Asnb Marketing Strategies in Unit Trust

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  • Topic: Collective investment scheme, Unit trust, Investment
  • Pages : 49 (12587 words )
  • Download(s) : 876
  • Published : February 13, 2011
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1.1 Background of study
Malaysia introduced the unit trust concept relatively early compared to its Asian neighbours in 1959; a unit trust was first established by a company called Malayan Unit Trust Ltd. The unit trust industry in Malaysia has therefore a history of more than four decades. The unit trust industry was characterized by slow growth in the sales of units and a lack of public interest in the new investment product in the first two decades. There is only five unit trust management companies were established, with a total of 18 funds introduced over that period. A unit trust is a collective investment scheme which pools the savings of the public into a special unit trust fund managed actively by professional fund managers. A unit trust fund is constituted pursuant to a deed executed by the trustee and the manager on behalf of unit holders. The unit trust fund will invest in equities, fixed income securities and other assets authorized under the Guidelines.

The greater attention ASNB is the effectiveness of the promotional. This is due to the fact that the department promoting the product to the investor. Basically, investors are more prone to spend on rather than saving their money in the bank or investing into unit trust fund such as ASNB. Lack of promotion of unit trust fund makes the investor unaware of the existence of ASNB products such as ASN, ASN2, ASN3, ASB, ASM, ASD, ASG, ASW and AS1M. These products will be explained further. Research will be conduct in Klang Valley that focusing on all eligible investor. Additionally, this study will investigate effectiveness of the promotional tool practice by ASNB. 1.1.1 Background of Permodalan Nasional Berhad

PNB was conceived as a pivotal instrument of the Government's New Economic Policy to promote share ownership in the corporate sector among the Bumiputera, and develop opportunities for suitable Bumiputera professionals to participate in the creation and management of wealth. YA Bhg Tun Ahmad Sarji bin Abdul Hamid is a Chairman for PNB. And The President & Group Chief Executive is YBhg Tan Sri Dato' Sri Hamad Kama Piah bin Che Othman Prior to the establishment of PNB, efforts to increase Bumiputera ownership in the corporate sector were not sufficient as shares allocated to individuals were seldom retained. Research indicated that when Bumiputera shareholders sold their shares, the profits generated were consumed and not reinvested. Through PNB, substantial shares acquired in major Malaysian corporations from funds provided by Yayasan Pelaburan Bumiputra or Bumiputra Investment Foundation were transferred to a trust fund and sold to the Bumiputera in the form of smaller units. By employing this innovative investment model, PNB ensures that these shares are retained, resulting in the cultivation of widespread savings habits, and development of entrepreneurship and investment skills of Bumiputera. With a total fund managed of more than RM 100 billion, the PNB Group is the country's leading investment institution with a diversified portfolio of interests that include unit trusts, institution property trust, property management and asset management.

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1.1.2 Background of Amanah Saham Nasional Berhad
Amanah Saham Nasional Berhad (ASNB) is the Management Company of ASN, ASN 2, ASN 3, ASG Pendidikan, ASG-Kesihatan, ASG-Persaraan, ASB, ASW 2020, ASM and ASD, a wholly-owned subsidiary company of Permodalan Nasional Berhad (PNB). ASNB was established on May 22, 1979, to manage the unit trust funds launched by PNB. Having been in the industry for more than 30 years, ASNB has confirms to maintain its position as a leading unit trust manager, controlling more than 40% of the total units in circulation Permodalan Nasional Berhad (PNB) is the parent company for Amanah Saham Nasional Berhad (ASNB) which operates a number of unit trust schemes, and is a wholly owned subsidiary of Yayasan...
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