KUALA LUMPUR: The assets under management (AUM) of unit trust companies in Malaysia increased by approximately RM27 billion, or 6%, to RM569.79 billion as of June 2025, driven by market and currency appreciation.
For the conventional segment, the AUM stood at RM463.28 billion, up from RM436.68 billion in 2022, while the Islamic segment AUM increased by approximately RM15 billion, or 17%, to RM106.57 billion from RM91.20 billion in 2022, driven by increased market participation and appreciation in markets and currencies.
The Islamic segment also recorded net sales of RM0.7 billion.
As of June 2025, there are 17.06 million unit holders in Malaysia, up from 15.98 million in 2022, indicating that the industry has remained resilient.
Federation of Investment Managers Malaysia CEO Kaleon Leong said for institutional investors, there is a conventional shift, with allocation to domestic funds moderating slightly from 84% in 2022 to 82% as of June 2025.
As for Islamic funds, a shift toward global assets was observed, with domestic allocation decreasing from 94% to 89%.
Core asset maintained its two-thirds concentration in domestic fixed income.
As for retail investors in conventional funds, exposure to foreign assets increased moderately from 12% to 14% due to market and currency appreciation.
As for Islamic funds, domestic exposure increased from 58% to 62%, while foreign exposure decreased by 10% to 32%.
“Over the past three and a half years, we have seen that conventional AUM has grown, or at least been maintained at a healthy level. More importantly, the number of unique holders in the industry has also increased.
“During the pandemic, over a two-year period, we gained about 2 million new unit holder accounts. In the three and a half years since, we have seen another surge in unique holder accounts.
“Today, we stand at almost 28 million unit holder accounts. Assuming one person holds an average of three accounts, this translates to roughly 20 million people in Malaysia who have already been exposed to unit trusts,“ Leong said in his presentation at the FSMOne Malaysia’s Recommended Unit Trusts’ Award 2026/27 yesterday.
Meanwhile, FSMOne assistant manager, research, Kevin Khaw Khai Sheng said global markets have delivered strong returns despite concerns surrounding trade tensions, geopolitical developments, fiscal deficits, and the interest rate outlook.
“The US remains home to many of the world’s leading businesses. However, after several years of exceptional performance, we believe investors should begin asking a different question.
“It is not whether artificial intelligence will continue to grow, but where the next phase of returns is likely to come from,“ he said.
Khaw said FSMOne continue to favour the Digital Economy theme as one of its highest-conviction long-term investment ideas.
Artificial intelligence remains one of the most significant technological shifts in the current generation, but the company believe the opportunity extends well beyond a handful of mega-cap beneficiaries.
“The next phase of growth is likely to create opportunities across semiconductors, digital platforms, cloud infrastructure, software, data centre enablers, and the broader AI ecosystem.
“If the past two years were dominated by US exceptionalism, we believe the next few years could see a broader opportunity set emerge across Asia,“ Khaw said.
He also noted that valuations remain more reasonable, earnings are improving, and several markets are benefiting from structural reforms, technological advancement, and increasing capital flows.
“Singapore remains one of our highest-conviction markets. Investors are effectively being paid to wait, with attractive dividend yields, while a strong banking sector, healthy corporate balance sheets, and ongoing capital market initiatives support long-term earnings growth,“ he said.
In a market environment where investors are increasingly seeking quality and resilience, Khaw said Singapore continues to stand out.
“We are also seeing renewed opportunities in China. It remains one of the most debated markets globally, but some of the most attractive opportunities often emerge when expectations are low.
“While challenges remain, improving earnings expectations, supportive policy measures, and increasing competitiveness in areas such as artificial intelligence, advanced manufacturing, and digital innovation suggest investors should not overlook the market,” he said.
Moving on, Khaw said Japan remains another market of interest as corporate governance reforms, improving shareholder returns, and structural changes continue to strengthen the long-term investment case.
“More broadly, we believe Asia is increasingly becoming a beneficiary of supply chain diversification, technological investment, and regional capital flows.
“These trends are creating opportunities across multiple sectors and markets, reinforcing our constructive outlook on the region,” he said
Beyond equities, Khaw said FSMOne continue to see value in fixed income.
Quality bonds continue to offer attractive income opportunities while providing diversification benefits in an environment where market volatility can periodically return, he said.
“Following the strong rally across global equities, technology, and Asian markets this year, investors should not overlook the importance of portfolio reviews and rebalancing.
“While longterm opportunities remain attractive, maintaining appropriate asset allocation and risk discipline is often more important than attempting to maximise returns from the latest market winner.”
“The market spent the last two years rewarding certainty. In our view, the next phase may reward investors willing to broaden their opportunity set.
“Successful investing is rarely about chasing what has already worked; it is about positioning portfolios for what comes next,” Khaw said.
Malaysian unit trust industry expands
