Private Retirement Scheme Prospectus Analysis

Private Retirement Scheme (PRS) is the talk of the town right now. Hwang is the first to launch its PRS funds, and I’ve read its prospectus. In this post, I’ve distilled the most important things you should know about any PRS fund, presented to you in this 15 min video. ย Note that I am not a PRS consultant, and certainly not tied to any of the PRS provider. Therefore, see if this makes sense to you, else please take my words with a pinch of salt.

To summarize the points I am discussing here:

  1. Structure of PRS funds (core and/or feeder)
  2. Check track record of funds if it is a feeder fund structure
  3. Check the fund manager’s experience
  4. Check the withdrawal frequency
  5. Check the withdrawal penalty
  6. Sales charge, redemption charge, intra-switching fees, inter-switching and processing fees
  7. Different Management fees for growth, moderate and conservative funds
  8. Trustee fees
  9. How this compares to your typical unit trust funds

*Thanks to one of my subscriber, TY for sending me this prospectus in this first place.

Incidentally, you can attend retirement and PRS workshop conducted by Fin Freedom, a leading independent financial advisory firm based in Penang. ย If you are in Penang, do drop by at their office at D’Piazza Mall, Bayan Baru for the FREE workshop if you bring along 2 friends as a group.

Register before 9 Nov noon for 10 Nov session, and before 16 Nov for 17 Nov session.

More Details below.

PRS and Retirement Workshop by Fin Freedom

10 thoughts on “Private Retirement Scheme Prospectus Analysis”

  1. Hi, the prospectus for Public Mutual is out. There is a sales charge of 3% but the management fees are lower and trustee fees are slightly higher vs Hwang PRS. Between Hwang and Public Mutual, which would you recommend? Are there better offers from other schemes?

    1. Hi Loo, do you have a copy of PMutual prospectus? ๐Ÿ™‚
      We got to look at other details then before coming to this conclusion, like the fund managers…etc
      Yes, that is DIY investing for retirement, such as stocks and REITs. But it requires more learning and time, but I think everyone can do it given the commitment ๐Ÿ™‚

  2. CF, It is just a guildeline..althought i disagreed with it. The fund management company have option to follow or not..

  3. CF, Thanks for the info.
    I prefer absolute benchmark , easy for us to monitor the return or performance of the fund, eg 7% return .& can expected how much you can get when you retire.

    On CSI, .SC had guildelines, the fund management company allowed to use feeder fund strategy for the 1st 5 years or until the PRS fund size reach RM200mil,whichever come first.. I disagreed with this guildelines. Why?
    It is “to help” fund management company .for current market weak condition , fund size small or hard to acquire the asset.
    As contributor you may not know what funds they brought in, as long same investment objective with your fund you brought it. Fees remain same?

  4. Good Point on that TY. I guess some of these benchmarks would sound a lot of gibberish to many; better if they represent the actual performance by a graph like most unit trust.

    Dug this out from the same prospectus, I guess they will do a weighted average if absolute benchmark?

    Growth Fund – 35% Bursa Top 100 Index, 35% MSCI AC Asia ex Japan Index, 30% Maybank 12-month FD Rate

    Moderate Fund – 30% Bursa Top 100 Index, 30% Dow Jones/Asia Pacific Select Dividend 30 Index, 40% Maybank 12-month FD Rate

    Conservative Fund – 100% Maybank 12-month FD Rate

    Shariah Fund AIIMAN – 100% Bursa Emas Shariah Index

    Equity-linked investment % of the NAV – 70%/60%/20% for Growth/Moderate/Conservative. Remainder will be in fixed income instruments. AIIMAN fund will be Shariah based collective scheme. Similar to typical unit trusts?

  5. Good comment on Fees, Charges & Expenses .
    My view need to add in below points:-
    How about the Fund benchmark? Relative or absolute return ,
    Investment restrictions & limit & Collective investment scheme

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