Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]

This paper reports the comparison of performance between Islamic and conventional unit trust funds in Malaysia. Least Square Methods were used to describe the overall growth of Malaysian unit trusts for the years 2004 to 2012 based on the number of launched funds, units in circulation, number of acc...

Full description

Bibliographic Details
Main Authors:	Mohd Dom, Rosma, Ibrahim, Muhammad Fandi, Che Sulaiman, Che Lynnaruhiyah, Ahmad Sholahuddin, Ahmad Shafiq
Format:	Article
Language:	English
Published:	Research Management Institute (RMI) 2014
Subjects:	Malaysia Banking
Online Access:	http://ir.uitm.edu.my/id/eprint/12437/ http://ir.uitm.edu.my/id/eprint/12437/1/AJ_ROSMA%20MOHD%20DOM%20SMRJ%20%2014%201.pdf

id	uitm-12437
recordtype	eprints
spelling	uitm-124372016-06-03T09:16:20Z http://ir.uitm.edu.my/id/eprint/12437/ Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.] Mohd Dom, Rosma Ibrahim, Muhammad Fandi Che Sulaiman, Che Lynnaruhiyah Ahmad Sholahuddin, Ahmad Shafiq Malaysia Banking Malaysia This paper reports the comparison of performance between Islamic and conventional unit trust funds in Malaysia. Least Square Methods were used to describe the overall growth of Malaysian unit trusts for the years 2004 to 2012 based on the number of launched funds, units in circulation, number of accounts and total net asset value. The results indicated that conventional unit trust funds grew exponentially while Islamic unit trusts grew linearly. The performances of 4 Islamic and 4 conventional unit trust funds based on their efficiencies (ratio of weighted sum of outputs to weighted sum of inputs) were measured using Data Envelopment Analysis over a three-year period (2010- 2012). The performances were measured based on two inputs namely the Portfolio Turnover Ratio (PTR) and Management Expense Ratio (MER) while the output was the companies’ annual returns. The outcome is the ranking of unit trusts performance which can be a good reference for investors. The finding shows that conventional unit trusts were the preferred investment among Malaysians. However, the growth of Islamic unit trusts was less affected by the world economic crisis compared to the growth of conventional unit trusts. This is reflected in the decrease of growth of the conventional unit trusts during the years 2007-2008, the time when the world economy was hit hard. On the contrary, the Islamic unit trust showed a gradually increasing growth during the same time period. CIMB conventional is found to be the best unit trust among the conventional unit trusts studied while Kuwait Finance House is found to be the best Islamic unit trust in this study, second only to CIMB conventional. Public Bank unit trust performed consistently on the average while AmBank showed poor performance throughout the years. CIMB conventional performed better than CIMB Islamic but RHB Islamic and AmBank Islamic performed better than their conventional counterparts. Research Management Institute (RMI) 2014 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/12437/1/AJ_ROSMA%20MOHD%20DOM%20SMRJ%20%2014%201.pdf Mohd Dom, Rosma and Ibrahim, Muhammad Fandi and Che Sulaiman, Che Lynnaruhiyah and Ahmad Sholahuddin, Ahmad Shafiq (2014) Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]. Social and Management Research Journal, 11 (1). pp. 31-48. ISSN 1675-7017
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Malaysia Banking Malaysia
spellingShingle	Malaysia Banking Malaysia Mohd Dom, Rosma Ibrahim, Muhammad Fandi Che Sulaiman, Che Lynnaruhiyah Ahmad Sholahuddin, Ahmad Shafiq Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
description	This paper reports the comparison of performance between Islamic and conventional unit trust funds in Malaysia. Least Square Methods were used to describe the overall growth of Malaysian unit trusts for the years 2004 to 2012 based on the number of launched funds, units in circulation, number of accounts and total net asset value. The results indicated that conventional unit trust funds grew exponentially while Islamic unit trusts grew linearly. The performances of 4 Islamic and 4 conventional unit trust funds based on their efficiencies (ratio of weighted sum of outputs to weighted sum of inputs) were measured using Data Envelopment Analysis over a three-year period (2010- 2012). The performances were measured based on two inputs namely the Portfolio Turnover Ratio (PTR) and Management Expense Ratio (MER) while the output was the companies’ annual returns. The outcome is the ranking of unit trusts performance which can be a good reference for investors. The finding shows that conventional unit trusts were the preferred investment among Malaysians. However, the growth of Islamic unit trusts was less affected by the world economic crisis compared to the growth of conventional unit trusts. This is reflected in the decrease of growth of the conventional unit trusts during the years 2007-2008, the time when the world economy was hit hard. On the contrary, the Islamic unit trust showed a gradually increasing growth during the same time period. CIMB conventional is found to be the best unit trust among the conventional unit trusts studied while Kuwait Finance House is found to be the best Islamic unit trust in this study, second only to CIMB conventional. Public Bank unit trust performed consistently on the average while AmBank showed poor performance throughout the years. CIMB conventional performed better than CIMB Islamic but RHB Islamic and AmBank Islamic performed better than their conventional counterparts.
format	Article
author	Mohd Dom, Rosma Ibrahim, Muhammad Fandi Che Sulaiman, Che Lynnaruhiyah Ahmad Sholahuddin, Ahmad Shafiq
author_facet	Mohd Dom, Rosma Ibrahim, Muhammad Fandi Che Sulaiman, Che Lynnaruhiyah Ahmad Sholahuddin, Ahmad Shafiq
author_sort	Mohd Dom, Rosma
title	Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
title_short	Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
title_full	Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
title_fullStr	Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
title_full_unstemmed	Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]
title_sort	performance of unit trust funds in malaysia : a comparison between conventional and islamic unit trusts / rosma mohd dom ... [et al.]
publisher	Research Management Institute (RMI)
publishDate	2014
url	http://ir.uitm.edu.my/id/eprint/12437/ http://ir.uitm.edu.my/id/eprint/12437/1/AJ_ROSMA%20MOHD%20DOM%20SMRJ%20%2014%201.pdf
first_indexed	2023-09-18T22:49:17Z
last_indexed	2023-09-18T22:49:17Z
_version_	1777417434846724096

Performance of unit trust funds in Malaysia : a comparison between conventional and Islamic unit trusts / Rosma Mohd Dom ... [et al.]

Similar Items