Frequently Asked Questions

May 23,2013

Investment-bkg Investment-top1 Investment-top2 Investment-top3

Frequently Asked Questions

FREQUENTLY ASKED QUESTIONS

Our Services

What are Phillip GEMS Managed Accounts?
Can I dictate the investments in my account?
Are Phillip GEMS Managed Accounts operating as unit trusts?
Are Phillip GEMS Managed Accounts focused on global emerging markets?
What are the services available under Phillip GEMS Managed Accounts?
Can I use my Supplementary Retirement Scheme (SRS) account to invest in Phillip GEMS Managed Accounts?
Can I choose the risk profile for my portfolio?
What is the difference between a moderate and an aggressive account?
What are Phillip GEMS Managed Accounts' competitive advantages?

Investment Objective / Risks

What is the investment objective of the Phillip GEMS Managed Accounts?
Are the returns and the principal amount invested under Phillip GEMS Managed Accounts guaranteed?
What is Phillip GEMS Managed Accounts' policy in minimizing losses?

Investment Approach/ Investment Process

What is the investment approach of Phillip GEMS Managed Accounts?
What is the investment process of Phillip GEMS Managed Accounts?
Are there preference treatments given to bigger investors as compared to smaller ones?
Does Phillip GEMS churn their clients' accounts?

Account Opening

How do I open a Phillip GEMS Managed Account?

Additional Deposits/Partial Withdrawals/Closure

How do I deposit more funds into my Phillip GEMS Managed Account?
Do I have to top-up the funds if my portfolio value falls below the minimum investment amount?
How do I make a partial withdrawal from my Phillip GEMS Managed Account?
How do I close my Phillip GEMS Managed Account?

Account Update

How will I be updated on my Phillip GEMS Managed Account?

Fees and Charges

What are the management fees and other charges payable under Phillip GEMS Managed Account?

Our Services

What are Phillip GEMS Managed Accounts?

Phillip GEMS Managed Accounts are individually managed fund management accounts offered by Phillip Securities Pte Ltd for both individuals and corporate clients. Investment decisions are made at the full discretion of our team of fund managers in Phillip GEMS Department. There is no co-mingling of assets and clients receive their own monthly statements and have on-line access to their individually managed portfolios. Our objective is to achieve positive returns for clients over a medium to long-term investment horizon.<Top>

Can I dictate the investments in my account?

Phillip GEMS Managed Accounts are discretionary accounts with fund managers who will make the investment decisions on your behalf. Therefore, you cannot dictate specific investments that you want to include in your account. However, we can accommodate clients who need/want to exclude certain categories of investments or certain specific investments.<Top>

Are Phillip GEMS Managed Accounts operating as unit trusts?

No, Phillip GEMS Managed Accounts are not unit trusts. Clients maintain ownership to the shares held in the individually managed accounts and receive individual statements detailing the portfolio held in their accounts.<Top>

Are Phillip GEMS Managed Accounts focused on global emerging markets?

No, Phillip GEMS Managed Accounts focus on seeking out gems or jewels for our clients’ portfolios. We have various services investing in Asia and Asia-Pacific equities as well as global equities in various sectors.<Top>

What are the services available under Phillip GEMS Managed Accounts?

Click here for the list of services available under Phillip GEMS Managed Accounts. <Top>

Can I use my Supplementary Retirement Scheme (SRS) account to invest in Phillip GEMS Managed Accounts?

Yes, Phillip GEMS Managed Accounts are SRS-Approved investment products, except for services under Phillip GEMS Multi-Manager portfolios. <Top>

Can I choose the risk profile for my portfolio?

Yes, except for Phillip GEMS Energy & Commodities Equity Managed Accounts and Phillip GEMS Gold Equity Managed Accounts, which are managed for aggressive growth and focused on capital appreciation over the long-term, and Phillip GEMS Income Managed Accounts, which are managed for regular income and are generally low to moderate risk investments, you can decide, based on your own objective, time horizon and risk tolerance, one of the following risk profile for your own portfolio: Moderate or Aggressive.<Top>

What is the difference between a moderate portfolio and an aggressive portfolio?

The difference between a moderate portfolio and an aggressive portfolio is the expected volatility of the portfolio over time. An aggressive portfolio is expected to provide a higher return compared to a moderate portfolio over a medium to long-term investment horizon but is also expected to have a higher volatility than a moderate portfolio. Returns are not guaranteed and investments are subjected to investment risks and you could suffer losses in your account.

Among other investment considerations, an aggressive portfolio is likely to have a higher percentage of the portfolio in equities and less in money market funds or cash equivalents compared to a moderate portfolio.<Top>

What are Phillip GEMS Managed Accounts' competitive advantages?

Mr Anthony Hoe, our senior fund manager heading Phillip GEMS Department, has over 20 years experience in research and fund management. He was previously an investment manager with DBS Asset Management and Nippon Life Insurance International. Mr Anthony Hoe is also a CFA charterholder.

Phillip GEMS Managed Accounts work closely with Singapore-based Phillip Securities Research Pte Ltd and Phillip Securities’ research offices in the region and visit listed companies together with our analysts. Our fund managers also have access to third-party research and make our independent investment decisions for our clients’ portfolios.

Management fees are competitive. Performance fees are charged at 10% on returns in excess of 6% per annum. There will be no performance fees when returns are 6% and below.

In addition to their individual monthly statements, Phillip GEMS Managed Accounts clients are able to view their investment holdings on-line. Our clients are able to know specifically what counters he/she owns, the cost and market prices, the number of shares owned and the performance to-date.<Top>

Investment Objective/ Risks

What is the investment objective of Phillip GEMS Managed Accounts?

The investment objective is to achieve positive returns for clients over a medium to long-term investment horizon. <Top>

Are the returns and the principal amount invested under Phillip GEMS Managed Accounts guaranteed?

No, the principal amount invested and the returns are not guaranteed. Investments are subjected to investment risks, including risks associated with the economy, stock markets, foreign exchange and interest rate movements. Share prices may rise or fall and you could suffer losses in your account. <Top>

What is Phillip GEMS Managed Accounts' policy on minimizing losses?

Phillip GEMS Managed Accounts have a disciplined approach in risk management and conduct regular reviews on the fundamentals and pricing of its investments. A 10% decline in share price may lead to a decision to cut loss. <Top>

Investment Approach/ Investment Process

What is the investment approach of Phillip GEMS Managed Accounts?

Phillip GEMS Managed Accounts take an active investment approach with a focus on absolute returns. Risks are managed through regular reviews of the portfolios, including regular monitoring of country, sector and stock exposures.

The following highlights our investment approach:

Active management
Risk management according to individual client risk profile
Focus on fundamentally sound companies
Understanding of industry and corporate developments
Seeking out opportunities arising from situations such as structural and cyclical changes in economy and industry
Seeking out gems
Appropriate participation in private placements
Effective use of fundamental and technical analysis
Effective implementation <Top>

What is the investment process of Phillip GEMS Managed Accounts?

Through research-based investing, Phillip GEMS Managed Accounts seek to find undervalued investments with high potential capital appreciation. Risks are managed through regular reviews of the portfolios, including tactical asset allocation between equities and cash and regular monitoring of country, sector and stock exposures.

The following highlights our investment process:

Tactical asset allocation
Quantitative screening for candidates
Short listing of candidates
Research and valuation of short-listed candidates
Selection of securities which fit individual client risk profile
Control on stock, sector and country exposure
Close monitoring and regular review of securities
Regular monitoring of country and sector exposure <Top>

Are there preferential treatments given to bigger investors as compared to smaller ones?

No, all clients are highly valued and treated equally by Phillip GEMS Managed Accounts. Allocation of investments is done according to the percentage of client's total portfolio size and account type.<Top>

Do Phillip GEMS Managed Accounts churn the clients' accounts?

No. Phillip GEMS Managed Accounts are invested based on a medium to long-term investment perspective. Our clients’ portfolios are actively managed by our team of investment professionals. This will not result in excessive trading.<Top>

Account Opening

How do I open a Phillip GEMS Managed Account?

To open a Phillip GEMS Managed Account, you need to execute a management agreement in the presence of a PhillipCapital staff or representative. You may contact your sales representative or visit any of our Investor Centres for account opening.

Most of our Phillip GEMS Managed Accounts may be opened with a minimum of S$25,000 in cash, acceptable shares (non-CPF), unit trusts or a combination of these.

Phillip GEMS Global Opportunities Managed Accounts and Phillip GEMS Income-Focused Managed Accounts require a minimum of S$250,000 in cash.<Top>

Additional Deposits/Partial Withdrawals/Closure

How do I deposit more funds into my Phillip GEMS Managed Account?

You may deposit more funds in multiples of S$1,000 in cash, acceptable shares (non-CPF), unit trusts or a combination of these. <Top>

Do I have to top-up the funds if my portfolio value falls below the minimum investment amount?

No, you do not need to top up your accounts if your portfolio value falls below the initial minimum investment amount. <Top>

How do I make a partial withdrawal from my Phillip GEMS Managed Account?

You may make partial cash withdrawal but you must maintain a minimum amount equivalent to the minimum entry amount (which is S$25,000 for most of our Phillip GEMS Managed Accounts services) at market value. You need to provide us with written notice (partial withdrawal forms are also available from us). Our fund managers may need to liquidate part of your holdings to raise cash for your partial withdrawal. <Top>

How do I close my Phillip GEMS Managed Account?

There is no minimum contractual period. You may close your Phillip GEMS Managed Account by giving us a written notice of termination (account closure forms are also available from us). You need to provide us with your instructions on the liquidation and/or transfer of securities/investment holdings and cash balances in your Phillip GEMS Managed Account to your own CDP and/or other custodian/bank account.

Upon receiving your notice of termination, we will act to close your account according to your instructions, including the liquidation of your securities/investment holdings, where instructed, and the transfer of other securities/investments and cash holdings to your designated CDP and/or other custodian/bank account. Where there are securities/investment holdings which are suspended from trading, the account may be kept open until these are fully liquidated and the funds, if any, are transferred out to your designated custodian/bank account. Please note that fees for shares transfer to CDP or another sub-account will be borne by you.<Top>

Account Update

How will I be updated on my Phillip GEMS Managed Account?

You will receive detailed monthly statements and you can also view your updated portfolio on-line. <Top>

Fees and Charges

What are the management fees and other charges payable under Phillip GEMS Managed Account?

Click here for our fee structure. <Top>

Disclaimer

This FAQ is provided to you for information and does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.

Investments are subject to investment risks including the possible loss of the principal amount invested. Investments and the value of units in any fund and the income from them may fall as well as rise. Past performance is not necessarily indicative of future performance or likely performance of any investment products.

Whilst we have taken all reasonable care to ensure that the information contained in this FAQ is accurate, it does not guarantee the accuracy or completeness of this FAQ. The companies and their employees mentioned in this FAQ cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in this FAQ may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in the FAQ.

You may wish to seek advice from a financial adviser before opening a discretionary managed account. In the event that you choose not to seek advice from a financial adviser, you should consider whether such an account is suitable for you.