18-09-2003: Unit trust industry expects SC review of rules
By Michelle Kuan, 2.18pm

The Federation of Malaysian Unit Trust Managers (FMUTM) expects the Securities Commission to review some guidelines for unit trust funds under the Capital Market Masterplan, among which allows foreign players to enter the industry by 2005.

FMUTM president Datuk Abdul Azim Mohd Zabidi said on Sept 18 "there are a lot of things to be done first" before the industry is opened to foreign players.

"One of the things which must be in place is to allow local players to go overseas. Unless these are sorted out, I don't think we should be opening up in 2005," he told reporters after the annual convention of unit trust consultants.

He added the federation had in July submitted a paper to the SC stating there should be certain preconditions in place before allowing foreign players to come in.

Azim said the unit trust industry was in a state of good health and expected it to be more popular as an alternative investment vehicle during the prevailing low interest rate regime.

As at June 30, 2003, there were 38 unit trust management companies managing 208 approved funds. The combined net asset value of the funds was RM63.48 billion, or 11.92 per cent of the KLSE market capitalisation.