WorksheetsFeatures of the PRS
Total questions: 15
Worksheet time: 15mins
PRS consists of a range of funds which are called
compliant and non-compliant funds
core and non-core funds
complex and non-complex funds
conservative and non-conservative funds
Bond is
a debt instrument where an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate.
an instrument that offers dividends and capital appreciation
an investment vehicle with less than 1 year maturity
a high yield investment product
In the PRS’ context equities would refer to
fixed income instruments that the PRS fund invests in
bond that the PRS fund invests in
stocks and shares of companies that the PRS fund invests in
money market instrument that the PRS fund invests in
Example of Money market instruments are
Certificate of Deposits
Commercial paper
Long term notes
Mid term notes
The advantages of a Collective Investment Scheme includes
ability to hire professional investment managers
costs sharing
diversification
guaranteed income
In a PRS account, how are the contributions split?
Sub-account A – 70% Sub-account B – 30%
Sub-account A – 60% Sub-account B – 40%
Sub-account A – 60% Sub-account B – 30% Sub-account C – 10%
Sub-account A – 50% Sub-account B – 30% Sub-account C – 20%
How much is the tax penalty if the tax penalty if the PRS member withdraws his money from Sub-account B before the age of 55?
10%
8%
12%
. 7%
PRS members or beneficiaries can fully withdraw from PRS in the following ways;
pre-retirement withdrawal
permanent departure from Malaysia through emigration
pay medical bills for family member
death of PRS member
Employers may make the contribution to the PRS subject to a vesting schedule to promote employee
productivity
loyalty
happiness
well-being
Scheme Trustee must ensure, the PRS fund is operated and managed in accordance with;
the Deed and Disclosure Document
Capital Market and Service Regulations Guidelines
Securities laws including PRS Regulation
acceptable and efficacious business practices within the PRS industry
Investors are advised to read and understand _____________ before making the decision to participate in the PRS Scheme
Prospectus
Annual Report
Disclosure document
Fund factsheet
This document must be presented in either soft or hard copy to the potential member at the initial engagement or at the point the individual shows interest in the PRS fund;
Prospectus
Product Highlight Sheet
Disclosure document
Annual report
Scheme Trustee
be a trust company under the Trust Company Act 1949 or incorporated pursuant to the Public Trust Corporation Act 1995
be independent from the PRS provider
take custody and control of all securities, derivatives, property and assets of a PRS and hold it in trust for the members
advise the investment managers on how to manage the funds
Portfolio Turnover Ratio (PTR) indicates
how frequently the assets within a fund are bought and sold by the managers over a measurement period
the cost of managing the funds
the risk factors of the funds
the variable costs and risk factors of the fund
If the potential member wanted to choose a fund to invest, at initial contact, she should be given ___________ and she must also read the ___________ in full before making an investment decision.
fund factsheet & prospectus
product highlight sheet & disclosure document
Disclosure document & annual report
Product Highlight sheet & prospectus
