Instruments in this category include Ordinary Shares, Collective Investment Schemes (“CIS”) such as Mutual Funds, Real Estate Investment Trust; Infrastructure Funds and Private Equity Funds.Such investments have potentials to generate high returns over the long term but could be risky owing to uncertainty and fluctuations in market prices and returns.What has age and risk profile got to do with how my pension funds are invested?
Once the framework is released, there will be proper guidance regarding when contributors can be assigned based on the default age classification.
Contributors will subsequently have the option to be assigned to a Fund of their choice depending on their risk tolerance.
The PFA is also in a position to provide financial advice to contributors to assist in assessing risk and making an informed decision.
What are the impacts on my pension balance when my PFA moves into the multi-fund structure?
Subsequently, an active contributor can make a request to his PFA to move between Funds subject to certain restrictions.
An active contributor of 49 years and below can opt for Fund I, while an active contributor in Fund III may elect to be assigned to Fund II.
However an active contributor in Fund III is not allowed to opt for Fund I while an active contributor in Fund II is not allowed to opt for Fund III.
Fund III is strictly for active contributors above 50 years.
The balance in your RSA will not change due to the movement to the multi-fund structure because the entire balance would be moved to the appropriate fund without charges.