Glossary

Bond An instrument of debt issued by a government, corporation, supranational or agency to raise capital. Bonds are interest bearing and promise to pay the holder a specified sum of money at its maturity plus any interest at given intervals.

Bond Price Expressed as a % of the par value of a bond.

Coupon Rate The annual coupon payments divided by the bond’s face (or par) value.

Creation Dealing Deadline The time by which all orders to create units must be received by the Receiving Agent. Otherwise, the orders will be deemed to be received the next Dealing Day.

Creation Unit Units of the exchange traded fund (ETF) may be subscribed and redeemed through Authorized Participants in multiples of a Creation Unit.

Current Yield The annual coupon payments divided by the bond’s current price.

Custodian means the institution appointed by the Trustee with the prior approval of the Manager to hold all the assets and property of the Trust. For PAIF, the Custodian is HSBC Institutional Trust Services (Asia) Limited.

Dealing Day Any day that the fund is open for primary market transactions. For PAIF, it means each Business Day during the continuance of the Trust and/or such other day or days as the Manager may determine with the prior approval of the Trustee, provided that prior notice of any such determination shall be given by the Manager to all Holders.

Duration A measure of the sensitivity of the price of a bond to a change in interest rates. May also be referred to as the average maturity of bond coupon and principal repayments.

EMEAP Refers to The Executives' Meeting of East Asia and Pacific Central Banks, comprising the Central Banks and Monetary Authorities in the Asia-Pacific region: Reserve Bank of Australia, People's Bank of China, Monetary Authority of Hong Kong, Bank Indonesia, Bank of Japan, Bank of Korea, Bank Negara Malaysia, Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore and Bank of Thailand.

Emerging Market Bond A bond issued by an emerging market country, corporation, supranational or agency.

Exchange Traded Fund (ETF) An investment product that provides exposure to a portfolio of assets in a similar manner to a mutual fund, but trades like a stock on an exchange.

Ex-Dividend Date The date from which the ETF trades without entitlement to the upcoming dividend.

Fixed Rate Bond A bond that pays a set level of interest until its maturity.

Floating-Rate Bond Also known as a variable-rate bond, a floating-rate bond generally pays coupons calculated based on a given spread above variable rates, meaning rates that periodically change according to the rise and fall of its reference benchmark.

Fund Manager Responsible for determining and implementing the fund’s investment strategy and trading activities. For PAIF, the Fund Manager is State Street Global Advisors Singapore Limited.

Local Currency Bond A bond that is denominated in the currency of the country of issue.

Maturity Date The date on which the final payment of a bond is due.

Par Value Also referred to as the face value, it is the principal amount at which the issuer contracts to redeem the bond at maturity. It also represents the dollar value based on which bond interest is calculated.

Perpetual Bond Bonds that are never paid off and have no maturity dates.

Put Provision Put Provision enables investors to have an option to sell a bond back to the issuer at par value after a certain period prior to maturity.

Quasi-Sovereign Bond Comprises bonds issued by regions, agency, government-guaranteed, and supranational borrowers.

Receiving Agent means any company or companies appointed to receive applications for the creation of Units and requests for the redemption of Units.

Record Date The date for the purpose of determining the unitholders of record entitled to receive any distributions of dividends.

Redemption Dealing Deadline The time by which all orders to redeem units must be received by the Receiving Agent; otherwise, the orders will be deemed to be received the next Dealing Day.

Securities Lending The lending of securities (normally held in the fund) to borrowers on a temporary basis for a fee, with the objective of increasing returns for fund unitholders.

Sovereign Bond A bond issued by a central government.

Trading Lot Size A unit that measures a transaction amount. ETF shares may be bought or sold as multiples of this number of shares (or unit) in a transaction. May also be referred to as board lot size.

Transaction Date means the Dealing Day on which a Receiving Agent receives or is treated as having received a valid application for Units.

Trustee Has fiduciary responsibility over the assets of the fund to ensure they are managed in accordance with the conditions of the trust. For PAIF, the Trustee is HSBC Institutional Trust Services (Singapore) Limited.

Valuation Point The point in time when the net asset value (NAV) per share of an exchange-traded fund (ETF) is calculated.

Yield The rate of annual income return on an investment expressed as a percentage.

Yield Curve A graph that plots bond yields at various times to maturity.

Yield to Maturity The total return on a bond if the bond is held to maturity.

Zero Coupon Bond This kind of bond is sold at a discount from its value, which means investors receive return in the form of capital appreciation over the life of the bond rather than interest installments.