXA Wealth Investment Option Range ("the Substitute Investment Option") as substitute for the Suspended Investment Option with effect from the date of suspension. We will notify you of the date of suspension and details of the Substitute Investment Option in writing at the soonest practicable opportunity. Investment in the Substitute Investment Option is subject to market fluctuations like any other investment options as well as to the applicable charges on investment options as set out in the Principal Brochure, and may not fit with your investment profile, but will enable your premium contributions to be fully invested at all times. If you do not wish to invest in the Substitute Investment Option, you may notify us of the other investment option(s) that you wish to switch out to. We will not charge any switching fees for switching out from the Substitute Investment Option to other investment option(s) of your choice provided that the switching is carried out before the date specified by AXA Wealth Management (HK) Limited. The investment options are displayed in the ascending order of the risk level which is rated with reference to: (1) the volatility of the reference funds and/or relevant fund sector; (2) investment objective and/or (3) investment management style. For non-USD denominated investment options, the potential effect of exchange rate movements relative to the USD has not been taken into account in determining the risk rating. Risk rating may be revised from time to time without prior notice and is for reference only. The information in connection with risk rating is compiled by the Company with reference to sources which the Company believes to be reliable. The Company makes no warranty as to the correctness, completeness and accuracy of any information sourced by any third parties. For details including risk factors and charges of the relevant reference fund(s), please contact your financial consultant and refer to the fund fact sheet(s) and the offering document(s) of the reference fund(s), which are made available by AXA Wealth Management (HK) Limited. The investment objective of an investment option is reflected in the investment objective of the relevant reference fund(s) or internally managed investment option. Investment options available for selection under the Product include investment options with their performance determined with reference to the performance of their reference funds, and investment options with their performance determined with reference to the performance of a portfolio of underlying assets that are internally managed by the Company on a discretionary basis.
iv)
v) vi)
This Investment Options Leaflet is issued by AXA Wealth Management (HK) Limited For any inquiries and complaints in relation to the Product or our services, please contact us by telephone (852) 2864 5600, fax (852) 2864 5660 or email customercare.sp@swissprivilege.com. 20/F 151 Gloucester Road Wanchai Hong Kong Tel: (852) 2802 2812 Fax: (852) 2598 7623 Website: www.axa.com.hk If you do not wish to receive any promotional materials from us in future, please email to customercare.sp@swissprivilege.com. (Not for use in Mainland China) June 2011
SP_IOL_201106
14

Product Key Facts Statement: Swisssmart

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Product Key Facts Statement: Swisssmart

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PRODUCT KEY FACTS STATEMENT

Encashment charge period (Benefit Years) 8 10 15 20

What is this product and how does it work?

What are the key risks?

What are the key risks?

Is there any guarantee?

What are the fees and charges?

Policy administration fee

What are the fees and charges? (Cont)

Fund management charge

What are the fees and charges? (Cont)

Premium adjustment charge

What if you change your mind?

Insurance companys information

SwissSmart Product Brochure

A member of the AXA Group

PREMIUMS - REGULAR PREMIUMS

Minimum Annualised Premium amount

INVESTMENT OPTIONS AND ALLOCATION

FEES AND CHARGES

the requested encashment amount before payment

= Account value x Applicable Encashment Charge rate = USD50,000 x 100% = USD50,000

Monthly fund management charge rate

Monthly operation charge rate

Monthly fund management charge rate

Monthly operation charge rate

Monthly fund management charge rate

Monthly operation charge rate

1.4%/12 x (90+1) + 2.8%/12 x (66+1) 26.25%

Premium adjustment charge

FEATURES AND CONDITIONS

GENERAL PROVISIONS AND NOTES

Investment Options Leaflet

Investment Risks that may be relevant to your investment

Investment Option Name

Investment Objective of Reference Fund/Internally Managed Investment Option

Manager of Reference Fund/ Internally Managed Investment Option

AXA Wealth Euro Money Market Fund

Internally Managed by the Company

AXA Wealth Management (HK) Limited

AXA Wealth Management (HK) Limited

AXA Wealth Sterling Money Market Fund

Internally Managed by the Company

AXA Wealth Management (HK) Limited

Investment Option Name

Investment Objective of Reference Fund/Internally Managed Investment Option

Currency of Reference Fund/Internally Managed Investment Option

Manager of Reference Fund/ Internally Managed Investment Option

AXA Wealth Management (HK) Limited

AXA Wealth Dynamic US$ Bond Fund

Internally Managed by the Company

AXA Wealth Management (HK) Limited

AXA Wealth Dynamic International Bond Fund

Internally Managed by the Company

AXA Wealth Management (HK) Limited

Schroder Investment Management (Luxembourg) S.A. Franklin Templeton Investments

BlackRock (Luxembourg) S.A.

Investment Option Name

Investment Objective of Reference Fund/Internally Managed Investment Option

Currency of Reference Fund/Internally Managed Investment Option USD

Manager of Reference Fund/ Internally Managed Investment Option

AXA Wealth AllianceBernstein American Income Portfolio Fund