Risk Disclosure Statements for Bonds

Key risks of investing in bonds

• Bonds are debt securities that offer fixed returns over a defined period and are intended to be held to maturity. These instruments carry a number of risks such as credit, default, interest, currency and liquidity risks. Credit risk arises from default events that may result in the inability of the issuer to pay interest or principal. Default risk is high when credit rating is non-investment grade or non-rated. In a default situation, the buyer may lose both interest and principal. Interest risk arises as bond prices generally move inversely with interest rates. Currency risk arises from holding debt securities that are issued in a foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a chance that if the currency moves adversely, the buyer may also suffer a loss. Liquidity risk refers to the availability of prices for buying and selling in a market. It is common for most debt securities to suffer from poor liquidity because they are quoted over-the-counter (OTC).

• OTC products are not listed or available on a securities exchange, but traded directly between two parties. Thus, one is exposed to the credit risk of the counterparty in which they enter into bilateral agreement with. FSM Global does not warrant that there is an active trading market and the price FSM Global secures for the customer will at any time be the best price we procure

Bond Buy and Sell Transactions

Acting as Agent: iFAST will enter into the transaction with customer as agent, unless otherwise stated.

• Bond Processing Fee is up to 0.35% of Bond Nominal Value for each buy/sell order, subject to a minimum amount (in the equivalent currency) which may vary depending on the trading venue. GST applies to Processing Fee but only for Singapore Tax Residents.

• For Buy transactions, an additional buffer rate of up to 5% may be required for the payment of bond purchases. This is to cater for fluctuations in market prices and/or currency conversion.

• The cut-off time for orders is 5pm on any business day.

• Purchase order will be processed on the same business day when the order is received before 5pm*. iFAST will attempt to execute your order on the same business day. Purchase order will be processed on the next business day if the order is received on or after 5pm*, unless otherwise notified.

• Sell orders will be processed on the same business day if the orders are placed before cut-off time. Redemption amount will be paid according to your redemption method.

• An email confirmation with the transaction details will be sent to you when your buy/ sell order is transacted.

• All orders submitted will be irrevocable once they are filled.

• Market Order is an order to buy or sell at the prevailing market price (accrued interest not inclusive) at the time of execution. For OTC bonds, iFAST will begin dealing on ‘T’ and try to fulfil an order with counterparty for up to another 3 business days, until the market closes, and the order will expire after that. iFAST has the discretion to determine the time to place a Market Order.

• Limit Order is an order to buy or sell at a specific price (accrued interest not inclusive). For Buy transactions, client should indicate the maximum price he wishes to buy Bonds at. For Sell transactions, client should indicate the minimum price he wishes to sell Bonds at. An order will only be executed with the counterparty if iFAST is able to match against the price indicated by client. For OTC bonds, iFAST will begin dealing on ‘T’ and try to fulfil an order with counterparty for up to another 3 business days, until the market closes, and the order will expire after that. iFAST has the discretion to determine the time to place a Limit Order.

• Range Order is an order to buy or sell within a range of 3% above (for Buy transaction) or below (for Sell transaction) the prevailing indicative price (accrued interest not inclusive) at the time of order placement. An order will only be executed with the counterparty if iFAST is able to match within the pre-determined price range or better. For OTC bonds, iFAST will begin dealing on ‘T’ and try to fulfil an order with counterparty for up to another 3 business days, until the market closes, and the order will expire after that. iFAST has the discretion to determine the time to place a Range Order.

• Pre-Transaction Payment Options – A confirmation email with the transaction details will be sent to you upon successful execution of a purchase order. In the unlikely event that your pre-transaction payment is insufficient, you will be required to top-up the difference. If this top-up amount is not received, the Bond will be sold in the secondary market and any losses arising from such a transaction will be recovered from you.

• Post-Transaction Payment Option – You will only be required to make full payment once your purchase order is successfully executed. You will be advised of the full payment amount and payment due date in a separate confirmation email with the transaction details. This payment option is available only if you have sufficient Cash (non-CPF / non-SRS) holdings (e.g. Cash Account/Auto-Sweep Account/Unit Trust/Bonds) in your account and should not be construed as a credit facility, loan or advance provided by iFAST. iFAST reserves the right to earmark your Cash holdings (equivalent to a percentage of the estimated investment amount payable) to facilitate the transaction. This earmarked amount shall be released: (i) upon receipt of full payment for your executed bond purchase order; or (ii) in the event that your bond purchased order is not fulfilled within 4 business days (resulting in the expiry of the purchase order). Any redemption proceeds due to you during this period shall be withheld by iFAST until the full payment amount is received. iFAST must receive full payment from you before the settlement timeline with its counterparty for the transaction to be completed. In the event that the full payment is not made by the payment due date, the Bond will be sold in the secondary market at the prevailing price and any losses arising from the transaction will be recovered from you. iFAST reserves the right to deduct any shortfall from your Cash Account, Auto-Sweep Account, existing investment holdings, or any outstanding proceeds due to you. iFAST also reserves the right to charge an administrative fee in the event of non-payment. In relation to this option, iFAST reserves the absolute discretion on the granting of such option to you.

• Any future coupon payment and the principal amount upon maturity will be automatically deposited into the respective currency Cash Account or Auto-Sweep Account. Auto-Sweep Account is applicable only in SGD / USD and exclusively for clients that have opted in.

• Please note that only certain bond(s) are available to all investors, while the rest are only available for certain persons to invest in, such as Accredited Investors (as defined in the Securities and Futures Act 2001) or one who invests at least S$200,000 (or its equivalent currency) per transaction. To qualify as an Accredited Investor, one needs to submit a declaration form and certain relevant supporting documents, according to iFAST’s prevailing policies and procedures.

New Bond Issue Subscriptions

• All subscription orders received are irrevocable.
• Payments are not required upfront for new bond issue subscriptions unless otherwise informed. Please note that iFAST reserves the right to earmark your cash holdings to facilitate the subscription order on case-by-case basis.
• Upon successful allocation of the new bond issue subscription, you will be advised on the full payment amount via email.
• Your payment has to reach us within 2 business days (inclusive of the day when you are informed of your successful allocation), unless otherwise informed.
• If there is any outstanding payment required for any new issue subscription successfully allocated after the stipulated payment due date, we have the right to force sell any or all of these Securities. You shall be responsible for any Loss suffered by iFAST and iFAST shall not be liable to the Customer for any Loss, suffered by the Customer, including but not limited to a Loss as a result of any fall in the market price of the Securities between the time the right to force sell arose and the time it actually sells the Securities.
• An email confirmation with the subscription details will be sent to you when your subscription order is successfully allocated.
• A new bond issue subscription does not guarantee the allocation of the new bond issue. A successful subscription is determined by your order type (subscribe at market or limit), and more importantly market supply and demand factors that can influence the eventual allocation result and pricing of a new bond issue.

​​​​​​* Subject to change during festive season.

Buy Transactions

1. Payment by Parking Facility Funds, Cash Account, and Auto-Sweep Account

• Orders will be processed on the same business day if the payment is received before 3pm*. Orders placed after 3pm* will be processed on the next business day. 
• Orders with payment by Parking Facility Funds will be processed as Switch Orders.
• Orders with payment by Auto-Sweep Account will be processed by redeeming units from the Auto-Sweep Account.

2. Payment by CPFIS-OA/ CPFIS-SA/ SRS account

• Orders will be processed on the same business day if the orders are placed before 3pm*. Orders received after 3pm* will be processed on the next business day.

3. A confirmation note will be posted to your FSM Inbox on the next working day, together with an email notification when the buying price and number of units are confirmed.
 

Sell Transactions

1. Orders will be processed on the same business day if the orders are placed before 3pm*. Orders received after 3pm* will be processed on the next business day.
2. Redemption Method by Parking Facility Funds, Cash Account and Auto-Sweep Account.

• Redemption amount will be parked in the selected Cash Solutions / Parking Facility Funds.
• Redemption Method by Parking Facility Funds will be processed as Switch Orders.
• Redemption Method by Auto-Sweep Account will be processed by buying units based on the latest Auto-Sweep portfolio allocation.

3. Redemption Method by CPFIS-OA/ CPFIS-SA/ SRS

• CPF-OA and SRS redemption amount will be credited into your CPF Investment Account and SRS account respectively.
• CPF-SA redemption amount will be credited into your CPF-SA account.

4.  A confirmation note will be posted to your FSM Inbox on the next working day, together with an email notification when the selling price and sales amount are confirmed.
 

Switch Transactions

1. Switch-sell orders will be processed on the same business day if the orders are placed before 3pm*. Orders received after 3pm* will be processed on the next business day.
2. Generally, switch-buy order of the new fund will be transacted up to T+3 business days* later. If the switch-sell proceeds are used to buy another investment product e.g. Bonds, the lag time for such buy order will be longer. You may refer to the order details sent to you.
3.  A confirmation note will be posted to your FSM Inbox on the next working day, together with an email notification when both switch-sell and switch-buy orders are price.
 

Acting as Agent

• iFAST will enter into the transaction with customer as agent, unless otherwise stated.

*Subject to change according to Fund dealing dates.

Buy and Sell Transactions For Stocks & ETFs

RSP Application & Deduction

• Application for RSP for CPF-OA / CPF-SA / SRS is paperless and do not require any forms. You will be informed by email once the application is approved and when the first investment will be made.
• The Regular Savings Plan (RSP) is a monthly subscription plan. The subscription date is the 8th of every month, or the next business day if the 8th is a non-business day.
• RSP is applicable for cash investment (via bank GIRO and FSM Cash Account and Auto-sweep account), CPFIS-OA, CPFIS-SA and SRS.
• For RSP using cash payment, you may apply for RSP through Direct Debit (GIRO). You must complete and submit the Direct Debit Authorization (DDA) form to us. We will process and submit your DDA form to your bank for approval and your RSP will commence once DDA is approved. DDA approval process may take 1 – 2 months
• You will receive an email from us once approval is obtained. We will also indicate in the email when the first investment will be made to complete.
• If you apply an RSP with existing GIRO bank which we have already approved the DDA previously for the same FSM account, you need not resend the DDA form to us for approval again. If you apply an RSP with a new DDA bank, you are required to send in the new DDA form.
• The monthly RSP amount for payment methods (DDA, CPFIS-OA, CPFIS-SA and SRS) will be deducted 3 business days before the RSP subscription date.
• The monthly RSP amount for Cash Account will be deducted on the 8th of the month. Please ensure that your respective Cash Solutions has sufficient balance before 8th of the month.

RSP Amendment and Termination

• RSP will be terminated automatically after 3 consecutive failed RSP deductions. An email will be sent to notify the investor of the voided RSP.
• For RSP with DDA CPFIS-OA, CPFIS-SA and SRS, any amendment or termination request received from the 27th to 12th will only be processed on 13th and effective from the next RSP cycle
• For RSP with Cash Account, any amendment or termination request received before 8th of the month will be processed and effective immediately.
• Your RSP may be terminated automatically if you have made full redemption of your holdings of the participated RSP fund.

Acting as Agent

• iFAST will enter into the transaction with customer as agent, unless otherwise stated.

Nature and objective of Auto-Sweep Account	Auto-Sweep Account is a discretionary portfolio managed by FSM Global to help investors earn potentially higher yield with their idle cash by investing in cash, money market funds and short duration bond funds. The discretionary portfolio aims to potentially provide higher returns than the FSM Multi-Currency Cash Account.
Service Provider, parties involved and how to contact us.	iFAST Financial Pte Ltd is the portfolio manager, dealer and custodian for the Auto- Sweep Account. Hotline: 6557 2853 (8.30am to 10.30pm, Monday to Friday, excluding PH) Email Address: clienthelp@fundsupermart.com Address: 50 Raffles Place, #36-01 Singapore Land Tower, Singapore 048623
Who is the service suitable for?	The service is suitable for investors seeking a higher yield for their idle cash while waiting for the next investment opportunity. The portfolio aims to produce a return higher than Cash Account while maintaining a high degree of liquidity and capital preservation.
Where to retrieve information of my Auto- Sweep Account and how will I be updated of the information of my Auto-Sweep account?	You may log in to our website to view the current value of the securities invested under your Auto-Sweep Account. A monthly statement of the Auto-Sweep Account will be sent to your registered email address with us.
How is the yield calculated?	The Auto-Sweep Account does not pay out dividend. Yield is calculated based on the weighted average yield of the underlying portfolio constituents.
Risk Factors	Investing involves risk, including possible loss of principal invested. The performance of the client’s portfolio may differ from the performance of the relevant portfolio due to a number of factors such as cash flows, liquidity of instruments, portfolio rebalancing and timing differences For risk relating to the Auto-Sweep Account, please refer to the list of risks highlighted on our website. List of Risks
Fees	Please refer to the Pricing Structure on our website.
How to subscribe?	You can Opt-in to Auto-Sweep Account by going to the Cash Solution page or under Account Setting in the website. Once opted-in, future dividends, interests and sale proceeds will be automatically swept to the Auto-Sweep Account. In addition, you can transfer funds from Cash Account to Auto-Sweep Account. Recurring top-up to the Auto-Sweep account on monthly basis can also be enabled.
How to opt-out?	You can Opt-out of Auto-Sweep Account by going to the Cash Solution or Account Setting in the website. You will instantly be opted-out of Auto-Sweep Account by unchecking the Auto-Sweep Account box and completing the password verification. Balances in the Auto-Sweep account will remain there, unless you submit a withdrawal request or transfer the balances back to the Cash Account. You can continue to use the balances in the Auto-Sweep Account to pay for your investment.
Frequency, Scope and Methodology of rebalancing	The programme’s portfolios are recommended to be rebalanced at least once a year, at the end of the calendar year. This serves as a form of risk management, to ensure that the portfolio’s allocation does not deviate too significantly from the intended target. The Portfolio Team may determine at any such time to rebalance the various portfolios if deemed necessary, following adverse or favourable market conditions which has resulted in a significant deviation from the long-term strategic target allocation.
Acting as Agent	iFAST will enter into the transaction with customer as agent, unless otherwise stated.
What can Auto-Sweep Account be used to pay for?	It can be used to pay for your bonds, stocks (except China A-Shares), ETF and Regular Savings Plan (RSP) into Unit Trust, MAPS, ETF funds without lag time. Auto-Sweep Account may also be allowed for selected IPO subscription and is subjected to a different cut-off timing from Cash Account.