Principal Asset Management Berhad
(formerly known as CIMB-Principal Asset Management Berhad)
Default Option
Investment Options
Investors may choose to:
- Do-It-Myself: You can contribute to the Scheme by selecting any one or a combination of the Funds based on your preferred risk and return profile.
- Do-It-For-Me (Default Option): We will allocate your contributions into one of the Core Funds based on your year of birth as listed in the table below. The TDF’s portfolio will rebalance automatically and gradually over time until its Target Date, so that you will always be invested with an age-appropriate risk return profile.
| Core Funds | Year of birth | Expected year of retirement* |
| iRE60 | 1996 – 2005 | 2051 – 2060 |
| iRE50 | 1986 – 1995 | 2041 – 2050 |
| iRE40 | 1976 – 1985 | 2031 – 2040 |
| iRE30 | 1968 – 1975 | 2023 – 2030 |
| iREI | On or before 1967 | N/A – Retired |
* Based on retirement age of 55 years old prescribed under the Guidelines on Private Retirement Schemes.
About Target Date Fund (TDF)
- TDF (iRE60, iRE50, iRE40, iRE30)
TDF is a collective investment scheme that is actively managed towards a Target Date. The TDF will invest according to an asset allocation strategy designed for investors who has a retirement goal that is close to the year stated in the Fund’s name. Subsequently, each of the TDF will mature on its Target Date.
The TDF provides a straightforward and easy way to help you invest in a diversified portfolio that will actively and gradually rebalances over time to become less focused on growth and more focused on wealth preservation. In general, TDF seeks more opportunity for growth when it is far away from its Target Date, then place more emphasis on stability when it gets nearer to its Target Date. The portfolio will gradually shift from a more aggressive investments mix (e.g., higher equity allocation) to a more conservative mix (e.g., higher fixed income securities) as it approaches its Target Date. This gradual shift over time is known as glide path, which produces the ideal asset allocation that rebalances automatically throughout the lifespan of the TDF towards its Target Date, which will correspond with investor’s risk tolerance as they get nearer to retirement.
Illustration of glide path:
Note: This is an illustration only and does not represent the actual asset allocation of any TDF at any point in time. The information on actual asset allocation for each TDF is available in the monthly fund fact sheet, which is available on Principal Malaysia website at www.principal.com.my.
