Principal PRS Plus

Scheme Trustee: Deutsche Trustees Malaysia Berhad

Principal RetireEasy 2040 (RE40)

*Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page.

Investment Objective The Fund seeks to provide positive total return by investing according to an asset allocation strategy.
Fund Category Core – Mixed asset (TDF)
Target Date 31 December 2040. The Fund will mature on the Target Date, and all Members in the Fund will be switched automatically into the Principal RetireEasy Income (“REI”).
Investment Strategy

The Fund seeks to provide sustainable positive total return and to grow the total investment over the long term with retirement as the ultimate goal.

The Sub-Manager will construct a glide path that will guide the asset allocation of the Fund over the Fund’s tenure until its Target Date. The Fund’s asset allocation will shift dynamically and progressively from a more aggressive mix to a more conservative mix as the Fund approaches its Target Date.

Currently, the Sub-Manager will seek exposure to the various asset classes by investing in CIS (including ETF and REITs). When deemed necessary, the Fund may also utilize derivative instruments such as futures contracts and currency forwards for hedging purposes.

Upon maturity, Members will be switched automatically into the Principal RetireEasy Income to begin the decumulation journey.
Asset Allocation Up to 100% of the Fund’s NAV may be invested in CIS (including ETF and REITs), equities, debt securities, money market instruments and/or Deposits. Notwithstanding:
  • up to 40% of the Fund’s NAV may be invested in Unrated Debt Securities; and
  • up to 10% of the Fund’s NAV may be invested in unlisted securities.
Performance Benchmark

The benchmark is for performance comparison purpose only and the risk profile of the Fund is not the same as the risk profile of the benchmark. Currently, the benchmark for RE40 is:

RE40
MSCI World NR USD 24.0%
MSCI Malaysia NR MYR 24.0%
MSCI AC Asia Pacific NR USD 40%
BPAM MYR 3.0%
JPM Asia Credit TR USD 4.0%
Bloomberg BarCap Global Aggregate TR USD 4.0%

As this is a long-term fund, the return expectation may change according to market conditions. Any changes will be reflected in the PHS available on Principal Malaysia website.
Member Profile This Fund is suitable for Members who:
  • wants to invest in a diversified portfolio with age-appropriate risk;
  • aims to achieve decent return while planning for retirement;
  • are looking for sustainable long-term returns;
  • do not have the time or knowledge to manually de-risk;
  • wants a simple and straightforward retirement solution.

Under the Do-It-For-Me (Default Option), this Fund is selected for Members born in year 1976 – 1985.
Risks Disclosure Stock Specific Risk, Credit and default risk, Interest rate risk, Country Risk, Currency Risk, Risks associated with investment in warrants/options, Risks associated with investment in CIS, Risks associated with unconstrained portfolio, Risks associated with TDF
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