what's your view on Kenanga One PRS?

But FSM didn't carry Kenanga One PRS.

PRS an effective channel for retirement savings
URL: http://www.theedgemarkets.com/my/article/p...irement-savings

Interesting? PRS hedges against inflation but as far as I know, most of the PRS funds introduced are feeder into several funds managed by its own fund manager.

wat im tryin to say is feeder fund r not created purely for retirement plan. u can risk lose out alot bcoz d fund manager has different mindset from d original PRS funds.

imho, d real PRS  growth / moderate shall always less profitable / less risk compare to outside funds.

I think some people misunderstood how to claim tax relief for PRS.

When you save RM3k in your PRS account, it does not mean you can claim RM3k from LHDN.

This is how to calculate:
Let's say you earn RM100k annually
And you save RM3k in your PRS account

RM100k-3k = 97k

So, RM97k is your taxable income.

I would say PRS is a very good investment scheme
If I can switch EPF to PRS I would do it

Based on Affin Hwang PRS Growth Fund Annual Report dated 31st July 2015, page 11 of 41, I wish to highlight two expense items; namely:

I) Management fee: RM 17,103.00

II) Collective Investment Schemes Trade Settlement: RM 160,000.00. I believe the sales charge / transaction fees MNet mentioned is item (II).

Total number of units in circulation is 85,969,000 units. Based on NAV as of 27/11/2015 @ RM 0.5675/unit; the total asset value of the fund  is 0.5675 x 85,969,000 = RM 48,787,407.50

The percentage of trade settlement = 160,000 / 48,787,407.50 x 100 = 0.3280% p.a.

How did you come out with 2 - 5% sales charge? You sound like another "suara-hebat feller"



Xuzen

p/s On page 27 of 41 under Note 4: Management fee, it is stated any management fee charged by the unit trust are fully refunded back to the PRS fund. Accordingly, there is no double charging of management fee.

PM PRS is charging SC of 3%

Some Ppl who dunno how to DIY will deal with Agents on face-to-face basis

The difference between a product pusher i.e., bank front line wealth advisor who will push the best product to the customer versus a Lic Financial Planner who will first analyse the client first.

For example: The LFC will most probably not recommend the CIMB PRS Asia-Pac Ex Japan Fund to a client who already has high exposure to Ponzi 2.0. He / she would provide alternative.

Xuzen

I'm not quite sure if that specific plan is termed as an annuity. Some savings plans are par or endowment plans. As far as I know, very few insurance companies still practice annuity plas. The insurer should send a statement early in the year stating the exact amount that can be claimed in each category.

I was approached by Public Mutual agent to talk about PRS. From their figure, the average performance is about 2.x% to 3.x%, except 1 fund which is called Islamic Growth or Islamic Equity (forgot to jot down of that) which performance is about 6.x%. Somehow it would be higher risk over there.

What do you guys think about Public Mutual PRS?

On page 26 on the Annual Report Dated 31st Jul 2015 of Affin Hwang PRS Moderate Fund:

Item 4: There is no double charging of management fee.

Xuzen

p/s On a totally unrelated note: The MER for Kenanga OnePRS Growth Fund is gasp! hackle! choke! gag! 0.72%

   

This may not be true... the underlying funds can sort of discount the charges and return some of it back to the feeder funds. In reality this do happen, though i'm not sure of the actual mechanics.

So reality? not yet....?

We do have regulators to ensure we are not being double charged. Or at least, I hope so

Hmm.... if we use MER to decide what fund to buy then CIMB Asia Pac is the one to go for!

Management fee waived!

Tricky tricky trickster CIMB. Their MER exclude management fee. I guess the lesson learned here is that we must see the actual annual report to know the truth.

Xuzen

p/s: Actually the MER should reflect all expenses and not exclude a certain expenses up to the whims and fancy of the Fund Manager.

So seems to me the management fee recognised as expense in both PRS funds are the net of the refund of management fees for the funds they invested in. But ultimately, the total management fee charge is still 1.5% although it's not reflected as expenses in the PRS fund itself. It is however reflected in the NAV of the funds since the funds invested in is net of NAV....

I did my homework; I contacted the AHAM PRS customer service and seek further clarification on the MER and annual management fee method of calculation.

1) The annual report of Affin-Hwang Moderate PRS fund states the annual management fee as 1.5% p.a.

2) In that same report, the MER is 0.32% p.a. NB: MER is the total expenses that includes annual management fee. To my layman mind; this is confusing because how could MER be less than management fee? Logically it should be more!

3) The explanation given is that the PRS provider will multiply 1.5% x average daily NAV over one financial year.

4) Let's take average NAV over a financial period as equal to  RM 1.00. Lets assume one holds 1,000 units, therefore, 1.5% x RM 1.00 x 1,000 units = RM 15.00 to be withheld by the PRS provider as revenue.

5) The PRS fund invests in a basket of other funds and all of these funds impose an annual management fee to the PRS fund. However, based on SC guideline, fund house cannot double-charge on annual fees therefore, the underlying fund must refund whatever is charged to the PRS fund.

III) After the refund while adding the trustee, tax agent and other miscellaneous expenses the MER comes to 0.32% p.a.

IV) This means that in the final calculation: 0.32% x RM 1.00 x 1,000 units = RM 3.20 is withheld instead as revenue by the PRS provider after the refund from the underlying funds, instead of the initial RM 15.00.

Hope this makes sense to clears up the confusion.

Xuzen

p/s Based on my above understanding, this means that PRS is a more efficient way to enter into the unit trust fund. Zero sales charge, relatively low MER, one entry point to expose to a professionally asset allocated global portfolio.... apa lagi lu mau?

Insurance agent spotted.   

you still don't understand do you? mostly if not all of those who buys prs, is really more into the tax relief than the actual retirement. no doubt, prs is a tool for retirement as well.

don't have to oversell insurance. there's a purpose for every tool out there.

Just feel weird.. Government encourage to have private retirement but limit the year of tax relief.. What for.. 😒😒 it should continue the tax relief benefit 😙😙

Yes. I have been encouraging my peers to invest in prs. Mainly for the youth incentive and the tax relief. With prs provider feeding the prs fund to the normal unit trust fund, as an informed consumer, makes no sense to invest in prs given that I can buy the normal unit trust fund.

One may argue prs indirectly will force us to save for retirement. As the funds in the normal unit trust can be withdrawan at any time. But I think most ppl will just stop buying into prs after 2021. Myself included.

It's a corporate unit trust. Definitely, they will charge certain fee. If you feel more suitable with a licensed consultant personally, you can go for that too as long they are doing their job and not just selling you. Personal experience. 

Ah~~ ~~

Tq.