It has been quite while since I put up a post on Private Retirement Scheme (PRS). Having received quite a number of emails asking about what funds to invest into PRS recently, I've decided to put up a sequence of postings to review top performing funds from different PRS fund categories.
What are the Core Categories under PRS?
Here's a screenshot taken from PRS site indicating what are the core categories, the recommended age as well as the permitted asset allocation for for each category.
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| PRS Core Funds |
Growth Fund Category : Selecting Top 10 Performing Funds according to 2015 Total Returns (%)
I've decided to utilize the Total Returns (%) for 2015 to select the ten
(10) top performing funds from the Growth Category. These ten funds
would then be used for my review.
Growth Fund Category - Top 10 PRS funds ranked according to Total Returns (%) in 2015:-
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| Growth Fund - Top 10 Performing PRS Funds according to 2015 Total Returns |
Annual Returns for 2013, 2014, 2015 and 2016 (as of 29 Feb 2016)
Now that I have selected the 10 Growth Funds for review, let us take a
look at performance of each fund in terms of annual return for 2013,
2014, 2015 and 2016 (as of 29 Feb 2016).
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| Growth Fund - Annual Returns for 2013, 2014, 2015 and 2016 (as of 29 Feb 2016) |
- The green boxes indicate annual returns that have outperformed the dividend returns of EPF for a particular year.
- The returns in bold indicate the highest return among the ten funds for a particular year
- N/A : fund was not launched yet or fund did not go through a full one year term
Observation
Despite the fact that all ten funds are under the same category, the gap
in term of annual returns between funds vary quite a bit. Just take
2015 as a sample whereby the number one ranked fund is 11% higher as
compared to the 10th ranked fund. Why such a large disparity? This can
be explained by looking at the asset allocation of each PRS fund.
Unraveling the Top Performing Core Growth Funds
As mentioned above, the best way to find out the outstanding or poor
performance of a PRS fund is through its asset allocation. By knowing
where money is being invested, we can then have a rough gauge of the
investing strategy employed by a particular PRS fund.
1) Kenanga OnePRS Growth Fund
Asset Allocation:
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| Taken from Kenanga OnePRS Growth Fund Factsheet February 2016 |
Characteristics of this fund:
The fund is invested into Unit Trust Funds from the parent company. The general term for such investment is called "Collective Investment Scheme".
98% of the asset allocation of this PRS is invested into two unit trust funds:
- 69.15% - Kenanga Growth Fund : A top performing Equity Malaysia unit trust fund, Multiple Lipper Awards winner and rated 5 out of 5 Star by Morningstar)
- 28.86% - Kenanga Bond Fund : A very low risk fund under Category Bonds-Malaysia. Rated only 2 out of 5 Star by Morningstar
2015 Returns of Collective Investment Schemes under this PRS fund
- Kenanga OnePRS Growth returned 20.91%
- Kenanga Bond Fund returned 2.45%.
Investors risk exposure when investing into this fund:
- Equity/Stocks in Malaysia via Unit Trust fund
- Bonds in Malaysia via Unit Trust fund
2) AmPRS - Growth Fund
Asset Allocation:
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| Taken from AmPRS-Growth Fund Factsheet February 2016 |
Characteristics of this fund:
This PRS fund contains a mixture of Collective Investment Scheme and direct equity (stocks) holdings.
The breakdown of asset allocation for this fund are as listed below:
- 31.09% - AmConservative Fund : A low risk balanced unit trust fund under Category Blended-Conservative funds. Rated 4 out of 5 Stars by Morningstar.
- 3.93% - AmMalaysia Equity Fund : A high risk unit trust fund under Category Equity Malaysia - Large Cap funds. Rated 4 out of 5 Stars by Morningstar.
- 54.6% - Direct investment into equities (stocks) from different countries and sectors
- 10.38% - Cash and others
2015 Returns of Collective Investment Schemes under this PRS fund
- AmConservative Fund returned 5.48%
- AmMalaysia Equity Fund returned 12.26%
Investors risk exposure when investing into this fund:
- Direct equity (local and overseas)
- Equity and bonds via Unit Trust fund
- REITs
- Fixed Income instruments
3) Public Mutual PRS Islamic Growth Fund
Unable to locate and download factsheet from Public Mutual PRS site. No
review will be done unless someone can provide me with the fund
factsheet for this PRS fund.
4) CIMB Islamic PRS Plus Growth Fund
Asset Allocation:
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| Taken from CIMB Islamic PRS Plus Growth Fund Factsheet January 2016 |
Characteristics of this fund:
This PRS fund contains only Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 39.12% - CIMB Islamic Asia Pacific Equity Fund : A very high risk unit trust fund under the Category Equity-Asia Pacific ex-Japan (Syariah) funds. Rated only 3 out of 5 Stars by Morningstar.
- 29.30% - CIMB Islamic Equity Fund : Could not find information of this fund
- 15.02% - CIMB Islamic Sukuk Fund : A low risk unit trust fund under Category Bonds - Malaysia (Syariah). Rated only 3 out of 5 Stars by Morningstar
- 14.94% - CIMB Islamic Enchanced Sukuk Fund : A low risk unit trust fund under Category Blended - Conservative Category. Rated 2 out of 5 Stars by Morningstar.
2015 Returns of Collective Investment Schemes under this PRS fund
- CIMB Islamic Asia Pacific Equity Fund returned 14.87%
- CIMB Islamic Sukuk Fund returned 3.53%
- CIMB Islamic Enhanced Sukuk Fund returned 3.98%
Future Performance of this PRS fund
There is no active management for this particular PRS fund. Future
performance of this PRS fund would be dependent on the performance of
all the unit trust funds listed above.
Investors risk exposure when investing into this fund:
- Syariah compliant equity/stocks in Malaysia and Asia Pacific via Unit Trust fund
- Sukuks or Islamic Bonds in Malaysia via Unit Trust fund
5) Manulife Shariah PRS - Growth Fund
Asset Allocation:
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| Taken from Manulife Syariah PRS - Growth Fund Factsheet February 2016 |
Characteristics of this fund:
This PRS fund contains only Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 39.71% - Manulife Shariah-Dana Ekuiti : A high risk unit trust fund under Category Equity - Malaysia Mid/Small-cap (Syariah). Not rated yet by Morningstar.
- 24.80% - Manulife Investment As-Saad : A low risk unit trust fund under Category Bonds - Malaysia (Syariah). Rated only 3 out of 5 Stars by Morningstar
- 14.93% - Manulife Investment Al-Ma'Mun : A very low risk unit trust fund under Category Money Market - Malaysia (Syariah). Rated only 3 out of 5 Stars by Morningstar
- 10.04% - Manulife Investment Al-Faid : A high risk unit trust fund under Category Equity - Malaysia Mid/Small-cap (Syariah). Rated 4 out of 5 Stars by Morningstar.
- 9.97% - Manulife Investment Al-Fauzan : A high risk unit trust fund Category Equity - Malaysia Income Category. Rated 5 out 5 Stars by Morningstar.
2015 Returns of Collective Investment Schemes under this PRS fund
- Manulife Shariah-Dana Ekuiti returned 15.48%
- Manulife Investment As-Saad returned 2.87%
- Manulife Investment Al-Ma'Mun returned 3.34%
- Manulife Investment Al-Faid returned 9.02%
- Manulife Investment Al-Fauzan returned 9.82%
Investors risk exposure when investing into this fund:
- Syariah equities/stocks in Malaysia via Unit Trust fund
- Sukuk (Islamic Bond) in Malaysia via Unit Trust fund
- Low risk Money Market
6) AIA PAM-Growth Fund
Asset Allocation:
Characteristics of this fund:
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| Taken from AIA PAM-Growth Fund Factsheet January 2016 |
This PRS fund contains direct holdings of local equities, foreign equities, bonds as well as Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 15.60% - iShares MSCI Asia ex-Japan ETF : Could not find exact fund name. Instead found iShares MSCI Pacific ex Japan ETF which is a high risk ETF invested into equities from Australia, Hong Kong, New Zealand and Singapore.
- 13.32% - Investec GS Asian Equity : An overseas unit trust fund under the Category Asia ex Japan Equity. Rated 3 out of 5 Stars by Morningstar UK.
- 68.32% - Direct investments into local & foreign equities as well as fixed income instruments
- 2.76% - Cash
2015 Returns of Collective Investment Schemes under this PRS fund
- iShares MSCI Asia ex-Japan ETF returned -8.88%
- Investec GS Asian Equity returned -5.44
Investors risk exposure when investing into this fund:
- Overseas equities/stocks via ETF and Unit Trust fund
- Direct equity (local and foreign)
- Fixed Income instruments such as bonds
7) RHB Retirement Series - Growth Fund
Asset Allocation:
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| Taken from RHB Retirement Series - Growth Fund Factsheet February 2016 |
Characteristics of this fund:
This PRS fund contains only Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 67.70% - RHB Goldenlife 2030 : A medium risk unit trust fund with exposure to Malaysia equities and fixed income instruments. Not rated yet by Morningstar.
- 22.11% - RHB Goldenlife Today : A low risk balanced unit trust fund under Category Blended-Conservative funds. Rated 4 out of 5 Stars by Morningstar.
2015 Returns of Collective Investment Schemes under this PRS fund
- RHB Goldenlife 2030 returned 9.30%
- RHB Goldenlife Today returned 6.47%
Investors risk exposure when investing into this fund:
- Local equities/stocks via Unit Trust funds
- Fixed Income instruments such as bonds via Unit Trust funds
8) Manulife PRS-Growth Fund
Asset Allocation:
9) CIMB-Principal PRS Plus Growth Fund
PRS funds with Local and Overseas Equity exposure
PRS funds containing Lipper Award Winning fund and 5 Star Morningstar rated fund
Conclusion
Based on the ample amount of information and data provided for each PRS fund, I believe you should now be able to decide which Core Growth PRS fund is suitable for you, if you intend to invest into PRS.
For those whom are not yet familiar with PRS, do check out my older postings below:
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| Taken from Manulife PRS-Growth Fund Factsheet February 2016 |
Characteristics of this fund:
This PRS fund contains only Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 39.50% - Manulife Equity Plus Fund : A high risk unit trust fund under Category Equity - Malaysia Large-cap funds. Rated 4 out of 5 Stars by Morningstar.
- 20.01% - Manulife Bond Plus Fund : A low risk unit trust fund under Category Bonds -Malaysia funds. Rated only 3 out of 5 Stars by Morningstar.
- 15.05% - Manulife Investment Al-Ma'Mun : A very low risk unit trust fund under Category Money Market - Malaysia (Syariah). Rated only 3 out of 5 Stars by Morningstar
- 9.90% - Manulife Shariah-Dana Ekuiti : A high risk unit trust fund under Category Equity - Malaysia Mid/Small-cap (Syariah). Not rated yet by Morningstar.
- 9.89% - Manulife Investment Value Fund : A high risk unit trust fund under Category Equity - Malaysia Mid/Small-cap funds. Rated 4 out of 5 Stars by Morningstar
- 4.83% - Manulife Investment Bond Fund : A low risk unit trust fund under Category Bonds -Malaysia funds. Rated only 3 out of 5 Stars by Morningstar.
- 0.82% - Cash
2015 Returns of Collective Investment Schemes under this PRS fund
- Manulife Equity Plus Fund returned 4.91%
- Manulife Bond Plus Fund returned 5.90%
- Manulife Investment Al-Ma'Mun returned 3.34%
- Manulife Shariah-Dana Ekuiti returned 15.48%
- Manulife Investment Value Fund returned 14.89%
- Manulife Investment Bond Fund returned 3.30%
Investors risk exposure when investing into this fund:
- Local equities/stocks via Unit Trust funds
- Fixed Income instruments such as bonds via Unit Trust funds
Asset Allocation:
SUMMARY |
| Taken from CIMB-Princiap PRS Plus Growth Fund Factsheet January 2016 |
Characteristics of this fund:
This PRS fund contains only Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 38.65% - CIMB-Principal Asian Equity Fund : A very high risk unit trust fund under Category Equity - Asia Pacific ex-Japan funds. Rated 4 out of 5 Stars by Morningstar.
- 29.20% - CIMB-Principal Asia Pacific Dynamic Income Fund : A low risk unit trust fund under Category Bonds -Malaysia funds. Rated 5 out of 5 Stars by Morningstar.
- 28.19% - CIMB-Principal Bond Fund : A low risk unit trust fund under Category Bonds -Malaysia funds. Rated only 3 out of 5 Stars by Morningstar.
- 3.96% - Cash
2015 Returns of Collective Investment Schemes under this PRS fund
- CIMB-Principal Asian Equity Fund returned 9.46%
- CIMB-Principal Asia Pacific Dynamic Income Fund returned 8.91%
- CIMB-Principal Bond Fund returned 3.12%
Investors risk exposure when investing into this fund:
- Local and overseas equities/stocks via Unit Trust funds
- Fixed Income instruments such as bonds via Unit Trust funds
10) Affin Hwang PRS Growth Fund
Asset Allocation:
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| Taken from Affin Hwang PRS Growth Fund Factsheet January 2016 |
Characteristics of this fund:
This PRS fund contains a large percentage of Collective Investment Schemes.
The breakdown of asset allocation for this fund are as listed below:
- 26.4% - Affin Hwang Select Bond Fund : A low risk unit trust fund under Category Bonds - Asia funds. Not rated yet by Morningstar.
- 14.9% - Affin Hwang Select Asia (ex Japan) Quantum Fund : A very high risk unit trust fund under Category Equity - Asia Pacific ex-Japan funds. Rated 5 out of 5 Stars by Morningstar.
- 14.3% - Affin Hwang Select Asia (ex Japan) Opportunity Fund : A very high risk unit trust fund under Category Equity - Asia Pacific ex-Japan funds. Rated only 3 out of 5 Stars by Morningstar.
- 14.2% - Affin Hwang Global Equity Fund : A wholesale feeder fund with 70% NAV invested into a target fund called Nikko AM Shenton Global Opportunities Fund. Remaining 30% is invested money market instruments.
- 9.6% - Affin Hwang Select Opportunity Fund : A high risk unit trust fund under Category Equity - Malaysia Large-cap funds. Rated 4 out of 5 Stars by Morningstar.
- 20.6% - Mixture of Cash, Money Market Instruments and Fixed Income Instruments
2015 Returns of Collective Investment Schemes under this PRS fund
- Affin Hwang Select Bond Fund returned 7.28%
- Affin Hwang Select Asia (ex Japan) Quantum Fund returned 9.40%
- Affin Hwang Select Asia (ex Japan) Opportunity Fund returned 10.30%
- Affin Hwang Global Equity Fund (this is a wholesale feeder fund where the target fund has returned 10.09% as of YTD 31 Oct 2015)
- Affin Hwang Select Opportunity Fund returned 2.03%
Investors risk exposure when investing into this fund:
- Local and overseas equities/stocks via Unit Trust funds and Wholesale feeder fund
- Local and overseas fixed income instruments such as bonds via Unit Trust funds
- Money market
PRS funds with Local and Overseas Equity exposure
PRS funds containing Lipper Award Winning fund and 5 Star Morningstar rated fund
Conclusion
Based on the ample amount of information and data provided for each PRS fund, I believe you should now be able to decide which Core Growth PRS fund is suitable for you, if you intend to invest into PRS.
For those whom are not yet familiar with PRS, do check out my older postings below:
1. Private Retirement Scheme (PRS), What's In Store For Investors? - Part 1
2. Private Retirement Scheme (PRS), What Is The Expected Performance? - Part 2
3. Private Retirement Scheme (PRS), Enjoying The Benefits of Tax Relief - Part 3
That's all for this post! Do follow Invest Made Easy for upcoming reviews of other PRS categories.
2. Private Retirement Scheme (PRS), What Is The Expected Performance? - Part 2
3. Private Retirement Scheme (PRS), Enjoying The Benefits of Tax Relief - Part 3
Cheers and Happy Investing!
http://invest-made-easy.blogspot.my/2016/03/deciphering-top-10-performing-growth.html
