Proven of­fers re­tire­ment prod­uct

Jamaica Gleaner - - BUSINESS - Steven Jack­son Se­nior Busi­ness Re­porter tameka.gor­don@glean­erjm.com busi­ness@glean­erjm.com

PROVEN HAS started to op­er­ate an ap­proved re­tire­ment scheme – ARS – branded Proven Rock.

It’s a new side of the pen­sion mar­ket for the fi­nan­cial firm, which of­fered fund man­age­ment ser­vices for su­per­an­nu­a­tion funds through PWL Tran­si­tion Lim­ited.

“The dif­fer­ence be­tween an ap­proved su­per­an­nu­a­tion fund, which is a group pen­sion plan, and an ap­proved re­tire­ment scheme is that in a group pen­sion plan, only em­ploy­ees of the com­pany can con­trib­ute to the pen­sion plan,” said Chorvelle John­son, CEO of Proven Wealth Lim­ited.

“The ARS, how­ever, al­lows all per­sons who are em­ployed or self-em­ployed and are not con­tribut­ing to a group pen­sion plan to make con­tri­bu­tions to the scheme,” she said.

Proven Rock al­lows sub­scribers to choose in­vest­ments based on their risk pro­file.

“For ev­ery 10 em­ployed Ja­maicans, only one is con­tribut­ing to a pri­vate pen­sion fund or is an ac­tive mem­ber of a re­tire­ment scheme. This is an ab­so­lute quandary. There are cur­rently over one mil­lion em­ployed per­sons in the is­land who are not a part of a pri­vate pen­sion plan. We be­lieve that em­ployed and self-em­ployed Ja­maicans need to ‘think for­ward’ and take the is­sue of re­tire­ment se­ri­ously, and Proven Rock is the ve­hi­cle,” said head of wealth man­age­ment at Proven Wealth, Ryan Reid.

PRI­MARY AD­VAN­TAGE

The pri­mary ad­van­tage of the pooled fund is that it gives mem­bers an op­por­tu­nity to gen­er­ate higher re­turns, with an ap­pro­pri­ate level of risk, in a di­ver­si­fied port­fo­lio of as­sets. Proven of­fers five pooled funds op­tions in which trustees will in­vest mem­bers’ con­tri­bu­tions. These are Proven Fixed In­come Pooled Fund, Proven Eq­uity Pooled Fund, Proven Money Mar­ket Pooled Fund, Proven Bal­anced Pooled Fund, and Proven Di­ver­si­fied Pooled Fund.

“We are say­ing that when you re­tire, why not re­tire wealthy? This to us means the abil­ity to do what­ever it is you so de­sire when you re­tire. It could mean you go back to work, but not be­cause you need to, but be­cause you want to. It means that when un­for­tu­nate things such as ill­ness be­fall you, the con­cern of tak­ing care of med­i­cal ex­penses is nonex­is­tent,” said Reid.

Proven Rock is spon­sored and ad­min­is­tered by Proven Fund Man­agers Lim­ited, ac­cord­ing to the re­lease.

PWL Tran­si­tion Lim­ited con­tin­ues to be a for­mi­da­ble player in pen­sion fund man­age­ment and ad­min­is­tra­tion sec­tor, stated Proven’s 2016 an­nual re­port.

The pri­vate pen­sion fund mar­ket was last val­ued by reg­u­la­tor Fi­nan­cial Ser­vices Com­mis­sion at $407 bil­lion as at March 2016. The most re­cent in­dus­try data seen by Gleaner Busi­ness for re­tire­ment schemes val­ued that sec­tor at more than $17 bil­lion as at Septem­ber 2015.

REID

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