In fnexis, we believe in living up to our tagline by

making an annual company effort to impact lives

beyond fnance, where we hope to continuously give
back to the society.
So for this years fnexis Community Day 2014,
fnexians joined the crowd at the National Kidney
Foundation (NKF) Walk of Love event to raise public
awareness of NKFs efforts in providing holistic care
for kidney patients and to motivate the community
to embrace an active and healthy lifestyle through
regular physical activities.
Held at Bishan-Ang Mo Kio Park on 7 June 2014,
more than 180 fnexians, together with their family
and friends, young and old, came together to attend
the walk and enjoyed themselves at the games and
snacks booths at the Walk of Love carnival.
After the 3km evening brisk walk in the park, the day
ended with an outdoor movie screening, coupled
with a healthy dinner set for each participant. With
that, we leave you with some pictures from the event!
How time fies. In a blink of an eye, we are already halfway through 2014!
Not only is June and July the months where most families go for a short holiday, its also the period of the Great Singapore
Sale! Here at fnexis, we frmly believe in ensuring our clients dont end up with huge holes in their pockets, whether it
is due to insuffcient fnancial planning, a blown holiday budget, or overspending at the shops. Thus, we have specially
prepared a few articles on how to further protect your wealth, whether it is in the face of a crisis, when its time to retire,
or even during the sales season.
We also recently participated in the National Kidney Foundation Walk of Love where more than 180 of us brisk walked
together to raise awareness for a good cause! Come July, a group of us will be shaving our heads at the fnexis Building
to raise donations for another good cause - the Hair for Hope 2014 campaign! More photos to follow in the next issue.
We thank you for your continuous support towards your fnexis consultant and we hope you enjoy this issue of fnexis focus.
FOREWORD
FINEXIS COMMUNITY DAY 2014: NKF WALK OF LOVE
fnexisfocus
J UNE J ULY 2 0 1 4 , I S S UE 0 9
Avid investors should be no stranger to the term
diversification. The importance of diversification
has been regularly preached by investment gurus in
investment seminars, presentations and even in the
media.
So, what actually constitutes diversification? Do we
need it? And how can we achieve it? We will attempt to
answer these questions in this article.
What is diversification?
When we talk about diversification in an investment
portfolio, we are essentially referring to investing in
different assets across three basic levels. These levels
are: (i) asset classes (between stocks and bonds), (ii)
countries/regions and (iii) sectors.
With this defnition, we dispel one of the myths of
diversifcation that having one million different Singapore
stocks in our investment portfolio constitutes as a properly
diversifed portfolio. The rationale behind it is that although
your one million Singapore stock portfolio is diversifed
across different sectors, they are still concentrated in a
single asset class and a single country.
With diversication, our ultimate goal is to avoid putting
all of our eggs into one basket.
Lets say you only have Russian stocks in your portfolio,
it could be because they are cheaper or you believe the
stocks will do well soon. Suddenly in the frst quarter of
2014, the news on the confict between Russia and Ukraine
hits the headlines and you fnd yourself with a crushed
investment portfolio.
There are many academic studies that demonstrate why
diversifcation works. In layman terms, when you spread
your investments across various asset classes, regions
and/or sectors with low correlation to each other, you
reduce price volatility in your investment portfolio. This is
because different asset classes, regions and/or sectors do
not move up and down at the same time or at the same
rate.
With a properly diversifed portfolio, you are less likely to
experience signifcant drawdowns, mainly because when
some investments are experiencing tough times, others
may be thriving. This provides us with a more consistent
overall portfolio performance.
How can an investor on the street then achieve a
diversified portfolio?
Investing in unit trusts and/or funds may be a feasible
solution as you can get exposure to a wide number of
industries and/or sectors with a much lower minimum
investment sum than if you were to buy individual
securities.
With unit trusts, you can achieve diversification across,
industries and sectors, provided you pick a unit trust
that does not have a narrow mandate (i.e. only invests
in a particular sector like healthcare).
That being said, remember that there are three
basic levels of diversification.
Being diversified on one level is simply not adequate
as your investment portfolio will be vulnerable when a
country specific or asset-class specific crisis hits.
Although you are diversified across sectors and/or
industries, you will need more than one type of unit
trust to give you diversification over asset classes and
region and/or countries.
Ultimately, risk can never be eliminated completely.
However, diversification can help investors manage
risk and protect their investment portfolios. When you
diversify your investment portfolio, it eliminates a huge
chunk of unnecessary risk.
A well-diversified portfolio is the difference between
staying up worrying about your investment portfolio
and getting a good nights sleep.
fnexisfocus
J UNE J ULY 2 0 1 4 , I S S UE 0 9 , P G 2
THE ESSENCE OF DIVERSIFICATION
about NTUC INCOME
NTUC Income was established in 1970 to provide affordable insurance for workers in
Singapore. Today, two million people in Singapore look to NTUC Income for trusted advice
and solutions when making their most important fnancial decisions. Our wide network of
advisers and partners provide life, health and general insurance products and services to
serve the protection, savings and investment needs of customers across all segments of
society.
As a social enterprise, NTUC Income was made different. Our social purpose is to make
insurance accessible, affordable and sustainable for all. Putting people before profts, we
strive to create and maximise value for customers.
In 2013, NTUC Income had over $31 billion in assets under management. Our fnancial
strength and diversifed investment portfolio is refected by our strong credit ratings which
underpin the delivery of our commitment to customers.
NTUC Incomes corporate social responsibility initiative, OrangeAid, focuses on children
and youth, especially the disadvantaged among them. For more about NTUC Income,
please visit www.income.com.sg.
NTUC INCOME LAUNCHES CANCER PROTECT
BY NTUC INCOME
NTUC Income has unveiled Cancer Protect, an
affordable insurance policy that specifcally covers
early and advanced stage cancers.
The diagnosis of cancer has a devastating impact
on a persons life, along with the lives of his or her
dependents and loved ones. It also causes fnancial
strain on the person and the family, since the cost of
treatment is high.
According to statistics from the Ministry of Health,
cancer is Singapores top killer, accounting for 30 percent
of deaths in 2011. It was also the top condition for
hospitalisation, after accidents. At NTUC Income, cancer
makes up three-quarters of all critical illness claims.
We can do our best to prevent cancer, such as
eating right, exercising and generally living a healthy lifestyle, but the truth is cancer can happen to anyone, said Mr
Esmond Chan, Vice President, Life Insurance, NTUC Income. Cancer Protect provides funds for early treatment, which
increases the affected persons chances of recovery and mitigates the fnancial burden that comes with such an illness.
Policyholders can choose between sums assured of $50,000, $80,000 or $100,000. Premiums start from $14.40 a month.
Supplementing existing critical illness coverage, Cancer Protect pays 25 percent of the sum assured upon diagnosis of
an early stage cancer. Should the insured be diagnosed with advanced stage cancer later on, the policy still pays 100
percent of the sum assured.
If the insured does not make an early stage cancer claim and is diagnosed immediately with advanced stage cancer, the
policy pays 125 percent of the sum assured. Cancer Protect also pays up to 100 percent of the sum assured for accidental
death if the policyholder is below the age of 69.
The minimum entry age of Cancer Protect is 30 and the plan will be automatically renewed till age 84. NTUC Income is
also making Cancer Protect accessible to those with existing non-cancer related medical conditions who are otherwise
not eligible for any life or health insurance policies.
For more information on the product, speak to your fnexis consultant today.
fnexisfocus
J UNE J ULY 2 0 1 4 , I S S UE 0 9 , P G 3
about TOKIO MARINE LIFE INSURANCE SINGAPORE LTD.
Tokio Marine Life Insurance Singapore Ltd. is part of Tokio Marine
Holdings Inc. which has over 130 years of history. As at March
2013, Tokio Marine Holdings Inc. has a market capitalisation of
close to USS$22 billion and total assets of around USS$191
billion. With its presence spreading over 456 cities in 37 countries,
Tokio Marine is indisputably one of the largest insurance groups
in the world.
Our reputation in Singapore as a leading life insurer has been
gained through our strong historical investment returns,
disciplined underwriting and careful expense management.
We are committed to bring meaningful product solutions to
meet your individual and corporate insurance needs. Driven by
Customer-focus, Integrity and Excellence as our core values, we
endeavour to be your preferred insurance partner for life.
HERES A MESSAGE FROM YOUR OLDER (WISER) SELF
BY TOKIO MARINE LIFE INSURANCE SINGAPORE LTD.
To help you move forward with your retirement planning,
speak to your fnexis consultant today.
Today, we want to help you understand a type of
retirement product that could suit your needs.
fnexisfocus
J UNE J ULY 2 0 1 4 , I S S UE 0 9 , P G 4
1
http://www.reuters.com/article/2013/10/24/us-singaporeexchange
shares-idUSBRE99N1MJ20131024 Singapore launches probe into
penny stocks crash, Reuters, 24 Oct 2013.
2
The frst guaranteed monthly paycheck will commence on the policy
anniversary on which the life assured reaches the selected retirement age.
The payout frequency is monthly only. Refer to TM Retirement Paycheck
Product Summary for details.
3
The yearly bonuses and dividends are based on a projected investment
rate of return of 4.75% p.a. on the Participating Fund. As these bonuses
and dividends are not guaranteed, the actual amount payable may vary
according to the future performance of the Participating Fund.
4
Figures include non-guaranteed values and are for illustrative purposes
only.
5
http://www.lia.org.sg/node/92 Your Guide to Participating Policies, Life
Insurance Association Singapore.

All illustrations in this marketing material are not drawn to scale. All ages
mentioned in this marketing material are based on age next birthday. All
mentions of guaranteed monthly paycheck and retirement age in this
marketing material refer to guaranteed monthly cash beneft and payout
age respectively in the TM Retirement Paycheck Product Summary and
the Policy Contract.

This plan is underwritten by Tokio Marine Life Insurance Singapore Ltd.
All benefts and features mentioned herein are subject to terms and
conditions of the policy. You must refer to the Policy Contract for the
precise terms and conditions of this insurance plan. The information
shown in this marketing material is for reference only and is accurate as
at 15 April 2014.
Note: Buying a life insurance policy can be a long-term commitment.
An early termination of the policy usually involves high costs, and the
surrender value payable may be less than the total premiums paid.
You may wish to seek advice from a fnancial adviser before making a
commitment to purchase the product. In the event that you choose not
to seek advice from a fnancial adviser, you should consider whether the
product in question is suitable for you.
Right now this probably sounds attractive, but you may
be thinking whats the risk? In industry jargon, this type of
product is known as a Participating Plan (Par plan). The
aim of a participating policy is to provide stable medium to
long-term returns through the combination of guaranteed
and non-guaranteed benefts
5
.
Our investment strategy seeks to achieve the highest total
return, while maintaining an acceptable level of risk for
the fund, a diversifed portfolio, and protecting the relative
interests of all policyholders. In doing so, stable long-term
returns are ensured by spreading out the surpluses and
losses across the years.
Most people understand that fnancial markets go through
natural cycles of up and down. But when it comes to
retirement planning, the last thing you want is for your
investment to be wiped out just as you stop work.
One example would be the penny stock saga that
occurred in October 2013
1
, wiping out billions of dollars
in market value on the Singapore Exchange. This is why
it is important to choose a plan that has been specifcally
developed to minimise such risk.
Tokio Marine Life Insurance Singapore Ltd. offers TM
Retirement Paycheck, the only retirement product in
Singapore that provides a guaranteed monthly paycheck
2

and a non-guaranteed yearly bonus of up to 12 times
3
the
guaranteed monthly paycheck.
The payout starts at your selected retirement age, for 20
years, allowing you to receive your monthly paycheck
and yearly bonus even during retirement.
If you were to sign up for the plan now, you would only
need to make three simple choices: Desired retirement
age of 55, 60 or 65; Preferred premium payment term of
5, 10 or 15 years; Guaranteed monthly paycheck sum
you would like to receive for 20 years after the selected
retirement age.
To help you better understand the benefts of TM
Retirement Paycheck, see the illustrated example.
The time has come for us to hit the shops and enjoy the discounts while they last! From now till 27 July, shoppers in
Singapore get to indulge in great deals and promotions on just about everything, everywhere. As exciting as that sounds,
getting caught up with the sales does have its consequences consequences that you are blinded to until you receive
your next credit card bill, or fnally realise the mess that your house is in.
How do we prevent these consequences from happening? How do we beat the urge of overspending? Well, here are four
tips on how to help you shop smart this Great Singapore Sale!
Disclaimer
The document is for informational purposes only. This document does not constitute fnancial
advice or recommendation and was prepared without regard to the specifc objectives, fnancial
situation or needs of any particular person who may receive it. Readers should study all relevant
information and consider whether any fnancial product is appropriate for them.
You are not authorised to redistribute this document nor qualifed to make any offer, representation
or contract on behalf of fnexis advisory Pte Ltd or its affliates. Although the information was
compiled from sources believed to be reliable, no liability for any error or omission is accepted by
fnexis advisory Pte Ltd or its affliates or any of their directors or employees. The information and
opinions contained may also change.
Copyright Reserved 2014. All rights reserved. No part of this publication may be reproduced
without the prior permission of fnexis advisory Pte Ltd.
about FINEXIS
fnexis advisory Pte Ltd is an independently-owned fnancial advisory frm licensed by
the Monetary Authority of Singapore. As one of the largest fnancial advisory frms in
Singapore, we offer a diverse range and depth of products and services that can assist
in fulflling our clients unique needs.
108 Robinson Road
#04-00 fnexis Buildling
Singapore 068900
T +65 6341 5300
F +65 6631 7878
www.nexis.com.sg
PLAN A SHOPPING LIST
Start by evaluating what you have at home and/or in your
cupboard, before coming up with your shopping list. Make
sure they are genuine needs and not frivolous wants. When
you shop with a list, you know what your priorities are, and
you will be less likely to splurge on anything unnecessary.
COME UP WITH A BUDGET
Once you have planned your shopping list, set a realistic
budget, and stick to it. When you have a budget, you have
lesser tendency to wander off course and overspend.
Whatever your budget is, stop shopping once you have
hit that limit.
PAY WITH CASH INSTEAD OF CREDIT CARDS
Credit cards disconnect us from the physical act of trading
our hard-earned money for the goods and services. When
we use hard cash, we tend to be more aware of the exchange
and will likely think twice before buying something on
impulse. That being said, only bring out the cash you need
to resist spending more.
DONT BUY SOMETHING JUST BECAUSE ITS ON SALE
This is the golden rule of all Shop Smart rules. Just because
the price has been lowered does not mean that the shirt or
shoes will ft, and it doesnt necessarily mean that you need
another frying pan right away. Scoring something when its
cheaper is only an advantage if you would have bought it at
the full price anyway.
fnexisfocus
GSS: GO, SHOP SMART!
J UNE J ULY 2 0 1 4 , I S S UE 0 9 , P G 5