Step 1.3 : Unit Trust Categories

Understanding the Different Types of Unit Trust Categories

The problem with Malaysia unit trust industry is the lack of standardization of fund categories. If you compare the categories used to classify unit trust funds between websites or databases, you would definitely notice some differences between them.

 

To get you started on understanding the different types of unit trust categories, I would personally recommend that you refer to the Categories used by Morningstar.my. Take your time to read and understand each of the unit trust category. You would be needing this knowledge and understanding later when designing your investment portfolio in Step 4.

 

Tip : Don't stress yourself out if you don't remember the Unit Trust categories. You can always come back to this page to look it up again.

 

List of Unit Trust Categories 

Tip : Click on a category to learn more about its characteristics.

 

Equity

• Equity - Malaysia Large-cap

• Equity - Malaysia Large-cap (Syariah)

• Equity - Malaysia Mid/Small-cap

• Equity - Malaysia Mid/Small-cap (Syariah)

• Equity - Malaysia Income

• Equity – Asia Pacific ex-Japan

• Equity – Asia Pacific ex-Japan (Syariah)

• Equity – Asia Pacific

• Equity - ASEAN

• Equity – Greater China

• Equity – Global

• Equity – Emerging Markets

• Equity – Country Focus

• Equity – Sector Focus

• Equity – Other

 

Blended Funds

• Blended - Conservative

• Blended – Balanced

• Blended – Balanced (Syariah)

• Blended - Aggressive

• Blended - Flexible

• Blended - Other

 

Bonds

• Bonds – Malaysia

• Bonds – Malaysia (Syariah)

• Bonds – Global Hedged

• Bonds – Global

• Bonds – Asia

• Bonds – Emerging Markets

• Bonds – Other

 

Money Market

• Money Market - Malaysia

• Money Market – Malaysia (Syariah)

Property

• Property – Indirect Asia

• Property – Indirect Non-Asia

 

 

Characteristics of each Unit Trust Category 

 

Equity - Malaysia Large-cap

Characteristics:

• Invest primarily in large Malaysian companies.

• Stocks in the top 70% of the capitalisation of the broad Asia ex-Japan equity markets are defined as Largecap.

• Funds in this category may invest a small amount (typically less than 20%, but periodically may be more) in Malaysian Mid/Small-caps.

 

Morningstar Category Benchmark: FTSE Bursa Malaysia 100 TR MYR

 

 

Equity - Malaysia Large-cap (Syariah) Equity

Characteristics:

• Invest primarily in large Malaysian companies that meet the requirements of Syariah law and the principles of “Islamic finance”.

• Stocks in the top 70% of the capitalisation of the broad Asia ex-Japan equity markets are defined as Large-cap.

• Funds in this category may invest a small amount (typically less than 20%, but periodically may be more) in Malaysian Mid/Small-caps.

 

Morningstar Category Benchmark: FTSE Bursa Malaysia EMAS Shariah TR MYR

 

 

Equity - Malaysia Mid/Small-cap 

Characteristics:

• Invest primarily in mid-sized and small Malaysian companies.

• Stocks in the bottom 30% of the capitalisation of the broad Asia ex-Japan equity markets are defined as Mid/Small-cap.

• Funds in this category may invest a small amount (typically less than 20%, but periodically may be more) in Malaysian Large-caps.

• Syariah-compliant Malaysian Mid/Small-cap funds are included in Equity - Malaysia Mid/Small-cap (Syariah). 

 

Morningstar Category Benchmark: FTSE Bursa Malaysia Mid 70 TR MYR

 

 

Equity - Malaysia Mid/Small-cap (Syariah) 

Characteristics:

• Invest primarily in mid-sized and small Malaysian companies that meet the requirements of Syariah law and the principles of “Islamic finance”. 

• Stocks in the bottom 30% of the capitalisation of the broad Asia ex-Japan equity markets are defined as Mid/Small-cap.

• Funds in this category may invest a small amount (typically less than 20%, but periodically may be more) in Malaysian Large-caps.

 

Morningstar Category Benchmark: FTSE Bursa Malaysia Mid 70 TR MYR

 

 

Equity - Malaysia Income

Characteristics:

• Invest primarily in Malaysian companies that have a history of providing a consistently dividend yield.

• Funds in this category may invest in Large-, Mid-, or Small-cap Malaysian companies.

• Funds in this category may augment their equity dividend earnings by investing a small amount (less than 10%) in other income generating securities such as money market instruments, bonds, or direct property.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: FTSE Bursa Malaysia 100 TR MYR

 

 

Equity – Asia Pacific ex-Japan

Characteristics:

• Invest primarily in companies that are domiciled in Asia Pacific countries, excluding Japan; Malaysia, Greater China, Singapore, South Korea, Taiwan, Thailand, Indonesia, the Philippines, Australia and New Zealand.

• Funds need not invest in all the countries listed and may also invest a small portion (less than 15%) in non-Asia-Pacific countries. 

• Syariah-compliant are included in Equity - Asia Pacific ex-Japan (Syariah). 

 

Morningstar Category Benchmark: MSCI AC Asia Pac Ex JPN NR USD

 

 

Equity – Asia Pacific ex-Japan (Syariah) 

Characteristics:

• Invest primarily in companies that are domiciled in Asia Pacific countries (excluding Japan) that meet the requirements of Syariah law and the principles of “Islamic finance”.

• Asia Pacific ex-Japan countries include Malaysia, Greater China, Singapore, South Korea, Taiwan, Thailand, Indonesia, the Philippines, Australia and New Zealand.

• Funds need not invest in all the countries listed and may also invest a small portion (less than 15%) in non-Asia-Pacific countries.

 

Morningstar Category Benchmark: DJ Islamic Asia/Pacific TR USD

 

 

Equity – Asia Pacific

Characteristics:

• Invest primarily in companies that are domiciled in Asia Pacific countries; Japan, Malaysia, Greater China, Singapore, South Korea, Taiwan, Thailand, Indonesia, the Philippines, Australia and New Zealand.

• Funds need not invest in all the countries listed and may also invest a small portion (less than 15%) in non-Asia-Pacific countries.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI AC Asia Pac NR USD

 

 

Equity - ASEAN

Characteristics:

• Invest primarily in companies that are domiciled in ASEAN countries; Indonesia, Philippines, Vietnam, Thailand, Myanmar, Malaysia, Cambodia, Singapore, Laos, Brunei.

• Funds need not invest in all the countries listed and may also invest a very small portion (less than 5%) in non-ASEAN countries.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: FTSE AW ASEAN TR USD

 

 

Equity – Greater China

Characteristics:

• Invest primarily in companies that are domiciled in China, Taiwan and Hong Kong.

• Funds may also invest a small portion (less than 10%) outside the region.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI Golden Dragon NR USD

 

 

Equity – Global

Characteristics:

• Invest primarily in companies listed from around the globe.

• Funds in this category may have small biases to or concentrations in specific regions or countries, but the general region-level exposure will be similar to that of the benchmark.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI ACWI NR USD

 

 

Equity – Emerging Markets

Characteristics:

• Invest primarily in companies domiciled in emerging market countries, such as China, India, Brazil, Mexico, Russia, Turkey, Indonesia, the Philippines and Peru.

• Funds may also invest a small portion (less than 10%) outside the region.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI EM NR USD

 

 

Equity – Country Focus 

Characteristics:

• Invest in companies domiciled in a single country or narrowly-defined region.

• Funds in this category do not receive a Morningstar Rating, and a Category Average is not calculated for the category, due to the potentially diverse nature of the constituents.

• This category may contain Syariah-compliant funds.

 

 

Equity – Sector Focus

Characteristics:

• Invest in companies classified into a single industry or narrowly-defined sector.

• Funds in this category do not receive a Morningstar Rating, and a Category Average is not calculated for the category, due to the potentially diverse nature of the constituents.

• This category may contain Syariah-compliant funds.

 

 

Equity – Other

Characteristics:

• Invest in the shares of companies but otherwise do not meet the criteria for inclusion in any other Equity category.

• Funds in this category do not receive a Morningstar Rating, and a Category Average is not calculated for the category, due to the potentially diverse nature of the constituents.

• This category may contain Syariah-compliant funds.

 

 

Blended - Conservative

Characteristics:

• Invested in a number of asset classes with a dominant exposure to cash and bonds.

• Funds in this category are expected to consistently have an average mid- to long-term allocation of 30% or less to equity, property and alternative asset classes.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: Markit iBoxx ABF MYS TR LCL

 

 

Blended – Balanced

Characteristics:

• Invested in a number of asset classes with a relatively even exposure to both lower risk asset classes (such as cash and bonds) and higher risk asset classes (equity, property and alternatives).

• Funds in this category are expected to consistently have an average mid- to long-term allocation of between 30% and 70% to equity, property and alternative asset classes.

 

Morningstar Category Benchmark: MSCI ACWI NR USD

 

 

Blended – Balanced (Syariah)

Characteristics:

• Invested in a number of asset classes with a relatively even exposure to both lower risk asset classes (such as cash and bonds) and higher risk asset classes (equity, property and alternatives).

• Funds in this category are expected to consistently have an average mid- to long-term allocation of between 30% and 70% to equity, property and alternative asset classes and invest in securities that meet the requirements of Syariah law and the principles of “Islamic finance”.

 

Morningstar Category Benchmark: MSCI ACWI NR USD

 

 

Blended - Aggressive

Characteristics:

• Invested in a number of asset classes with a relatively small exposure to cash and bonds.

• Funds in this category are expected to consistently have an average mid- and long-term allocation of 70% or more to equity, property and alternative asset classes.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI ACWI NR USD

 

 

Blended - Flexible

Characteristics:

• Invested in a number of asset classes, but cannot be said to have a long-term dominant exposure to either low risk or higher risk asset class.

• The managers of funds in this category are expected to employ an active management style, making significant changes to asset class exposure over time to exploit perceived asset class pricing errors.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: MSCI ACWI NR USD

 

 

Blended - Other

Characteristics:

• Invested in a number of asset classes but otherwise do not meet the criteria for inclusion in any other Blended category.

• Funds in this category do not receive a Morningstar Rating, and a Category Average is not calculated for the category, due to the potentially diverse nature of the constituents.

• This category may contain Syariah-compliant funds.

 

 

Bonds – Malaysia

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by the Malaysian government and Malaysian corporations.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

 

Morningstar Category Benchmark: Markit iBoxx ABF MYS TR LCL

 

 

Bonds – Malaysia (Syariah)

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by the Malaysian government and Malaysian corporations that meet the requirements of Syariah law and the principles of “Islamic finance”.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year. 

 

Morningstar Category Benchmark: Markit iBoxx ABF MYS TR LCL

 

 

Bonds – Global Hedged

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by foreign governments and non-Malaysian corporations, and employ a hedging strategy to counteract the impact of exchange rate changes.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: Barclays Global Aggregate TR USD

 

 

Bonds – Global

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by foreign governments and non-Malaysian corporations, but do not employ a hedging strategy to counteract the impact of exchange rate changes.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: Barclays Global Aggregate TR USD

 

 

Bonds – Asia

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by Asian governments and corporations.

• A small (less than 10 percent) allocation to equity is permitted.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: JPM GBI Asia Pacific Div 1-10Y TR USD

 

 

Bonds – Emerging Markets

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities issued by emerging markets governments and corporations.

• A small (less than 10 percent) allocation to equity is permitted.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

• This category may contain Syariah-compliant funds.

 

Morningstar Category Benchmark: JPM EMBI Global TR USD

 

 

Bonds – Other

Characteristics:

• Invest predominantly in bonds and similar fixed interest (fixed income) securities but otherwise do not meet the criteria for inclusion in any other Bonds category.

• Funds in this category may invest in securities with a short- or long-term maturity, and of varying levels of credit quality.

• The overall average maturity is expected to be greater than one year.

• This category may contain Syariah-compliant funds.

 

 

Money Market - Malaysia

Characteristics:

• Invest predominantly in highly-liquid securities, such as bank deposits and bank bills.

• The overall maturity is expected to be less than one year.

• Exposure to cash/overnight accounts are also included.

 

Morningstar Category Benchmark: MYIBOR 3 Month MYR

 

 

Money Market – Malaysia (Syariah) 

Characteristics:

• Invest predominantly in highly-liquid securities, such as bank deposits and bank bills and that meet the requirements of Syariah law and the principles of “Islamic finance”.

• The overall average maturity is expected to be less than one year.

• Exposure to cash/overnight accounts are also included. 

 

Morningstar Category Benchmark: MYIBOR 3 Month MYR

 

 

Property – Indirect Asia 

Characteristics:

• Invest predominantly in property assets, via instruments called Real Estate Investment Trusts, with a significant bias toward the Asian region.

• Funds in this category may have invest a small proportion (less than 15%) of their portfolio in non-Asian real estate assets.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: FTSE EPRA/NAREIT Developed Asia TR USD

 

 

Property – Indirect Non-Asia

Characteristics:

• Invest predominantly in property assets, via instruments called Real Estate Investment Trusts, from around the globe.

• Funds in this category may have invest a small proportion (less than 15%) of their portfolio in Asian real estate assets.

• This category may contain Syariah-compliant funds. 

 

Morningstar Category Benchmark: FTSE EPRA/NAREIT Developed TR USD