The changing role of unit trusts in Malaysia: the performance and some management challenges

Abstract

In this paper we examine the changes in the role of units trusts and discuss their implications to management. While the approach to unit trusts has been changed from merely a savings unit to long-term investment vehicles, their performance have been below the market. This is expected to affect the funds' future growth in particular, if the management companies were continually unable to meet the holder's investment objectives. We also attempt to explain the reasons for the sub-par performance by focusing on the capital market as well as resource development in unit trust management companies. Some management and marketing strategies were suggested as well as the trend for future research.