Friday, June 4, 2010

SC amends unit trust fund guidelines

KUALA LUMPUR: Investors holding foreign currencies can now invest directly into a class of unit trust funds denominated in that foreign currency as opposed to converting their investment sum into ringgit, the Securities Commission (SC) said on Tuesday, June 1.

This was among some of the changes that the regulator had put into immediate effect following amendments to the Guidelines on Unit Trust Funds (GUTF).

In a statement, the SC said the amendments facilitated a multi-class structure for unit trust funds that would give investors greater flexibility and further promote cross-border offerings of Malaysian unit trusts.

Following the amendments, a single unit trust fund can now offer multiple classes of units over a single investment pool.

Each of these classes of units will have different features, such as the fees and charges imposed and the currency in which it is denominated. Therefore, investors will be able to select the class that matches their preference and investment objective.

"For example, investors may have the choice of paying an upfront fee with lower annual fees or higher annual management fees in lieu of an upfront fee. This enables better matching of the investment preferences for different investor groups," the SC said.

It said the amendments were also envisaged to facilitate the growth of cross-border offerings of Malaysian unit trust funds under the Mutual Recognition Agreements (MRAs) which the SC had signed with the Dubai International Financial Centre and Hong Kong.

More information on the amendments are available on the SC's website.

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