Kuala Lumpur, 1 June 2010

SC amends guidelines to facilitate multi-class structure for unit trust funds

The Securities Commission Malaysia (SC) has amended the Guidelines on Unit Trust Funds (GUTF) to facilitate a multi-class structure for unit trust funds, giving investors more flexibility as well as helping the growth of cross-border offerings of Malaysian unit trusts.

With the amendments, which take effect on 1 June 2010, a single unit trust fund will now be able to offer multiple classes of units over a single investment pool, with each class of units having different features such as the fees and charges imposed and the currency in which it is denominated.

As such, investors will be able to choose the class that best suit their preferences and investment objectives. 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 amendments are also envisaged to facilitate the growth of cross-border offerings of Malaysian unit trust funds under the Mutual Recognition Agreements (MRAs) which the SC has signed with the Dubai International Financial Centre and Hong Kong. Investors holding foreign currencies can now invest directly into a class of units denominated in that foreign currency as opposed to converting their investment sum into Ringgit Malaysia.

Further details of the amendments are available here.