Notification of change to the underlying fund of Hawthorne Asset Management VCC Multi-Asset
13 Jan 2026
Notification of change to the underlying funds of:
- R248 Hawthorne Asset Management VCC Multi-Asset (USD)
- R249 Hawthorne Asset Management VCC Multi-Asset (SGD HDG)
(together the “Affected ILP sub-funds”)
We have been notified by First Degree Global Asset Management Pte. Ltd (the “Company”) of the following upcoming changes to the underlying funds of the Affected ILP sub-funds. This change will take effect 1 February 2026 (the “Effective Date”)
Change to Performance Fee calculation methodology
The Company have advised that the calculation methodology used to determine the level of performance fee payable is being amended, replacing the 70/30 benchmark with a five percent (5%) per annum hurdle rate.
Various parts of the Fund Memorandum will be amended. One specific change is the definition of excess return, which has been amended as follows:
| Current Excess Return definition | Excess Return definition from Effective Date |
|---|---|
| “Excess Return” means in respect of a Performance Class Share, the percentage movement in the NAV of the share (before deducting the Performance Period Fee Provision for the period (if any)) less the percentage movement in the Benchmark for the relevant period (and, for the purposes of clarification, the Excess Return may be a negative value); | “Excess Return” means in respect of a Performance Class Share, the percentage movement in the NAV of the share (before deducting the Performance Period Fee Provision for the period (if any)) less the proportionate Hurdle Rate for the period (and, for the purposes of clarification, the Excess Return may be a negative value); |
The updated memorandum is available on our Product Highlights Sheets page.
This change will take effect automatically and policyholders do not need to take any action.
We have contacted impacted policyholders and their financial advisers to notify them of the change; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post.
Should you have any questions regarding this change, please contact the Investment Marketing Team.
