Monday, February 28, 2011

SC to continue seeking avenues for cross border expansion of unit trust industry

KUALA LUMPUR: The Securities Commission has reiterated its commitment to the unit trust industry as it explores avenues to open up markets to facilitate cross border expansion of the industry.

However, Securities Commission chairman Tan Sri Zarinah Anwar said while the SC seeks new avenues, she added it was up to the industry to take up the challenge.

'It really is up to the industry to leverage on the opportunities presented and be prepared to invest both time and resources in penetrating new markets and benefit from early mover advantage,' she said at The Edge-Lipper Awards 2011 on Monday, Feb 28.

Zarinah said opportunities for growth for the Malaysian unit trust industry were not only local, but international.

She added the success of the industry in the domestic market along with the intellectual capital built over the years provided an excellent platform for Malaysian players to launch themselves into the international arena.

Earlier, she said Malaysia's collective investment scheme (CIS) industry which comprises unit trusts, wholesale funds, real estate investment trusts, exchange traded funds and close ended funds grew steadily in 2010 to RM257.81 billion from RM213.39 billion in 2009.

Unit trusts continued to be the largest component of the CIS industry in 2010. The industry has grown five-fold over the last decade.

From a total net asset value (NAV) of RM43.3 billion at the end of 2000, the industry NAV surpassed the RM200 billion mark in the 1st Quarter of 2010 and stood at RM226.8 billion as at the end of December 2010.

Zarinah also said The Edge-Lipper Awards which recognises the "best in its class" and rewards industry excellence, was an important event that the industry looked forward to enthusiastically each year.

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