ADAM Closes 6 Funds

ALLIANZ DRESDNER
CLOSES 6 FUNDS

This notice is to inform Unitholders that Allianz Dresdner Asset Management (ADAM) Singapore is terminating 6 sub-funds under the Dresdner International Provident Funds (the “DIPF”) Umbrella with effect from 1 September 2004.

This important notice describes a termination exercise being undertaken in relation to ADAM and requires your immediate attention and prompt action to be taken. You should read this important notice to fully understand the implications and options you have in connection with the termination exercise. If you are in any doubt as to the action to be taken, you should consult your professional financial adviser.

THE TERMINATION EXERCISE

The existing Dresdner International Provident Funds umbrella structure comprises the following 7 sub-funds:

1. European Equity Fund
2. Global Balanced Fund
3. Global Technology Fund
4. Global Multimedia Fund
5. Global Biotechnology Fund; and
6. Global Software Fund
7. Global Internet Fund

Reasons for the termination of the out-going sub-funds

With the exception of Global Internet Fund that will remain under the DIPF umbrella, the other 6 sub-fund will be terminated

The above Funds currently have less than S$3 million in net assets. In view of its small fund size, it contributed to the high expense ratio and would not be in the interest of the Unitholders to bear such high costs. We have consulted our legal adviser and therefore, recommending that the 6 Sub-Funds be terminated as soon as reasonably practicable. Cost associated with the termination of the Fund would be solely borne by us.

QUESTIONS & ANSWERS FOR FUNDS CLOSURE

1. Which are the funds that will be terminated?

Ans: 6 of the 7 sub-funds under the Dresdner International Provident Funds (the “DIPF”) umbrella are proposed to be terminated. The 6 sub-funds are:-

• European Equity Fund
• Global Balanced Fund
• Global Technology Fund
• Global Multimedia Fund
• Global Biotechnology Fund
• Global Software Fund

(the “Funds”).

All of the Funds are authorised funds feeding into the respective underlying funds under the Deutscher Investment Trust (the “ DIT”) listed below:-

European Equity Fund investing in Industria, DIT-Aktien Europa AF & DIT-Wachstum Europa
•Global Balanced Fund investing in Interglobal and Internationaler Rentenfonds
•Global Technology Fund investing in DIT-Technologiefonds
•Global Multimedia Fund investing in DIT - Multimedia
•Global Biotechnology Fund investing in DIT - Biotechnologies
•Global Software Fund investing in DIT - Softwarefonds

When the above Funds are terminated, only one sub-fund will remain under the DIPF umbrella and that is the Global Internet Fund.

2. Why is the decision made to terminate these funds?

Ans: The asset sizes of these Funds have not been maintained at an economically viable level after its launch. With such small asset sizes, the cost of maintaining the Funds becomes disproportionately high which results in a high expense ratio that is not in investors’ interest.

3. When will the funds be terminated?

Ans: There will be an Extraordinary General Meeting (the “EGM”) to be held on 15 September 2004 for investors to vote on the Funds’ termination. In order for the EGM to proceed, there needs to be at least one investor (present in person or by proxy) who holds at least 10% of the issued units in each Fund. If this condition is not met, the EGM of the Fund(s) will be adjourned to 12 October 2004.

The manner of voting will be in the form of a show of hands unless any one investor/proxy holding at least 5% of the issued units in each Fund wishes it to be in the form of a poll. The termination of each Fund requires approval votes from 75% or more of the number of investors present (on a show of hands) or 75% of the total number of votes cast (in the event of a poll). In the event of a poll, each investor/proxy has one vote for each unit held and he/she is not required to cast all the votes in the same way.

Investors will be notified in writing by 20 September 2004 (provided the condition for EGM to proceed is met on 15 September 2004) of the outcome as well as the exact date of the Funds termination. If the EGM is adjourned to 12 October 2004, investors will be notified of the adjourned EGM on 20 September 2004.

4. When will dealing of the funds stop?

Ans: Dealing of the Funds will be suspended from 13 September 2004 until the day of the EGM. In addition, during the period from 1 September to 10 September 2004, the Funds will not be accepting new subscription. Only free switching and realisation will be allowed.

In the event where the EGM is adjourned to 12 October 2004, the Funds will be re-opened for free switching and realisation from 16 September to 7 October 2004 but not for new subscriptions. Thereafter, the Funds will be suspended again from 8 October 2004 until the date of the adjourned EGM.

5. What are the options available to the investors with the termination of the funds?

Ans: We are offering investors the option of switching into the funds listed below at zero front-end load. If investors have invested using CPF monies from their Ordinary Account, they can only switch into the first 5 funds listed below that are included in CPF Investment Scheme - Ordinary Account. If investors have invested using CPF monies from their Special Account, they can only switch into the DIT-Europazins, which is included in both CPF Investment Scheme - Ordinary and Special Account. For those who have invested using cash, they can switch into any of the funds listed in the table below.

Funds Primary Investment Scope DIPF - Global Internet Fund* Invests in international companies that generate a significant portion of their earnings in the internet or with related technologies. Dresdner Asia Tiger Fund* Invests primarily in equities listed on the stock exchanges of the Asia Pacific countries.

• *These funds are included in CPFIS-OA.
• # This fund is included in both CPFIS-OA & SA

If investors do not wish to switch into any of the above funds and wish to realise all of their units in the Funds, they are required to submit to us the realisation requests latest by 10 September 2004.

If we do not hear anything from the investors by 10 September 2004 and a resolution is passed at the EGM in favour of the Funds’ termination, investors will be paid their respective pro-rated net distribution proceeds. The investment of the Funds will be liquidated on the day following the EGM or as soon as practicable. Switching and realisation will not be allowed after a resolution is passed in favour of the Fund’s termination.

6. Are there any costs that investors have to bear for the funds termination?

Ans: No, as a gesture of goodwill to our investors, Allianz Dresdner Asset Management Singapore will absorb all costs of the Funds’ termination.

7. What if I have a RSP with one of the funds that is going to be closed?

Ans: There will be no RSP deduction in the month of September 2004. All RSP to the Funds will be terminated once a resolution is passed at the EGM in favour of the Funds’ termination.

8. What is the course of action that investors need to undertake?

Ans: Investors are required to inform us of their decision i.e. whether to switch or realise their units latest by 10 September 2004. Letters, notices and circulars relating to the Funds closure will be sent to investors on 1 September 2004.

Investors who are unable to attend the EGM in person could send a proxy to attend on their behalf. The proxy form has to be submitted to MIL Corporate Services (Singapore) Limited, the Registrar of the Funds, latest by 10 September 2004. Those who do not attend or send a proxy will lose their voting rights. Investors are not allowed to submit their votes via mail.

For any further queries on the termination of the Funds, investors could call us at 1800 – 4380828.

FUNDSUPERMART'S RESPONSE:

As a result of this termination, investors who have holdings in any of the 6 funds can redeemed or do a FREE switching into the remaining funds before 3pm on 10 September 2004. The funds are: DIPF fund-Global Internet Fund, Dresdner Asia Tiger Fund, PIMCO Funds and our Fundsupermart Recommended Funds. You will receive an email from us on the procedures shortly.