Retirement Forum 2017:

The Coming Third Age CrisisIsmitz Matthew De AlwisExecutive Director/ Chief Executive Officer

November 2017

Millions of elderly Americans,

Baby Boomers and others

slipping into poverty:-

- Too frail to work

- Too poor to retire

Average 401(k) for 65 years @

USD 25,000

Precipice of the Greatest Retirement Crisis

… in the history of the world.

2

Don’t Let this Happen to You

3

Population Figures

4

Retirement Readiness

5

Malaysia’s Demographics – Future Socio Economic Issues?

Those aged 15 – 34

make up the biggest

portion of the population

(10.8 million or 38.2% of

the population).

Ageing Population: By

2020, 3.2 Millions of

Malaysians will be of

retirement age

6

Challenge #1: Living “too long”

Source: The Star Online, 9 July 2017

the growing ageing population

7

Challenge #2: Impact of Inflation

Inflation was at 3.6 per cent on a

year-on-year basis in June 2017

compared with a 3.9 per cent

increase in May 2017.

Source: Department of Statistics Malaysia, 19 July 2017

Transportation (10.5%)

Food & non-alcoholic

beverages (4.3%)

Recreation services & culture

(+3.0%)

Restaurants & hotels (+2.5%)

Housing (+2.2%)

Water (+2.2%)

Electricity (+2.2%)

Gas & other fuels (+2.2%)

… on living costs.

8

Challenge #3: Funding Children's Tertiary Education

Source: StudyMalaysia.com 2015

Medicine Engineering Law Business IT

RM RM RM RM RM

Local Public 12,710 8,550 7,740 7,560 9,040

Private 255,400 66,000 62,040 43,560 49,610

Abroad Singapore 326,822 92,709 88,788 78,923 92,709

US 641,351 473,432 233,324 233,324 473,432

UK 669,685 283,365 273,771 366,939 288,180

Australia 725,619 303,194 274,770 187,956 212,473

… with rising education costs

9

Challenge #4: Increased need for healthcare

In 2017, the top 5 killer diseases in Malaysia are:

1. Coronary heart disease | 2. Stroke | 3. Lung diseases | 4. HIV/AIDS | 5. Diabetes

Sources: The Borgen Project and World Health Organisation

35% of private medical healthcare expenditure was "out of pocket“ indicating that

Malaysians generally have to pay a hefty amount for medical services.

Sources: The Malay Mail Online, 2016

Procedures 2000 (RM) % Increase 2005 (RM) % Increase 2010 (RM) % Increase 2015 (RM)

Open Heart Surgery 30,000 33 40,000 30% 52,000 19 62,000

Neuro Surgery 32,000 16 37,000 16 43,000 16 50,000

Total Knee Replacement 14,000 29 18,000 11 20,000 25 25,000

Total Hip Replacement 18,000 22 22,000 18 26,000 23 32,000

Spine Surgery (MISS) 22,000 18 26,000 15 30,000 50 45,000

Angiogram 15,000 13 17,000 18 20,000 25 25,000

Appedicectomy 4,000 100 8,000 25 10,000 40 14,000

Source: Ramsy Sime Darby Ara Damansara Medical Centre, 2015

10

Challenge #4: Increased need for healthcare (cont’d)

Source: http://www.humanresourcesonline.net

“The research pointed out that

the cost increases were being

driven by non-communicable

diseases – those that cannot

be caught from other people but

are frequently caused by the

lifestyle choices of individuals

such as smoking, lack of

exercise and a poor diet.”

… in an environment of fast rising medical costs!

11

Source: www.kwsp.gov.my

Are Malaysians Retirement Ready?

“Members should

target having at

least RM228,000

in their EPF

accounts when

they reach 55” *

* Article in The Star 29 Dec 2016 “EPF worries about withdrawals too soon by retirees”

Average

savings for

members

between the

ages of 51 – 55

years comes up

to only

RM177,858.49

12

Some Worrying News..

“Impulse-buying is perpetuated by their

need to conform to a certain type of

lifestyle or image often created by

social media”

“Gen Ys relying on high-cost

borrowing, 38% reported to be taking

personal loans, 47% have expensive

credit card borrowings, only 28% were

financially literate”

“Lack of engagement with financial

advisors probably stems from their

skeptical view about the value of

financial advice itself”

Source: The Star Online, 2017 Source: New Straits Times, 2017 Source: The Edge Markets, 201

13

Are you financially prepared to handle all these?

Longer average

life span

Increasing

lifestyle costs

Funding tertiary

education costs

Increasing need

for healthcare

14

RETIREMENT

SAVINGS

RETIREMENT

CONCERNS

RETIREMENT

SECURITY

$Financially

secured

Financial

uncertainty

$

Adequacy

Sufficiency

Sustainability

Dependency

Outliving savings

Inflation

RETIREMENT

WELL BEING

Happy Years

Worry Years

The Big Retirement Problems

15

The 3 Stages of Retirement

• GO – GO

• Newly retired, eager

for the finer things

in life

• Balance the

increased costs

with lower

transportation or

wardrobe expensesSLOW – GO

• Body slowing down

• Additional healthcare costs

• Less travel & hobbies

• No longer able to financially

support family

NO – GO

• Long-term care costs,

hospitalisation etc.

• Daily medical

expenses or medical

equipment cost

Yes, even when you reach retirement, it’s not the end of the road. We’ve

broken it down into THREE phases.

16

Saving When You’re Young

New to Workforce

• Young & single

• Establish good

money habits

• Tackle credit card

debt

• Pay student loan

• Create emergency

fund

Family Oriented

• Married with kids

• More commitment

• Higher income

• Continue to hack

away debts

• Reassess insurance

needs

• Retirement planning

Career Peak

• Experienced in

workforce

• Stable

• Well-advanced in

career

• Make retirement

savings a priority

• Focus your investments

Retirement Phase

• Debt free/travel

• Medical costs

• Elderly care

• Turbo-charge your

retirement savings

• Reduce expenses

Minimal savings

amount

Gradually

increasingIncreasing rapidly

Stagnant and

reducing

The most ideal period for you to start

accumulating savings in EPF and PRS

Time to conserve and lead

a sustainable retirement

Adapted from www.kwsp.gov.my

Making the most of out of your youth!

17

Gary

Ben

Today10 Years

from Today

Value of

Savings

20 Years from

Today *

* Assume that rate of return on savings is 8% per annum

RM59,294.72

Saves RM200 per month

over 10 years

Saves RM100 per month over 20 years

RM36,833.14

Saving When You’re Young

Who ends up the winner here?

18

Saving When You’re Young

04

Nothing beats

knowing that you are

financially

independent at the

peak of your life!

FINANCIAL

INDEPENDENCE

03

It’ll help you to avoid

debt like the plague;

you’ll learn to

appreciate having

money put by to pay

for things needed,

thus avoiding debt

and interest payments

AVOID THE

DEBT TRAP

02

Compounding

interest; see your

contributions grow!

COMPOUNDING

INTEREST

01

Starting early means

you essentially have

more time to save

up more money as

compared to starting

out only when you

turn 30.

ALL YOU HAVE

IS TIME

Making the most of out of your youth!

Why should you start now?

19

The Private Retirement Scheme

• It’s good to have a safety net in place.

• There is always the risk of sudden occurrences in life that channels your EPF savings

everywhere else but your retirement pool.

• By having an alternative pool of savings, you’re at least assured of a certain sum when you

retire.

• This is where PRS comes into play.

Savings EPF PRS Property

Example:

20

Revised PRS Youth Incentive (as per Budget 2017)

Source: http://www.ppa.my/prs/prs-youth/prs-youth-incentive/

21

Tax Relief

Up to RM3,000;

there’s still time

for your 2017 tax

assessment!

Conventional &

Shariah Options

We offer a full range of

conventional and Islamic

core funds under the

OnePRS umbrella.

Consistent Returns

We strive to offer

consistent returns

for our clients

Flexibility

Decide on your

investment

frequency, amount

& risk tolerance.

Benefits of Investing with Us

22

Benefits of Investing with Us

Saves you time and hassle.

Convenience via KenEASY to

monitor all your PRS funds in

one consolidated view

One-stop information center for

you to ask questions about

various providers or funds

Access to (7) SEVEN

providers’ PRS funds, all from

one single touch point

What can KenWealth do For You?

Through our KenWealth by

Kenanga platform, we offer clients

more choices from our provider

partners.

23

The Retirement Management Formula

Plan Your Journey,

Define Your Future.

Adding Colours to

Your Retirement with

Kenanga Investors

26

Introducing Kenanga OnePRS

Conventional Shariah

27

Core Funds – Conventional Kenanga OnePRS Scheme offers 3 core funds to suit your different life-stages.

Age below 40 Age 40 - below

50Age 50 & above

Retirement

ChallengesNot saving at all

Not saving

enough

Inflation eating

into savings

Investment

ObjectiveCapital growth

Returns through

investment in

equities / bonds

Income whilst

providing capital

preservation

Your

SOLUTION

Kenanga

OnePRS Growth

Fund

Kenanga

OnePRS

Moderate

Fund

Kenanga

OnePRS

Conservative

Fund

Kenanga OnePRS Scheme

28

Age below 40 Age 40 - below

50Age 50 & above

Retirement

ChallengesNot saving at all

Not saving

enough

Inflation eating

into savings

Investment

ObjectiveCapital growth

Returns through

investment in

equities / sukuk

Income whilst

providing capital

preservation

Your

SOLUTION

Kenanga

Shariah OnePRS

Growth

Fund

Kenanga

Shariah OnePRS

Moderate

Fund

Kenanga

Shariah OnePRS

Conservative

Fund

Kenanga OnePRS Scheme

Core Funds –Shariah Kenanga Shariah OnePRS Scheme offers 3 core funds to suit your different

life-stages.

29

Kenanga OnePRS Scheme

Fund Performance (% Growth)

YTD 1M 3M 6M 1Y 3YSince

Launch

Kenanga OnePRS Growth 15.56 2.11 2.63 3.09 13.22 25.60 42.30

Benchmark 7.84 0.17 0.46 0.47 5.12 2.12 5.01

Kenanga OnePRS Moderate 16.18 2.66 2.24 4.52 14.90 20.61 26.78

Benchmark 7.34 0.11 0.51 0.69 4.67 3.58 6.72

Kenanga OnePRS Conservative 6.31 0.71 1.30 2.12 5.63 14.29 19.66

Benchmark 5.35 -0.15 0.71 1.59 2.85 9.43 13.58

Kenanga OnePRS Shariah Equity (Non-Core) 9.83 3.46 2.80 2.84 7.28 11.70 11.70

Benchmark 8.89 2.23 2.87 0.85 5.64 -1.98 -0.04

1OnePRS Growth Benchmark:

Composite of All MGS Index (30%) and FBM 100 (70%)2OnePRS Moderate Benchmark:

Composite of All MGS Index (40%) and FBM 100 (60%)3OnePRS Conservative Benchmark:

Composite of All MGS Index (80%) and FBM 100 (20%)4OnePRS Shariah Equity Benchmark:

FTSE Bursa Malaysia Emas Shariah

Source: Lipper Investment Management and Novagni Analytics and Advisory as at 30 Oct 2017

Our Performance Track Record

30

Best Equity Group Award (Islamic) 2017

Investor’s Choice

Fund House of the Year 2017

Core Equity (Malaysia)

Kenanga Growth Fund

Private Retirement Scheme (Growth)

Kenanga OnePRSGrowth Fund

Private Retirement Scheme (Conservative)

Kenanga OnePRSConservative Fund

Malaysia

Best Institutional House

Malaysia

CIO of the Year

Lee Sook Yee

Malaysia

CEO of the Year

Ismitz Matthew De Alwis

2016 Asia Investment Management Award

Malaysia Equity Fund

(3 years and 10 years)

Kenanga Growth Fund

Our Award-Winning History

31

Talk to Us Today!

Kenanga Investors Berhad (353563-P)

Level 13, Kenanga Tower,

237, Jalan Tun Razak,

50400 Kuala Lumpur.

Tel: 03-2172 3123 | Fax: 03-2172 3133

Website: www.kenangainvestors.com.my

Investor Services Hotline: 1-800-88-3737

32

Disclaimer

This document is a marketing presentation prepared by Kenanga Investors Bhd (KIB) and is strictly for discussion and information purposes only. It

should not be circulated to any third party without prior approval of KIB. Information provided herein including any expression of opinion or forecast

has been obtained from or is based on sources believed by us to be reliable, but there is no representation or warranty, express or implied, is given

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liability to any person in relation to the distribution, possession or delivery of this document in, to or from any jurisdiction.

Any projections or other estimates in this information, including estimates of returns or performance, are forward-looking statements based upon

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projections or estimates. Other events not taken into account may occur and may significantly affect the analysis. There can be no assurance that

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Such estimated results, returns and projections should be viewed as hypothetical and do not represent the actual results/returns that may be

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The First Replacement Disclosure Document in relation to the OnePRS Scheme dated 28 Oct 2014 and the Disclosure Document in relation to the

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indications of their future performances. Investment involves risks including a possible loss to the principal amount invested.

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