1. Introduction
According to the 2021 Annual Report of Securities
Commission Malaysia (“SC”),
despite the challenging environment faced by the Malaysian economy
due to Covid-19, the wholesale funds industry recorded a total net
asset value of RM79.45 billion at end-2021, an increase of 17.44%
from RM67.65 billion in 2020.
A “wholesale fund” is defined under
the Guidelines on Unlisted Capital Market Products under the
Lodge and Launch Framework (“LOLA
Guidelines”) as a unit trust scheme established
where the units are to be issued, offered for subscription or
purchase, or for which invitations to subscribe for or purchase the
units are to be made, exclusively to sophisticated
investors and any other person as may be determined
by SC. As of 31 May 2022, there are 430 wholesale funds lodged with
the SC.1 “Sophisticated
investors” means accredited investors, high-net
worth entities or high-net worth individuals as defined under the
Capital Markets and Services Act
