Google My BLOG


CIMB EGF declares 5 sen per unit income  

Wednesday, 20 February 2008

CIMB EGF declares 5 sen per unit income

KUALA LUMPUR: CIMB Wealth Advisors Bhd has declared a gross income distribution of five sen per unit for holders of its CIMB-Principal Equity Growth Fund (EGF).
“This amounts to 6.15% of the fund's net asset value per unit as at Jan 22, 2008,” said CIMB Group in a statement.
The fund provides long-term capital growth, and invests a minimum of 70% in equities with capital growth prospects. – Bernama

Source : Tuesday February 19, 2008

AddThis Social Bookmark Button

Making a debut - Equity-linked structures to be listed on Bursa after festivities  

Making a debut
Equity-linked structures to be listed on Bursa after festivities

BURSA Malaysia will see the debut of equity linked instruments when the Bull ELS (Equity-Linked Structures) of Sime Darby (Sime-SA) and IOI Corp (IOICorp-SA), both issued by CIMB, are listed (as scheduled) right after the Chinese New Year holidays.
Contrary to the term Bull ELS, these securities do not benefit much from a rally in the share price of the underlying securities.
In fact, investors of such instruments would hope for the underlying share price to remain neutral or come off slightly from the spot price during the tenure of the ELS.
Bull ELS is also known as Discount Certificate, a more appropriate name, in some jurisdictions.
When subscribing for Bull ELS, investors have a chance to own the underlying share at a discount to the spot price. Spot price is the underlying share price on price fixing date.
In the case of Sime-SA, subscribers have a chance to own Sime shares at a 5% discount (RM11.21, the exercise price) from the share price of RM11.80 on price fixing date.
Subscribers would in fact pay only RM11.107, the issue price.
However, investors in Sime-SA would only be able to own Sime shares if the closing share price of Sime the day before expiry date (March 5 2008) is below the exercise price.
Otherwise, Sime-SA holders will receive a cash settlement amount equivalent to the exercise price of RM11.21 less exercise expenses.
Subscribers of Sime-SA at issue price therefore give up the upside of the underlying share price for a maximum gain of RM0.103 or 0.927% over the 35 days period of the ELS.
This works out to an annualised yield of 9.67%.
However, Sime-SA holders have to assume the downside risks of the underlying share if the share price drops below the exercise price on expiry.
Sime-SA in some way is an opposite product of the underlying share’s structured call warrants. If an investor buys into a call warrant of Sime, he will enjoy unlimited upside and limited downside of the share price.
An investor of Sime-SA will however have a limited upside and downside which is similar to the underlying share.
For IOICorp-SA, initial subscribers have a chance to own IOI Corp shares also at a 5% discount from the share price of RM7.30 on price fixing date.
However, investors will only receive IOI Corp shares on settlement date if the closing share price on March 4, 2008 is below RM6.935.
If IOI Corp share price is equal or above RM6.935, IOICorp-SA will receive cash settlement price of RM6.935. For investors who managed to get IOICorp-SA during the private placement prior to listing, this represents a yield of 1.122% over 35 days.
Nevertheless, IOICorp-SA holders will also face downside risk similar to shareholders if the share price drops more than 5%.
Subscribers of IOICorp-SA have a slightly better yield of 1.122% compared with Sime-SA.
This may be due to the issuers having a higher implied volatility for IOI Corporation as compared with Sime.
As both the share prices of IOI Corp and Sime are now above the spot prices on price fixing date, Sime-SA and IOICorp-SA are expected to be quoted above the issue price on listing date if the underlying share prices remain firm.
However, it will not be logical to buy these Bull ELS at issue price or above from the market.
This is because the maximum yield of Sime-SA and IOICorp-SA are only 0.927% and 1.122% respectively based on the issue prices.
As the brokerage fees for retail purchase is already 0.6% to 0.7%, buying these Bull ELS at one bid higher than issue price will probably make these investment not profitable at all.
The only reasonable way to play listed Bull ELS is to buy it after the underlying share price suffers a big drop below the exercise price and trading at significant discount to the underlying share.
But if the issuer is active in making market, such scenario is not likely to occur.
After all, warrants issuers like CIMB are just trying to hedge some of the call warrants risks they carry by transferring them to Bull ELS buyers.
Alan Voon of Warrants Capital Sdn Bhd can be reached at

Source : Saturday February 9, 2008

AddThis Social Bookmark Button

Designing a wealth distribution plan  

Designing a wealth distribution plan

Many may find wealth distribution a difficult process, so one tends to procrastinate or find convenient ways to distribute wealth without giving due consideration to the objectives. In this final article in the series, CIMB Private Banking and CIMB Trustee Services provide an insight on how a well-structured plan can ensure that the family wealth will be enjoyed for generations.
A FEW weeks ago, Barron Hilton, 80, announced that he would give away a staggering 97% of his wealth of US$2.3bil to charity, thus leaving 3% to be shared among his heirs.
The press had a field day with reports that Paris Hilton, one of the heirs to the Hilton fortune, who stood to inherit an estimated US$100mil, will now receive only about US$5mil.
Of course, US$5mil is not a small sum of inheritance. However, for those who have never been trained to handle money or never had to earn a living, they will struggle at managing such a small fortune.
The great debate was on whether Grandpa Hilton had planned too much too late. If he had made his plans earlier, would we have had the chance of being entertained by the notoriety of young Paris?
This is one of the dilemmas which parents constantly worry about when faced with questions about their wealth distribution: “If I let my children know too much, or if my children realise how much we have, will it destroy their motivation to make something of themselves?”

Paris Hilton will only receive US$5mil from grandfather Barron HiltonThe steps to achieving a suitable wealth distribution plan need not be difficult or arduous. The easiest part of the planning process is to determine which wealth distribution tools are suitable.
Generally, it is best to consider the use of a trust together with a will for a complete wealth distribution structure
A will is a basic necessity to ensure that the order of probate can be granted without any delays, and also to enable one to decide and state how his wealth is to be distributed.
However, in order to create a legacy and to enable systematic distribution to the next generation, it is also important to consider the use of a trust.
Trusts are commonly used by families for the preservation of wealth and to ensure that young children are taken care of.
The benefits of a trust include the ability for family members to receive immediate access to funds for emergency purposes after the death of the founder.
However, more importantly, as a legacy-planning tool, trusts can be used to delay distributions until the children are old enough to handle the wealth.

Considerations when designing a wealth distribution plan
Once the distribution tools are chosen, one needs to set out the wealth objectives and determine the structure while giving consideration to the interconnecting family dynamics.
In setting out the objectives, it is best to consider whether to create a legacy asset, or whether to merely address the issues of additional protection and systematic distribution for the children who may still be young.
It is also important to consider whether the objective of the distribution to the next generation is merely to provide them with a head start in life or to provide them with a piggy bank which can be drawn upon at any time.
Once the objectives have been determined, the next stage is to understand one’s own wealth structure and the asset classes owned.
For example, if the fixed deposit account is held in joint names, then the surviving account holder will automatically inherit the deposit, without the need to address this in the will.
As mentioned in the previous article, many choose to undertake this route of using joint accounts for convenience without due consideration as to whether this forms part of the bigger wealth distribution plan.
If the founder has a family business, he will have to address several issues – how the shares of the existing family company are legally held, and whether they are held by the founder and his spouse or whether there are minority shareholders that are made up of non-family members such as business partners.
Without the understanding of these circumstances, one ends up planning in a vacuum and can create problems for future heirs or even business partners.
If the bulk of the assets held by the founder are liquid assets, they are generally considered easier to divide and distribute, whereas real properties and family businesses are not that straightforward.
It is important to have liquid assets, which can be tapped into by family members for any emergency in the case of the sudden death of the decision-maker. However, due to the liquidity, such assets can be dissipated quickly if not structured properly.
Finally, after laying down the objectives and understanding how the assets are legally owned, the next phase is to consider the various factors which will determine the distribution plan for these assets.
The age of the beneficiaries is always an important factor when considering the distribution of assets to one’s family members.
One of the constant dilemmas which parents face is deciding when is the right time to distribute as they may end up distributing to their children either too early or too late.
In determining when the heirs should inherit, one should consider other factors such as how wealth can impact characters of the beneficiaries and how their motivation may be affected, as well as how to then maintain their values through a properly structured plan.
The other main factor to consider is which assets to distribute to the heirs.
All parents plan to be fair to their children. Some will just divide the assets equally and ensure that all children receive equal shares of what they own.
However, this may not always be the best plan.
Take this scenario: If a person owns a family business, 15 properties and some liquid assets, the easiest and most convenient plan for a person is to divide all the assets into three equal shares for his three children. This may not be a bad plan if the situation warrants it.
However, a situation may arise where one of his children is an artist and is not business savvy, one is a doctor, and only the last child is directly involved in the family business. In this scenario, it may be difficult to slice the family business into three equal slices.
For the child who is an artist and not involved in the family business, it may be a burden to him to be involved in a business which he does not understand. The properties, on the other hand, are simpler to deal with.
Conventional wisdom states that each child should inherit different properties so as to avoid any future disputes amongst the siblings.
Contrary to conventional wisdom, however, dividing the properties into three equal parts with each child owning one-third of each property may not be a bad distribution plan either.
The family dynamics which comes into play here may be the driving factor, especially if the three children are on good terms and where the more financially and business-savvy child would be in a better position to take care of the interests of his less savvy siblings. That is, of course, if the family dynamics warrant it.
This, however, may not be a long-term plan as the children may have their own families and interests, which may at times conflict with the interests of their siblings or their siblings’ family.
As such, a longer term plan, especially if these property assets are considered as prime assets and forms the bulk of the family’s wealth, it may be more suitable to consider holding these assets in a family trust.
The dilemmas for those who have managed to acquire wealth can be deeply worrisome, especially in wanting to preserve and enhance their hard-earned wealth and balancing that with preserving the family’s harmony and unity for future generations.
In creating a legacy and preparing subsequent generations to be responsible stewards of wealth, it is therefore important to plan early, and avoid choosing easy options of wealth distribution purely for convenience.

CIMB Private Banking provides a wide spectrum of wealth management services, including wealth structuring and trust services through CIMB Trustee Services.

Source : Thursday February 7, 2008

AddThis Social Bookmark Button

CIMB Investment unveils first Bull ELS warrant  

CIMB Investment unveils first Bull ELS warrant

KUALA LUMPUR: CIMB Investment Bank Bhd has launched Malaysia's first listed Bull equity-linked structure (Bull ELS), a short-term structured warrant allowing investors to purchase underlying shares at a discounted price.

CIMB Investment equity derivatives director Lim Jong Hau said the Bull ELS would be listed on the call warrants board of Bursa Malaysia and issued on shares of plantation giants Sime Darby Bhd and IOI Corp Bhd.

“We are focusing on stocks of Sime Darby and IOI Corp because there is a bullish sentiment on the plantation sectors at this point in time,” Lim told reporters at the launch of Bull ELS yesterday.

He said the warrants would be issued on up to 20 million shares each from Sime Darby and IOI Corp.

Lim Jong Hau
“The Bull ELS would be set at a 5% discount to the share price of Sime Darby and IOI Corp,” he said.

The exercise and subscription prices of the Bull ELS were determined at the close of the first trading session at 12.30pm yesterday and would be fixed during the entire duration of the offer, which expires on March 5.

According to Lim, investors' return at maturity would depend on the performance of the underlying shares at the expiry date of the Bull ELS.

“If the closing price of the shares is at or above the exercise price, investors would receive a cash settlement comprising their subscription amount with interest.

“However, if the closing price is below the exercise price, investors would receive the number of underlying shares equivalent to the number of Bull ELS held,” he added.

Shares in Sime Darby and IOI Corp closed at RM11.80 and RM7.30 at the end of the first session yesterday.

A CIMB statement said the exercise price of the Bull ELS for Sime Darby and IOI Corp was set at RM11.210 and RM6.935 respectively.

The subscription price was set at RM11.107 and RM6.858 respectively, representing a respective yield to maturity of 9.68% and 11.71%.

The Bull ELS is scheduled to be listed on Feb 14.

Source : Wednesday January 30, 2008

AddThis Social Bookmark Button

CIMB-Principal eyes potential in Mid East and North Africa  

CIMB-Principal eyes potential in Mid East and North Africa

KUALA LUMPUR: CIMB-Principal Asset Management Bhd sees good investment opportunites in the Middle East and North Africa. Chief executive Datuk Noripah Kamso said: “We want to give Malaysian investors the opportunity to invest in these markets, which have usually been overlooked.

“They have great potential partly because of their encouraging economic growth, low correlation to world markets and attractive valuations,'' she told a press conference.

Societe Generale Asset Management fund manager (emerging market equities) Mark Krombas said: “Economies in these markets grew more than 5% in each of the past three years and their real gross domestic product (GDP) expanded 6.3% in 2006, one of the region's best years since the 1970s.

“On a per capita basis, the region grew at an average of 4.2% in 2006, the highest level recorded in at least two decades, hence providing attractive investment opportunities in these markets,” he said.

According to Krombas, domestic demand would continue to be the dominant force behind the current growth momentum.

Non-oil GDP growth (including agriculture, construction, manufacturing and services) was expected to have risen between 7% and 8% in Qatar, Bahrain and Saudi Arabia in 2007.

There was also strong demand for consumer and financial products as well as real estate, in addition to the upcoming government investment programmes worth US$1.5 trillion (from 2007 to 2011), he added.

Source : Friday January 18, 2008

AddThis Social Bookmark Button

Manager's Price For Jan 14 (CIMB - PRINCIPLE ASSET)  

Monday, 14 January 2008

CIMB-Principal Bond Fund ^


CIMB-Principal Equity Aggressive Fund 3 ^

CIMB-Principal Balanced Fund ^


CIMB-Principal Income Plus Balanced Fund *^0.3273

CIMB Islamic Equity Aggressive Fund ^

CIMB Islamic Balanced Growth Fund ^

CIMB-Principal Xcess Cash Fund ^


CIMB-Principal Institutional Bond Fund ^

CIMB-Principal Strategic Bond Fund ^

CIMB-Principal Small Cap Fund ^


CIMB Islamic Enhanced Sukuk Fund ^

CIMB-Principal Global Titans Fund *^

CIMB-Principal Emerging Asia Fund ^

CIMB-Principal Institutional Bond Fund 2 ^

CIMB Islamic Short Term Sukuk Fund ^

CIMB-Principal Xcess Income Fund ^

CIMB-Principal Multi-Maturity
Income Fund 1 *^


CIMB Islamic Asia Pacific Equity Fund *^

CIMB-Principal Global Asset Spectra Fund *^

CIMB-Principal Global Income Fund *^

CIMB-Principal Treasury Mgmt Fund 1

CIMB-Principal Treasury Mgmt Fund 2

CIMB-Principal Treasury Mgmt Fund 3

CIMB Islamic Kausar Treasury Mgmt Fund 1

CIMB Islamic Kausar Treasury Mgmt Fund 2

CIMB Islamic Kausar Treasury Mgmt Fund 3

CIMB Islamic Structured Growth Fund *

CIMB-Principal Greater China Equity Fund *

CIMB-Principal Lifecycle 2017 *


CIMB-Principal Lifecycle 2022 *


CIMB-Principal Lifecycle 2027 *


CIMB Islamic Kausar Lifecycle 2017 *

CIMB Islamic Kausar Lifecycle 2022 *

CIMB Islamic Kausar Lifecycle 2027 *

CIMB-Principal Asean Equity Fund *

CIMB-Principal Climate Change Equity Fund *0.4351

CIMB-Principal Steady Returns Bond Fund 3 *1.0047

CIMB-Principal Wholesale Equity Fund *

^ The above CIMB-Principal funds have been renamed effective from Jan 3, 2008.
* Price of two preceding business days

AddThis Social Bookmark Button

Manager's Price For Jan 14  


CIMB Islamic Balanced Fund * ^

CIMB Islamic Balanced Income Fund ^

CIMB Islamic DALI Equity Fund * ^

CIMB Islamic DALI Equity Growth Fund ^1.1982

CIMB Islamic Enhanced Index Fund ^

CIMB Islamic Equity Fund * ^


CIMB Islamic Micro Cap Fund ^


CIMB Islamic Small Cap Fund ^


CIMB Islamic Sukuk Fund ^


CIMB-Principal Asian Equity Fund * ^

CIMB-Principal Balanced Growth Fund ^

CIMB-Principal Balanced Income Fund ^

CIMB-Principal Bond Fund 2 ^


CIMB-Principal Equity
Aggressive Fund 1 ^


CIMB-Principal Equity
Aggressive Fund 2 ^


CIMB-Principal Equity Fund ^


CIMB-Principal Equity Fund 2 ^


CIMB-Principal Equity Fund 3 ^


CIMB-Principal Equity Fund 4 ^


CIMB-Principal Equity
Growth & Income Fund * ^


CIMB-Principal Equity Growth Fund * ^

CIMB-Principal Equity Income Fund * ^

CIMB-Principal Global Balanced Fund * ^0.4948

CIMB-Principal Global Growth Fund * ^

CIMB-Principal KLCI-Linked Fund ^

CIMB-Principal KLCI-Linked Fund 2 ^

CIMB-Principal Money Market Fund ^

CIMB-Principal Returns
Guaranteed Fund ^


CIMB-Principal Small Cap Fund 2 ^

^The above CIMB-Wealth Advisors funds have been renamed effective from Jan 3, 2008.
* Price Of 2 preceding business days

AddThis Social Bookmark Button

CIMB ironing out merger plan for Indonesian banks  

KUALA LUMPUR: CIMB group, which is currently conducting a feasibility study on Khazanah Nasional Bhd’s proposed merger of its Indonesian banks, PT Bank Niaga and Lippo Bank, expects to announce “something firm” in the first quarter this year.

Group chief executive Datuk Nazir Razak said details such as the execution process needed to be ironed out.

“The idea (merger) has been agreed on and we have also informed Bank Indonesia. The study shouldn’t take long.

“You will be hearing something from us within the first quarter of this year,” he said after the launch of the CIMB Islamic Dynamic Market Rider NID-i yesterday.

Last month, Khazanah proposed to merge its 93%-owned Lippo Bank with CIMB’s Bank Niaga to comply with Indonesia’s bank ownership rules.

From left: CIMB group treasurer Lee K. Kwan, Datuk Nazir Razak, CIMB Islamic Bank Bhd chief executive officer Badlisyah Abdul Ghani and CIMB Investment Bank senior vice-president and head of structured products and derivatives, balance sheet management Chu Kok Wei at the launch of the CIMB Islamic Dynamic Market Rider NID-i
Indonesia’s Single Presence Policy (SPP) requires those who control two or more banks in the country to merge their banks, sell their stakes or form a holding company for their banks by end-2010.

The policy applies to Khazanah because it owns Lippo Bank and has a 64% indirect stake in Bank Niaga via CIMB group.

Bank Niaga is the seventh largest lender in Indonesia by assets with 247 branches, while Lippo Bank ranks 10th with 151 full-fledged branches and 247 smaller branches.

As at Dec 26, Bank Niaga had a market capitalisation of 10.88 trillion rupiah (RM3.88bil). Its issued and paid-up capital as at Sept 30 stood at 965 billion rupiah. Lippo Bank has a market capitalisation of 8.91 trillion rupiah while its paid-up capital as at Sept 30 totalled 812 billion rupiah.

Nazir said CIMB group was excited about the merger of both banks as this would enlarge the group’s footprint in Indonesia.

To a question, he said the group had always been on the lookout for opportunities and would be looking everywhere for expansion.

The proposed merger of the Indonesian banks at face value was an attractive proposition, he said.

“This proposed merger was even contemplated by previous shareholders of the two banks without the SPP.”

Meanwhile, CIMB Islamic Bank Bhd is targeting at least RM500mil sales from its newly launched structured product.

Nazir said the bank was confident the figure was achievable based on sales of the structured products it launched last year.

“NID-i will offer investors the opportunity to invest in and benefit from highly volatile market conditions and maximise returns,” he added.

NID-i is referenced to a benchmark index, the CIMB Millennium Excess Return Index, which covers the world’s most representative equity indices from Europe, the US, Japan and China and alternative asset classes such as currencies, commodities and real estate.

Source : The Star,

AddThis Social Bookmark Button

CIMB-Principal standardises names of unit trust funds  

KUALA LUMPUR: CIMB-Principal Asset Management Bhd has standardised the names of the unit trust funds within its stable.

All conventional funds now carry the prefix “CIMB-Principal” while its Islamic funds will carry the prefix “CIMB Islamic”.

Previously, some of these funds either carried the prefix “SBB” or did not have prefixes.

Chief executive Datuk Noripah Kamso said in a statement yesterday that the new naming convention ensured consistency and allowed local and regional investors to recognise the group's brand and investment products immediately.

It also creates a distinct brand for CIMB's syariah-compliant funds.

The renaming exercise also applies to funds of its subsidiary CIMB Wealth Advisors Bhd that are being managed by CIMB-Principal.

Source : The Star,

AddThis Social Bookmark Button

CIMB-Principal to up assets to RM26bil  

Thursday, 10 January 2008

KUALA LUMPUR: CIMB-Principal Asset Management Bhd targets to increase its total assets under management to RM26bil by year-end from RM19bil last year, said chief executive Datuk Noripah Kamso.

“We are targeting a growth of 36%,” she said yesterday after the launch of the CIMB Islamic Global Equity Fund, its first syariah-compliant fund.

According to Noripah, CIMB-Principal will launch about 20 conventional and syariah-compliant funds this year to achieve its target.

Raymond Tang (left) and Datuk Noripah Kamso
“We will be issuing 11 funds from our KL office and the balance from our Jakarta office,” she said.

CIMB-Principal has over 60 funds currently.

Chief investment officer Raymond Tang expected returns in excess of 15% per annum within 18 to 24 months for the new fund.

Noripah said the fund would invest in equities in both emerging and developed markets.

“The fund would offer investors a balance that gives investment access to emerging markets and provide them with long-term stability from the strong fundamentals of developed markets,” she said.

The fund will invest 70% to 99% of its net asset value in syariah-compliant equities listed on the stock exchanges in Asia-Pacific, Europe, North and Latin America, she added.

“The fund's broad diversification across these countries would reduce volatility significantly,” she said.

According to Tang, the fund would invest in world-renowned companies such as ExxonMobil, Microsoft, Cisco Systems and Vodafone. Tang assured that not all US-based stocks were severely affected by the subprime and credit crunch issues currently plaguing the US economy.

“Not all equities in the US are doing badly. Companies like Google and Apple recorded 60% to 70% in returns per annum in 2007. There are stocks that still do well despite the issues in the US,” he said.

Principal Global Investors (PGI), a diversified asset management organisation and a member of US-based Principal Financial Group, will manage the fund. PGI is also a shareholder of CIMB.

PGI managed US$306bil in assets as at Sept 30, 2007.

The CIMB Islamic Global Equity Fund has an approved size of 300 million units. The initial selling price per unit is 50 sen with a minimum investment of RM1,000.

Source : The Star,

AddThis Social Bookmark Button

Manager's Price For 9 January 2007  


CIMB Islamic Balanced Fund * ^

CIMB Islamic Balanced Income Fund ^

CIMB Islamic DALI Equity Fund * ^

CIMB Islamic DALI Equity Growth Fund ^1.1845

CIMB Islamic Enhanced Index Fund ^

CIMB Islamic Equity Fund * ^


CIMB Islamic Micro Cap Fund ^


CIMB Islamic Small Cap Fund ^


CIMB Islamic Sukuk Fund ^


CIMB-Principal Asian Equity Fund * ^

CIMB-Principal Balanced Growth Fund ^

CIMB-Principal Balanced Income Fund ^

CIMB-Principal Bond Fund 2 ^


CIMB-Principal Equity Aggressive Fund 1 ^0.9632

CIMB-Principal Equity Aggressive Fund 2 ^0.8558

CIMB-Principal Equity Fund ^


CIMB-Principal Equity Fund 2 ^


CIMB-Principal Equity Fund 3 ^


CIMB-Principal Equity Fund 4 ^


CIMB-Principal Equity
Growth & Income Fund * ^


CIMB-Principal Equity Growth Fund * ^

CIMB-Principal Equity Income Fund * ^

CIMB-Principal Global Balanced Fund * ^0.4974

CIMB-Principal Global Growth Fund * ^

CIMB-Principal KLCI-Linked Fund ^

CIMB-Principal KLCI-Linked Fund 2 ^

CIMB-Principal Money Market Fund ^

CIMB-Principal Returns Guaranteed Fund ^0.5284

CIMB-Principal Small Cap Fund 2 ^

^The above CIMB-Wealth Advisors funds have been renamed effective from Jan 3, 2008.
* Price Of 2 preceding business days

AddThis Social Bookmark Button

Summary of Statistics (3 Months) - Aug 07 to Oct 07.  

Saturday, 5 January 2008

Summary of Statistics (3 Months)

As at Months End
Aug 2007
Sept 2007
Oct 2007
No. of Management Companies*



No. of Approved Funds*
Total Approved Fund Size* (Billion Units)
Units In Circulation* (Billion Units)
No. of Accounts
Total Net Asset Value (NAV) of Fund (RM'Billion)
Bursa Malaysia Market Capitalization (RM'Billion)
% of NAV to Bursa Malaysia Capitalization

*Includes funds approved but not yet launched

Source : Securities Commission

AddThis Social Bookmark Button

Manager's Price for 3 January 2008. (Daily Updates)  


CIMB Islamic Balanced Fund * ^

CIMB Islamic Balanced Income Fund ^

CIMB Islamic DALI Equity Fund * ^

CIMB Islamic DALI Equity Growth Fund ^ 1.1406

CIMB Islamic Enhanced Index Fund ^

CIMB Islamic Equity Fund * ^


CIMB Islamic Micro Cap Fund ^


CIMB Islamic Small Cap Fund ^


CIMB Islamic Sukuk Fund ^


CIMB-Principal Asian Equity Fund * ^

CIMB-Principal Balanced Growth Fund ^

CIMB-Principal Balanced Income Fund ^

CIMB-Principal Bond Fund 2 ^


CIMB-Principal Equity Aggressive Fund 1 ^ 0.9335

CIMB-Principal Equity Aggressive Fund 2 ^ 0.8266

CIMB-Principal Equity Fund ^


CIMB-Principal Equity Fund 2 ^


CIMB-Principal Equity Fund 3 ^


CIMB-Principal Equity Fund 4 ^


CIMB-Principal Equity
Growth & Income Fund * ^


CIMB-Principal Equity Growth Fund * ^

CIMB-Principal Equity Income Fund * ^

CIMB-Principal Global Balanced Fund * ^ 0.5082

CIMB-Principal Global Growth Fund * ^

CIMB-Principal KLCI-Linked Fund ^

CIMB-Principal KLCI-Linked Fund 2 ^

CIMB-Principal Money Market Fund ^

CIMB-Principal Returns Guaranteed Fund ^ 0.5282

CIMB-Principal Small Cap Fund 2 ^
0.8284^ The above CIMB-Wealth Advisors funds have been renamed effective from Jan 3, 2008.

AddThis Social Bookmark Button

The Importance Of Performance  

The Importance Of Performance
Performance data is valuable to chart the progress of your investment. While performance is a key evaluator in identifying a suitable fund, it is not the only factor upon which you should base your decision. It is important to understand that unit trusts do not offer a fixed rate of return: your principal value will fluctuate, and the return on your investment is not guaranteed. The rates of return fluctuate with market conditions, changes of the valuation of the securities a fund invests in, or other factors. For that reason, it is helpful to examine performance over various time periods.

Historical Results
It is important to keep in mind that performance is based on historical results and is not intended to project future performance of a fund. Ensure that the fund's objectives as well as the manager's investment style and strategy are aligned with yours. While yesterday's data is no guarantee of future performance, the long-term track record is a useful barometer of the manager's skill and expertise in managing different market cycles.
When comparing funds, it is best to focus on long-term performance because financial markets (and the economy) tend to go through cycles that can last for several years. For instance, small-company stocks (and funds) will at times outperform large-company stocks (and funds). At other times, the large-company stocks/funds will be the star performers. A common mistake investors make is to constantly "chase" the best-performing funds from the recent past. Unfortunately, last year's "hot" sector of the financial market may be replaced this year by a different sector.
As historical data is never perfect, the additional information paves the way for investors to make more informed investment decisions. They should also remember that a top or winning fund may not necessarily be the most suitable fund for them.
If you are comparing the performance of several funds, be sure that you are making accurate comparisons: compare fund with the same investment objectives and fund policies before looking at the numbers.
The value of investment may fall as well as rise and investors may/may not get back the amount originally invested. Changes in the currency exchange rates may cause the value of the investment to increase or diminish if you are investing in an offshore fund.

Measuring Fund Performance
A unit trust fund's performance can be measured by its total return. A fund's total return is the change in the value of an investment in the fund, taking into account any change in the fund's unit price during the period and assuming the reinvestment of income and capital gains distributions.
Total return is commonly presented in two ways. One is called the fund's cumulative total return, or total rise in the value of a fund's investments over time, assuming that income and capital gains distributions were reinvested. The other is called average annual total return, which is the compounded total return, it would take each year to produce the fund's cumulative total return. Seemingly modest annual returns can be converted, through the power of compounding, into impressive cumulative returns. For example, an average annual total return of 7% would, after ten years, amount to a cumulative total return of 97%.
When evaluating fund performance, a good approach is to compare its total return with the returns of similar funds or with the return of an appropriate market index or benchmark over the same time period. A stock fund should be compared with other similar stock funds - ones that invest in the same type of companies. A bond fund should be compared with bond funds that invest in bonds of similar maturities and credit quality (rating). You can usually find the name of the appropriate market index or benchmark on a fund's prospectus or manager's (annual and semi-annual) report.

Information Ratio
Absolute or total return tells the investor how much the distribution-adjusted net asset value of a fund has changed over a specific period. It only addresses the funds return for a certain period against its peers, without considering its risk.
In contrast, the information ratio is a reward-to-volatility (risk) ratio. It is calculated based on the fund's returns earned in excess of a benchmark such as its peer group average, taking into consideration the fund's risk as measured by the standard deviation in its relative returns over measurement period. The information ratio tells the investor how much better a fund performed in comparison with its peers from the reward/risk point of view.
The information ratio is one of the most important tools used to measure the performance of a fund's portfolio management. It is a straightforward way to evaluate the relative returns that the fund managers achieve, given the relative risk they take on, against a benchmark. All investors, no matter what their aversion to risk is, will obviously seek the highest information ratio possible. The higher the ratio, the more consistent and greater the fund return.

Unit Trust Fund Performance Rankings
Unit trust fund rankings, ratings or other evaluations of fund performance can provide an important way for you to compare your fund's past performance with other funds. Unfortunately, investors often interpret these rankings as recommendations, or even as projections for future performance, which they clearly are not.
Your best protection is being an informed investor. Request prospectus from the funds you are considering and read them carefully to understand their goals, risk factors, performance record and procedures for buying and selling shares.
Professional ranking services, financial magazines and investment newsletters are the most common sources for this information, but there are others -- and not all present the same information or use the same criteria for evaluating funds. As an investor, you should be aware of how these reports differ and how this information can be used by you in making sound investment choices.
Rankings or ratings provide another piece of important information that can be used in the selection of fund investments, but they should not be used as the only basis for your decisions. You still need to do your homework on the funds you are considering. Identify your goals and evaluate a fund's ability to meet your goals within your investment timeframe and at the level of risk you are able to accept.
All performance rankings and ratings show how a fund has performed in the past and is no guarantee that it will continue to do so. Rankings are a good barometer, however, for determining if a fund has been well-managed over the years, or if it has consistently performed in a particular manner.

AddThis Social Bookmark Button

Understanding Fees and Charges  

Understanding Fees and Charges

1.Initial Service Charge
The first cost that an investor incurs in relation to investing in unit trusts is the initial service charge (sometimes called the service, sales, entry, or ‘up front’ charge). This is the cost to an investor investing in unit trusts and it is levied primarily to cover the marketing and distributing units and monitoring his investments by the unit trust consultant for the duration the unit trusts is held.

2.Exit Fee
Sometimes referred as repurchase charge. This fee represents a deduction by the UTMC from the proceeds of disposal of an investor.

3.Annual Management Fee
Management expenses include expense for portfolio management, the manager’s fees, trustee and custody costs, audit fees, administrative charges like printing of annual reports, distribution cheques, postage and other services properly incurred in the administration of the fund. These costs are paid out of the fund’s assets.

AddThis Social Bookmark Button

Understanding Risk  

Understanding Risk
Any investment carries with it an element of risk. Therefore, prior to making any investment, prospective investors should consider the following risk factors:

1.Market Risk
Any purchase of securities will involve an element of risk, As unit trust funds principally invest in listed stocks they may be prone to changing market conditions as a result of global, regional or national economic conditions, governmental policies or political developments. Market uncertainties and fluctuations in the market caused by these uncertainties will affect the net asset value(NAV) of unit trusts which may fall or rise, thus causing the income generated by the fund to fluctuate.

2.Liquidity Risk
The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the fund’s ability to quickly and easily trade at a reasonable price, in and out of positions. Should a fund comprise a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need to sell the security at a discount to its fair value, which eventually affects the fund’s value.

3.Management Risk
Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect the capital invested.

4.Inflation Risk
Ideally the purpose of any investment is to secure returns that are greater that the inflation rate. While a fund will constantly seek to maximize returns and exceed inflation rate, it may occasionally experience losses, which result in returns that will not keep pace with inflation in the short run.

5.Interest Risk
Fixed income securities and bonds are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities and bonds fall and vice versa, thus affecting the NAV of the fund. The general interest rate of the country may affect the value of the investment even if the fund(e.g Syariah Fund) does not invest in interest bearing instruments.

AddThis Social Bookmark Button

Type Of Unit Trust  

1.Equity Funds
An equity unit trust is the most common type of unit trust. The major portion of its assets are generally held in equities or securities of listed companies.
Equity unit trust funds are popular in Malaysia as they provide investors with exposure to the companies listed on Bursa Malaysia. The performance of the units is therefore linked to the performance of Bursa Malaysia. A rising market will normally give rise to an increase in the value of the unit and vice-versa.
There is a wide array of equity unit trusts, available in the market, ranging from funds with higher risk, higher returns to funds with lower risk, lower returns.

Aggressive growth funds
These funds invest generally in companies with higher capital growth potential but with associated higher risk

Index funds
These funds invest in a range of companies that closely match (or “track”) companies comprising a particular index.

International equity funds
These funds invest primarily in overseas share markets.

2.Fixed Income Funds
These funds invest mainly in Malaysian Government Securities, corporate bonds, and money market instruments such as bankers acceptance and fixed deposits. The objective of a fixed income (or bond) funds is usually to provide regular income, with less emphasis on producing capital growth for investors. It is possible, however, for fixed income funds to generate both capital gains and losses during a period of volatile interest rate.

3.Money Market Funds
Money market funds operate in a similar way to a bank account-the unit price is normally set at a fixed amount. Money market funds invest in low risk money market instruments that are in effect short-term deposits(loans) to banks and other-low risk-financial institutions, and in short-term government securities.

4.Real Estate Investment Trusts (REITS)
REITs invest in real properties, usually prominent commercial (office) properties and provide the investor with an opportunity to participate in the property market in a way which is normally impossible to the small time investor. By acquiring units in a listed REITS, however, it is possible to invest a small amount to gain exposure to the property market and have diversification in your portfolio.

5.Exchange Traded Funds (ETF)
ETF is linked unit trust fund whose investment objective is to achieve the same return as a particular market index. ETF often have low expense ratios and can be bought and sold throughout the trading day through a stockbroker, on an exchange.

6.Balanced Funds
Some investors may wish to have an investment in all the major asset classes to reduce the risk of investing in a single asset class. A balanced unit trust fund generally has a portfolio comprising equities, fixed income securities, and cash.

7.Syariah Funds
The main objective of Syariah funds is to provide an alternative avenue for investors sensitive to Syariah requirements. Syariah funds will exclude those companies involved in activities, products or services related to conventional banking, insurance and financial services, gambling, alcoholic beverages and non-halal food products.

AddThis Social Bookmark Button

Benefits Of Unit Trust  

Benefits Of Unit Trust

For an individual to maintain his own portfolio of investments, he needs to keep up to date with market information and sentiments. In today's sophisticated financial markets, this means having to embrace a wide range of information from a plethora of sources. For many individual investors, this is difficult, if not impossible and at times, very frustrating as they attempt to " keep on top " of the information pile.
Investing in unit trusts transfers most of the necessary 'know-how' of investing to those best equipped to handle it - the professional fund managers.There are a number of other substantial benefits of investing in unit trusts that should be noted.

Unit trusts are very affordable. Investors can start with an investment amount as low as RM100.

Rather than concentrating an investment portfolio of one or two investments or shares, a portfolio of market securities can be held. The wider the spread of investments, the less volatile (i.e. variable) the investment returns will be. In simple terms, investment into unit trusts means diversification of risk: "not putting all your eggs in one basket."

Most investors prefer that their investment to be liquid. That is, they can easily buy and sell withour difficulties. Unit trusts provide this benefit, easily bought and sold. An excellent return that cannot be "cashed-in" (i.e. sold) does not necessarily mean a good investment as poor liquidity constitutes an additional risk factor for the investor.

Professional Fund Management
The people managing unit trusts are approved professionals. Their training and background ensures that decision making is structured and according to sound investment principles. In the process, unit trust funds enjoy the depth of knowledge and experience that fund manager can bring. In the long term, it is this expertise that should generate above average investment returns for unit trust investors.

Investment Exposure
For the individual investor, it is sometimes difficult to gain exposure to a particular asset class. For instance, if an investor with RM5,000 wants to gain exposure to the Malaysian property market, global equity markets and the Malaysian bond market, it would be impossible to simultaneously hold a direct investment portfolio in all of these markets. With unit trust investments, it is possible to spread your money around to all of these asset classes at the same time, so that the investor can gain the investment exposure he requires.

Wholesale Investment Costs & Access to Other Asset Classes
When making direct investments in the Bursa malaysia, the investor faces costs and charges that are much higher. With unit trust the economics of the transaction are more favorable i.e. the fees and charges/brokerage etc. per investment ringgit are likely to be less. Because fund managers invest in larger amounts, they are able to get access to wholesale yields and products which are impossible for the individual investor to obtain. For instance, unlike unit trust funds, most individual investors cannot have direct access to the Malaysian Government Security market because, amongst other reasons, the amount of each transaction could run into millions of Ringgit.

The Comfort of Regulation
With the introduction of unit trusts in Malaysia came regulation from various regulators, especially the Securities Commission. The entire range of variables relating to the unit trust industry is governed by various legislations.The sole purpose of such regulations is to protect the interest of the investing public.
Regulations provide investors with a level of comfort that they are investing in a safe investment mechanism.

AddThis Social Bookmark Button

Getting Started With Unit Trust.  

Getting Started

There are four major ways to start investing in unit trusts:

Lump Sum Purchases
This is where an investor has a lump sum to invest into a unit trust. This may be the only investment the investor wishes to make. Over a period of time (3-20 years), the initial investment will increase as distribution and other income is earned by the fund. When redemption or sale of the units take place, the unit-selling price will reflect the accumulation and compounding of capital over the relevant periods. It is this compounding effect over time which makes accumulation type investments, such as unit trusts, so attractive to the investor.
For example, someone who has recently inherited a sum of money may wish to invest the funds into a unit trust and hold it for an extended period to save for some specific purpose. e.g. children's education. At the end of the holding period, the proceeds of the sale of the units will be the initial investment plus the returns on that amount, accumulated over the period.

Regular Savings
Some people invest in unit trusts by making regular (e.g. monthly) contributions to their fund. This is an ideal, disciplined and useful way to accumulate capital for a future need. By making regular contributions over a period of time, the sum accumulated at the end of the period will increase. This is commonly known as dollar cost averaging.
At the end of the period, the redemption (or sale) price of the units held will represent the accumulation of all contributions, plus returns generated from the total contributions since the first purchase was made. The effect is more noticeable the longer the holding and contribution period. This form of savings is the basis of most pension fund accumulation e.g. the Employees Provident Fund.

EPF Transfers
Investors may also invest in unit trust funds through transfers of eligible amounts from his EPF account. EPF members who have savings of at least RM55,000 in account 1, are eligible to withdraw from their EPF savings to invest in unit trusts.

Although an investor may obtain a loan from a financial institution for the purpose of investing in unit trust funds, investors should seek appropriate advice as there are additional risks involved when using borrowings to finance an investment in unit trust funds.

AddThis Social Bookmark Button

What are Unit Trusts ?  

What are Unit Trusts ?

Unit Trusts are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of securities or other assets.
A professional fund manager then invests the pooled funds in a portfolio which may include the asset classes listed below:
Bonds & Deposits
Unit holders do not purchase the securities in the portfolio directly. Ownership of the fund is divided into units of entitlement. As the fund increases or decreases in value, the value of each unit increases or decreases accordingly.The number of units held depends on the unit purchase price at the time of investment and the amount of money invested.
The return on investment of unit holders is usually in the form of income distribution and capital appreciation, derived from the pool of assets supporting the unit trust fund. Each unit earns an equal return, determined by the level of distribution and/or capital appreciation in any one period.
Unit trust investors are typically those with savings to invest, who neither have the time nor the inclination to hold portfolios of direct investments or shares. Rather, they prefer to invest in a secure, reputable investment vehicle which suits their purposes. Unit trusts allow investors to have easy access to a wide range of investment exposures not normally available to them.
As investors seek to maximise returns on their financial resources, unit trusts provide an ideal way for them to gain exposure to investments that, in the long run, should produce returns superior to cash savings and fixed deposit investments.
The cost of these potentially higher returns is of course the risk that accompanies the investment. In the short run, the certainty of investment returns of most unit trust products is less than those offered by fixed deposits. However, in the medium to long term (i.e. 3-20 years), unit trust investments generally provide superior returns at acceptable levels of risk.

AddThis Social Bookmark Button

Pelaburan Melalui Wang KWSP - Bahagian I  

Simpanan KWSP anda menghasilkan dividen yang diperolehi dari aktiviti pelaburan KWSP. Pelaburan KWSP adalah bersifat konservatif untuk melindungi simpanan ahli daripada pasaran yang tidak stabil. Bagaimanapun, KWSP membenarkan ahli yang layak untuk membuat pelaburan mereka sendiri menggunakan sebahagian daripada simpanan KWSP mereka untuk pulangan yang lebih tinggi. Risiko untuk pelaburan seumpama ini adalah lebih tinggi dan ahli mestilah menanggung risiko ini. Ketahui lebih banyak berkaitan skim pelaburan KWSP.

Panduan Pelaburan
Dalam membuat keputusan untuk memanafaatkan Pengeluaran Pelaburan KWSP, anda perlu tahu bahawa anda bertanggungjawab sepenuhnya ke atas pelaburan anda dengan pengurus dana. KWSP tidak akan bertanggungjawab untuk menggantirugi sebarang kerugian daripada pelaburan yang dibuat.
Oleh yang demikian, anda perlu membuat keputusan dengan bijak terutamanya dalam memilih unit amanah yang mana untuk anda melabur. Jika anda tidak bersedia untuk mengambil risiko (berkemungkinan kerugian), adalah lebih baik untuk anda membiarkan sahaja wang anda di dalam KWSP.
Di bawah pengeluaran ini, anda tidak dibenarkan untuk memperoleh syer secara langsung daripada pasaran saham. Semua pelaburan mestilah dibuat melalui pengurus dana yang dilantik oleh Kementerian Kewangan. Anda boleh memilih dari mana-mana pengurus dana yang diluluskan. Senarai terbaru pengurus dana yang diluluskan boleh didapati dari mana-mana pejabat KWSP.
Apabila permohonan ahli telah diproses, KWSP akan memindahkan jumlah simpanan yang dilaburkan terus kepada pengurus dana yang bertanggungjawab dalam tempoh 14 hari selepas permohonan diterima oleh KWSP. Semua risiko pelaburan juga dipindahkan kepada anda secara automatik.
Pelaburan boleh dibuat setiap tiga bulan dari tarikh pemindahan akhir dibuat, tertakluk kepada adanya baki yang ditetapkan di dalam Akaun I (haruslah melebihi RM55,000). <-----Nilai Ini telah dipinda dan akan ditetapkan pada 1 Februari 2008.

Syarat-syarat Pengeluaran
Pengeluaran untuk pelaburan adalah dibenarkan kepada ahli yang mempunyai simpanan tidak kurang daripada RM55,000 (telah dipinda) di dalam Akaun I, dan belum mencapai umur 55 tahun. Untuk ahli yang layak, mereka boleh melaburkan sebahagian daripada simpanan ini di dalam unit amanah melalui pengurus dana luaran yang dilantik oleh Kementerian Kewangan.
Jumlah simpanan yang boleh dilaburkan mestilah tidak kurang daripada RM1,000 dan tidak melebihi 20 peratus dari jumlah simpanan yang melebihi RM50,000 (telah dipinda) di dalam Akaun I.
Pelaburan secara terus adalah tidak dibenarkan. Anda juga tidak dibenarkan membuat pelaburan tambahan menggunakan wang anda sendiri.
Pengeluaran pelaburan boleh dibuat dalam jangka masa tiga bulan daripada tarikh pemindahan terakhir, tertakluk kepada adanya baki yang dikehendaki dalam Akaun I (lebih daripada RM55,000).

Bagaimana Untuk Membuat Pengeluaran?
Sebelum menyerahkan permohonan pengeluaran, anda perlu mendapatkan 'Penyata Caruman Yang Boleh Dilaburkan' daripada mana-mana pejabat KWSP. Untuk mendapatkannya, anda perlu menunjukkan Kad Pengenalan anda di kaunter. Permintaan melalui telefon atau e-mel tidak akan dilayan.
Permintaan anda hanya akan dilayan jika anda layak untuk membuat pengeluaran pelaburan pada masa tersebut. Anda kemudiannya perlu membuka satu akaun pelaburan dengan pengurus dana yang dipilih (melainkan anda sudah ada akaun dengan pengurus dana tersebut).
Dokumen yang diperlukan untuk serahan kepada pengurus dana adalah:
Borang KWSP 9F (AHL) yang telah lengkap diisi;
Penyata Caruman Yang Boleh Dilaburkan; dan
Kad Pengenalan ahli/Kad Pintar atau Kad Pengenalan Polis:
Untuk pemegang Kad Pengenalan Polis, sila kemukakan satu surat daripada Jabatan Polis untuk mengesahkan nombor Kad Pengenalan anda.
Untuk pemegang Kad Pintar, sila kemukakan satu salinan Kad Pintar dengan cap ibu jari kanan dan kiri anda di atas salinan tersebut.
Ruang 'amaun yang dipohon' patut diisi selepas ahli berbincang dengan pengurus dana tentang jumlah yang mahu laburkan dengan syarat amaun tidak melebihi jumlah maksimum yang dibenarkan. Pengurus dana akan mengemukakan Borang KWSP 9F (AHL) yang telah lengkap diisi kepada KWSP untuk diproses.
Adalah penting untuk anda mengisi borang yang betul dengan tepat dan memastikan bahawa semua dokumen sokongan mengikut turutan. Ini bagi mengelakkan kelewatan yang tidak perlu dalam memproses permohonan anda.
Sila ambil perhatian bahawa cap ibu jari diperlukan pada borang permohonan dan salinan MyKad. Anda mestilah menggunakan “thumbprint pad” yang khusus untuk cap ibu jari. Penggunaan bahan-bahan jenis lain seperti inkpad untuk getah setem (rubberstamp) tidak akan diterima oleh KWSP.

Sumber : Federation Of Malaysian Unit Trust Managers

AddThis Social Bookmark Button

History of Unit Trusts In Malaysia  

History of Unit Trusts
Malaysia introduced the unit trust concept relatively early compared to its Asian neighbours, when, in 1959, a unit trust was first established by a company called Malayan Unit Trust Ltd.
The unit trust industry in Malaysia has therefore a history of more than four (4) decades. The development of this industry can be presented in chronological order as follows:

The Development of Unit Trusts
The Formative Years: 1959 -1979

The first two decades in the history of the unit trust industry were characterised by slow growth in the sales of units and a lack of public interest in the new investment product. Only five unit trust management companies were established, with a total of 18 funds introduced over that period. The industry was regulated by several parties including the Registrar of Companies, The Public Trustee of Malaysia, Bank Negara Malaysia and the Ministry of Domestic Trade and Consumer Affairs.
The 1970s also witnessed the emergence of state government sponsored unit trusts, in response to the Federal Government's call to mobilise domestic household savings.
The Period from 1980 to 1990
This period marks the entry of government participation in the Unit Trust Industry and the formation of a Committee to regulate the unit trust industry, called the Informal Committee for Unit Trust Funds, comprising representatives from the Registrar of Companies (ROC), the Public Trustee of Malaysia, Bank Negara Malaysia (BNM) and the Capital Issues Committee (CIC).
The 1980s marked a significant development in the history of the industry when the Skim Amanah Saham Nasional (ASN) was launched by Permodalan Nasional Berhad (PNB) in 1981. Despite only 11 funds being launched during this period, the total units subscribed by the public swelled to an unprecedented level because of the overwhelming response to ASN.
The 1980s also witnessed the emergence of more unit trust management companies, which were subsidiaries of financial institutions. Their participation facilitated the marketing and distribution of unit trusts through bank's branch network which widened investor reach.
The Period from 1991 to 1999
This period witnessed the fastest growth of the unit trust industry in terms of the number of new management companies established, and funds under management. The centralisation of industry regulation, with the establishment of the Securities Commission on 1 March 1993, coupled with the implementation of the Securities Commission (Unit Trust Scheme) Regulations in 1996 and extensive marketing strategies adopted by the ASN and ASB (Amanah Saham Bumiputera), played key roles in making unit trusts household products in Malaysia. Consequently, the total asset value of funds under management grew more than threefold from RM15.72 billion at the end of 1992 to RM59.95 billion at the end of 1996. The period also saw greater product innovation and deregulation of the industry.
Although the pace of growth of local unit trust funds has moderated since the financial crisis of 1997-1998, it has nevertheless maintained its upward trend.
The Period from 2000 to current
In 2005 the unit trust industry experienced another year of strong growth which saw the net asset value of managed funds capitalising 14.2% of Bursa Malaysia’s market at RM98.5 billion at the end of 2005. Further, the liberalisation of overseas investment rules (such as the increase in overseas investment limit from 10% to 30%) by Bank Negara Malaysia has seen unit trust management companies launching numerous offshore funds or realigning investment strategies of domestic funds to invest offshore up to the permitted limit which resulted in the launch of 10 offshore funds with an intended overseas investment exposure of more than 50%. As at the third quarter of 2006 the number of offshore funds with an intended overseas investment exposure of more than 50% is 38 which is clear evidence of the continued interest by the investing public for a better slice of the overseas market.

Source :

AddThis Social Bookmark Button