UNIT TRUST

Present by:
NURUL FASHIHAH
NASUHA EZZATI
MAISARAH
NUR IZZAH

What is Unit Trust?

A pooled investment
plan where the capital
contributions of
investors are combined
into a legally formed
trust fund

Income derived from

dividends interest and
capital gains are divided
among the unit holders
in proportion to their
investments.

Unit trust investmet

offers a reasonable
amounts of return with
minimal risk. It is done
by professional
management at
minimal cost,
minimizing, liquidity
and capital
appreciationn

 A trust which is set up under a trust

deed made between parties known as
Trustee and The Manager.

DEVELOPMENT OF UNIT
TRUST IN MALAYSIA
The
Formative
year 1959 to
1979
- Only five
unit trust

management companies
were established
-The industry was
regulated by several
parties including the
Registrar of Companies,
The Public Trustee of
Malaysia, Bank Negara
Malaysia and the
Ministry of Domestic
Trade and Consumer
Affairs.

1980 to
1990
- the entry of
government
participation in the Unit
Trust Industry and the
formation of a
Committee to regulate
the unit trust industry
-1980 the Skim Amanah
Saham Nasional (ASN)
was launched by
Permodalan Nasional
Berhad (PNB) in 1981

-slow growth in the sales

of units and a lack of
public interest in the
new investment
product.

-also witnessed the

emergence of more unit
trust management
companies, which were
subsidiaries of financial
institutions.

-1970s has seen the

emergence of statesponsored unit trust, in
response to the Federal
Government.

-Their participation
facilitated the marketing
and distribution of unit
trusts through banks
branch network which

1991 to
1999

-witnessed the fastest

growth of the unit
trust industry in terms
of the number of new
management
companies
established, and
funds under
management.
-Although the pace of
growth of local unit
trust funds has
moderated since the
financial crisis of
19971998, it has
nevertheless
maintained its upward
trend.
-

2000 until
latest year
- the industry recorded
double digit growth for
first 7 years namely
until year 2007
-However, this strong
growth has been
punctuated by some
extraordinary financial
crisis in 2008, starting
from the fallout of the
subprime loans in the
USA, bursting of the
property bubble, the
global credit crunch,
the banking crisis and
the rapidly falling share
prices worldwide.
-the unit trust industry
drop is less severe than
the fall in share prices
in Bursa Malaysia due
to the diverse nature of
its assets.

TOTAL ASSETS AND NET

PROFIT
Company

Total assets (RM)

Net profit(RM)

Kenanga Holdings
Berhad

814 337 000

1 807 000

Hong Leong
Financial Group

15 212 496 000

330 292 000

RHB Investment
Bank Berhad

11 600 072 000

116 527 000

Philips Money
Market Fund

381 095 147

9 315 891

Eastspring
Investment Berhad

73 347 546

21 457 031

total assets of 5 unit trust companies

RM16,000,000,000.00
RM14,000,000,000.00
RM12,000,000,000.00

RM11,600,072,000.00

RM10,000,000,000.00

Kenanga Holdings Berhad

Hong Leong Financial Group

total assets

RHB Investment Bank Berhad

RM8,000,000,000.00

Philips Money Market Fund

Eastspring Investment Berhad

RM6,000,000,000.00
RM4,000,000,000.00
RM2,000,000,000.00
RM-

RM381,095,147.00
RM73,347,546.00
RM814,337,000.00
RM15,212,496,000.00
companies

The highest total asset is Kenanga Holdings Berhad which is RM 15

212 496 000.
The lowest total asset is Eastspring Investment Berhad which is RM
73 347 546 000.

Net Profit among 5 unit trust companies

RM350,000,000.00
RM300,000,000.00
RM250,000,000.00
RM200,000,000.00
RM150,000,000.00

net profit

RM116,527,000.00

RM100,000,000.00
RM50,000,000.00
RM-

RM9,315,891.00

RM1,807,000.00

RM21,457,031.00

RM330,292,000.00

The highest net profit is Hong Leong Financial Group which is RM

330 292 000.
The lowest net profit id Kenanga Holdings Berhad which is RM 1
807 000.

Kenanga Holdings
Berhad
Year 2012 & 2013

Liquidity Ratio
Current ratio
= current assets
current liability

Current asset ratio

= current asset
total asset

CURRENT RATIO

Current asset
Current liabilities
Current ratio

2012 (RM)

2013 (RM)

857 172 000

809 757 000

3 983 000

6 288 000

215.21

128.78

current ratio
250
200

215.21

150

128.78

100

current ratio

50
0
2012

2013

year

Analysis : Current Ratio indicates how the company has been able
to meet current liability . A high ratio of is an index bank has more
liquid to pay back the deposit of the depositors.

CURRENT ASSET RATIO

2012 (RM)

2013 (RM)

Current asset

857 172 000

809 757 000

Total asset

860 801 000

814 337 000

1.00

0.99

Current asset ratio

current asset ratio

1.01
1
1

current asset ratio

0.99
0.99
2012

2013

year

Analysis : A high current asset ratio indicates that a

company has more liquid asset. A lower ratio is a sign for
illiquidity as more of the assets are long term in nature.

Profitability
Return on asset (ROA)
= net income
total asset

Return on equity (ROE)

= ROA x equity

RETURN ON ASSET
2012 (%)

2013(%)

Net income

18 414 000

33 602 000

Total asset

860 801 000

814 337 000

0.02

0.04

ROA

ROA
0.04
0.03
0.02

ROA

0.01
0
year

2012
2013

Analysis : It is the measure of managerial efficiency. It shows how good is

management in turning assets into income. The only common rule is that
thehigher return on assetsis, the better, because the company is earning
more money on its assets. Alow return on assetscompared with the
industry average indicates inefficient use of company's assets.

RETURN ON EQUITY
2012 (RM)

2013(RM)

Profit after tax

- 5 975 000

1 807 000

Total asset

860 801 000

814 337 000

- 0.69%

0.22%

ROE

ROE
0.40%
0.20%
0.00%
2012
-0.20%

2013

year
ROE

-0.40%
-0.60%
-0.80%

Analysis : Return on Equityshows company's profitability by measuring

how much profit the business generates with its average shareholders'
equity. It is a measure of rate of return to stockholder. It shows how
well management is benefiting stockholders.

EFFICIENCY RATIO

Efficiency ratio
= expenses*
revenue
* Not include interest
expenses

2012(%)

2013(%)

Expenses

149 264 000

256 683 000

Revenue

302 599 000

517 604 000

0.49

0.5

Efficiency ratio

efficiency ratio
0.5
0.5
efficiency ratio

0.49
0.49
2012

2013

year

Analysis : The efficiency ratio is a quick and easy measure of a

banks ability to turn resources into revenue. The lower the ratio,
the better. An increase in the efficiency ratio indicates either
increasing costs or decreasing revenue. Efficiency ratios are used to
measure the quality ofthe company's receivables and how
efficiently it usesits other assets.

LEVERAGE RATIO

debt ratio
= total liabilities
total assets

Debt to equity
ratio
= total liability
total equity

DEBT RATIO
2012

2013

Total liabilities

102 309 000

54 038 000

Total assets

860 801 000

814 337 000

11.89

6.63

Leverage ratio

Debt ratio
11.89
12
10
8
6
4
2
0
2012

6.63

leverage ratio

year
2013

Analysis : The debt ratio measures the extent to

which borrowed funds have been used to finance a
company's operation.The higher this ratio, the more
leveraged the company and the greater its financial
risk.

DEBT TO EQUITY RATIO

2012

2013

Total liabilities

102 309 000

54 038 000

Total equity

758 492 000

760 299 000

0.13

0.07

Debt to equity
ratio
year

2013

Debt to equity ratio

0.07
Debt to equity ratio

2012

0.13

0 0.020.040.060.08 0.1 0.120.14

Analysis : Debt to equity ratio is a measurement of how much

suppliers, lenders, creditors and obligors have committed to
the company versus what the shareholders have committed.
Similar to the debt ratio, a lower the percentage means that a
company is using less leverage and has a stronger equity

RISK
Debt to total asset
ratio
= liabilities
total asset

Debt equity ratio

= liabilities
equity capital

Debt to total asset

ratio

2012

2013

Liabilities

102 309 000

54 038 000

Total assets

860 801 000

814 337 000

0.12

0.07

Debt to total
asset ratio

debt to total asset ratio

0.14
0.12

0.12

0.1
0.08
0.06

0.07

debt to total asset

ratio

0.04
0.02
0
2012

2013

year

Analysis : The debt to total assets ratio is an indicator of financial

leverage. Ittells you thepercentage of total assets that were financed
by creditors, liabilities, debt. A higher percentage indicatesmore
leverage andmore risk. In other words, the higher the ratio, the higher
the degree of leverage, and consequently, financial risk.

DEBT EQUITY RATIO

2012

2013

Debt

102 309 000

54 038 000

Equity capital

731 759 000

731 759 000

0.14

0.07

Debt equity ratio

debt equity ratio

0.150.14
0.1
0.05

0.07

0
2012

debt equity ratio

year
2013

Analysis : The debt to equity ratio or debt-equity ratiois calculated by dividing a

corporation's total liabilitiesby the total amount of stockholders equity. Generally, the
higher the ratio of debt to equity, the greater is the risk for the corporation's creditors
and its prospective creditors.

CONCLUSION

This study was conducted to investigate the performance

whether Kenanga Holdings Berhad are able to derive more
profits in the years 2012 until 2013. The result for
performance Kenanga Holdings Berhad using Liquidity
Ratio, Efficiency Ratio, and Leverage Ratio had shown
negative result which indicates the slow availability of
company to pay debt and slow to converts non-cash
assets to cash assets.
Meanwhile, the result performance measurement by using
Return on Assets, Return on Equity, Debt Equity Ratio, and
Debt to Total Assets Ratio had shown positive result which
indicates the company is earning more money on its
assets and less exposure to financial risk. Therefore, the
Kenanga Holdings Berhad could concentrate on the careful
management of asset portfolio to meet liquidity and return
needs.