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.

1. Fund’s cumulative total return
Total rise in the value of a fund’s investments over time, assuming that income and capital gains distributions were reinvested.

2. 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%.


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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 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 Period from 1980 to 1990
The Period from 1991 to 1999
The Period from 2000 to current


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Unit Trust Management Company - UOB Asset Management (Malaysia) Berhad

Unit Trust Management Company - UOB Asset Management (Malaysia) Berhad

UOB Asset Management (Malaysia) Berhad (“UOBAM(M)”)is built on a strong foundation of investment capabilities, grounded in rigorous and extensive research. UOBAM(M) has held the Capital Markets and Services Licence for fund management in Malaysia under the Capital Market and Services Act since January 1997. In January 2014, UOBAM (M) obtained approval from the Securities Commission of Malaysia to deal in securities restricted to unit trust products. UOBAM(M) has more than 20 years of experience in providing fund management and fund advisory services for both institutional and retail clients.


As a subsidiary of the UOB Asset Management Ltd headquartered in Singapore which has a strong regional presence in markets that include Thailand, Brunei, Taiwan, Japan, China, India, Vietnam, Indonesia and South Korea, via local offices, joint ventures and alliances, we enjoy a strong regional integration which grants us in-depth knowledge and first hand insights in an ever-changing environment.

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Source from:

https://www.uobam.com.my

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Unit Trust Management Company - RHB Asset Management Sdn Bhd

Unit Trust Management Company - RHB Asset Management Sdn Bhd

RHB Asset Management Sdn Bhd (“RHBAM”) is a wholly-owned subsidiary of RHB Investment Bank Berhad. RHB Group Asset Management enjoys a significant presence in the ASEAN and Greater China region, with offices in Malaysia, Hong Kong, Indonesia, and Singapore where we offer customers close to 30 years’ worth of expertise and knowledge in asset management. In Malaysia, RHB Group Asset Management remains as one of the top 3 fund management companies in terms of total Assets Under Management (“AUM”), offering conventional and Islamic products.

Source from:

https://www.rhbgroup.com/malaysia

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Factors to consider before investing Unit Trusts

Before investing in unit trust funds, you should carefully consider the following:

• Investment objectives of the fund;
• Investment policies and strategies;
• Size of fund and growth trends;
• Investment restrictions, e.g. ethical and religious considerations;
• Potential risks;
• Types and amount of fees charged, such as initial sales / service charges, exit fees, switching fees and annual management fee;
• Historical performance, particularly on price appreciation and distribution of income to investors though past performance is not an indication of its future performance;
• Latest investment portfolios and asset allocations of the fund; and
• Information on the board of directors, key management team, advisors, auditors and trustees.

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Ways to invest in Unit Trusts

Unit Trusts enable investors to diversify their investments into different markets and investment instruments such as equities, bonds, securities, currencies and warrants/derivatives.

There are generally 3 ways to invest in unit trusts funds:-

1. Cash or Lump Sum Investments
2. Regular Savings
3. EPF Members Investment Scheme

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Shariah-compliant funds

Shariah-compliant funds are investment funds governed by the requirements of Shariah law and the principles of the Muslim religion. Shariah-compliant funds are considered to be a type of socially responsible investing.

The main objective of Shariah-compliant investments is to provide an avenue for investors who are sensitive to Shariah requirements on their investments. A Shariah-compliant investment should be free from activities prohibited by Islam such as usury (riba), gambling (maisir) and ambiguity (gharar).

It should also exclude investments in companies or sectors primarily involved in Shariah non-compliant activities such as products or services related to conventional banking, conventional insurance, gambling, alcoholic beverages and non-halal food products.

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