ID :
164708
Mon, 02/28/2011 - 12:54
Auther :
Shortlink :
https://oananews.org//node/164708
The shortlink copeid
COLLECTIVE INVESTMENT SCHEME INDUSTRY POISED FOR FURTHER GROWTH
KUALA LUMPUR, Feb 28 (Bernama) -- The local Collective Investment Scheme (CIS) industry has further room to expand in future, said Securities Commission Malaysia (SC) Chairman Zarinah Anwar Monday.
The CIS industry comprise unit trusts, wholesale funds, real estate investment trusts, exchange-traded funds and close-ended funds.
"The industry grew steadily in 2010 to RM257.81 billion from RM213.39 billion in 2009. (US$1=RM3.05)
"Unit trusts continue to be the largest component of the CIS industry in 2010, with the industry growing "five-fold over the last decade," she said in a keynote address at The Edge-Lipper Awards 2011 here Monday.
At the end of 2000, total net asset value (NAV) of the industry stood at only RM43.3 billion, and recently, that surpassed the RM200 billion mark in the first quarter of last year and ended 2010 with a NAV of RM226.8 billion.
"Notwithstanding such robust growth over the last couple of years, there is still much room for the unit trust industry to expand," she added.
Citing an example, Zarinah said the equity penetration of unit trusts in the United Kingdom, as at the end of 2009, was over 40 per cent of its domestic market capitalisation.
While in Malaysia, the percentage of total NAV of unit trust funds
against Bursa Securities' market capitalisation, was only 17.8 per cent at the end of last year.
"Opportunities for growth for the Malaysian unit trust industry is not only local but international.
"The success of the industry in the domestic market along with the
intellectual capital that has been built over the years, provides an excellent platform for Malaysian players to launch themselves into the international arena," she said.
However, Zarinah cautioned that unit trust management companies must not forget their duty owed to investors.
"Globally, there have been concerns that competition and commercial goals have caused fund managers to shift their focus from stewardship to salesmanship," she said.
The SC chairman also said stewardship translated into responsibile
investment management and selling, and unit trust management companies must not compromise their obligation of stewardship in their pursuit to manufacture and market products.
Zarinah also said previously, the Securities Commission was exploring the implementation of a framework to reward unit trust management companies which submitted high-quality applications and penalise those which submitted unsatisfactory applications.
Following results of data compiled, she said the SC would engage
unit trust management companies individually to discuss areas for improvement and would immediately return low-quality submissions in future.
"We believe such an approach will help elevate the quality of submissions and the standard of the industry more effectively than a tiering system," she said.
The CIS industry comprise unit trusts, wholesale funds, real estate investment trusts, exchange-traded funds and close-ended funds.
"The industry grew steadily in 2010 to RM257.81 billion from RM213.39 billion in 2009. (US$1=RM3.05)
"Unit trusts continue to be the largest component of the CIS industry in 2010, with the industry growing "five-fold over the last decade," she said in a keynote address at The Edge-Lipper Awards 2011 here Monday.
At the end of 2000, total net asset value (NAV) of the industry stood at only RM43.3 billion, and recently, that surpassed the RM200 billion mark in the first quarter of last year and ended 2010 with a NAV of RM226.8 billion.
"Notwithstanding such robust growth over the last couple of years, there is still much room for the unit trust industry to expand," she added.
Citing an example, Zarinah said the equity penetration of unit trusts in the United Kingdom, as at the end of 2009, was over 40 per cent of its domestic market capitalisation.
While in Malaysia, the percentage of total NAV of unit trust funds
against Bursa Securities' market capitalisation, was only 17.8 per cent at the end of last year.
"Opportunities for growth for the Malaysian unit trust industry is not only local but international.
"The success of the industry in the domestic market along with the
intellectual capital that has been built over the years, provides an excellent platform for Malaysian players to launch themselves into the international arena," she said.
However, Zarinah cautioned that unit trust management companies must not forget their duty owed to investors.
"Globally, there have been concerns that competition and commercial goals have caused fund managers to shift their focus from stewardship to salesmanship," she said.
The SC chairman also said stewardship translated into responsibile
investment management and selling, and unit trust management companies must not compromise their obligation of stewardship in their pursuit to manufacture and market products.
Zarinah also said previously, the Securities Commission was exploring the implementation of a framework to reward unit trust management companies which submitted high-quality applications and penalise those which submitted unsatisfactory applications.
Following results of data compiled, she said the SC would engage
unit trust management companies individually to discuss areas for improvement and would immediately return low-quality submissions in future.
"We believe such an approach will help elevate the quality of submissions and the standard of the industry more effectively than a tiering system," she said.
