Unit Trust Companies in Malaysia

A unit trust company in Malaysia is a company that is licensed by the Securities Commission to operate a unit trust scheme. A unit trust scheme is an investment scheme where investors pool their money together to invest in a portfolio of securities, such as stocks, bonds and money market instruments. The returns from the investments are then distributed to the investors according to their units in the trust.

Unit trust companies in Malaysia are required to comply with the Unit Trust Management Companies Act, which sets out the rules and regulations governing the operation of unit trust schemes. The Securities Commission is the regulatory body responsible for supervising and enforcing the Act.

Unit trust companies must appoint a trustee to manage the unit trust scheme. The trustee is responsible for ensuring that the scheme is operated in accordance with the Act and the trust deed. The trustee is also responsible for investing the funds of the scheme in accordance with the investment objectives and policies set out in the trust deed.

Unit trust schemes in Malaysia are classified into two types: retail schemes and institutional schemes. Retail schemes are open to the public and are typically marketed to individual investors. Institutional schemes, on the other hand, are only open to institutional investors, such as banks, insurance companies and pension funds.

Unit trust companies must