Important Notes The information contained in this brochure are for information purposes only and do not constitute an offer, a solicitation of an offer or invitation, advertisement, inducement, representation of any kind or form whatsoever or any advice or recommendation to buy or sell any securities referred to herein. Investment involves risks. Potential investors are responsible for determining whether any investment, strategy or service is appropriate or suitable for them based on their investment objectives and personal and financial situation. Past performance, projection, or forecast included in this brochure is not a guide to future returns and investors should be aware that they may not get back the full amount invested. 1
CENTALINE FINANCIAL SERVICES LIMITED Discretionary Portfolio Management Services Centaline Group 1978 Under Mr. Shih's leadership since 1978, Centaline has grown and thrived to become the forefront of today's property agency in Hong Kong, Macau, Taiwan, Singapore and Mainland China, together with the renowned subsidiaries Centaline Property Agency Ltd. and Ricacorp Properties Ltd.. In recent years, we have been actively expanding in the financial sector. Under the brand names of Centaline Financial Services Limited and Centaline Securities Limited, we provide one-stop shop services in investment and financial management, which include property referrals. Centaline Financial Services Limited (CFS) Company Information Member of Centaline Group M-400 Member of Professional Insurance Brokers Association M-400 IC000785 Registered MPF Corporate Intermediary Registration # IC000785 Over HK$ 1.3 Billion Assets Under Administration (AUA) in Centaline Financial Services Services Include Discretionary Portfolio Management Services (DPMS) Financial Management and Planning Services Global Risk Management 2
Our Competitive Edges Centaline Financial Services sticks to the principle of "We Build Wealth With You". Our outstanding consulting team is developed based on the marketing information from our Research & Development Department, and various training programs are organized by the Training Department. In the future, we will continuously extend our investment services in Hong Kong, Mainland China, and even Asia. We will also promote the proper concepts in financial management. In order to benefit more people with our services, ensuring their better lives. In recent years, our professional services have been acknowledged by the society and various organizations. With the honours we have received, our success is there for all to see. CAPITAL CEO 2011 CAPITAL CEO Supreme Brand Awards 2011 Distinguished Salesperson Award 3 HKIB Outstanding Financial Planner Awards IFPHK Financial Planner Awards
CENTALINE FINANCIAL SERVICES LIMITED Discretionary Portfolio Management Services Discretionary Portfolio Management Services (DPMS) (DPMS) 2 2005 10 (DPMS) Centaline Financial Services Limited (CFS) provides Discretionary Portfolio Management Services (DPMS) where our experienced investment team will construct a personalized portfolio after thorough researches backed by their expertise, ensuring your investment portfolio remains optimally structured to meet your investment objective. Having Centaline Group backing us up is one of our many advantages. Along with other various support, the Group has invested HK$200 million into our DPMS portfolio. The sample aggressive portfolio established by our investment team since October 2005 had also made an impressive performance, proven through our track record. By taking part in the DPMS and passing the responsibility for investment decisions to us, our team which comprised of professional analysts, investment strategists and product specialists will work to construct a personal investment strategy devised for you, giving you a better possible returns within agreed investment objectives and risk guidelines, as our portfolio managers have the flexibility to react promptly to fast moving markets and changing economic circumstances. Amongst the traditional asset classes of equities, bonds and cash - in addition with investing in alternative investment e.g. real estate funds, hedge funds, and commodities funds as appropriate, we work as your personal advisers to provide the most suitable actively managed portfolio tailored to your requirements. 4
(DPMS) Benefits of DPMS (DPMS) (DPMS) Prompt Action It is increasingly important today to act swiftly in response to changing market conditions. Without the workload of investment administration and delays inherent in obtaining your prior approval to undertake transactions, we can react quickly to opportunities within the markets as they arise. Professional Strategic Investment Our discretionary portfolio will usually be invested in a combination of international equities, bonds and alternative investments, which is designed to optimize returns across the spectrum from balance to aggressive allocations. Our investment teams active monitors and evaluates the portfolios' suitability in light of dynamic market conditions. Risk Management Our experienced investment teams ensure your portfolio is tracked, monitored and optimized at all times, whilst taking all the multi-dimensional investment risk into account. 5
CENTALINE FINANCIAL SERVICES LIMITED Discretionary Portfolio Management Services (DPMS) DPMS with CFS 2008 (DPMS) 7,000 2010 12 2 "We Build WEALTH With You" The public found one of the most gutting approaches amongst the financial industry after the Financial Tsunami in 2008 is that investment decision were often made against the client's will, ignoring the client's overall benefits, risk tolerance level and objectives. As a member of Centaline Group, with "We Build WEALTH With You" as our motto, our group took the lead and invested HK$70 million into Centaline's DPMS. The total amount of capital invested had accumulated to HK$200 million as of December 2010; this is a testament to our confidence. We put our client's benefit as our utmost priority. Being a responsible wealth management company, we truly believe 'Actions Speak Louder than Words', therefore we lined up our returns with you. 6
Monitoring System for CFS Investment Strategy Asset allocation using the Top-Down Approach Micro-operation, filtering investment options 6 12 : : : Investment Committee Based on global economic data, like interest rates, inflation rates, GDP growth and unemployment rates, whilst also taking daily observations and past history into account to predict the business cycle and the trend of the market. Analysts Team Valuation Quantitative : Analyzing from the fundamentals to predict the reasonableness of the worldwide stock market's valuation. : Apart from analyzing the spectrum and the long-term performances of different funds, statistical methods are also applied to the assessment of the portfolio's volatility. Behavioral Finance : Buy specific investments which have become mispriced according to Contrarian Theory. Experienced Portfolio Managers to make the final decisions Portfolio Managers Gathering all the above information backed by personal solid experience to build the investment portfolios and execute buy/sell strategies. 7
CENTALINE FINANCIAL SERVICES LIMITED Discretionary Portfolio Management Services Selection of Portfolios After joining the DPMS service, our clients can then select the portfolio risk level according to their own individual investment target and needs. We offer three different portfolio selections for our clients, including aggressive, growth and balanced. The risk level of our portfolio can be adjusted when needed, whether it is due to growing age or changes in their risk tolerance, your portfolio can be adjusted at no extra costs. The chart below gives you an overview of the three different types of portfolio we offer: (12-15% Medium to High risk (Annualized standard deviation : 12-15% To generate a high return consistently by investing in regional and theme fund that have significant growth potential in future. Growth Aggressive Balanced (15-18% High risk (Annualized standard deviation : 15-18% To generate the highest return, the portfolio would be more concentrated and the trading frequency would be higher. (8-12% Low to Medium risk (Annualized standard deviation : 8-12% To generate long term steady returns during different economic cycles, by investing in a diversified portfolio. 8
Service Fees Investment Linked Assurance Scheme : Lump Sum Investment Plan 1% 1% of the Net Asset Value (NAV) of your investment portfolio. Investment Linked Assurance Scheme : Regular Savings Investment Plan 1% 1% of the Net Asset Value (NAV) of your investment portfolio. (Exclude the fund units allocated during the Initial Contribution Period (ICP). * The related fees will be deducted from your investment portfolio in terms of fund units. ** (DPMS) Full service fees will be charged from starting the use of the Discretionary Portfolio Management Services (DPMS), the payment dates of the service fees will be according to the selected investment plan or investment linked assurance scheme. (By monthly, quarterly or annually) General Disclaimer The information herein is provided in good faith and has been obtained and derived from sources believed to be reliable and accurate at the date indicated. However, we have not verified all the information and we do not represent that it is accurate or complete for your purpose and it should not be relied upon as such. We may not, and have no obligation to, update the information or correct any inaccuracy which subsequently becomes apparent. Opinions, estimates and other information contained herein may be changed or withdrawn without prior notice. Investors should consider their own investment objective and risk tolerance level before any investment decision is made. 9
CENTALINE FINANCIAL SERVICES LIMITED Discretionary Portfolio Management Services Risk Factors Clients should be aware that the portfolio's returns and performance would be affected by many risk factors, including: General Risk Past performance is not necessarily a guide to future performance. The value of your investment and any income you take from it can go down as well as up. If you cash in your investment, its value may be less than you have originally invested. Investment Objectives Risk Investment objectives reflect the portfolios' expected return, but it's not a guarantee. Returns and volatility depends on the market condition and macro-economic environment, therefore it is possible that the expected return cannot be reached. Currency Risk This arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged. Interest Rate Risk The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relationship. Such changes usually affect securities inversely. Credit Risk The risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation. Liquidity Risk The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to minimize the loss. Inflation Deflation Risk The possibility that the value of assets or income will decrease as inflation shrinks the purchasing power of a currency. Inflation steadily erodes the value of a portfolio. Risk of deflation occurs when the general prices of the economy decreases. This will affect the credibility of the Issuers leading to a breach of contract, thus may reduce the return of the portfolio. 10