Unit trust industry is booming...

THE unit trust industry expanded further during the first five months of the year with the launch of new funds and an increase in the number of units in circulation.

The growth was attributed to sustained investor interest in unit trusts as a viable investment instrument.

During the period, 45 new funds were launched to reach a total of 435 funds as at end-May (end-2006: 392 funds).

Units in circulation rose 8.7% to 167.4 billion (end-December, 2006: 10.5%; 154.1 billion). The Islamic unit trust segment continued to expand with 12 new funds bringing the total to 106 as at end-May 2007 (end-2006: 95 funds).

The net asset value (NAV) of the unit trust industry rose 18% to RM143.7bil and accounted for 13.5% of the market capitalisation of Bursa Malaysia (end-2006: 23.6%; RM121.8bil; 14.4%).

The number of new unit trust funds launched that invested in foreign markets and funds already investing abroad reached 128 funds as of end-May, with investment totalling RM10.8bil.

There has been positive response to the Government's efforts to promote the development of Real Estate Investment Trusts (REITs) in the capital market. The first half of 2007 saw four new REITs listed on Bursa Malaysia bringing the total to 13 REITs.

Market capitalisation of REITs rose strongly by 73.5% to RM4.98bil as at end-June (end-2006: RM2.87bil), reflecting growing investor interest in REITs as an investment instrument to access the property market.