scholarly journals Towards Developing a Conceptual Framework for Islamic Unit Trust Funds

2019 ◽  
Vol 6 (4) ◽  
pp. 397-406
Author(s):  
Ruqayyah Abdul Aziz ◽  
Rusni Hassan ◽  
Nor Razinah Mohd Zain ◽  
Syed Ahmed Salman
Keyword(s):  
Conceptual Framework ◽  
Trust Fund ◽  
Distinctive Features ◽  
Fund Managers ◽  
Trust Funds ◽  
Professional Management ◽  
Stock Screening ◽  
Unit Trust ◽  
Trust Industry

There is increasing interest among investors in one of the latest investment vehicles - unit trusts. Unit trusts have several advantages as investments in comparison to other investment vehicles, as they are managed by fund managers and tied down by a trust deed. These advantages can be traced back to the investment diversification, professional management of the unit trust and the liquidity flow that can be obtained through sale and purchase of the unit trust. This paper presents an argument towards the development of the conceptual framework for Islamic unit trust funds, explored using references to the regulations in Malaysia, reviewing the types of unit trust funds, their distinctive features, Shariah principles that operate in the management of unit trust industry in Malaysia and the contributions that can be generated from unit trust fund to society. Some of the essential features of Islamic unit trust funds depend on the prohibition of riba, gharar and maysir, strict stock screening processes and purification processes. The main challenges to the unit trust industry are also discussed.

Relationship between Macroeconomic Variables and Net Asset Value (NAV) of Islamic Equity Unit Trust Funds: Cointegration Evidence from Malaysian Unit Trust Industry.

2013 ◽  
Vol 3 (3) ◽  
pp. 02-16
Author(s):  
Anwar Hasan Abdullah Othman ◽  
Ahamed Kameel ◽  
Hasanuddeen Abdul Aziz
Keyword(s):  
Global Financial Crisis ◽  
Future Trend ◽  
Sustainable Growth ◽  
Unit Price ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Trust Funds ◽  
Long Run ◽  
Unit Trust ◽  
Trust Industry

Objective - Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds' unit price behavior and their trend in the long-term investment. This study, therefore, aims to investigate the long-run relationship between the chosen macroeconomic factors and the NAV of the Islamic equity unit trust funds as well as the effect of the (2007-2008) global financial crisis on the performance of Islamic equity unit trust funds and their unit prices. Methodology/Technique - The study utilized Vector Autoregression (VAR) framework in order to analyze this relationship over the period January 2006 to December 2012 using monthly data. Findings - The findings of the investigations confirmed that the selected macro-economic variables do share long-run relationship with the NAV of the Islamic equity unit trust funds in the Malaysian capital market. Novelty - A successful innovation of the relationship between the funds NAV and the selected macroeconomic variables will assist the entire interested group, such as, investors, management of the funds, government agencies, industry players and policy makers to estimate the future trend direction of the NAV and accordingly decide on the operational, managerial, and sustainable growth decisions. Type of Paper - Empirical Paper Keywords: , Islamic Equity Unit Trust Funds; Macroeconomic Variables; Malaysia

scholarly journals The Performance of Unit Trust Industry in Malaysia

2015 ◽  
Vol 7 (4) ◽  
pp. 46-54
Author(s):  
Aminah Shari
Keyword(s):  
Stochastic Frontier Analysis ◽  
Efficiency Score ◽  
Average Score ◽  
Fixed Income ◽  
Frontier Analysis ◽  
Average Efficiency ◽  
Trust Funds ◽  
Equity Funds ◽  
Unit Trust ◽  
Trust Industry

This study measured the efficiency of fixed income unit trust funds and equity unit trust funds for the period of January 2004 to December 2014. A total of 36 fixed income funds and 109 equity funds were evaluated using stochastic frontier analysis (SFA) technique with three inputs (expense ratio, portfolio turnover ratio, and fund management stated fee) and one output variable (return). The econometric technique was used to measure the portfolio efficiency score as well as to compare the efficiency of fixed income funds and equity funds. The results indicated that the average efficiency score for equity unit trust funds was higher than fixed income unit trust funds. Nevertheless, when the samples were categorized into panel data, the average efficiency score for fixed income funds increased throughout ten years. Meanwhile the average score for equity funds was consistent over the years. It shows that time is invariant for equity funds. However, this means that the performance efficiency for both types of funds was considered excellent and efficient. The results indicate that the mean efficiency achieved in unit trust industry is almost 100% of its potential output.

An overview of unit trust funds in Malaysia

2018 ◽  
Vol 4 (3) ◽  
pp. 117-123 ◽  
Author(s):  
Norazlina Ripain ◽  
Nurul Wajhi Ahmad
Keyword(s):  
Trust Funds ◽  
Unit Trust

12. Trustee investment

2018 ◽  
Author(s):  
Gary Watt
Keyword(s):  
Modern Trend ◽  
Ethical Investment ◽  
Trust Fund ◽  
Freedom Of Choice ◽  
Trust Funds ◽  
Effective Remedy ◽  
Do So

Trustees must invest in a manner that is prudent and fair, and failure to do so may make them personally liable to compensate for any loss. However, it is difficult to prove a breach of trust, and to prove and quantify the loss suffered by the fund. Even if the trustees admit that they invested imprudently and that the trust fund suffered a loss, there seems to be no effective remedy for improper trustee investment. This chapter deals with trustee investment and shows that the modern trend in trustee investment is towards liberalization, freedom of choice, and the free participation of trust funds in investment markets. After discussing the nature of trustee investment, it considers the goals of trustee investment and the trustees' investment powers. The chapter also analyses types of investment, the trustees' investment duties, liability for improper investment by trustees, and ethical investment.

scholarly journals The persistence of unit trust performance for the period July 1985-June 1995

1998 ◽  
Vol 29 (3) ◽  
pp. 100-108 ◽  
Author(s):  
Margaret C. Meyer
Keyword(s):  
South Africa ◽  
Superior Performance ◽  
Time Periods ◽  
Unit Trust ◽  
Trust Industry

The purpose of this study was to determine whether any persistence of performance existed in the unit trust industry in South Africa over the ten-year period from July 1985 to June 1995. Calculations were done over different time periods (one-, two- and four-year periods) and using different definitions of superior performance (positive Jensen alphas or winner/loser phenomena). Results of nominal returns and risk-adjusted returns were also compared. Results obtained show that persistence in performance does exist, but that it is more of a 'loser' phenomenon than a 'winner' phenomenon.

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