Issues and Investments - 3rd Quarter 2021 | Securities Commission Malaysia

Issues and Investments


ENFORCEMENT ACTIVITIES	2015	2016	2017	2018
Cases referred to Enforcement	22	27	20	16
Investigations initiated (no. of cases)	10	13	8	6
Investigations completed (no. of cases)	13	10	10	12
Persons charged in criminal proceedings	17	17	10	8
Criminal charges laid	220	61	39	14
Persons against whom civil actions initiated	5	2	20	-
Person involved in regulatory settlements	6	2	7	3
Administrative actions	41	37	32	80

Highlights

The total funds to be raised from the proposals approved by the SC in Q3 2021 amounted to RM9.77 billion, all of which via corporate bonds and sukuk.
In Q3 2021, the SC considered 21 submissions in relation to take-overs, mergers an compulsory acquisitions.
The net asset value (NAV) of unit trust funds increased from RM531.8 billion as at 30 June 2021 to RM537.91 billion as at 30 September 2021.

Equities
The total funds to be raised from the proposals approved by the SC in Q3 2021 amounted to RM9.77 billion, all via corporate bonds and sukuk. The financial services sector would raise the largest amount of funds amounting to RM4.5 billion or 46%.
Take-Overs and Mergers
In Q3 2021, the SC considered 21 submissions in relation to take-overs, mergers and compulsory acquisitions comprising the following:

Clearance of 6 take-over offer documents including documents relating to schemes for control and a cash compensation scheme;
Clearance of 6 independent advice circulars including for whitewash exemptions;
2 applications for exemptions from the mandatory offer obligation; and
7 other applications including exemptions from the provisions of the Rules on Take-overs, Mergers and Compulsory Acquisitions (Rules).

The 21 submissions represented an increase of 24% compared with 17 submissions considered in the corresponding quarter last year.

In Q3 2021, the 6 take-over offer documents involved a total offer value of RM4.46 billion, whereby the largest offer was by Seaport Terminal (Johore) Sdn Bhd for MMC Corporation Bhd at RM2.94 billion and represented approximately 66% of the total offer value for Q3 2021. The second largest offer was by Kuala Lumpur Kepong Bhd for IJM Plantations Bhd at RM1.19 billion, representing approximately 27% of the total offer value.

There were 2 privatisation offers in relation to the selective capital reduction and repayment exercises for MMC Corporation Bhd and Amcorp Properties Bhd, which constituted an aggregate of RM3.18 billion in offer value or approximately 71% of the total offer value.

The SC also cleared a cash compensation scheme document to eligible shareholders of Subur Tiasa Holdings Bhd (Subur Tiasa) that was undertaken to address an earlier trigger of the mandatory offer obligation on 20 February 2020, and implemented concurrently with the mandatory take-over offer by Tiong Toh Siong Enterprises Sdn Bhd for Subur Tiasa.

The 2 applications for exemptions from the mandatory offer obligation comprised applications for whitewash exemptions pursuant to proposed acquisitions to diversify business activities and proposed rights issue with warrants exercise, respectively.

Among the 7 other applications considered by the SC in relation to exemptions from the Rules, 3 applications were related to extensions of time sought and 1 application was in relation to the withdrawal of the conditional voluntary take-over offer by AT Engineering Sdn Bhd (a wholly-owned subsidiary of AT Systematization Bhd) of Asdion Bhd

Unit Trust Funds

In Q3 2021, the NAV of unit trust funds increased from RM531.80 billion as at 30 June 2021 to RM537.91 billion as at 30 September 2021. The percentage of the total NAV against Bursa Securities market capitalisation decreased from 30.51% as at 30 June 2021 to 29.85% as at 30 September 2021.

New funds

A total of 14 unit trust funds were launched in Q3 2021 while 6 funds were terminated² which brought the total number of funds in operation to 730 funds as at 30 September 2021. Of the 14 new funds launched, 6 were from the equity category, 3 were from the mixed asset category and feeder fund category and 1 from
the fixed income/bond/sukuk/debenture category and fund-of-funds category.

The number of management companies approved to offer unit trust funds as at 30 September 2021 was 39

Table 1

	As at 30 September 2021	As at 30 June 2021
Total no. of launched funds	730	772
Units in circulation (billion units)	782.31	770.78

Fund categories

As at 30 September 2021, a total of RM241.87 billion of the industry’s total NAV was represented by mixed asset funds. Equity funds ranked 2nd with NAV of RM119.70 billion.

Table 2

Fund Category	NAV (RM billion)	%
Mixed asset	241.87	44.97
Equity	119.70	22.25
Money market	94.19	17.51
Fixed income/Bond/Sukuk/Debenture	55.95	10.40
Feeder	11.58	2.15
Balanced	6.97	1.30
Fund of funds	3.73	0.69
Others	3.92	0.73
TOTAL	537.91	100.00

² 4 funds had no assets/unitholders, 1 fund reached its maturity and 1 fund wound-up voluntarily pursuant to unitholders’ approval.

Other Collective Investment Schemes
Wholesale funds
As at 30 September 2021, there were 396 wholesale funds in operation with a total NAV of RM77.49 billion. A total of 13 new wholesale funds were launched while 4 wholesale funds were terminated³ in Q3 2021.
Real estate investment trusts

With the listing of IGB Commercial Real Estate Investment Trust (REITs) on 20 September 2021, there were 18 REITs listed on the Main Market of Bursa Securities. Four REITs, namely Axis REIT, Al-`Aqar Healthcare REIT, Al-Salam REIT and KLCC REIT are Shariah-compliant.

One REIT, i.e. KLCC REIT, was listed as part of a stapled security group

The market capitalisation of the listed REITs (including market capitalisation of the stapled group) was RM38.64 billion as at 30 September 2021.
Exchange-traded funds
With the listing of VP-DJ Shariah China A-Shares 100 ETF on 28 July 2021, there were 19 exchange-traded funds (ETFs) listed on the Main Market of Bursa Securities as at 30 September 2021. Six ETFs are Shariahcompliant, i.e. MyETF Dow Jones Islamic Market Malaysia Titans 25, MyETF MSCI Malaysia Islamic Dividend, MyETF MSCI SEA Islamic Dividend, MyETF Dow Jones U.S. Titans 50, TradePlus Shariah Gold Tracker and VP-DJ Shariah China A-Shares 100 ETF. The market capitalisation of the listed ETFs was RM2.13 billion as at 30 September 2021.
Closed-end funds
As at 30 September 2021, one closed-end fund was listed, i.e. icapital.biz Bhd. The market capitalisation of this fund was RM0.32 billion.
³ 1 fund reached its maturity, 1 fund had no assets/unitholders, 1 fund wound-up voluntarily pursuant to unitholders’ approval as the fund no longer economically viable to manage and 1 fund converted into unit trust fund.
Private Retirement Schemes
As at 30 September 2021, there were 12 private retirement schemes (PRS) comprising 58 private retirement funds offered by 8 providers, with a total NAV of RM5.21 billion. There were 31 conventional funds while 27 were Shariah-compliant funds. Of the total NAV, conventional funds accounted for 66.78% while Shariahcompliant funds accounted for the remaining 33.22%.

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