NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 12. INVESTMENT IN FUNDS The funds invested by the Group may utilise a variety of financial instruments in their trading strategies, including equity and debt securities as well as an array of derivative instruments. The Group’s holding in a unitized fund, as a percentage of the fund’s total net asset value, will vary from time to time dependent on the volume of subscriptions and redemptions at the fund level. It is possible but unlikely that the Group may, at any point in time, hold a majority of a fund’s total units in issue. The Group’s maximum exposure to loss from its interests in funds is equal to the total fair value of its investments and capital commitments contracted to the funds. Once the Group has disposed of its shares/units in a portfolio fund or withdrawn from its partnership contracts, the Group ceases to be exposed to any risk from that fund. The Group’s outstanding investment capital commitments are disclosed in Note 31. The tables below summarises the fair value of the Group’s holdings in funds by risk of concentration with respect to geographic region and industry focus of the funds. 2019 % of the Investment in funds Fair value $’000 Industry focus Diversified financials 60% 3,233,079 Energy 1% 56,963 Real estate 37% 1,999,000 Telecommunication services * 3,816 Industrials * – Utilities * 650 Materials * 4,055 Information technology 2% 87,040 100% 5,384,603 Geographic region Asia Pacific 44% 2,376,982 Australia 5% 283,986 Europe 10% 534,236 North America 30% 1,596,554 Others 11% 592,845 100% 5,384,603 * less than 1% ANNUAL REPORT 2019 115