The Formative Years: 1959 -1979
The first two decades in the history of the unit trust industry were characterized 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 National
Unit Trust (NUT) 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 NUT.
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.
35 Azizi Yahaya, Noordin Yahaya, Rabiatul Adawiyah Binti Mohamad, Jamaludin Ramli,
Yusof Boon, Zurihanmi Zakariya and Mohammed Najib Abd Ghaffar
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 centralization 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 NUT and BUT (Bumiputra Unit Trust), 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 capitalizing 14.2% of Bursa Malaysia’s market at RM98.5 billion at the end of 2005.
Further, the liberalization 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.
As at June 30, 2007, National unit trust Berhad (NUTB) is still the leading management
company in Malaysia unit trust industry in terms of approved fund sizes (more than 77 billion units),
total units in circulation (more than 66 billion units) and total net asset value (more than RM 84
billion). NUTB Unit Trust Funds contribute the major market share of 38.3% in terms of unit in
circulation and 57.4% in terms of total net asset value. However, other management companies are
slowly narrowing the gap especially Public Mutual Berhad which contribute 27.7% in terms of units in
circulation and 15.0% in terms of total net asset value.
Even though National unit trust stills the leading the market, the actual fact is the major
competitors are trying to narrowing the gap and finally grab the leading company. As Public Mutual
Berhad now had been awarded as the number one unit trust company in Malaysia based on the variable
price products. Generally, National unit trust Berhad (NUTB) can be a market leader is because of the
fixed price products where the other management companies do not offer at all. This make National
unit trust Berhad different from other management companies since it has the fixed price products as
well as variable price which this fixed price products or funds are more trustable compared to variable
price products. NUTB is responsible to manage ten types of investment schemes which is Bumiputra
Unit Trust (BUT), National unit trust (NUT), National unit trust (NUT 2), National unit trust 3 and
Vision 2020 Unit Trust.
Tweet
