TheEdge
KUALA LUMPUR: iFAST Capital Sdn Bhd, a joint venture between OSK Investment Bank Bhd and Singapore's iFAST Corporation Pte Ltd, launched the Fundsupermart.com All-Equity Fund Index (FEFI) yesterday.
It is the first index in Malaysia that tracks returns of unit trust funds, acting as a barometer of equity unit trusts' performance here. OSK Investment Bank holds 49% of the joint venture, while iFAST Corp owns the remaining 51%.
Speaking at the launch yesterday, Fundsupermart.com Malaysia and Singapore general manager Wong Sui Jau said up until now investors commonly looked at other indices to monitor the status of the stock market.
"Although these indices mirror the overall situation of the market, they are not specifically designed to provide up-to-date information of unit trusts in Malaysia.
"The launch of FEFI is well-timed in these recessionary times. We welcome FEFI because it encourages investors to plan for the future and take charge of their investments," he said.
FEFI provides investors with a measurement of the aggregate performance of all unique equity funds available to investors on FSM (www.fundsupermart.com).
Wong said there were currently 44 equity funds on the index, and FSM intended to increase this progressively.
The index will be calculated on a daily basis, with the level and the corresponding date displayed on the website.
The website also features a three-month historical index levels, a one-year performance chart and a monthly update on index performance. FEFI is currently available in Singapore, Hong Kong and Malaysia.
Wong said unlike most equity market indices, it was not asset weighted, meaning that returns for a fund with smaller fund size would have the same impact on the index as another fund with a larger fund size.
"The index return thus reflects the mean return of the underlying funds on an equally-weighted basis," he said.
He said the index would be reviewed twice a year (on June 30 and Dec 31) to incorporate funds that had been newly added to the platform. On the selection criteria, he said the funds must be open ended and must have a daily net asset value available.
Wong also said FSM planned to launch a bond fund index within the next few months.
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