Unit Trust or Mutual Fund in Malaysia?
Unit trust is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual unit holders instead of reinvesting them back into the fund. The investment fund is set up under a Trust Deed.
A unit trust, also called a mutual fund, pools money together from a large number of investors to buy stocks, bonds and other securities. ... Typically, investors can only invest into a fund through the management company, though some sale charges can also buy shares in these funds for their customers.
Mutual funds are investment schemes, very similar to unit trust, found in the United States and a few other countries. Though there are three different types of mutual funds i.e. open-ended, unit investment trust, and closed-ended, the most common is the open-ended fund. They work on the same principle as a unit trust. So we can say that it is similar but not quite the same.
In Malaysia, FIMM (Federation of Investment Managers Malaysia) play a very important role in unit trust industry.
The core function of FIMM as an SRO is to provide investor protection. FIMM is committed to growing the unit trust and PRS (Private Retirement Scheme) industry by ensuring a high quality of governance, a system of accountability, fair treatment of investors, and professionalism.
Unit trust is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual unit holders instead of reinvesting them back into the fund. The investment fund is set up under a Trust Deed.
A unit trust, also called a mutual fund, pools money together from a large number of investors to buy stocks, bonds and other securities. ... Typically, investors can only invest into a fund through the management company, though some sale charges can also buy shares in these funds for their customers.
Mutual funds are investment schemes, very similar to unit trust, found in the United States and a few other countries. Though there are three different types of mutual funds i.e. open-ended, unit investment trust, and closed-ended, the most common is the open-ended fund. They work on the same principle as a unit trust. So we can say that it is similar but not quite the same.
In Malaysia, FIMM (Federation of Investment Managers Malaysia) play a very important role in unit trust industry.
The core function of FIMM as an SRO is to provide investor protection. FIMM is committed to growing the unit trust and PRS (Private Retirement Scheme) industry by ensuring a high quality of governance, a system of accountability, fair treatment of investors, and professionalism.
The Federation of Investment Managers Malaysia (FIMM) was recognised by the Securities Commission (SC) Malaysia as a self-regulatory organisation (SRO) via a gazette order on 20 January 2011. This empowered FIMM to regulate its own members. With this new mandate, FIMM will play a larger role in ensuring that the unit trust industry continues to grow, at the same time making certain that investors’ and the public’s interests remain as its main priority.
FIMM started as the Federation of Malaysian Unit Trust Managers (FMUTM) on 7 August 1993. As at 6 September 2012, FIMM has 42 members; all unit trust management companies (UTMCs) are members of FIMM, which acts as a common platform for discussing issues related to unit trusts and Private Retirement Scheme industry. The recognition of FIMM as an SRO, is a significant milestone in its history as it will play a dual role of an industry body and public interest body, while advocating the growth of the Unit Trusts and Private Retirement Schemes (PRS) in Malaysia.
As an industry player, FIMM is in a better position to understand and respond quickly to changing market conditions and the needs of the industry that will ensure the sustainable growth of the industry. FIMM’s mission is to build the highest level of trust, integrity, standards and ethics for investor security, growth and knowledge in the investment management industry. Aligning this capability with the protection of public interests by incorporating values of ethical behaviour and integrity in its regulations, the result is an industry ingrained with a business culture necessary to maintain public confidence.
As at May 2018, there are 64,406 qualified UTC (Unit Trust Consultant) and 36 UTMC (Unit Trust Management Companies) in the market.
A qualified UTC (Unit Trust Consultant)
Any person who meets the following requirements is eligible to register as a Unit Trust Scheme Consultant (UTS Consultant):
- Must be 21 years old or above;
- Must obtain credits in any three (3) subjects in SPM or equivalent or academic qualitification (s) higher than SPM;
- Must be fit and proper;
- The person must sign a statutory declaration attesting to the above attributes and must not be in breach of the signed statutory declaration at all times.
- Upon satisfying the requirements, the person must pass the Computerised Unit Trust Examination (CUTE) before being authorised to market and distribute UTS. A person who does not satisfy the basic requirements will not be registered to sit for the CUTE.
* sources from www.fimm.com.my
Unit Trust Consultant has to fulfill all the compliance set by FIMM and 16 CPD hours every year.
The above are the summary about unit trust industry in Malaysia.
To choose a unit trust consultant, you need to have the 100% trust on the UTC, that's why "You Need Trust"
A good UTC means he / she is experienced, capable, never get emotion on the market volatile, always listen to investor's need, can give advice to investors on their unit trust portfolio, able to plan well for the investor according to their need, fully utilize unit trust company (UTMC) benefits and campaigns to investors.
As an investor, you need to have 100% fully trust on your UTC. So the UTC can perform their job well to fulfill your financial goal.
Unit Trust , You Need Trust!
Comments
Post a Comment