AIA Global Balanced Fund

January 2010 The Power of We

AIA.COM.SG

Investment Objective To seek long term capital growth through investment in equities, bonds and other fixed income securities in global markets. Investment Strategy The fund adopts a relatively balanced approach towards equities and bonds exposure with the aim of achieving capital growth with lower short term volatility than is normally associated with a pure equity fund. It does this by currently investing in AIG US Large Cap Research Enhanced Fund, AIG Japan New Horizon Fund, AIG International Funds - Singapore Bond Fund, Aberdeen Pacific Equity Fund, Fidelity Funds - European Aggressive Fund and Fidelity Funds - International Bond Fund II.

Key Fund Fact

Launch Date

11 December 2000
Launch Price

Pricing Frequency

Daily

S$ 1.000

Subscription

Cash, CPF (OA & SA) and SRS

Management Fees Bid

Manager of ILP Fund

AIG Global Investment Corporation (Singapore) Limited

Sales Charge (For Cash and SRS) Sales Charge (For CPF OA or SA)

1.50% p.a. of Net Asset Value S$ 0.879 as of 30 Nov 2009

Offer

5% (included in bid-offer spread) 3%

S$ 0.926 as of 30 Nov 2009

Fund Size

S$ 200.1m as of 30 Nov 2009

Managers Commentary As of November/December 2009. Source: PineBridge Investments Now that the global recovery is firmly underway, it is worth looking at the differential growth momentum across the major economic areas and the growth prospects for next year. The recession was fairly synchronous around the world and, with few exceptions, most economies started down the road to recovery this summer. Once central banks successfully stabilized banking systems around the world, massive fiscal stimulus packages triggered a rebound in GDP growth. However, the euphoria about the resumption of growth is balanced by concerns about fiscal deficits and an overly expansionary monetary policy. Stock markets around the world reacted predictably to the improving outlook and the 2009 rally is extending right into year-end. Global equity markets added another 3% in November, with little difference between developed and emerging markets. Stunningly, the U.S. was the best performing developed region, even outperforming most of Asia. Faster growing economies, such as Australia and Japan, generated less impressive returns. In fact, Japan was the only major market posting a loss in November. Meanwhile, the rally in government bond markets continued. The yield on 10-year Treasuries fell to 3.20% and 3-month Treasury Bill yields briefly dropped to 0% during the month, before settling back at a paltry 5 basis points. By no means was the rally confined to the United States. Eurozone-bond yields remain below those in the U.S, while 10-year yields in Japan are once again approaching the lows of the recession. Most surprising, though, was the strong rally in Australian government bonds, despite, or maybe because of, the Reserve Bank of Australia's early anti-inflationary stance. Another facet of the broad rally in financial markets is the ongoing dollar weakness. The trade-weighted dollar index is down more than 15% from its March peak and is rapidly approaching the lows of last May. Simultaneously, commodity prices continue to trend higher. Gold prices surged more than 13% last month and have traded above $1,000 now for seven straight weeks. Another star performer this year is Copper, which is up almost 130% from the end of last year. The broadening recovery is providing solid macro support for the recent rebound in financial markets. The improvement in forecast estimates is still impressive. The OECD last month doubled its forecasts for 2010 global growth from a very cautious 0.9% to a much more constructive 1.9%. Our own forecasts had been far ahead of the consensus earlier in the year, but the consensus has now caught up with us. Equity market earnings revisions are also still improving. Hence, we maintain our very bullish equity market allocation, with a significant overweight in emerging markets. In our bond portfolios, we are overriding our more bearish medium-term outlook, expecting the current surge in Treasuries to carry into year-end.
MICA (P) 110/09/2006

AIA Global Balanced Fund

Managers Commentary (Continued) Next year's investment strategy will depend on the actions of central bankers in general and the Federal Reserve in particular. We have been warning against the risk of a liquidity bubble for a few months now. Fundamental progress has been sufficient enough to support the rally in risk assets. However, looking at the breadth of the current rally, which includes stocks, bonds and gold, I remain concerned that investors will react nervously to the beginning of liquidity withdrawal and the normalization of interest rates. It seems a fair call to remain bullish on most asset classes into the end of the year. For 2010, I would start with a more cautious stance awaiting clarification on the timing of the Fed's exit strategy and the market reaction to it.

The Underlying Investments

AIG US Large Cap Research Enhanced Fund Investment Manager:AIG Global Investment Corporation Top Five Holdings* (As of 30 November 2009) Holding (%) Exxon Mobil Corp (US) 4.8 Apple Computer Inc (US) 2.9 Intl Business Machines Corp (US) 2.7 AT&T Inc (US) 2.7 Google Inc (US) 2.5 ____________________________________________________________ Total 15.6%

Aberdeen Pacific Equity Fund Investment Manager:Aberdeen Asset Management Asia Limited Top Five Holdings* (As of 30 November 2009) Holding (%) AG - Indian Equity Fund^^ 10.0 Aberdeen Singapore Equity Fund 9.5 Aberdeen China Opportunities Fund 9.5 Aberdeen Indonesia Equity Fund 7.6 Aberdeen Thailand Equity Fund 6.0 ____________________________________________________________ Total 42.6%

AIG Japan New Horizon Fund Investment Manager:AIG Investments Japan Co., Ltd Top Five Holdings* (As of 30 November 2009) Holding (%) Honda Motor Co (JP) 4.1 East Japan Railway Co (JP) 3.8 Mitsubishi Corp (JP) 3.7 Nidec Corporation (JP) 3.6 Kubota Corp (JP) 3.4 ____________________________________________________________ Total 18.6%

Fidelity Funds - European Aggressive Fund ^ Investment Manager:Fidelity Fund Management Limited Top Five Holdings* (As of 30 September 2009) Holding (%) BANCO SANTANDER 2.90 NESTLE (REGD) 2.60 TELEFONICA 2.60 ROCHE HOLDINGS 2.30 BNP PARIBAS 2.20 ____________________________________________________________ Total 12.60%

AIGIF Singapore Bond Fund Investment Manager:AIG Global Investment Corporation (Singapore) Limited Top Five Holdings* (As of 30 November 2009) Holding (%) DBS Cap Funding 5.75% 29May2049 6.73 Standard Chartered Bank 5.25% 10Apr2023 6.64 Capitamall Trust 3.93 OCBC Capital Corp 5.1% 29 Aug 2049 3.64 OCBC 3.78% 28Nov2017 3.54 ____________________________________________________________ Total 24.48%

Fidelity Funds - International Bond Fund II ^ Investment Manager:Fidelity Fund Management Limited Top Five Holdings* (As of 30 September 2009) Holding (%) RECV UBSD IRS 1.455% 19/06/2011 15.10 RECV JPSW IRS 4.321% 09/01/2013 12.80 FINLAND 3.875% 15/09/2017 6.10 GERMANY 4.75% 04/07/2040 08 2.90 UK GILT 2.25% 07/03/2014 2.70 ____________________________________________________________ Total 39.6%

* Sources: AIG Global Investment Fund Management Limited, AIG Global Investment Corporation (Singapore) Limited, Aberdeen Asset Management Asia Limited & Fidelity Fund Management Limited ^^ The underlying fund is not authorised for public sale in Singapore. The name of the underlying fund was changed from Aberdeen Global -India Opportunities Fund to Aberdeen Global - Indian Equity Fund with effect from 1 October 2008 ^ As of 30 September 2009 Note: The Top five holdings for Fidelity Funds - European Aggressive Fund and Fidelity Funds International Bond Fund II will be updated on quarterly basis.

AIA Global Balanced Fund

Performance Indicator Offer-to-bid**, net dividends reinvested, SGD, from Inception to 30 November 2009. Source: AIA
Period Fund (bid-to-bid) Fund (offer-to-bid**) Benchmark 1 Year 16.12% 10.29% 13.64% 3 Year^ -6.14% -7.73% -4.09% 5 Year^ -1.08% -2.09% -0.42% Since Inception^ -0.86% -1.43%
Price Indexed

130 120 110 100 90 80 70 60 50

Aug-01
Dec-01

0.59%

Note: Performance of the fund is in SGD without taking into consideration the fees and charges payable through deduction of premium or cancellation of units and with net dividends reinvested. ^ Annualised returns # Current benchmark: 60% MSCI World Index & 40% Citigroup World Govt Bond Index (The combined benchmark is reflective of the funds investment focus) ** Taking into account 5% sales charge

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AIA Global Balanced Fund

--- Benchmark

Asset Allocation As of 30 November 2009. Source: AIA

Asian Equities 0.70% Cash 0.54% Japan Equities 5.93%

Global Bonds 17.67%

US Equities 34.36%

European Equities 18.38% Singapore Bonds 22.42%

The AIA Global Balanced Fund is an investment-linked policy (ILP) fund offered by American International Assurance Company, Limited (AIA) and is only available under AIA Investment-Linked Policies. AIA is the product provider. This fact sheet is prepared by AIA and the information presented is for informational use only. Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance, as well as the prediction, projection or forecast on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of the ILP fund. The performance of the ILP fund is not guaranteed and the value of the units in the ILP fund and the income accruing to the units, if any, may fall or rise. A product summary relating to the ILP fund is available and may be obtained from your AIA Financial Services Consultant. A potential investor should read the product summary before deciding whether to subscribe for units in the ILP fund. AIA does not warrant or make any representations regarding the use or the results of the use of the figures generated in terms of their correctness, accuracy, reliability, or otherwise. 1 Robinson Road, AIA Tower, Singapore 048542 Monday - Friday: 8.45am - 5.30pm AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG

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