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YF LIFE GUARANTEED INTEREST FUND (MMGIU)
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Guaranteed Investment Choice
Risk Level
Low
High
The risk level is for reference only and subject to regular review by the Company. The risk level of each investment choice is determined by the Company according to the historical volatility of the underlying fund, or where appropriates, the historical volatility of a comparable market index, and may change without any prior notice.
Investment Objective and Strategy - This is a risk-diversified vehicle designed to secure steady capital growth over the medium to long term. This investment choice is an internal fund and does not have any corresponding underlying fund. It is capital guaranteed and the assets1 are solely owned by the Company. The Company, at its sole discretion, has the right to retain investment income from the investment choice in excess of that required to be set aside to meet the guaranteed benefits under the investment choice2. The Company is a guarantor and this investment choice is subject to its credit risk. The Company will credit interest to the investment choice on a daily basis at an interest rate determined by the Company at the Company's sole discretion from time to time. The interest rate may fall as well as rise but is guaranteed to be not less than 2% p.a. The interest is reflected in the daily unit price, which is made available by the Company. Assuming the current unit price of YF Life Guaranteed Interest Fund is $100, the unit price one day later is guaranteed to be not less than $100 x (1.02)^ (1/365), i.e., $100.0054.
In addition, an "Extra Bonus Interest" will normally be credited to the account of the investment choice at the 15th policy anniversary and every 5 years thereafter. The first "Extra Bonus Interest" to be credited is calculated by multiplying the declared bonus interest rate at the credit date by the investment choice’s aggregate annual value3 of the YF Life Guaranteed Interest Fund from the effective date of the policy to the credit date. Each subsequent "Extra Bonus Interest" is calculated by multiplying the declared bonus interest rate by the investment choice’s aggregate annual value3 of the YF Life Guaranteed Interest Fund for the period between the last "Extra Bonus Interest" credit date and the following credit date. The current declared bonus interest rate of "Extra Bonus Interest" is 1%, and it is not guaranteed. The Company has sole discretion to determine the declared interest rate to be credited to the investment choice and the "Extra Bonus Interest" from time to time. In determining the above two interest rates, the Company will take into consideration such factors, including but not limited to, investment income earned by this investment choice, realized and unrealized capital gains/losses, and economic and market conditions. The Company may retain any investment income in excess of the amount credited to the YF Life Guaranteed Interest Fund.
One switch-out transaction is allowed in each policy year, of which the maximum amount should not exceed US$10,000 or 25% of the account value of the investment choice on each occasion, whichever is higher. The maximum amount is not applicable to the cash withdrawal of this investment choice.
Remarks:
1. The invested assets are mainly composed of fixed-income securities and equities; some cash and money-market instruments will be held for liquidity of the investment choice. The Company has sole discretion in determining investment strategy from time to time.
2. The investment choice will follow the investment and borrowing restrictions of the Company, the investment and borrowing restrictions on which are governed by the Insurance Companies Ordinance of Hong Kong. Apart from that, this investment choice is empowered with borrowing rights without restrictions.
3. The investment choice’s annual value is the aggregate value at the end of each policy month during the respective policy year divided by twelve.
4. For switch-in or premium allocation, the maximum amount should not exceed US$250,000 per policy year.
5. Investment charge and dividend are not applicable to this investment choice.
6. The investment choice is internally managed by the Company on a discretionary basis not authorized by the SFC under the Code on Unit Trusts and Mutual Funds.
7. This investment choice ceases to accept new subscription with effect from Jan 2, 2015.
Notes to Investors
Valuation
Currently, all the investment choices are valued on a daily basis on any day which is both a local business day (excluding Saturday, Sunday and public holiday) and a business day in the country where the underlying fund is set up. The Company reserves the right to suspend or defer valuation of any investment choices under Exceptional Circumstances as defined in the Product Brochure.
Dealing Day
Except those specified in the list of investment choices in the Investment Choice Brochure, for all the investment choices, dealing day of application for subscription and redemption of notional units of the investment choices in any one day will be the next local business day (excluding Saturday, Sunday and public holiday) which is also a business day in the country where the underlying fund is set up following approval of the application. The Company reserves the right to suspend or defer dealing of any approved subscription or redemption of notional units of any investment choices under Exceptional Circumstances as defined in the Product Brochure.
Charges
For details of underlying fund charges, please refer to the offering documents of the respective underlying funds, which are available from the Company upon request and at the Company’s website.
No switching charge and bid-offer spread are levied at the investment choices currently. The Company reserves the right to vary this charge with prior notice in compliance with the relevant regulatory requirements. For details of the notice period, please refer to the section on “What are the fees and charges?” of Product Key Facts of the respective products.
Important Information
Investment involves risks. The unit price of investment choices may go down as well as up. Past performance is not indicative of future performance. For details of the investment-linked insurance products, including charges and risk factors, and the relevant charges of the investment choices, please refer to their offering documents.
For details of the underlying funds, please refer to the offering documents of the respective underlying funds, which are available from the Company upon request and at the Company’s website.
