SGAM ALTERNATIVE INVESTMENTS ANNuAL REpoRT by liwenting

VIEWS: 135 PAGES: 32

									SGAM ALTERNATIVE INVESTMENTS



ANNuAL REpoRT
For the financial year ended 31 December 2009
         SGAM ALTERNATIVE INVESTMENTS
            – SGAM Bonus Builder Fund



                     Managers
       SG Asset Management (Singapore) Limited
     80 Robinson Road, #13-03, Singapore 068898


             Directors of the Managers
                  Christian D’Allest
              Denis Pierre Henri Lefranc
                    Winson Fong
                    Tay Soo Meng
                     Marco Wong


                Trustee and Registrar
     RBC Dexia Trust Services Singapore Limited
20 Cecil Street, Equity Plaza #28-01, Singapore 049705


                        Auditors
                 PricewaterhouseCoopers
8, Cross Street, #17-00, PWC Building, Singapore 048424




                         32
                         23
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

PERFORMANCE OF THE FUND
For the financial year ended 31 December 2009


SGAM Bonus Builder Fund

                                Performance (as at 31 December 2009)
                                                                                                      Since
                                                                                                    Inception*
                                          3              6               1             3           8 December
 Period                                 Months         Months           Year         Years*            2005

 SGAM Bonus Builder Fund                 0.47%          3.34%          3.85%         -1.26%             1.16%

Source: SG Asset Management (Singapore) Limited
* Annualised returns
There is no comparative benchmark against which the performance of the sub-fund is measured.
Returns of the sub-fund are calculated on a bid-to-bid basis with dividends reinvested net of all charges payable upon
reinvestment.
Past performance is not indicative of future performance. More current performance may be lower than the advertised
performance.


Review and Market Outlook

During Q1 09, the global backdrop remained dominated by increased risks across
regions. Incoming key leading indicators confirmed that the quarter would not be better
than Q4 08 which saw the global economy contract by a 6% annualized rate. The world
economy was affected by falling production and faltering exports. Firms cut production by
slashing capital spending and employment, in response to gloomy demand expectations.
However, consumption was surprisingly resilient in spite of the rapid deterioration of the
labour market. Indeed, consumers seemed to take into account the slump in commodity
prices and specific aids from governments across the world which helped increase their
purchasing power. The combination of slumping production and a limited slide on
consumption paved the way for cleaning unwanted inventories, which had been the main
negative contributor for GDP growth during the first quarter.

Key leading indicators firmed during Q2 09, bolstering expectations that the trough of the
global recession was over. Global industry bounced back in response to a stabilization in
consumer demand and a peak in inventory adjustment. Consumer spending was lifted by
fiscal measures, auto incentives, and expansionary monetary policies. Investment figures
remained unfavourable, with continuing adjustments in capital and housing spending.
Inflation indexes decelerated in June 2009, given the excess lack of activities that
weighed down on prices across sectors, with the exception of commodity prices.

Economic conditions improved again in Q3 09, reinforcing expectations of a broad based
recovery. World demand was lifted by accommodative monetary policies, fiscal measures
and auto incentives. Firms increased production and capital spending, alongside a
moderation of the pace of inventory adjustments. Asian economies were leading the
recovery after the worldwide recession. Asian exports bounced back, thanks to the
stabilization of demand and the positive impact of fiscal stimulus on the Chinese
economy. Emerging economies led the recovery on the back of robust domestic demand,
while structural imbalances and elevated unemployment limited the strengthening of


                                                       1


                                                           1
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

PERFORMANCE OF THE FUND
For the financial year ended 31 December 2009

activity in developed economies. Central Banks of developed economies left their key
official rates unchanged. The US Central Bank announced that accommodative monetary
policy would be prolonged for a long period. In the US, the publication of key leading
indicators bolstered expectations of positive GDP growth for Q3, after a contraction
posted during the 3 previous quarters. Consumption figures were encouraging and
employment figures improved again. Housing figures also confirmed that the crisis was
over. The European activity also strengthened, with production and consumption figures
consistent with positive GDP growth for Q3 09. Moreover, key leading indicators
suggested sustainable recovery for the rest of the year. The Japanese economy posted
firm activity figures, thanks to exports, while demand figures remained low. Japanese
exports were lifted by surging Asian demand, especially from China.

The world economy grew again during the last quarter. With the help of the fiscal
stimulus and extremely accommodative monetary policies, the world’s demand increased.
Firms increased production after cleaning up their inventories in the previous quarters.
Emerging economies led the recovery, while developed economies remained dragged by
high unemployment figures. Inflation remained passive as economies operated below
their capacity during the recession. Equity markets performed well again during Q4 09,
after rallying roughly 60% between March 09 and the end of June 09.

During the year, the five markets that the Fund had exposure to all posted positive
figures: the Japanese and Australian markets increased respectively by +5.6% and
+30.8%. The Hong Kong, Korean and Taiwanese markets posted the strongest
performance with +51.6%, +52.2% and +70.7%.

The Fund returned +3.85% (based on bid-to-bid, Singapore Dollars) during the reporting
year. The Fund was penalized by a low level of exposure to the equity markets during the
first quarter. Thanks to the performance of the five markets, the Fund increased its
exposure to the Growth Assets1 to 31% (from a low of 1%).


Footnote:
1
  The Growths Assets of the fund comprises of futures contracts, swap agreement and/or options that are
linked to Asian (including Japan) and Australian equity markets through indices.




                                                2


                                                    2
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

FUND DISCLOSURE
For the financial year ended 31 December 2009



 Holding (as of 31 December 2009)
                                                      Market Value              % of NAV
                                                              (S$)
 US Treasury Bill Due 07 January 2010                    8,412,288                  17.66
 US Treasury Bill Due 25 March 2010                      7,009,435                  14.71
 US Treasury Bill Due 04 February 2010                   5,888,384                  12.36
 US Treasury Bill Due 01 April 2010                      5,607,352                  11.77
 US Treasury Bill Due 25 February 2010                   4,906,948                  10.30
 US Treasury Bill Due 21 January 2010                    4,206,054                   8.83
 US Treasury Bill Due 08 April 2010                      4,205,121                   8.83
 US Treasury Bill Due 13 May 2010                        4,204,287                   8.82

 Holdings (as of 31 December 2008)
                                                      Market Value              % of NAV
                                                              (S$)
 US Treasury Bill Due 02 January 2009                    8,608,188                  16.61
 US Treasury Bill Due 22 January 2009                    8,608,093                  16.61
 US Treasury Bill Due 21 May 2009                        7,172,093                  13.83
 US Treasury Bill Due 04 June 2009                       7,170,718                  13.83
 US Treasury Bill Due 27 August 2009                     5,015,116                   9.67
 US Treasury Bill Due 11 June 2009                       4,301,581                   8.30
 US Treasury Bill Due 30 July 2009                       4,297,035                   8.29

 Credit rating of all debt securities (as of 31 December 2009)
 Credit Rating                                      Fair Value (S$)             % of NAV
 AAA                                                    44,439,869                  93.28

 Exposure to derivatives1 (as of 31 December 2009)
   Market Value of     Market Value as a Net Unrealised Gains               Net Realised
     Derivative         percentage of          / (Losses) on                  Gains /
   Contracts (S$)             NAV               outstanding                 (Losses) on
                                           derivative contracts              derivative
                                            marked to market               contracts (S$)
                                                    (S$)
       42,229                0.09%                 42,229                    5,153,394




                                         3


                                             3
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

FUND DISCLOSURE
For the financial year ended 31 December 2009

 Related party transactions (1 January 2009 – 31 December 2009)
 At the end of the period under review, the Fund has the following derivative contracts:
                            Counterparty              Nominal            Net Unrealised
                                                   Amount (S$)           Gain / (Losses)
                                                                            marked to
                                                                            market (S$)
 Forward Foreign           Societe Generale         51,692,789                   (391,254)
 Exchange Contracts
 Futures contracts         Newedge Group            13,251,185                    433,483

 Other Details (as of 31 December 2009)
                                                          Total Amount (S$)     % of NAV
 Total amount and percentage of borrowings to NAV                        Nil          Nil
 of Fund

 Soft Dollar Commission and Arrangement
 The Manager and the Sub-Manager do not receive any soft dollar commission or enter
 into any soft dollar arrangement in the management of the Fund.


Footnotes:
1
  The use of derivatives is for the purpose of hedging, efficient portfolio management
and/or meeting the investment objective of the sub fund.




                                           4


                                               4
REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of the SGAM
Alternative Investments – SGAM Bonus Builder Fund in trust for the unitholders. In
accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislation and
the Code on Collective Investment Schemes (collectively referred to as the “laws and
regulations”), the Trustee shall monitor the activities of the Manager for compliance with
the limitations imposed on the investment and borrowing powers as set out in the Trust
Deed in each annual accounting year and report thereon to unitholders in an annual
report which shall contain the matters prescribed by the laws and regulations as well as
the recommendations of the Statement of Recommended Accounting Practice 7
“Reporting Framework for Unit Trusts” issued by the Institute of Certified Public
Accountants of Singapore and the Trust Deed.

To the best knowledge of the Trustee, the Manager has, in all material respects,
managed SGAM Bonus Builder Fund during the year covered by these financial
statements, set out on pages 8 to 27, comprising the Statement of Total Return, Balance
Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the
limitations imposed on the investment and borrowing powers set out in the Trust Deed,
laws and regulations and otherwise in accordance with the provisions of the Trust Deed.



For and on behalf of the Trustee
RBC Dexia Trust Services Singapore
Limited




Dominique Draux
Managing Director

23 March 2010




                                            5




                                            5
STATEMENT BY THE MANAGER

In the opinion of the directors of the Manager of SGAM Alternative Investments, the
accompanying financial statements set out on pages 8 to 27, comprising the Statement of
Total Return, Balance Sheet, Portfolio Statement and Notes to the Financial Statements
are drawn up so as to present fairly, in all material respects, the financial position of
SGAM Bonus Builder Fund as at 31 December 2009, the total deficit for the year then
ended and have been properly prepared in accordance with the recommendations of
Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by
the Institute of Certified Public Accountants of Singapore and the provisions of the Trust
Deed. At the date of this statement, there are reasonable grounds to believe that SGAM
Bonus Builder Fund will be able to meet its financial obligations as and when they
materialise.




For and on behalf of the Manager of
SG Asset Management (Singapore) Ltd




Anson Tay
Chief Executive Officer

23 March 2010




                                            6




                                            6
               INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF
                            SGAM ALTERNATIVE INVESTMENTS –
                                SGAM BONUS BUILDER FUND
                  (Constituted under a Trust Deed in the Republic of Singapore)

We have audited the financial statements of SGAM Alternative Investments – SGAM Bonus
Builder Fund (the “Fund”) set out on pages 8 to 27, which comprise the Balance Sheet and
Portfolio Statement as at 31 December 2009, the Statement of Total Return for the financial year
then ended, and a summary of significant accounting policies and other explanatory notes.

Manager’s Responsibility for the Financial Statements

The Manager of the Fund is responsible for the preparation and fair presentation of these financial
statements in accordance with the recommendations of Statement of Recommended Accounting
Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public
Accountants of Singapore. This responsibility includes: designing, implementing and maintaining
internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Singapore Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Fund’s Manager, as well as evaluating the overall presentation
of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Fund as at 31 December 2009 and the total deficit for the financial period then ended in
accordance with the recommendations of Statement of Recommended Accounting Practice 7
“Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of
Singapore.




PricewaterhouseCoopers LLP
Public Accountants and Certified Public Accountants

Singapore, 23 March 2010




                                                   7
                                                   7
 SGAM ALTERNATIVE INVESTMENTS
SGAM ALTERNATIVE INVESTMENTS
 (Constituted under a Trust Deed registered in the Republic of Singapore)
(Constituted under a Trust Deed registered in the Republic of Singapore)

STATEMENT OF TOTAL RETURN
STATEMENT OF TOTAL RETURN
For the financial year ended 31 December 2009
For the financial year ended 31 December 2009


                                                                  SGAM Bonus Builder Fund
                                                                  SGAM Bonus Builder Fund
                                                           Note
                                                           Note      2009
                                                                    2009           2008
                                                                                  2008
                                                                      S$
                                                                     S$             S$
                                                                                   S$

 Income
Income
 Interest income
Interest income                                                       15,372
                                                                     15,372         645,492
                                                                                   645,492
 GST remission
GST remission                                                         32,526
                                                                     32,526               --
 Other income
Other income                                                               --         7,091
                                                                                     7,091
                                                                      47,898
                                                                     47,898         652,583
                                                                                   652,583
 Less:
Less:

Expenses
Expenses                                                    33     (1,013,582)
                                                                  (1,013,582)     (1,000,988)
                                                                                 (1,000,988)

Net losses
Net losses                                                          (965,684)
                                                                   (965,684)       (348,405)
                                                                                  (348,405)

 Net gains/(losses) on value of investments
Net gains/(losses) on value of investments
 Net realised gains/(losses) on investments sold
Net realised gains/(losses) on investments sold                    1,662,371
                                                                  1,662,371       (2,647,404)
                                                                                 (2,647,404)
 Net change in fair value on investments
Net change in fair value on investments                              149,179
                                                                    149,179         (452,410)
                                                                                   (452,410)
 Net realised gains/(losses) on forward foreign exchange
Net realised gains/(losses) on forward foreign exchange
 contracts
contracts                                                          2,678,646
                                                                  2,678,646       (3,125,736)
                                                                                 (3,125,736)
 Net change in fair value on forward foreign exchange
Net change in fair value on forward foreign exchange
 contracts
contracts                                                          (2,596,614)
                                                                  (2,596,614)      1,562,351
                                                                                  1,562,351
 Net gains/(losses) on foreign exchange
Net gains/(losses) on foreign exchange                                998,708
                                                                     998,708        (642,695)
                                                                                   (642,695)
 Net gains/(losses) on value of investments
Net gains/(losses) on value of investments                          2,892,290
                                                                   2,892,290      (5,305,894)
                                                                                 (5,305,894)


Total return/(deficit) for the year before income tax
Total return/(deficit) for the year before income tax              1,926,606
                                                                  1,926,606       (5,654,299)
                                                                                 (5,654,299)
Less: Income tax
Less: Income tax                                            44             --              --
Total return/(deficit) for the year after income
Total return/(deficit) for the year after income
 tax before distribution
tax before distribution                                             1,926,606
                                                                   1,926,606      (5,654,299)
                                                                                 (5,654,299)
Less: Distribution
Less: Distribution                                          99     (2,891,464)
                                                                  (2,891,464)     (2,563,905)
                                                                                 (2,563,905)
Total deficit for the year
Total deficit for the year                                           (964,858)
                                                                    (964,858)     (8,218,204)
                                                                                 (8,218,204)




The accompanying notes form an integral part of these financial statements.
The accompanying notes form an integral part of these financial statements.

                                                8
                                                8


                                                8
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

BALANCE SHEET
As at 31 December 2009


                                                             SGAM Bonus Builder Fund
                                                             SGAM Bonus Builder Fund
                                                    Note
                                                    Note       2009
                                                               2009          2008
                                                                             2008
                                                                S$
                                                                S$            S$
                                                                              S$
ASSETS
ASSETS

Portfolio of Investments
Portfolio of Investments                                      44,873,352
                                                              44,873,352      45,203,019
                                                                              45,203,019
Receivables
Receivables                                           5
                                                      5        1,166,550
                                                               1,166,550         254,089
                                                                                 254,089
Cash and cash equivalents
Cash and cash equivalents                             6
                                                      6        2,172,763
                                                               2,172,763       4,408,195
                                                                               4,408,195
Fair value of financial derivatives
Fair value of financial derivatives                   8
                                                      8           38,268
                                                                  38,268       2,205,371
                                                                               2,205,371
Total assets
Total assets                                                  48,250,933
                                                              48,250,933      52,070,674
                                                                              52,070,674

LIABILITIES
LIABILITIES

Payables
Payables                                             77          179,043
                                                                 179,043         179,433
                                                                                 179,433
Bank overdraft
Bank overdraft                                       66                --         55,234
                                                                                  55,234
Fair value of financial derivatives
Fair value of financial derivatives                  88          429,522
                                                                 429,522              10
                                                                                      10
Net assets attributable to unitholders
Net assets attributable to unitholders               10
                                                     10       47,642,368
                                                              47,642,368      51,835,997
                                                                              51,835,997
Total liabilities
Total liabilities                                             48,250,933
                                                              48,250,933      52,070,674
                                                                              52,070,674




The accompanying notes form an integral part of these financial statements.

                                           9

                                           9
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009



SGAM Bonus Builder Fund
                                                    Holdings/                        Percentage        Percentage
                                                     notional                       of net assets     of net assets
                                                      amount                        attributable to   attributable to
                                                        at          Fair value at    unitholders       unitholders
By Geography (Primary)                             31 December      31 December     31 December       31 December
                                                       2009             2009              2009              2008
                                                       US$               S$                %                 %
Quoted Bonds

UNITED STATES OF AMERICA
US Treasury Bill DUE 02 JANUARY 2009                                                                      16.61
US Treasury Bill DUE 22 JANUARY 2009                                                                      16.61
US Treasury Bill DUE 21 MAY 2009                                                                          13.83
US Treasury Bill DUE 04 JUNE 2009                                                                         13.83
US Treasury Bill DUE 11 JUNE 2009                                                                          8.30
US Treasury Bill DUE 30 JULY 2009                                                                          8.29
US Treasury Bill DUE 27 AUGUST 2009                                                                        9.67
US Treasury Bill DUE 07 JANUARY 2010                    6,000,000      8,412,288         17.66
US Treasury Bill DUE 21 JANUARY 2010                    3,000,000      4,206,054          8.83
US Treasury Bill DUE 04 FEBRUARY 2010                   4,200,000      5,888,384         12.36
US Treasury Bill DUE 25 FEBRUARY 2010                   3,500,000      4,906,948         10.30
US Treasury Bill DUE 25 MARCH 2010                      5,000,000      7,009,435         14.71
US Treasury Bill DUE 01 APRIL 2010                      4,000,000      5,607,352         11.77
US Treasury Bill DUE 08 APRIL 2010                      3,000,000      4,205,121          8.83
US Treasury Bill DUE 13 MAY 2010                        3,000,000      4,204,287          8.82
                                                                      44,439,869         93.28             87.14

Futures contracts                                        S$              S$               %                 %

JAPAN
TOPIX INDEX MARCH 2009                                                                                      0.01
TOPIX INDEX MARCH 2010                                  2,723,781         28,143          0.06

KOREA
KOSPI 200 INDEX MARCH 2009                                                                                  0.01
KOSPI 200 INDEX MARCH 2010                              3,081,381        130,521          0.27

HONG KONG
HONG KONG HANG SENG INDEX JANUARY 2009                                                                      0.00
HONG KONG HANG SENG INDEX JANUARY 2010                  2,913,612         59,254          0.12

TAIWAN
MSCI TAIWAN JANUARY 2009                                                                                    0.02
MSCI TAIWAN JANUARY 2010                                2,781,318         78,361          0.16

AUSTRALIA
SP ASX 200 FINANCE INDEX MARCH 2009                                                                         0.02
SP ASX 200 FINANCE INDEX MARCH 2010                     1,751,093        137,204          0.29
                                                                         433,483          0.90              0.06

Portfolio of investments                                              44,873,352        94.18             87.20
Other net assets                                                       2,769,016         5.82             12.80
Net assets attributable to unitholders                                47,642,368       100.00            100.00


The sub-fund is invested significantly into treasury bills issued by the Government of the United States of
America and futures contracts and options contracts. Hence, it is not meaningful to classify the sub-fund’s
investments by industry.




                                                   10

                                                    10
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


These notes form an integral part of and should be read in conjunction with the
accompanying financial statements.

1.     General

       SGAM Alternative Investments (“the Fund”) is a Singapore umbrella fund
       constituted by a Trust Deed dated 15 November 2000 together with its
       supplemented deeds thereon (thereafter referred to as “Trust Deed”), between SG
       Asset Management (Singapore) Ltd (“the Manager”) and RBC Dexia Trust
       Services Singapore Limited (“the Trustee”). The Trust Deed is governed by the
       laws of the Republic of Singapore.

       The Fund comprised four separate and distinct sub-funds, namely the S$ Capital
       Guaranteed Global Growth Fund, S$ Return Guaranteed Fund, SGAM Harvest
       Guaranteed Best of Best Fund and the SGAM Bonus Builder Fund.

       Only the financial statements of SGAM Bonus Builder Fund (“the sub-fund”) are
       presented in this report as the other sub-funds have matured.

2.     Significant accounting policies

       The principal accounting policies applied in the preparation of these financial
       statements are set out below.

(a)    Basis of preparation

       The financial statements, expressed in Singapore Dollar have been prepared
       under the historical-cost convention, as modified by the revaluation of investments
       at fair value through profit or loss, and in accordance with the recommendation of
       Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit
       Trusts” issued by Institute of Certified Public Accountants of Singapore.

(b)    Recognition of income

       Interest income is recognised on a time-proportion basis using the effective
       interest rate method.

       Goods and Services Tax ("GST") remission scheme was introduced to promote
       the development of the fund management industry. Under the scheme, a
       qualifying fund that meets all the qualifying conditions will be able to recover GST
       incurred on prescribed expenses based on a fixed recovery rate, without having to
       register for GST. The fixed recovery rate will be determined by Inland Revenue
       Authority of Singapore annually, based on the proportion of taxable supplies made
       by the industry and published by Monetary Authority of Singapore in the month of
       September each year. GST remission is recognised as grant income when there
       is reasonable assurance that the sub-fund has complied with qualifying conditions
       of the scheme.




                                            11


                                            11
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


2.     Significant accounting policies (continued)

(c)    Foreign currencies

       Foreign currency monetary assets and liabilities are translated into Singapore
       Dollar at the rates of exchange prevailing at the date of the Balance Sheet. The
       net unrealised gain or loss is taken to the Statement of Total Return. Transactions
       during the year are recorded in Singapore Dollar at the rates of exchange ruling
       on transaction dates. All realised gains or losses are recognised in the Statement
       of Total Return.

(d)    Financial derivatives

       Financial derivatives are entered into for the purposes of efficient portfolio
       management, tactical asset allocation or for specific hedging of financial assets
       held as determined by the Manager.

       Financial derivatives outstanding at the end of the financial year are valued at
       forward rates or at current market prices using the “mark-to-market” method, as
       applicable, and the resultant gains and losses are taken up in the Statement of
       Total Return.

(e)    Investments at fair value through profit and loss

       (i)     Initial recognition

               Purchases of investments are initially recognised at fair value plus
               transaction costs except for investments at fair value through profit or loss,
               which are recognised at fair value. Transaction costs for investments at
               fair value through profit and loss are recognised in the income statement.

       (ii)    Subsequent measurement

               Investments are subsequently carried at fair value. Net change in fair value
               on investments is included in the Statement of Total Return in the year in
               which they arise.

       (iii)   Derecognition

               Investments are derecognised on the trade date of disposal. The resultant
               realised gains and losses on the sales of investments are computed on the
               basis of the difference between the weighted average cost and selling
               price net of transaction costs, and are taken up in the Statement of Total
               Return.




                                            12


                                             12
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


2.     Significant accounting policies (continued)

(f)    Basis of valuation of investments

       The fair value of investments traded in active markets is based on quoted market
       prices at the balance sheet date. The quoted market price for these investments
       held by the sub-fund is the current market quoted bid price or dealers' quote, as
       applicable.

(g)    Receivables

       Receivables are non-derivative financial assets with fixed or determinable
       payments that are not quoted in an active market. Receivables are carried at
       anticipated realisable value.

(h)    Distributions

       Proposed distributions to holders of redeemable shares are recognised in the
       Statement of Total Return when they are appropriately authorised and no longer
       at the discretion of the sub-fund.

3.     Expenses

                                                             SGAM Bonus Builder Fund
                                                               2009          2008
                                                                S$            S$

       Management fee                                            818,223       831,609
       Trustee fee                                                33,396        35,471
       Audit fee                                                  16,174        20,457
       Custodian fee                                              12,736        12,955
       Registrar fee                                              20,263        23,419
       Transaction fee                                             5,378         5,940
       Valuation fee                                              23,541        23,697
       Interest expense                                           15,586        13,354
       Other expenses                                             68,285        34,086
                                                               1,013,582     1,000,988
       Trustee fee is paid to the Trustee.

       Valuation, registrar and transaction fees are paid to a related company of the
       Trustee.

       Custody fee is paid to Société Générale, the related company of the Manager.




                                             13


                                             13
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


4.     Taxation

       The sub-fund has been granted the status of Designated Unit Trust by the Inland
       Revenue Authority of Singapore.

       In accordance with Section 35(12) and (12A) of the Income Tax Act (Cap 134) of
       Singapore, subject to certain conditions, the following income is not taxable:
       (a)    gains or profits derived from Singapore or elsewhere from the disposal of
              securities;
       (b)    interest (other than interest for which tax has been deducted under Section
              45 of the Income Tax Act);
       (c)    dividends derived from outside Singapore and received in Singapore;
       (d)    gains or profits derived from foreign exchange transactions; and
       (e)    distributions from foreign unit trusts derived from outside Singapore and
              received in Singapore.


5.     Receivables

                                                             SGAM Bonus Builder Fund
                                                               2009          2008
                                                                S$            S$

       Amount held with futures broker                         1,145,695        254,089
       Amount held with related company of the Trustee            20,855              -
                                                               1,166,550        254,089


6.     Cash and cash equivalents

                                                             SGAM Bonus Builder Fund
                                                               2009          2008
                                                                S$            S$

       Cash and bank balances                                  2,172,763       4,408,195
                                                               2,172,763       4,408,195

       Bank overdraft                                                      -     55,234
                                                                           -     55,234




                                            14

                                            14
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


7.       Payables

                                                                           SGAM Bonus Builder Fund
                                                                             2009          2008
                                                                              S$            S$

         Amount due to unitholders                                               1,620         45,535
         Amount due to the Manager                                              62,714         70,677
         Amount due to the Trustee                                              10,820          9,700
         Amount due to custodian                                                36,251         25,409
         Amount due to a related company of the Trustee                          5,146          4,144
         Provision for audit fee                                                14,000         13,036
         Other payables                                                         48,492         10,932
                                                                               179,043        179,433

         The carrying values of the payables approximate their fair value.


8.       Fair value of financial derivative contracts

         Financial derivative contracts include forward contracts for the purchase and sale
         of foreign currencies.

         The year end positive and negative fair values represent the unrealised gains and
         losses respectively on revaluation of derivative financial instruments at the
         balance sheet date. The contract or underlying principal amounts of these
         financial derivatives and their corresponding gross positive or negative fair values
         at balance sheet date are analysed below.


                                       Contract or Underlying    Year-End Positive        Year-End Negative
                                         Principal Amount            Fair Value               Fair Value
                                        2009          2008       2009          2008       2009          2008
                                         S$            S$         S$            S$         S$            S$

     Forward foreign exchange
     contracts – positive fair value    3,498,660   50,718,220    38,268    2,205,371           -               -

     Forward foreign exchange
     contracts – negative fair value   48,194,129       9,900          -              -   429,522              10




                                                        15


                                                         15
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


9.     Distributions
                                                                       SGAM Bonus Builder Fund
                                                                         2009          2008
                                                                          S$            S$

       First distribution of S$0.012 per unit on 45,378,639 units
        on ex-date of 2 January 2008                                                -      544,544
       Second distribution of S$0.012 per unit on 48,772,716
          units on ex-date of 1 April 2008                                          -      585,272
       Third distribution of S$0.012 per unit on 56,353,410 units
         on ex-date of 1 July 2008                                                  -      676,241
       Fourth distribution of S$0.012 per unit on 63,154,023 units
        on ex-date of 2 October 2008                                                -      757,848
       First distribution of S$0.012 per unit on 59,337,640 units
        on ex-date of 2 January 2009                                       712,052                   -
       Second distribution of S$0.012 per unit on 58,826,978 units
        on ex-date of 1 April 2009                                         705,924                   -
       Third distribution of S$0.012 per unit on 61,241,085 units
         on ex-date of 1 July 2009                                         734,893                   -
       Fourth distribution of S$0.012 per unit on 61,549,618 units
        on ex-date of 1 October 2009                                       738,595                -
                                                                         2,891,464        2,563,905



10.    Net assets attributable to unitholders

                                                                       SGAM Bonus Builder Fund
                                                                Note     2009          2008
                                                                          S$            S$

       At the beginning of the financial year                           51,835,997      46,523,128

       Operations
       Changes in net assets attributable to unitholders
        resulting from operations                                        (964,858)      (8,218,204)

       Unitholders’ contributions/ (withdrawals)
       Creation of units                                                 5,805,228      21,182,790
       Cancellation of units                                           (9,033,998)      (7,651,717)
       Changes in net assets attributable to unitholders
        resulting from net creation of units                            (3,228,770)     13,531,073

       Total increase in net assets attributable to
        unitholders                                                     (4,193,629)       5,312,869

       At the end of the financial year                                47,642,368       51,835,997

       Units in issue                                            11    55,548,856       59,337,640

                                                                          S$               S$

       Net asset attributable to unitholders per unit                          0.858            0.874




                                                      16


                                                      16
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


11.    Units in issue

                                                                  SGAM Bonus Builder Fund
                                                                     2009            2008
                                                                     Units           Units

       Units at beginning of the year                                59,337,640     45,378,639
       Units created                                                  6,824,258     22,388,388
       Units cancelled                                             (10,613,042)     (8,429,387)
       Units at end of the year                                      55,548,846     59,337,640


12     Financial risk management

(a)    Strategy in using financial instruments

       The investment objective of the sub-fund is to provide investors with:

       (i)     a fixed payout of 4.8% per annum of the Initial Offer Price per Unit (i.e.
               S$1.00 per unit), comprising 4 quarterly payouts of 1.2% of the Initial Offer
               Price per Unit;

       (ii)    80% lock-in of the highest Net Asset Value per Unit of the sub-fund
               observed over the past 12 months on a rolling basis; and

       (iii)   long-term capital growth linked to the performance of Hang Seng Index
               Portfolio, Kospi Index Portfolio, MSCI Taiwan Index, ASX 200 Equity Index
               and TOPIX Equity Index by investing in financial instruments such as
               futures contracts, swap agreements and/or options.

       The sub-fund is therefore exposed to market price risk, interest rate risk, credit
       risk, liquidity risk and currency risk. The risks and the respective risk management
       policies employed by the sub-fund to manage these risks are discussed below:

(b)    Market price risk

       Market price risk is the risk that the value of a financial instrument will fluctuate as
       a result of changes in market prices, whether those changes are caused by
       factors specific to the individual instrument or factors affecting all instruments in
       the market.

       All securities investments present the risk of loss of capital. The sub-fund’s
       investment activities expose the sub-fund to various types of market risk which is
       associated with the markets in which the sub-fund invests. The sub-fund’s
       holdings in debt securities and trading derivative financial instruments are
       susceptible to market price risk arising from uncertainties about future prices of
       the instruments.




                                             17

                                             17
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009



12.    Financial risk management (continued)

(b)    Market price risk (continued)

       The sub-fund’s investments consist of both futures and treasury bills as shown in
       the Portfolio Statement. Each asset has a specific stress depending on its own
       characteristic and this stress is elaborated through the Lyxor Asset Management
       Limited risk department methodology. Futures are exposed to market price risk
       which is directly linked to the underlying index prices. Treasury bills are subject to
       market price risk because of its sensitivity to interest rate movements. However,
       the market price risk relating to treasury bills are extremely low due to the treasury
       bills’ short maturity, extremely liquid nature and AAA rating.

       The table below summarises the impact on net assets attributable to unitholders
       as a result of increases/decreases of the key index to which the sub-fund is
       exposed. The analysis is based on the assumption that the index has
       increased/decreased by the respective percentage with all other variables held
       constant and the sub-fund’s investments moved according to the historical
       correlation with the index.

                                                       2009                            2008
                                 Change in                        Change in
                                   market                           market
                                     index          Impact            index         Impact
                                         %             S$                 %            S$
                                        +/-            +/-               +/-           +/-
       Hang Seng Index                7.98         237,235             11.95        15,933
       Kospi Index                    3.89         124,943             10.30        17,234
       MSCI Taiwan Index              1.06          30,313             21.90        38,355
       TOPIX Equity Index            19.92         548,183             27.10        37,117
       ASX 200 Equity Index           7.91         196,300             14.83        27,597


       The Manager has used its judgement of what would be a “reasonable shift” in
       each key market in order to estimate the percentage change used in the market
       sensitivity analysis above.

(c)    Interest rate risk

       Interest rate risk is the risk that the value of a financial instrument will fluctuate
       due to changes in market interest rates.

       The exposure of the sub-fund’s investments in treasury bills, bank deposits and
       margin account balances to interest rate risk is considered to be minimal by the
       Manager as their contractual re-pricing or maturity days (whichever dates are
       earlier) fall mainly within 1 year after the balance sheet date. Other financial
       assets and liabilities are not exposed to interest rate risk.




                                              18


                                              18
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


12.    Financial risk management (continued)

(d)    Credit risk

       Credit risk is the risk that an issuer or counterparty will be unable or unwilling to
       meet a commitment that it has entered with the sub-fund.

       The financial assets which potentially subject the sub-fund to concentrations of
       credit risk consist principally of bank deposits and balances, assets held with the
       custodian and margin placed with futures broker.

       The table below summarises the credit rating with banks and the custodian for the
       asset placed as at 31st December 2009 and 2008:

       As at 31st December 2009

                                                  Credit rating    Source of credit rating

       Custodian
       Société Générale                                A+                   Fitch

       Bank
       Société Générale                                A+                   Fitch

       Counterparties
       Newedge Group                                 Unrated


       As at 31st December 2008

                                                 Credit rating      Source of credit rating

       Custodian
       Société Générale                                AA-                  Fitch

       Bank
       Société Générale                                AA-                  Fitch

       Counterparties
       Newedge Group                                 Unrated




                                            19


                                            19
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


12.    Financial risk management (continued)

(d)    Credit risk (continued)

       All transactions in treasury bills are settled upon delivery using approved and
       reputable brokers. The risk of default is considered minimal since delivery of
       securities sold is only made when the broker has received payment. Payment is
       made on a purchase when the securities have been received by the broker. The
       trade will fail if either party fails to meet its obligation.

(e)    Liquidity risk

       Liquidity risk is the risk that the sub-fund will encounter difficulty in settling a
       liability, including a redemption request, or selling a financial asset quickly at close
       to its fair value.

       The sub-fund is subject to daily cash redemptions of units. To manage the liquidity
       risk, a cash buffer is maintained in the sub-fund and monitored for minimum cash
       balances to guard against any extensive disposition of assets which may occur at
       lower prices and overdraft situation to meet trade settlement and obligations. The
       sub-fund also invests the majority of its assets in investments that are traded in an
       active market which enables investment to be readily disposed when needed.
       Therefore, the sub-fund’s exposure to liquidity risk is assessed to be minimal by
       the Manager.

       The sub-fund is allowed to borrow up to 10% of its Net Asset Value as at the time
       of the borrowing should the Manager consider this necessary but only on a
       temporary basis for the purpose of meeting realisation requests or short-term
       bridging requirements. The amount of interest expenses is included as expenses
       in the Statement of Total Return.
       The sub-fund, invests in treasury bills which are bonds issued by the US
       government. These are considered as one of the most liquid assets.

       The sub-fund also invests in futures contracts through recognised futures
       exchange which provides daily liquidity.


(f)    Currency risk

       The sub-fund’s investors are mainly from Singapore, consequently the
       performance of the sub-fund is measured and reported in Singapore Dollar with
       the subscriptions and redemptions of the redeemable shares also denominated in
       Singapore Dollar. The manager considers the Singapore Dollar as the currency
       that most faithfully represents the economic effects of the underlying transactions,
       events and conditions. The financial statements are presented in Singapore
       Dollar, which is the sub-fund’s functional and presentation currency.

       Currency risk is the risk that the value of financial instruments will fluctuate due to
       changes in foreign exchange rates.




                                             20


                                             20
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


12.    Financial risk management (continued)

(f)    Currency risk (continued)

       The sub-fund holds both monetary and non-monetary assets and liabilities
       denominated in currencies other than the Singapore Dollar, the sub-fund’s
       functional and presentation currency. The sub-fund is therefore exposed to
       currency risk, as the value of the assets and liabilities denominated in other
       currencies will fluctuate due to changes in exchange rates.

       Foreign currency transactions are translated into the sub-fund’s functional
       currency using the exchange rates prevailing at the dates of transactions. Foreign
       exchange gains and losses resulting from the settlement of such transactions and
       from the translation at year-end exchange rates of monetary assets and liabilities
       denominated in foreign currencies are recognised in the Statement of Total
       Return.

       To minimise currency risk, the sub-fund mainly holds its excess cash in its
       functional currency and may execute foreign exchange contracts mainly for
       hedging purposes and to facilitate trade settlements.

       The table below summarises the sub-fund’s net exposure to different currencies,
       incorporating the underlying currency risk through all financial assets and liabilities
       held by the sub-fund, both monetary and non-monetary.




                                             21


                                             21
     SGAM ALTERNATIVE INVESTMENTS
     (Constituted under a Trust Deed registered in the Republic of Singapore)

     NOTES TO THE FINANCIAL STATEMENTS
     For the financial year ended 31 December 2009


                                  AUD                HKD              JPY            KRW         SGD            USD           TOTAL
     As at 31 Dec 2009             S$                 S$               S$             S$          S$             S$             S$

     Assets
     Investments                     137,204            59,254            28,143      130,521             -     44,518,230     44,873,352
     Cash and deposits               367,994           145,283           165,855            -       535,882        957,749      2,172,763
     Receivable                       45,535           215,865            43,355      730,895        20,855        110,045      1,166,550
     Total assets                    550,733           420,402           237,353      861,416       556,737     45,586,024     48,212,665

     Liabilities




22
     Payables                               -                -                   -          -       179,043               -      179,043
     Bank overdraft                         -                -                   -          -             -               -            -
     Net assets
     attributable to
     unitholders                            -                -                   -          -    47,642,368               -    47,642,368
     Total liabilities                      -                -                   -          -    47,821,411               -    47,821,411
     Net financial
     assets/(liabilities)            550,733           420,402           237,353      861,416   (47,264,674)    45,586,024       391,254
      Less:
      Currency forwards            (541,020)         (448,752)         (153,540)            -    45,693,333    (44,941,275)     (391,254)

     Currency Exposure                  9,713         (28,350)            83,813      861,416    (1,571,341)       644,749              -




                                                                                22
     SGAM ALTERNATIVE INVESTMENTS
     (Constituted under a Trust Deed registered in the Republic of Singapore)

     NOTES TO THE FINANCIAL STATEMENTS
     For the financial year ended 31 December 2009




                                 AUD                HKD               JPY                KRW         SGD             USD           TOTAL
     As at 31 Dec 2008            S$                 S$                S$                 S$          S$              S$             S$

     Assets
     Investments                     11,773             1,083                6,658          2,848             -      45,180,657     45,203,019
     Cash and deposits                    -                 -                    -              -     1,331,888       3,076,307      4,408,195
     Receivable                      17,983            31,475               10,741        168,814             -          25,076        254,089
     Total assets                    29,756            32,558               17,399        171,662     1,331,888      48,282,040     49,865,303




23
     Liabilities
     Payables                              -                -                    -              -       179,433                -       179,433
     Bank overdraft                    8,096           41,757                5,381              -             -                -        55,234
     Net assets attributable
     to unitholders                        -                -                    -              -    51,835,997                -    51,835,997
     Total liabilities                 8,096           41,757                5,381              -    52,015,430                -    52,070,664
     Net financial
     assets/(liabilities)            21,660            (9,199)              12,018        171,662   (50,683,542)     48,282,040     (2,205,361)
      Less:
      Currency forwards             (89,417)                 -                       -          -    50,730,238     (48,435,460)     2,205,361

     Currency Exposure              (67,757)           (9,199)              12,018        171,662          46,696     (153,420)               -




                                                                                23
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


12.    Financial risk management (continued)

(f)    Currency risk (continued)

       The table below summarises the sensitivity of the sub-fund’s monetary and non
       monetary assets and liabilities as a result of increases/decreases of key exchange
       rates to the exposures tabled above, which the sub-fund was exposed to as at 31
       December 2009 and 2008. The analysis is based on the assumption that the
       relevant foreign exchange rates increase/decrease by the respective percentage
       with all other variables held constant. This assumption is derived from the volatility
       of the relevant foreign exchange rate against the Singapore Dollar over the past
       24 months.

                                                   2009                              2008
                                        Change             Impact           Change          Impact
                                         +/-                 +/-             +/-             +/-
                                          %                  S$               %               S$

       Australian dollar                         20              1,943            15          10,163
       Hong Kong dollar                           3                851             6             551
       South Korean Won                           5             43,071            15          25,749
       Japanese yen                               5              4,191            15           1,802
       United States dollar                       3             19,342             6           9,205


(g)    Fair value measurements

       Effective 1 January 2009 the sub-fund adopted the amendment to FRS 107 which
       requires disclosure of fair value measurements by levels of fair value
       measurement hierarchy as follows:
                                                 Level 1          Level 2     Level 3        Total
       As at 31 December 2009

       Assets
       Treasury Bills                          44,439,869                 -             - 44,439,869
       Futures                                    433,483                 -             -    433,483
       Forward foreign exchange contracts               -            38,268             -     38,268

       Total assets                            44,873,352            38,268             - 44,911,620

       Liabilities
       Forward foreign exchange contracts                   -      429,522              -     429,522

       Total Liabilities                                    -      429,522              -     429,522




                                            24


                                            24
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


12.    Financial risk management (continued)

(g)    Fair value measurements (continued)

       The fair value of financial instruments traded in active markets is based on quoted
       market prices as at the balance sheet date. The quoted market price used for
       financial assets held by the sub-fund is the current bid price. These instruments
       are included in Level 1.

       The fair value of forward foreign exchange contracts is determined using quoted
       forward exchange rates as at the balance sheet date. These instruments are
       included in Level 2.


13.    Related party transactions

(a)    The Manager of the sub-fund is SG Asset Management (Singapore) Ltd, a related
       company of Société Générale S.A. The Trustee is RBC Dexia Trust Services
       Singapore Limited, a subsidiary of RBC Dexia Investor Services.

       Management fees and trustee fees paid or payable by the sub-fund to the
       Manager and Trustee respectively are shown in the Notes to the Financial
       Statements and are at terms agreed between the parties and within the provisions
       of the Trust Deed. All other related party transactions are disclosed elsewhere in
       the financial statements.

(b)    As at the end of the financial year, the sub-fund maintained current accounts with
       the following related parties:


                                                                 2009           2008
                                                                  S$             S$

       Margin account balances – Newedge Group                 1,145,695        254,089
       Bank balances – Société Générale                        2,157,701      4,296,027
       Bank overdraft – Société Générale                               -        (55,234)




                                           25

                                           25
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


13.    Related party transactions (continued)

(c)    The following significant transactions took place during the financial year between
       the sub-fund and the following related parties at terms agreed between the parties
       and within the provisions of the Trust Deed:


                                                                         2009             2008
                                                                          S$               S$

       Interest income – Newedge Group                                         43          4,917
       Interest expense – Newedge Group                                     4,848          5,715
       Commission expense – Newedge Group                                  26,512         25,936
       Interest income – Société Générale                                  15,263        631,250
       Interest expense – Société Générale                                 10,738          7,639


(d)    All financial derivative contracts are entered into with related parties of the
       Manager and the underlying principal amount of these contracts outstanding as at
       balance sheet date and their corresponding fair values are included in Note 8 to
       the financial statements. Realised and unrealised gains and losses on these
       financial derivatives are included in the Statement of Total Return.

14.    Financial ratios


                                                                         2009             2008
                                                                          %                %

       Expense ratio (a)                                                  1.96            1.93
                        (b)
       Turnover ratio                                                     2.36            2.80

       (a)
             The expense ratio is calculated in accordance with the guidelines on the disclosure of
             expense ratios issued by IMAS.
             Interest expense arising on bank lending and other loans to the sub-fund, brokerage
             and other transaction costs, foreign exchange gains/losses, tax deducted at source or
             arising out of income received, front or back end loads arising from the purchase and
             sales of other schemes and distributions paid to unit-holders are not included in the
             expense ratios.

             The sub-fund does not pay performance fees.
       (b)
             The portfolio turnover ratio is calculated in accordance with the formula stated in the
             “Code on Collective Investment Schemes”.




                                                 26


                                                 26
SGAM ALTERNATIVE INVESTMENTS
(Constituted under a Trust Deed registered in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2009


15.    Subsequent event

(a)    On 1 January 2010, SG Asset Management (Singapore) Limited ceased to be a
       subsidiary of Société Générale S.A.

       On the same date, Amundi Group, a joint venture between Société Générale S.A.
       and Crédit Agricole S.A. was established to combine the activities of Société
       Générale Asset Management S.A. and Crédit Agricole Asset Management S.A. .
       SG Asset Management (Singapore) Ltd (SGAM SG) became a wholly-owned
       subsidiary of Amundi which is itself a wholly-owned subsidiary of Amundi Group.

(b)    On 4 January 2010, the sub-fund declared a distribution of S$0.012 per unit on
       55,548,856 units and it was paid out on 13 January 2010.




                                           27


                                           27
Important Note :

The contents of this document is for information purposes only and does not constitute
an offer or solicitation to make a purchase of the mentioned Funds or enter into any such
transactions.

Investors should read the relevant prospectus before deciding to invest in the Funds.
The prospectus for the Funds is available and may be obtained from the Manager or its
authorised distributors. All applications for the Funds must be made on application forms
accompanying the prospectus.

As this document is intended for information and general circulation, it has not taken into
account the specific investment objectives, financial situation or particular needs of any
particular investor. An investor may wish to seek advice from a financial adviser regarding
the suitability of any of the Funds before making a commitment to purchase units in the
Funds. In the event an investor chooses not to do so, the investor should consider whether
the Funds are suitable for him.

Past performance and any forecasts made are not indicative of future performance of the
Funds. Investments in the Funds are subject to investment risks, including the possible
loss of the principal amount invested. Value of the units in the Funds and the income
accruing to the units, if any, may fall or rise.

                                           28
29
    SG Asset Management (Singapore) Limited
     80 Robinson Road #13-03 Singapore 068898
Telephone: (65) 6326 7979 Facsimile: (65) 6224 2052
  Website: www.sgam.sg Email: sg-info@sgam.com
                Reg. No. 197901657H
                        30

								
To top