Y20859 310404 GE GreatLink ins.indd - Great Eastern Life

OthersGREATLINK CHOICE (AUG 2013) FUND report as at 30 June 2013^Kelda Group Ltd was previously known as Kelda Group plc. A split Succession Event had takenplace, whereby Yorkshire Water Services Finance plc and Kelda Group Ltd would each be Successorsto Kelda Group plc. Post the Succession Event, the portfolio’s original holding for Kelda Group plcwas split equally (in terms of notional amount) into Kelda Group Ltd and Yorkshire Water ServicesFinance plc.Footnotes:1. Policyholders will have to hold their investments in the GreatLink Choice for the entire policyterm of 7 years before they are eligible to receive the total payouts projected and 100% of theirprincipal invested at maturity. If policyholders realise their units before the fund matures, therealisation of units will be based on the prevailing net asset value which can vary according tomarket fl uctuations and may be less than the initial offer price of the units.The annual payouts and return of principal invested are provided for by debt securities andderivative transactions employed as part of the investment approach of the funds and notbacked by a guarantee. Policyholders may lose part or all of their investment in the funds in theevent there is a downgrade of the debt securities, default by the issuers of the debt securities,a default of the swap counterparty to the derivative transactions, an early redemption of theNote, or credit events/trading actions resulting in cumulative losses that exceed the initialloss protection level (as defi ned in the portfolio credit default swap agreement). As such, noguarantee is given that policyholders will receive their principal invested at maturity or thepayouts at each policy anniversary.2. No refund of the management fees will be made to policyholders who realise their units before thefund matures. The management fees will not affect the annual payouts and maturity benefi t.3. During the policy term of the Fund, the Fund Manager may, where the Fund Manager considersit to be in the interest of policyholders, substitute existing Reference Entities with new ReferenceEntities (each such substitution, a “Replacement”). Replacements may give rise to trading lossesor trading gains, which shall be adjusted against the loss protection level.4. The default risk, liquidation risk, foreign currency risk, and early redemption risk on the Collateralwill be borne by Goldman Sachs International (“GSI”) under the obligation of a Total Return Swapbetween SPL and GSI. GSI will have the right to effect Collateral Substitution subject to suchCollateral has to be rated at least “AAA” by S&P or “Aaa” by Moody’s. Any capital gains/losses inproceeds and expenses incurred following a Collateral substitution will be borne by GSI, Similarlyfor Collateral amortization and Collateral maturity.For disclaimer, please refer to page 6.43