24 funds: Scheme also allows individuals to generate more capital
20 JULY 2012 (Business Times) - The private pension framework launched on Wednesday will allow investors to be investment-savvy and plan for a comfortable retirement.
Hwang Investment Management Bhd, one of the eight private retirement providers, said such a framework offers Malaysians an affordable retirement solutions.
"Our philosophy is that retirement investing should be simple, straight forward and low-cost," said its chief product officer Steve Lim.
CIMB Group chief executive officer Datuk Seri Nazir Razak, in a statement, said the Private Retirement Scheme (PRS) would allow individuals to generate more capital for their retirement.
The public will be offered 24 funds in September, managed by eight PRS providers which include AmInvestment Management, American International Assurance, CIMB-Principal Asset Management, ING Funds, Manulife Unit Trust, Public Mutual and RHB Investment Management, besides Hwang Investment.
Hwang Investment will offer three funds, which must be approved by the Securities Commission and will feed into its other top-performing funds.
Lim said Hwang Investment would strive to make this scheme a success by delivering performance minus the heavy price tag, which the public often assume such investment entails.
"Our firm has successfully helped individuals and organisations build wealth and manage their investments for over a decade."
"We are committed to playing a key role in bringing affordable retirement solutions to all Malaysians and helping them prepare for a comfortable retirement," he told Business Times yesterday.
An official from another PRS provider said the scheme allows some flexibility for individuals on the amount they want to invest and their frequency in investing.
"It can be as low as RM100 or RM150 a month and it would not be compulsory for them to invest every month," the official said, adding that the investor must first open an account with the Private Pension Administrator before he or she chooses which fund or funds to invest in.
Once the fund has been chosen, the investor would be given two accounts. Account A will keep 70 per cent of investment until retirement, while Account B can be withdrawn once a year on a case-to-case basis.
Like any investments, returns are not guaranteed but whatever investors make can be withdrawn when they reach 55.