12-11-2002: Unit trust body aims for 40% of KLSE’s market cap
By Jimmy Yeow, 4.35pm


The Federation of Malaysian Unit Trust Managers (FMUTM) has set a target of 40 per cent of the Kuala Lumpur Stock Exchange capitalisation for its members’ schemes by 2020.

FMUTM president Datuk Abdul Azim Mohd Zabidi said on Nov 12 that the target of 40 per cent market capitalisation was ambitious but not impossible as the unit trust industry already accounted for more than 10 per cent of market capitalisation.

“The 40 per cent target is not impossible. My belief is premised on the fact that the unit trust industry performance on a one-year, three-year and five-year time horizons have been impressive if compared to other forms of savings,” he said.

Speaking at “The unit trust beyond 2002” seminar, Abdul Azim, who is also Bank Simpanan Nasional Bhd chairman, said the industry should achieve 15.5 per cent annual compounded growth rate in net asset value, against 13.5 per cent in the past decade.

As at June 30, 2002, he said there were 37 unit trust management companies collectively managing 168 funds and a combined net asset value of RM53.1 billion or just above 10 per cent of the KLSE capitalisation.

To ensure the success of the unit trust industry, he reiterated the players should focus on three key areas -- winning investors’ trust and confidence, embracing changes and challenges as opportunities as well as promoting the industry and profession.