I believe they are governed by Trust Act. Primary role would be to protect the capital or monies that put into the companies by the Trust Act. The earning of return more that any statutory limit, is probably a business transaction. I am not sure if there is a written % as return.

To those who are interested, this appeared in my Facebook feed, gives 8%

https://www.facebook.com/101940228132815/po...261775/?app=fbl

Probably Section 8/1/d of Trust Companies Act gives them the authority.

[quote=Thasmita,Jul 17 2020, 07:26 AM]
[quote=MUM,Jul 16 2020, 08:04 AM]
refer to GUY3288 posting above, see Management of trust capital,....there is a mention of "Authorised Investment",....

thus i think the more appropriate question would be "what are those?"

but then, as per CYCLOPES post about Trustee's ACT 8/1/d,...which reads...
(d) to act as investing and financial agent for and on behalf
of executors, administrators and trustees or any other
persons whatsoever, and to receive money in trust for
investment and to allow interest thereon until invested;
and to undertake for and on behalf of executors,
administrators and trustees or any other persons whatsoever
the negotiation of loans of all descriptions and the procuring
and lending of money on the security of any description
of property, immovable or movable, or without taking
any security on such terms as may be arranged, and to
advance and lend moneys to protect any estate, trust or
property entrusted to the company as aforesaid and to
charge interest upon any such advances:
Provided that nothing herein contained shall be held
either to restrict or extend the powers of the company as
trustee or agent under the terms of any trust or agency
that may be conferred upon it;

.......btw,...since they are governed by this ACT....
i cannot find in the ACT that mentions that THEY MUST have a license to do that management of trust capital....
i could be wrong or missed reading it....
Please go thru and correct me if i erred in reading it
TRUST COMPANIES ACT
http://www.agc.gov.my/agcportal/uploads/fi...N/Act%20100.pdf

NO wonder you cannot find more info about how they operate in their website......for as per the ACT, they are obligate / mandated to just need to submit annual statement to the Register....no mention of the need to put for public viewing too...

The Trust Company act must be read together with the interest schemes act and the capital market and services act.

In short anyone collecting money from the general public for investment purposes needs to be licensed to do so. The purpose for which the money is collected and how it is going to be invested needs to be made clear in a document which is called a Prospectus.

[/quote]


If I may offer my interpretation.

You put your money in a trust, not solely for investment, but to ' protect' it against events/circumstances that are provided in relevant Acts.

The Act also provides/mandates that the money is to be invested as per the trust deed. That gives the company leeway how it wants to invest provided you sign the trust deed with all the relevant provisions.

4.1.b will likely refer to Malaysian Government Securities e.g. bonds issued by government.

It also allows them to invest in properties. I too am interested to know what other investments they can make to generate such healthy returns.

Not that I know, but they could circulate to only those who subscribe to the scheme.

Conceptually, a trust company’s first priority is the management of the trust. By comparison, a unit trust company's priority is achieving the best return for your portfolio.

If you’re out to grow your wealth, unit trust or other investment based company may be best suited for it.

If you’re looking to set up future generations and maintain the wealth you already have, a trust company may be a good fit.

This post has been edited by Cyclopes: Oct 24 2020, 06:56 PM

To some extent, it depends on the risk you are prepared to take. I believe the trust companies are capitalising on low fixed deposit rate to entice low risk takers to park their cash with them. Your fund manager friend would more suited to those with appetite for higher risk.

This post has been edited by Cyclopes: Nov 9 2020, 03:29 PM