Newsroom 16

New Plain Vanilla Products for Investors – Phillip Savings* Fund & Phillip US Dollar Money Market Fund

25 March 2009 – Phillip Capital Management (S) Ltd (PCM), a wholly owned subsidiary of PhillipCapital, announces the launch of 2 new plain vanilla money market funds (MMFs) - the Phillip Savings* Fund and the Phillip US Dollar Money Market Fund.

The investment objective of the Phillip Savings* Fund is to provide liquidity and manage risk while aiming to produce a return that is comparable to deposit rates.¹ The investment objective of the Phillip US Dollar Money Market Fund is to provide liquidity and manage risk while aiming to provide a return that is comparable to USD short term deposits. ²

“Keeping your assets in capital preservation mode in uncertain times is an important strategy as we continue to anticipate and respond to unprecedented events in the global market place” said Jeffrey Lee, MD and CIO of Phillip Capital Management (PCM). “In between investments, investors can consider these MMFs as an alternative parking ground for their capital.”

The Phillip Savings* Fund will invest in short term money market instruments denominated in Singapore Dollars. Such investments may include government, and agency bonds, treasury bills and deposits with financial institutions. A minimum of 90% of the fund is invested in instruments with maturity of less than one year while up to 10% of the investment will mature within 2 years.

The Phillip USD MMF aims to help investors diversify their currency exposure. The fund will invest in short term money market instruments denominated in US Dollars. Such investments may include government and corporate bonds and deposits with financial institutions. A minimum of 90% of the fund is invested in instruments with maturity of less than one year while up to 10% of the investment will mature within 2 years.

While past performance is not necessarily indicative of future returns, potential investors in these two new MMFs can take reference from PCM’s past experience of managing the Phillip SGD Money Market Fund which appreciated steadily during the current global financial crisis. The Phillip SGD Money Market Fund currently has no exposure to distressed financials like AIG and Lehman Brothers. This is attributable to their in-depth knowledge of the global credit markets, effective risk management and robust credit analysis process that is independent of rating agencies. As of 24 March 2009, the Phillip SGD MMF continues to be one of the largest Singapore registered money market funds and this is an affirmation of clients’ confidence in the fund.

Fund Features
Below are the features of the Phillip Savings* Fund and the Phillip US Dollar MMF

Investors can subscribe to these new MMFs through POEMS, the online trading portal of Phillip Securities Pte Ltd, or through any of the funds’ distributors. A list of distributors can be found on www.phillipcapitalmanagement.com.sg.

For more information on the funds or to view the prospectus, please visit www.phillipcapitalmanagement.com.sg.

¹ The performance of the fund is subject to market conditions and the return is not guaranteed.
² The performance of the fund is subject to market conditions and the return is not guaranteed.
* The Phillip Savings Fund is not a bank deposit and is not principal protected nor is it a capital guaranteed fund.

Risk Disclosure:
The Phillip Savings Fund and the Phillip US Dollar Money Market Fund are money market funds. The purchase of a unit in a money market fund is not the same as placing funds on deposit with a bank or deposit-taking company. Although the Managers may seek to maintain or preserve the principal value of the money market fund, there can be no assurance that the money market fund will be able to meet this objective. A money market fund is not a guaranteed fund, in that there is no guarantee as to the amount of capital invested or return received

Disclaimer:
This information provided to you does not constitute an offer or solicitation to subscribe for the product mentioned. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information. Investing in money market funds is not the same as placing funds on deposit with a bank or deposit-taking company. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in money market funds and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in this material, are not necessarily indicative of the future or likely performance of such funds. You may wish to seek advice from a financial adviser before making a commitment to purchase the investment products mentioned. In the event that you choose not to seek advice from a financial adviser, you should consider whether the investment product is suitable for you. Investors should read the prospectus before deciding to subscribe for units in the fund. All applications for units in the fund must be made on application forms accompanying the relevant prospectus (available from Phillip Capital Management or www.phillipcapitalmanagement.com.sg or any of the distributors of the fund).

About Phillip Capital Management
Incorporated locally in September 1999, PCM is the asset management arm of PhillipCapital. PCM prides itself on its fund management expertise in unit trust management, discretionary account management and alternative investments. PCM’s clientele comprises a broad spectrum of clients, ranging from institutional investors, corporations, high net worth individuals to retail clients. Stable long term returns have long been a defining characteristic of our equity and income funds, as demonstrated by our impeccable track records. PCM actively manages client monies with regards to tactical asset allocation and security selection with a strong emphasis on absolute positive returns. Believing that there are pockets of market inefficiencies, PCM constantly challenge conventional wisdom in seeking out emerging trends, underappreciated growth prospects and undervalued franchises.

About PhillipCapital
PhillipCapital is a group of companies which offers a full range of quality and innovative financial services to retail, corporate and institutional customers. PhillipCapital is an integrated financial services provider with more than 2800 staff in Asia and Europe and total shareholders’ funds in excess of US$600 million.

We provide a comprehensive suite of financial services to individual and corporate investors as well as institutions. Our services range from fund management, unit trusts, hedge funds, insurance planning, mortgage loans, investment research and broking in bond, securities, futures, foreign exchange, precious metals and commodities. Institutions can also benefit from our corporate finance and advisory services as well as information technology solutions.