1. General

2. Definitions

3. Appointment of DBS

4. Permission to DBS

5. Duties of DBS

6. Platform Use and Restrictions

You agree that you will not and, will not permit a third party to:

7. Your Representations and Warranties

8. Your Acknowledgements

You acknowledge and confirm that:

DBS shall be entitled to deviate from the Portfolio to remove the affected securities when investing or reinvesting the Portfolio and the affected securities shall remain as a cash allocation retained in Your Discretionary Account.

9. Dealings by DBS

10. Management Fee

11. Disclosure of Information and Data Privacy

12. Contributions and Withdrawals

13. Death

14. Suspension and Termination

DBS Right to Terminate

Your Right to Terminate

Consequences of Termination

15. Specific Terms and Conditions governing custodial and nominee services and General Risk Disclosure Statement

16. Non-Exclusivity

The services of DBS pursuant to these Terms and Conditions are not to be deemed exclusive and DBS shall be free to render similar services to others so long as its services, duties and obligations under these Terms and Conditions are not impaired thereby.

17. Taxation

18. Force Majeure

No party shall be liable for delay in any performance or for failure to render any performance under these Terms and Conditions, when such delay or failure is caused by governmental action, government policies which are directly related to acts or omissions of any government, government agency, provincial or local authorities or similar authorities, any laws or regulations having the force of law, administrative or court injunction, fire, mass civil strife or commotion, war, riots, insurrection, sabotage, flood, act of God, storm, fire, epidemic or any other cause or causes whether of like or different nature beyond the reasonable control of the parties herein (any of such events hereinafter referred to as “Force Majeure”). Any party claiming Force Majeure shall take all reasonable steps to mitigate the damage as much as possible and as soon as possible. If an event of Force Majeure prevents the performance by a party of its obligations under these Terms and Conditions for more than 30 consecutive calendar days, then either Party shall be entitled to terminate these Terms and Conditions on the giving of ten (10) calendar days’ prior written notice to that effect and in accordance with Clause 14.3 above.

19. Exclusion of Liabilities and Indemnity

20. Notice

Any notice to be given under these Terms and Conditions shall be in writing and shall be served in accordance with the relevant provisions set out in the Banking and Investment Services Agreements.

21. Amendment of Terms and Conditions

DBS may alter, change, supplement or amend the terms of these Terms and Conditions at any time by giving you notice. For purposes of Clause 20, the notice may be given to you by exhibiting such notice of the amendments or making available a set of the revised Terms and Conditions on our websites or on the Platform. Such alteration, change, supplement or amendment shall take effect from the date specified in such notice

22. Severability and Waiver

23. Assignment and Delegation

24. Entire Agreement

These Terms and Conditions embodies all the terms and conditions agreed upon between the parties as regards the provision of portfolio management services by DBS on this Platform and cancels in all respects all previous agreements and undertakings between the parties relating to the provision of such services whether such be written or oral save for the Banking and Investment Services Agreements, which terms shall not be superseded by the terms of these Terms and Conditions, but in the event of any conflict, these Terms and Conditions shall prevail.

25. Contracts (Rights of Third Parties) Act

Save for Clause 23.4, the Contracts (Rights of Third Parties) Act, Chapter 53B of Singapore, shall not apply to these Terms and Conditions and any person who is not a party to these Terms and Conditions shall have no right whatsoever to enforce these Terms and Conditions.

26. Governing Law

These Terms and Conditions are subject to the laws of Singapore. You agree to submit to the non- exclusive jurisdiction of the Courts of Singapore for the settlement of any dispute in relation to these Terms and Conditions.

SCHEDULE 1

RISK WARNING STATEMENT FOR OVERSEAS-LISTED INVESTMENT PRODUCTS

1. This statement is provided to you in accordance with paragraph 29D of the Notice on the Sale of Investment Products [SFA04-N12].
2. This statement does not disclose all the risks and other significant aspects of trading in an overseas-listed investment product. You should undertake such transactions only if you understand and are comfortable with the extent of your exposure to the risks.
3. You should carefully consider whether such trading is suitable for you in light of your experience, objectives, risk appetite, financial resources and other relevant circumstances. In considering whether to trade or to authorise someone else to trade for you, you should be aware of the following:

Differences in Regulatory Regimes

1. Overseas markets may be subject to different regulations, and may operate differently from approved exchanges in Singapore. For example, there may be different rules providing for the safekeeping of securities and monies held by custodian banks or depositories. This may affect the level of safeguards in place to ensure proper segregation and safekeeping of your investment products or monies held overseas. There is also the risk of your investment products or monies not being protected if the custodian has credit problems or fails. Overseas markets may also have different periods for clearing and settling transactions. These may affect the information available to you regarding transaction prices and the time you have to settle your trade on such overseas markets.
2. Overseas markets may be subject to rules which may offer different investor protection as compared to Singapore. Before you start to trade, you should be fully aware of the types of redress available to you in Singapore and other relevant jurisdictions, if any.
3. Overseas-listed investment products may not be subject to the same disclosure standards that apply to investment products listed for quotation or quoted on an approved exchange in Singapore. Where disclosure is made, differences in accounting, auditing and financial reporting standards may also affect the quality and comparability of information provided. It may also be more difficult to locate up-to-date information, and the information published may only be available in a foreign language.

Differences in legal systems

4. In some countries, legal concepts which are practised in mature legal systems may not be in place or may have yet to be tested in courts. This would make it more difficult to predict with a degree of certainty the outcome of judicial proceedings or even the quantum of damages which may be awarded following a successful claim.
5. The Monetary Authority of Singapore will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions will be effected.
6. The laws of some jurisdictions may prohibit or restrict the repatriation of funds from such jurisdictions including capital, divestment proceeds, profits, dividends and interest arising from investment in such countries. Therefore, there is no guarantee that the funds you have invested and the funds arising from your investment will be capable of being remitted.
7. Some jurisdictions may also restrict the amount or type of investment products that foreign investors may trade. This can affect the liquidity and prices of the overseas-listed investment products that you invest in.

Different costs involved

8. There may be tax implications of investing in an overseas-listed investment product. For example, sale proceeds or the receipt of any dividends and other income may be subject to tax levies, duties or charges in the foreign country, in Singapore, or in both countries.
9. Your investment return on foreign currency-denominated investment products will be affected by exchange rate fluctuations where there is a need to convert from the currency of denomination of the investment products to another currency, or may be affected by exchange controls.
10. You may have to pay additional costs such as fees and broker’s commissions for transactions in overseas exchanges. In some jurisdictions, you may also have to pay a premium to trade certain listed investment products. Therefore, before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.

Counterparty and correspondent broker risks

11. Transactions on overseas exchanges or overseas markets are generally effected by your Singapore broker through the use of foreign brokers who have trading and/ or clearing rights on those exchanges. All transactions that are executed upon your instructions with such counterparties and correspondent brokers are dependent on their respective due performance of their obligations. The insolvency or default of such counterparties and correspondent brokers may lead to positions being liquidated or closed out without your consent and/or may result in difficulties in recovering your money and assets held overseas.

Political, Economic and Social Developments

12. Overseas markets are influenced by the political, economic and social developments in the foreign jurisdiction, which may be uncertain and may increase the risk of investing in overseas-listed investment products.

SCHEDULE 2

SPECIFIC TERMS AND CONDITIONS GOVERNING CUSTODIAL AND NOMINEE SERVICES

1. These Specific Terms and Conditions Governing Custodial and Nominee Services (“Custody Terms”) apply to your holdings in the digiPortfolio which are held in custody by DBS on your behalf (collectively known as “Authorised Investments”).
2. In the event of any conflict or inconsistency between:
   1. these Custody Terms and the Terms and Conditions Governing Accounts, these Custody Terms shall prevail; and/or
   2. these Custody Terms and the Banking and Investment Services Agreement in respect of any Authorised Investment kept in custody with us, these Custody Terms shall prevail; and/or
   3. these Custody Terms and any other applicable agreement in respect of any Authorised Investment kept in custody with us, these Custody Terms shall prevail.
3. We may (but shall not be obliged to) open and operate a custodian account (each a “Custodian Account”) for the purpose of holding any Authorised Investment on your behalf. We shall act as custodian and/or nominee of such Authorised Investment in accordance with these Custody Terms and any applicable laws. Notwithstanding the foregoing, we may, in our absolute discretion, refuse to accept any Authorised Investment for custody.
4. You authorise us to take such steps as we may consider expedient to enable us to hold your Authorised Investment in accordance with these Custody Terms and without limitation to the generality of the foregoing, we shall be authorised to:
   1. acquire, hold in custody, dispose of or otherwise deal with such Authorised Investments in accordance with the Investment Policy and these Terms and Conditions;
   2. comply with all applicable laws, including any applicable law which impose or purport to impose on a holder of any Authorised Investment kept in custody with us a duty to make or refrain from making any payment of monies or other distribution or from taking any action in respect of such Authorised Investment;
   3. register such Authorised Investment in our name and/or in the name of our Nominee and keep such Authorised Investment in such locations as we shall think fit; and
   4. use the services of any Agent for the purpose of holding in custody any Authorised Investment on such terms as we deem appropriate, and where appropriate, authorise such Agent to delegate the performance of some or all of its duties.
5. You agree that any Authorised Investment held or registered in our name and/or the name of our Nominee may, in our absolute discretion, be re-deposited with any Agent as may be selected by us (whether in Singapore or elsewhere) for your account and at your sole risk. Provided that we have acted in good faith and used reasonable care in the selection and continued appointment of such Agent, you agree that we shall not be responsible for any act, omission or default or for the insolvency of such Agent.
6. You agree that any Authorised Investment held or registered in our name and/or the name of our Nominee may, in our absolute discretion, be withdrawn from the Custody Account and deposited with an approved clearing house, a recognised clearing house, a member of a clearing facility or a member of an organized market for any of the following purposes:
   1. entering into, facilitating the continued holding of a position in, or facilitating a transaction in, any capital markets products on behalf of the customer on the organised market;
   2. for the purpose of the clearing or settlement of any capital markets products on the clearing facility for the customer; or
   3. any other purpose specified under the business rules and practices of the approved clearing house, recognised clearing house, organised market or clearing facility, as the case may be.
7. Without prejudice to any provision in this Agreement, your Authorised Investments deposited with us or held by any third party in our name may be held on a tangible basis or commingled with assets belonging to other parties. You understand and agree that identification by distinctive numbers of any Authorised Investment owned by you may not be possible and that your interest in such Authorised Investments may not be identifiable by separate certificates or other physical documents or equivalent electronic records. In such case, we will maintain records of your interest in such Authorised Investments which have been commingled in the manner as provided herein. Neither us nor any Agent holding any Authorised Investment on your behalf shall be bound to return to you the identical Authorised Investments deposited in custody so long as such Authorised Investments returned to you are of the same class, denomination, quantity and nominal amount and rank pari passu with those originally deposited with or transferred to us (subject always to any capital reorganisation in the meantime).
8. You acknowledge and agree that in the event of insolvency:
   1. of Us or our Nominee licensed, registered or authorised in Singapore, your Authorised Investments will be segregated from Our or Our Nominee’s other investments and will not form part of the pool of assets available to Our or our Nominee’s creditors respectively.
   2. of a sub-custodian or Nominee licensed, registered or authorised in foreign jurisdictions, you may be exposed to additional risk as the laws and practices relating to custody accounts in those jurisdictions may offer different or diminished investor protection. Such differences may affect your ability to recover the Authorised Investments deposited in the Custody Account.
9. The provision of Services set out in these Custody Terms does not constitute us as a trustee (other than a bare trustee) and we shall have no trust, fiduciary or other obligations in respect of any Authorised Investment kept in custody with us pursuant to these Custody Terms, save for those expressly provided for in these Custody Terms or as otherwise agreed in writing.
10. We will use the same care with respect to your Authorised Investments kept in custody with us as we use in respect of our own similar property, provided always that we are not required to maintain any insurance in respect of any Authorised Investment kept in custody with us pursuant to these Custody Terms.
11. The Services to which these Custody Terms applies may be terminated by you or us in accordance with Clause 14 of this Agreement.

RISK DISCLOSURE WARNING ON CUSTODY SERVICES

This risk disclosure warning should be read together with the Terms and Conditions Governing Custodial and Nominee Services

1. Your holdings with us are held under custody accounts with us or our nominee, who will be a licensed custodian or an approval trustee for collective investment schemes under the Securities and Futures Act of the Monetary Authority of Singapore. If we, our Nominee or Agent becomes insolvent, you may not be able to recover your holdings.
2. We may pool the holdings of your digiPortfolio with other customers’ holdings which we believe are similar in nature or category. This is known as commingling. In this situation, your interest in the Investment Holdings may not be easily identified through documentation, but we, our Nominee or Agent will maintain a record of your interest.
3. If the holdings in your digiPortfolio are denominated in foreign currency(ies), or are listed outside Singapore in jurisdictions where we do not have operations in, we may appoint custodians or sub-Custodians outside Singapore, which are licensed, registered or authorised to act as custodians in the countries or territories where the account(s) are maintained. You may be exposed to additional risk as the applicable laws and regulations of the foreign jurisdiction may differ from Singapore law. This means that your holdings do not enjoy the same protection as those held in custody accounts in Singapore. A possible consequence of this is that in the event of a legal dispute in that market, the courts in that market may not recognise your holdings as belonging to you and you may not be able to recover your holdings.
4. We may enter into transactions involving the sale and purchase of Authorised Investments on your behalf as your agent, in order to manage your Portfolio.

SCHEDULE 3

GENERAL RISK DISCLOSURE STATEMENT

1. This General Risk Disclosure Statement forms an integral part of these Terms and Conditions. This is an important document which you should read carefully. Unless otherwise defined in this General Risk Disclosure Statement, terms and references defined in the Terms shall have the same meanings when used in this General Risk Disclosure Statement.
2. The objective of this General Risk Disclosure Statement is to explain to you briefly the nature and risks of the investments in the Portfolio that you may undertake with us. In particular, you must be aware that the risk of loss in any investment or transaction can be substantial.
3. Interpretation
   
   For the purposes of the General Risk Disclosure Statement:
   
   “Assets” means cash, investments, and any of your assets or property as may be delivered and transferred by you to DBS or to DBS’ order whether by way of security or for management, safe custody or any purpose whatsoever. In cases where you are trustees opening and maintaining an Account for the purposes of a trust, as expressly made known to and acknowledged by us, references to Assets shall be construed to include references to the Assets of such trust, notwithstanding that beneficial ownership of those Assets may vest in persons other than the trustees.
   
   “Underlying” includes any one or more currencies, foreign exchange forwards, equities, equity indices, bonds, interest rates, interest rate futures, index futures, commodities and any other money market or financial instruments or a combination of any or two more financial instrument.
4. Before entering into any investment or transaction, you should ensure that you understand fully:
   1. the nature and fundamentals of each investment or transaction and the market in which such investment or transaction (where applicable) is traded in;
   2. (b) the legal terms and conditions and all of your rights and obligations, as set out in the applicable agreement for each investment or transaction, including:
      1. the terms as to price, tenor, expiration dates, restrictions on exercising an option (as the case may be) and other terms material to the investment or transaction;
      2. any term describing risk factors, such as volatility, liquidity, inability to exit the investment or transaction before its scheduled maturity or expiry date; and
      3. the circumstances under which you may become obliged to make or take delivery of the underlying interest of the investment or transaction;
   3. the legal risks surrounding the investment or transaction, including the circumstances under which the investment or transaction may be illegal, resulting in it being void and unenforceable;
   4. the extent of the economic and associated risks to which you are exposed to as a result of such investment or transaction (and to determine that such risk is suitable for you in light of your own specific experience in relation to that specific investment or transaction and your financial objectives, circumstances and resources);
   5. the regulatory and tax treatment of the investment or transaction (which can be complex); and
   6. the nature and scope of the relationship between yourself and DBS in respect of each investment or transaction undertaken by you.
5. Unless otherwise indicated by DBS, your investments are not bank deposits and are not obligations of, or guaranteed by DBS or any of its affiliates and are subject to all investment risks and possible loss of the principal amount invested by you. Past performance of the same or of similar investments is not an indication of, nor a guarantee of future performance of your investment.
6. You should always ensure that you have in place proper and sufficient means of monitoring the various types of risks associated with any investment or transaction (which can be complex and substantial). DBS will not be undertaking such monitoring for you in any circumstance whatsoever.
7. DBS is entitled to (but shall not be obliged to) act upon your instructions in relation to any investment or transaction.
8. You should be aware that DBS is not responsible for any losses that may be suffered by you, arising from or in connection with movement in prices or exchange rates, errors or delays in the transmission of any instruction from or to you or changes in any applicable law.

Potential Conflict of Interest

9. Regardless of whether you or any third party make a profit or loss from any investment or transaction, DBS may make a profit from any investment or transaction entered into with you or on your behalf.
10. You understand that DBS acts simultaneously for a large number of customers as well as for its own account. Accordingly, conflicts of interest cannot be completely avoided. You acknowledge that DBS and/or its affiliates may (a) be the issuer of any investment, (b) combine your orders with its own orders or the orders of other customers, (c) make investments or effect transactions for you through the agency of and/or with a counterparty which is a related organisation or a person otherwise associated with DBS, (d) have a position or a direct or indirect interest in any investment or transaction even if such position or interest is opposite to that taken by you, (e) have bought or sold any investment or entered into any transaction as principal or for other customers, or (f) have other banking, advisory or other corporate relationships with companies whose investments are held for your account or are purchased and sold for you and DBS’ personnel may be offi cers and directors of such companies. Subject to any applicable law, DBS and its affiliates shall not be liable to account or specifically disclose to you any profit, charge or remuneration made or received from any such investment or transaction or other connected investments or transactions.
11. You acknowledge that DBS may pay to, or receive from, any Agent charges, commissions, fees, rebates or other payments (as the case may be) in any form in respect of, or may profit or gain from (a) any investment or transaction effected for or with you or (b) any hedge effected by DBS in connection with any investment or transaction or (c) any service provided to you in DBS’ capacity as principal, trustee or agent. You agree that DBS shall not be liable to account to you for, or disclose to you, any such payment, profit or gain and may retain the same for its own account and benefit.
12. The services provided by DBS to you are non-exclusive and DBS is under no obligation to account to you for any benefit received by providing any service to other customers or to disclose to you any fact or thing which may come to DBS’ notice in the course of providing any service to other customers or in any other capacity or in any manner whatsoever otherwise than in the course of providing services to you under the Terms.
13. You should be aware that DBS are engaged in certain customer driven and proprietary activities in many markets. These general activities, as well as our hedging activities which are or may be related to certain investments or transactions entered into with you, may adversely affect the value of such investments or transactions.

Market Forces and Related Risks

14. Your payments or receipts under any investment or transaction will be dependent on changes in the particular financial market to which the investment or transaction is linked, and you will be exposed to price, currency exchange, interest rate or other volatility in that market. Such market movements cannot be predicted accurately. You acknowledge and accept that you may sustain substantial losses on your investment or transaction (such as sustaining a total loss in excess of the invested amount and any collateral held by DBS) if the market conditions move against your positions. It is in your interest to fully understand the impact of market movements, in particular the extent of profit or loss that you would be exposed to when there is an upward or downward movement in the relevant rates and the extent of loss if you have to liquidate a position if market conditions move against you. Your positions may be liquidated at a loss and you will be liable for any resulting deficit.
15. You should also be aware that there is a general risk of market failure or collapse which may arise from any political or financial development or any unpredictable event that may immediately result in sharp price movements, volatile market conditions and strained market liquidity.
16. Under certain market conditions, it may be difficult or impossible to liquidate a position, to assess a fair price or assess risk exposure. This can happen, for example, where the market for an investment or transaction is illiquid, where there is simply no market traders for such Investment or transaction, where there is a failure in electronic or telecommunications systems or where there is the occurrence of an Event of Force Majeure (which includes any form of restriction, moratorium or suspension on trading imposed by an Exchange, market or other authority regulating trading in the Investments or transactions). Such events will increase the risk of loss to you.
17. On certain Exchanges, the performance of a transaction by a broker (or any third party with whom (s)he is dealing on your behalf) may be “guaranteed” by that Exchange. However, any such guarantee is unlikely in most circumstances to provide full cover and may not protect you completely if the broker or the third party defaults on its obligations to you.

Exchange Traded Instruments, Trading Facilities & Electronic Trading

18. In respect of investments or transactions involving underlying contracts or instruments which are traded on an Exchange, market conditions of the Exchange (such as liquidity) and/or the operation of the rules of such Exchange (such as any discretion on the part of the Exchange to suspend or limit trading of any contract or instrument because of price limits or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect any transaction (including closing out any investment or transaction) or liquidate or offset any position. Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may also be modified by the Exchange or clearing house to reflect changes in the underlying interest.

Investments or Transactions in Other Jurisdictions

19. Investments or transactions on markets in other jurisdictions other than your home jurisdiction may expose you to additional risk. Such markets may be subject to regulations that may offer different or diminished investor protection. Before you trade, you should enquire about any rule relevant to your particular Investment or transaction. Your local regulatory authority may be unable to compel the enforcement of rules of the regulatory authorities or markets in other jurisdictions where your Investments or transactions have been effected. You should enquire for details about the types of redress available in both your home jurisdiction and the other relevant jurisdictions before you trade.

Transaction Costs & Tax

20. Before entering into any investment or transaction, you should request for a clear explanation of all commissions, fees and other charges for which you will be liable. Your net returns from any investment or transaction would be affected by any such commissions, fees and other charges, as well as any relevant tax liability (such as income tax). The tax implications of any investment or transaction are dependent upon the nature of your business activities and the investment or transaction in question.
21. You should be aware that the interest payable by you under any Credit Facilities (where applicable), foreign exchange risks and any negative gearing are variables that add to the risks of any investment or transaction.

Liquidity & Marketability Risks

22. You should be aware that at certain times, or under certain market conditions, it may be difficult or impossible to liquidate a position, to assess value or to determine a fair price of any investment or transaction. Certain Securities and money market instruments, in particular, structured notes or products, may not be readily realisable or marketable. There can be no certainty that market traders will be prepared to deal in them.
23. Liquidity risks decrease for near term investments or transactions and increase for investments or transactions which have longer maturity periods or are linked to emerging markets and instruments with lower credit ratings. Reversing any investment or transaction at short notice can be difficult or even, impossible, especially for complicated structures. Unexpected and sudden erosion of liquidity can also arise from sharp price movements and volatile market conditions, resulting in illiquid markets.
24. The benefits of customisation of any investment or transaction to achieve your particular financial and risk management objectives may be offset by significant liquidity risks.

Currency Risks

25. Fluctuations in exchange rates can have an impact on your profit or loss from any investment or transaction if that investment or transaction is denominated or settled in a different currency from the currency used to carry out the investment or transaction, for your ordinary business or to keep your accounts.
26. When you trade in a foreign jurisdiction, you should also take into account the applicable tax and exchange controls, including whether profits may be repatriated by you.

Interest Rate Risk

27. Interest rate fluctuations may have an adverse impact on the value of certain investments, in particular, debt instruments, such as bonds or money market instruments.

Non-Transferability & Non-Marketability

28. Generally, an investment or transaction cannot be assigned or transferred without the consent of the counterparty. In this regard, DBS is not obliged to terminate, unwind or repurchase any investment or transaction from you. If your investments or transactions are customised and not fungible, engaging in a transaction with another dealer to offset a transaction you have entered into with DBS, whether on your behalf or otherwise, will not automatically close out those positions (as would be true in the case of equivalent exchange-traded futures and options) and will not necessarily function as a perfect hedge and may increase the risk to you. It may also be difficult or impossible to liquidate an existing position, assess the value thereof, determine a fair price or assess the exposure to risk.

Risks Associated With Specific Investments

Unit Trusts

29. Unit trusts are not bank deposits or obligations of or guaranteed by us, or any of our affiliates. A unit trust is a pool of money managed collectively by a fund manager who invests in a portfolio of assets to achieve certain investment objectives. Unit trusts are naturally subject to investments risks including the possible loss of the principal amount invested. The value of units and the income from any unit trust may fall as well as rise and cannot be guaranteed. Past performance of a unit trust is not necessarily indicative of the future performance of that unit trust.
30. Any forecast or opinion provided to you by the fund manager are as at the date of the document and is subject to change from time to time. Such forecasts or opinions should not be regarded as a guarantee of future or likely performance of the unit trust. You should also note that there are necessarily limitations whenever performance is stated or comparison is made to another unit trust for a period of less than three (3) years and that there are limitations and difficulties in using any graph, chart, formula or other device to determine whether or not and when to make an investment in any unit trust.

Exchange Traded Funds

31. Exchange traded funds are open-ended investment funds listed and traded intra-day on an Exchange. Exchange traded funds are not principal protected and you may not get back your original investment. You should also be aware that exchange traded funds may not make any dividend distributions, even if the Securities it holds do so.
32. An exchange traded fund is exposed to the liquidity and market risks of the Securities it holds and may incur substantial losses due to the inability to dispose of its holdings of any affected Securities. Further, an exchange traded fund may concentrate its investments in issuers of one or more particular industries or geographical regions. If the particular industry or geographical location performs poorly, this will magnify the negative impact on the value of the exchange traded funds.
33. You should also be aware that most exchange traded funds are not actively managed. Accordingly, exchange traded funds may be adversely affected by a decline in the market segments relating to its Underlying.
34. A number of factors may also affect an exchange traded fund’s ability to achieve a high correlation with its Underlying and there can be no guarantee that an exchange traded fund will achieve a high degree of correlation. A failure to achieve a high degree of correlation may prevent an exchange traded fund from achieving its investment objectives.
35. There is a risk that the exchange traded fund manager’s strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. This risk is especially pertinent when the exchange traded fund does not replicate its Underlying, but instead holds non- index Securities.
36. You should be aware that the value of an exchange traded fund may decline when the counterparty with whom the exchange traded fund purchases financial instruments from and/or enter into agreements with, becomes insolvent or otherwise fail to perform their obligations for any reason.
37. You should take note of the following additional risks (which are not exhaustive) if you invest in non-traditional exchange traded funds:
    1. Non-traditional exchange traded funds may employ the technique of short selling to achieve an investment exposure consistent with its investment objective. The use of such short selling technique may involve additional transaction costs and other expenses. As a result, the cost of maintaining a short position may exceed the return on the position, which may cause the nontraditional exchange traded fund to lose money. Under certain market condition, short selling can increase the volatility and decrease the liquidity of certain Securities and may lower the return or result in losses to the non-traditional exchange traded fund.
    2. Non-traditional exchange traded funds may seek to provide a return which is either a multiple and/or an inverse of the daily performance of its Underlying. A non-traditional exchange traded fund rebalances its portfolio on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses and there is a risk of a near complete loss of the value of the non-traditional exchange traded fund. Non-traditional exchange traded funds are designed as short term trading vehicles for investors who intend to actively monitor and manage their portfolios. They are not intended and/or suitable for investors who do not intend to actively monitor and manage their portfolio
    3. For Investments or transactions involving leveraged non-traditional exchange traded funds, you will be exposed to the risk that any adverse daily performance of that exchange traded fund’s Underlying will be leveraged.
    4. Inverse exchange traded funds, a type of non-traditional exchange traded fund, are negatively correlated to their Underlying and could lose money when the indices rise. This is a result that is opposite from conventional exchange traded fund.