Bursa Malaysia

Pin Menu

Click here to unpin menu.
You're here: Market » Home » Securities » Equities » Products » Business Trust

Equities

Equities offer considerable potential for capital growth and are long term risk investments. Ownership of equities will often entitle the investor to a portion of the company's profits through dividends.

Business Trust

Products

Business Trust

Business Trust is a new asset class introduced in the Malaysian capital market following the release of the Securities Commission Malaysia’s Business Trust Guidelines which came into force on 28 December 2012.

Business trusts are business enterprises set up as trusts, instead of companies. They are hybrid structures with elements of both companies and trusts.

Like a company, a business trust operates and runs a business enterprise. But unlike a company, it is created by a trust deed under which the trustee has legal ownership of the trust assets and manages the assets for the benefit of the beneficiaries of the trust.

Unit holders of a business trust can participate in the profits or income arising from the management of the assets in the business trust through receipt of distributions declared by the trustee-manager.

Business trusts are suitable for businesses which are capital intensive with stable cash flow wishing to pay distributions out of cash flow without being constrained by accounting profits. The flexibility in the payment of distributions is an advantage especially for businesses which may be affected by high depreciation charges.