prs as the 1 st choice, retirement vehicle
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• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
1
PRS as the 1st choice,retirement vehiclePRS as the most important,complementary retirement vehicle
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Malaysia’s Life Expectancy
2
Source: World Bank
Malaysia life expectancy in 1960
59
Notional Retirement Age
55
Funding needed = 4 years
Malaysia life expectancy in 2010
74
Notional Retirement Age
55 / 60
Funding needed = 14-19 years
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
EPFEPF
Retirement Planning
3
StocksStocksChildren’s
contributionChildren’s
contribution
Fixed DepositFixed
DepositPropertyProperty
Unit TrustsUnit
TrustsInsuranceInsurance
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Retirement Planning
4
Stocks
Market cap of Bursa Malaysia stood at RM 1.208 tri at end-2011
Unit Trust
Industry AUM of RM 133,691.30 mil as at 31 Aug 2012
Insurance
Industry AUM of RM 178,306.20 mil as at end-2011
Deposits
RM 294,392.60 mil worth of total deposits by individual as at Aug 2012
RM 166,330.80 mil worth of total deposits by enterprise as at Aug 2012
EPF
Manages RM 488.50 bil worth of assets
Childrens Contribution
?
Source:The Sun, 25 June 2012AmInvestment Services, 30 Sept 2012Bank Negara Malaysia, 30 Sept 2012The Business Times, 24 July 2012
You’re lucky if your children don’t ask you for m
oney
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
5
Income per person (GDP/capita, PPP$* inflation-adjusted)
85
80
75
70
65
60
55
50
45
40
35
30
25
20
400 1,000 2,000 4,000 10,000 20,000 40,000
Lif
e ex
pec
tan
cy (
year
s)
* Purchasing Power Parity in USD.
Life Expectancy & GDP Growth
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
6
Malaysia: The need for an alternative pension system
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Retirement: not what it seems to be
7
Boomers haven’t saved enough
Retirement plan needed for Malaysians
Only 5% Ready for Retirement in Malaysia
More failing to save for pension
Enough money for retirement?Even the rich say NO
Source:The Star, 27 May 2007 BBC News, 21 May 2012CNBC, 14 Dec 2011Canadian Press, 28 June 2012The Star, 28 Sept 2011
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Did You Know?
8
There are 13 million EPF contributors
But only 6.3 million are active members
X% has savings of >RM150,000
Source: The Sun Daily, 21 August 2012
X% has savings of RM50,000 – RM150,000
X% has savings of <RM50,000
21.74%
70.89%
7.37%
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Have Malaysians Saved Enough?
9
X% of people utilise their EPF savings within 3 years
X% of people utilise their EPF savings within 5 years
X% of people utilise their EPF savings within 10 years
Source: EPF Survey 2003 & EPF Annual Report 2011
14%
50%
70%
X% of people have only < RM100,000 EPF savings86%
How many people have EPF savings of > RM 1,000,000Only ~11,000
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
10
Your retirement plan should address these questions
Are your retirement savings sufficient for :Rising cost of livingUnexpected medical costsInability to work after retirement age
Will you face these financial situations?No emergency funds
Need to borrow money from others
Can not afford to pay bills
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
What is PRS?
11
• Voluntary long-term investment scheme
• Complements mandatory contributions made to EPF
• To help individuals accumulate savings for retirement & plan for:
• Possible health & care costs• Comfortable standard of living• Inflation
• Each scheme has a range of funds to accommodate different retirement needs, goals & risk appetite
• Regulated by SC
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Investment Options
12
Members choose PRS Providers and funds according to their risk appetite & investment profile
Default option for members who select their PRS Provider but do not specify a fund option
or
1
2
Employer may channel contributions to a particular PRS Provider, with employees choosing the type of funds offered by that PRS Provider
Employer may channel contributions to a particular PRS Provider, and where employees do not make a fund selection, contributions can be channeled to default option of that PRS Provider
or
1
2
Individuals
Employers
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Our First Products - 3 Core Funds
No. Fund type Age Group (years)
Asset Allocation
1 AmPRS -Conservative Fund
50 and above • Maximum 20% in equities;
• 80% in bonds and money
market instruments
• Minimum 20% in money
market instruments
2 AmPRS -Moderate Fund
Between 40 - 50
Maximum 60% in equities
3 AmPRS - Growth Fund
Below 40 Maximum 70% in equities
13
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
How will PRS benefit you ?
14
Supplements retirement savings• Alternative retirement savings to complement EPF
PRS is flexible•Allows you to choose funds that best suit your investment needs
PRS is transparent•PRS members have timely access to fund performance & information
Helps you maintain a lifestyle that you desire
Tax relief
Individuals
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
How will PRS benefit you ?
15
Tax deduction of employer’s contribution in addition to statutory EPF contribution
Vesting flexibility
Incentive for staff retention & recruitment
Opportunity to provide employees with potentially better returns than FD rates
Improved investment choices for employees through a range of funds under the PRS
Employers
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Key Attractions on PRS by Company Preferences
16
Source: Hay Group, 23 July 2012
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Which human capital issue does PRS help address ?
17
A scheme for both retention & recruitment; benefits both the employee & the employer
Source: Hay Group, 23 July 2012
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
18
Building PRS as the ideal retirement planning vehicle in Malaysia
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
3 Pillars Pension Framework
19
Source: Pension Systems and Reform Conceptual Framework by Robert Holzmann, Richard Paul Hinz and Mark Dorfman, June 2008
1stPillar
2nd
Pillar3rd
Pillar
Non-contributory
basic benefits financed by the
state, fiscal conditions permitting
Mandatory defined
contribution plan with
independent investment
management
Voluntary taking many forms (e.g. individual savings; employer
sponsored; defined benefit
or defined contribution)
EPF PRS
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
20
A look at Australia’s Superannuation System
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Pension Assets Allocation
21
Source: Towers Watson & secondary sources. Methodology does not provide an estimate for 2011.
Public vs Private Sector By market values (2010)
80% of Australia’s pension assets is held by Private sector
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Australia: A country that thrives on Super
Source: Australian National Accounts, 2008
52%
58%
AUD$916 Bln (2008) AUD$2,276 Bln (2008)
Increase inAUM growth of
$1,360 Bln
22
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
The success of Super
23
• Increasing trend of people moving towards a pension system.
• Retirees can keep their funds in super pension while enjoying periodic withdrawals
Source: APRA & Australian Yearbook 2008
Growth of Superannuation Pensions
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Making PRS the ideal choice (8P2C)
24
1. Product
2. Performance
3. People
4. Public Awareness & Education
5. Process
6. Place
7. Physical Evidence
8. Positioning
9. Customer
10.Competitor
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Product: Pacesetters not followers
25
2011AmAsia Pacific REITsFirst Pure REITs fund in Malaysia
Product innovators in an ever evolving market
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
26
Risk & Return - Malaysia
*Corporate Bonds are based on data from Jan 2004 to Dec 2011
Source: Bloomberg, Quantshop. Data extracted 24 August 2012.
Optimal adjusted risk returns
There is opportunity for low risk assets to deliver optimal adjusted risk returns.
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Performance
27
* Lipper Investment Management for the period 31 December 2003 to 31 December 2011, based on total returns whichincludes income from dividends and interest as well as capital appreciation. Performance shown is also net ofmanagement fees.** Maybank 12-month fixed deposit rate
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
People
28
Andrew Wong,Chief Investment Officer, Equities
Best Islamic Equity Fund (Global): Am Namaa' Asia Pacific Equity Growth Islamic Finance News Awards 2011Mastermind behind AmAsia Pacific REITs, Malaysia’s first pure REITs fund
Goh Wee PengChief Investment Officer, Fixed Income
The Most Astute Asian Local Currency Investor: The Asset Benchmark Research 2011One of The Most Astute Asian G3 Denominated Bonds Investors: The Asset Benchmark Research 2011Mastermind behind AmDynamic Bond, the best MYR bond fund in Malaysia
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Our Awards
Asset Management Company of the Year 3
(2 Consecutive Years)
The Most Outstanding Islamic Fund Manager 4
1. World Finance Investment Management Awards 2012, March 20122. The Asset Triple A Awards for Islamic Finance 2012, June 20123. The Asset Triple A Investment Awards 2011, September 20114. KLIFF Islamic Finance Awards 2011, September 20115. Islamic Finance News Awards 2011, September 2011
1. World Finance Investment Management Awards 2012, March 20122. The Asset Triple A Awards for Islamic Finance 2012, June 20123. The Asset Triple A Investment Awards 2011, September 20114. KLIFF Islamic Finance Awards 2011, September 20115. Islamic Finance News Awards 2011, September 2011
World Finance Investment Management Company of the Year, Malaysia 1
Islamic Asset Management House – Malaysia 2
Best Islamic Equity Fund (Global)Islamic Finance News Awards 20115
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
30
Best Fund Group (Bond)
Ending December 31, 2011
for 5 Consecutive Years
Winner of 3 awards at The Edge-Lipper Malaysia Fund Awards 2012**Best Bond Fund Group & Best Bond Fund
*In terms of Funds Under Management (FUM) for Unit Trusts Funds and Separately Managed Funds.Source: Malaysian Association of Asset Managers (MAAM) & Lipper Investment Management & AmInvestment Management, 31 December 2011**Source: The Edge- Lipper Malaysia Awards 2012, February 2012
AmDynamic BondBest Bond Malaysian
Ringgit Fund (3 Years)Ending December 31, 2011
for 6 Consecutive Years
AmDynamic BondBest Bond Malaysian
Ringgit Fund (5 Years)Ending December 31, 2011
for 4 Consecutive Years
No.1 Fixed Income Provider in Malaysia*
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
Public Awareness & Education
PRS 101 Workshop organised for Management & Staff
Provision of marketing materials & support PRS educational materials (booklet, flyer) Pre & Post Servicing from our RMs
PRS also works as a Retention scheme Motivational scheme
31
Look out for us on BFM radio
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
32
System DesignEquityAdequacySustainabilityPredictabilityRobustness
PenetrationEmployeeEmployers
GovernanceSystem levelTrustee levelRegulatory & supervision
IncentivesFor membersFor employersFor providers
Economic Context
Maximising long term retirement savings for members
Aging & Social Welfare system
Components
3 Pillars for Old Age Protection
Pension System Components
Source: Ernst & Young, 2012
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
33
Never Too Late to Quit
Never Too Early to Start
• Islamic Asset Management House – Malaysia
• Best Bond Fund Group Award• Best Bond MYR Fund (3 yrs)• Best Bond MYR Fund (5 yrs)
• Asset Management Company of the Year
• World Finance Investment Management Company of the Year, Malaysia
(Not for circulation)
34
DisclaimerThis publication has been prepared for general information only and is not to be taken as containing any advice or recommendation. Wherever possible, care has been taken to ensure accuracy, and all facts and figures are correct at the time of publication. AmInvestment Services Berhad shall not be held liable, for any loss or damage of whatsoever nature and howsoever caused, directly or indirectly, for readers’ decisions made on their finances, investments or anything whatsoever.
The information contained in this promotional material is general information only and does not take into account your individual objectives, financial situations or needs. You should seek your own financial advice from an appropriately licensed adviser before investing.
Islamic Asset Management House – Malaysia*
Asset Management Company of the Year, Malaysia for AmInvestment Bank Group’s Fund Management Division (2 consecutive years)**
Winner of 3 awards at The Edge-Lipper Malaysia Fund Awards 2012*** – Best Bond Group Award and Best Bond MYR Fund (3yrs & 5yrs) for AmDynamic Bond
*The Asset Triple A Awards for Islamic Finance 2012, June 2012
**The Asset Triple A Investment Awards 2011, September 2011
***The Edge- Lipper Malaysia Awards 2012, February 2012
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