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the Funds > Atlas
Pension Fund > Allocation Schemes |
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The Pension Fund Manager is offering different Allocation
Schemes to the Participants
to choose from, allowing the Participants
to adopt a focused investment strategy, according to their risk/return
requirements, in a combination of any two or more Sub-Funds
of the Atlas Pension Fund, managed by the Pension Fund Manager.
The risk profile of each Allocation Scheme shall be dependent
on the percentage Allocation of that Allocation Scheme in the
equity Sub-Fund.
Each Allocation Scheme being offered shall have a different percentage
allocation in two or more of the following sub-Funds:
a. APF-Equity Sub-Fund (AEF)
b. APF-Debt Sub-Fund (ADF)
c. APF-Money Market Sub-Fund (AMMF)
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| The Pension Fund Manager is offering the following Six Allocation
Schemes to allocate the Contributions received from the Participants
among different Sub-Funds:
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| a. Aggressive Allocation Scheme |
Aggressive Allocation Scheme invests primarily in the APF –
Equity Sub-Fund with a small allocation in the APF – Debt
Sub-Fund, seeking long term growth of capital. Participants
with high tolerance for risk and/or long time horizon may prefer
this option. Aggressive Allocation Scheme shall be allocated between
the Sub-Funds
as follows:
APF - Equity Sub-Fund (min) |
APF - Debt Sub-Fund (min) |
APF - Money Market Sub-Fund (min) |
65% |
20% |
Nil |
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| b. Balanced Allocation Scheme |
Balanced Allocation Scheme offers a balance between equity and
fixed income instruments through investments in APF – Equity
Sub-Fund, APF – Debt Sub-Fund with a small allocation in
the APF – Money Market Sub-Fund seeking total return along
with some capital appreciation. Participants
with moderate tolerance for risk and/or long to medium time horizon
may prefer this option. Balanced Allocation Scheme shall be allocated
between the Sub-Funds
as follows:
APF - Equity Sub-Fund (min) |
APF - Debt Sub-Fund (min) |
APF - Money Market Sub-Fund (min) |
35% |
40% |
10% |
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| c. Conservative Allocation Scheme |
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Conservative Allocation Scheme offers a conservative mix between
equity and fixed income instruments investing primarily in APF –
Debt Sub-Fund and APF – Money Market Sub-Fund with a small
allocation in the APF – Equity Sub-Fund seeking total return
with more focus on capital preservation. Participants
with lower tolerance for risk and/or medium to short time horizon
may prefer this option. Conservative Allocation Scheme shall be
allocated between the Sub-Funds
as follows:
APF - Equity Sub-Fund (min) |
APF - Debt Sub-Fund (min) |
APF - Money Market Sub-Fund (min) |
10% |
60% |
15% |
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| d. Very Conservative Allocation Scheme |
Very Conservative Allocation Scheme invests solely in fixed income
instruments with no allocation in equity securities, by offering
a mix between APF – Debt Sub-Fund and APF – Money Market
Sub-Fund seeking regular income along with capital preservation.
Participants with
very low tolerance for risk and/or short time horizon may prefer
this option. Very Conservative Allocation Scheme shall be allocated
between the Sub-Funds
as follows:
APF - Equity Sub-Fund (min) |
APF - Debt Sub-Fund (min) |
APF - Money Market Sub-Fund (min) |
Nil |
40% |
40% |
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| e. Lifecycle Allocation Scheme |
Lifecycle Allocation Scheme allocates between the equity and
fixed income instruments through investments in APF - Equity Sub-Fund,
APF - Debt Sub-Fund and APF - Money Market Sub-Fund, varying allocations
between the Sub-Funds in accordance with the age of the Participant
and risk tolerance capability of that Participant as assessed by
the risk assessment form, moving from a higher percentage in equities
in the younger years to a lower percentage in equities during the
older years to reduce the risk near retirement age, seeking capital
growth during the early years and capital preservation towards the
later years in the Participant's life cycle. Participants wanting
a systematic approach to allocating their Contributions may prefer
this option. Lifecycle Allocation Scheme shall be allocated between
the Sub-Funds as follows:
| (i) Lifecycle Allocation Scheme for Participants
with high tolerance for risk |
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Age of Participant |
APF - Equity Sub-Fund
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APF - Debt Sub-Fund
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APF - Money Market
Sub-Fund |
| 18-30 (Yrs) |
80% |
20% |
Nil |
| 31-40 (Yrs) |
70% |
30% |
Nil |
| 41-50 (Yrs) |
50% |
40% |
10% |
| 51-60 (Yrs) |
25% |
45% |
30% |
| 60 & above (Yrs) |
15% |
40% |
45% |
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| (ii) Lifecycle Allocation Scheme for Participants
with moderate tolerance for risk |
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Age of Participant |
APF - Equity Sub-Fund
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APF - Debt Sub-Fund
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APF - Money Market
Sub-Fund |
| 18-30 (Yrs) |
70% |
30% |
Nil |
| 31-40 (Yrs) |
60% |
40% |
Nil |
| 41-50 (Yrs) |
40% |
50% |
10% |
| 51-60 (Yrs) |
20% |
50% |
30% |
| 60 & above (Yrs) |
5% |
45% |
50% |
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| (iii) Lifecycle Allocation Scheme for
Participants with low tolerance for risk |
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Age of Participant |
APF - Equity Sub-Fund
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APF - Debt Sub-Fund
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APF - Money Market
Sub-Fund |
| 18-30 (Yrs) |
60% |
40% |
Nil |
| 31-40 (Yrs) |
50% |
50% |
Nil |
| 41-50 (Yrs) |
30% |
60% |
10% |
| 51-60 (Yrs) |
10% |
55% |
35% |
| 60 & above (Yrs) |
Nil |
40% |
60% |
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f. Customized Allocation Scheme |
Customized Allocation Scheme offers a personalized investment
between the equity and fixed income instruments through investments
in APF - Equity Sub-Fund, APF - Debt Sub-Fund and APF - Money Market
Sub-Fund, varying allocations between the Sub-Funds as selected
keeping in consideration that Participant's risk/return profile,
incorporating both the person's ability and willingness to take
risk, as determined by the risk assessment form and discussed in
detail with the Participant.
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APF - Equity Sub-Fund
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APF - Debt Sub-Fund
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APF - Money Market
Sub-Fund |
Total (between three Sub-Funds) |
0-80% |
20-75% |
0-60% |
100% |
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| Note: This allocation scheme should only be selected by
Participants who have an awareness of the various risks associated
with investing in a particular assets class and capable of making
an informed investment decision after reviewing their risk/return
requirements. |
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| Important Note: |
- The Contributions received from any Participant
shall be allocated amongst the Sub-Funds
in accordance with the Allocation Scheme selected by the Participant.
The Participant
shall have the option to allocate the remaining 15% between the
three Sub-Funds
ensuring that at least the minimum percentages in each Sub-Fund
are met. In the event that the Participant
does not make the allocation, the Pension Fund Manager at its
discretion shall allocate the remaining 15% between the three
Sub-Funds as
they deem appropriate.
- The Participant
has the option to select any one from the Allocation
Schemes or products being offered by the Pension Fund Manager
at the date of opening his/her Individual
Pension Account. The Participant may change the Allocation
Scheme once a year thereafter. Notice for the change in Allocation
Scheme must be sent by the Participant
in writing or in such other form as may be acceptable to the Pension
Fund Manager.
- In the event that the Participant
does not select any Allocation Scheme/ product, the Pension Fund
Manager shall allocate the Contribution to either the Conservative
Allocation Scheme or the Very Conservative Allocation Scheme,
as deemed fit.
- When selecting an Allocation Scheme for allocation of the Contribution,
Participants
must assess and keep into consideration their ability to take
the risks associated with financial market investment as well
as their time horizon for investment and only then allocate accordingly.
The objective of the Atlas Pension Fund and the various Allocation
Schemes offered under it is to hedge risk by proactively investing
within any one or combination of various Sub-Fund(s)
to safeguard investments against volatility in any one asset class.
Nonetheless, capital invested in the financial markets could in
extreme circumstances lose its entire value. However, diversification
of the investment into a number of equity and debt securities
tends to reduce the risk substantially. The historical performance
of the Sub-Fund(s),
the financial markets or that of any one security or transaction
included in the Sub-Fund(s)’s portfolio does not necessarily
indicate future performance. Prices of Units of the Sub-Fund(s)
and income from them may go down as well as up.
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