Y20859 310404 GE GreatLink ins.indd - Great Eastern Life

NOTES TO THE ACCOUNTSc. InvestmentsAll purchases of investments are recognised on their trade dates, i.e., the date the commitment exists to purchase theinvestments. The investments are initially recorded at fair value (or cost representing fair value on trade date) which wouldinclude transaction costs directly attributable to the acquisition of the investments. After initial recognition, the unrealisedgains or losses on remeasurement to fair value are taken to the capital account. Fair value is determined by using open marketvaluation at the year-end date. The closing price has been adopted for all investments except for quoted equity investments.For equity investments traded on exchanges, fair value is derived from the last traded price on the respective exchange.Certain investments have been valued using valuation techniques based on assumptions that are supported by pricesfrom observable current market transactions. The valuation of these investments have either been provided by brokers orcounterparties or valued using internal models.d. Realised gains/losses from sale of investmentsAll sales of investments are recognised on their trade dates i.e., the date the fund commits to sell the investments.Realised gains/losses from sale of investments are taken to the Capital Account.e. Foreign currency transactionsForeign currency transactions are translated into Singapore dollars at exchange rates prevailing at the transaction dates andforeign currency monetary assets and liabilities are translated at the approximate rates ruling at year end. Differences onexchange are included in the Capital Account.f. Derivative financial instrumentsAll derivatives including embedded derivatives are carried at fair value. All fair value changes on derivatives are taken to theCapital Account. The closing price has been adopted for the valuation of derivatives.3 DERIVATIVESThe GreatLink Funds enter into derivative contracts for the purposes of hedging foreign currency and interest risk exposures,and efficient portfolio management. The derivative contracts traded include foreign exchange forward contracts and futures.Notional AmountFair ValueAssetFair Value(Liability)S$ S$ S$Forward foreign exchange contractsGreatLink Cash Fund 16,782,614 10,879 (200,434)GreatLink ASEAN Growth Fund 15,757,623 - (107,951)GreatLink Global Supreme Fund 144,699,089 1,772,997 (1,424,529)GreatLink Global Optimum Fund 3,276,218 50,679 (38,624)GreatLink Global Bond Fund 465,389,799 1,384,412 (2,379,012)GreatLink Global Real Estate Securities Fund 2,235 11 -Futures purchasedGreatLink Global Supreme Fund 43 124,614 (168,825)GreatLink Global Bond Fund 43 399,885 (198,980)GreatLink Global Equity Fund 9 - (12,987)Spot foreign exchange contractsGreatLink ASEAN Growth Fund 42,323,283 - (462,415)GreatLink Global Supreme Fund 165,149 298 (298)GreatLink Pan Asia Fund 62,464 19 -GreatLink Global Bond Fund 5,544 19 -GreatLink Far East Ex Japan Equities Fund 300,796 - (91)GreatLink Global Real Estate Securities Fund 4,439 6 -GreatLink China Growth Fund 114,462 35 -Rights purchasedGreatLink Global Supreme Fund 307 614 -4 MANAGEMENT FEESManagement fees are payable to The Great Eastern Life Assurance Company Limited and its related company, Lion GlobalInvestors Limited.5 DISTRIBUTION TO POLICY HOLDERSThere are no distribution of dividend to policyholders for the period ended 30 June 2013.Notes to the Accounts123