1. What Is a Unit Trust and How Does It Work?
A unit trust is one of the most common types of collective investment schemes in Malaysia. It pools money from multiple investors into a single fund that is managed by a professional fund manager. Each investor holds units, representing a portion of the total fund, and earns returns based on the fund’s performance.
Most unit trusts invest in diversified portfolios such as stocks, bonds, or other assets to reduce risk while seeking long-term growth. The fund’s performance depends on the underlying securities chosen by the manager, who makes buy and sell decisions according to the fund’s stated objectives.
A wholesale fund is a type of collective investment medium (such as a unit trust) that is offered exclusively to “wholesale” (or “qualified”/“sophisticated”) investors, rather than the general public (Law Insider).
For example, under the Malaysian regulatory framework, a wholesale fund is defined as:
“A unit trust fund, the units of which are issued, offered for subscription or purchase, or for which invitations to subscribe or purchase the units have been made, exclusively to qualified investors” (Securities Commission Malaysia).
Unit trusts are regulated by the Securities Commission Malaysia (SC), ensuring investors benefit from professional oversight and transparency.
A qualified investor is an individual or institution that meets specific financial or professional criteria such as minimum income, net worth, or investment experience allowing them to invest in products not available to the general public, such as wholesale or private funds (Securities Commission Malaysia).
2. What Is an Income Fund?
An income fund is a specific type of investment fund that focuses on generating regular payouts rather than capital appreciation. It usually invests in fixed-income instruments such as bonds, money market securities, or financing notes.
The goal of an income fund is to deliver steady, predictable income through monthly or quarterly distributions. Compared to equity or balanced funds, income funds are generally less volatile and often preferred by conservative investors, retirees, or anyone seeking passive income.
In Malaysia, both retail and wholesale income funds are managed by licensed asset management companies that must comply with the SC’s regulatory framework.
3. The Role of Asset Management Companies in Malaysia
An asset management company (AMC) is a licensed institution responsible for managing pooled investments on behalf of investors. These firms are required to be licensed by the Securities Commission Malaysia, and they play a key role in ensuring that investor funds are managed professionally and responsibly.
Asset managers handle everything from portfolio selection and diversification to risk management and compliance. They help investors gain exposure to a variety of asset classes including equities, fixed income, and private credit.
In the case of the Tradeview Funding Societies Income Fund (TFSIF), the AMC is Tradeview Capital Sdn Bhd, a licensed fund manager that works alongside Funding Societies (Malaysia), a leading SME financing platform. This partnership combines institutional fund management experience with fintech innovation, allowing investors to access the SME credit space in a regulated and transparent way.
4. How the Tradeview Funding Societies Income Fund (TFSIF) Works
The TFSIF is a wholesale income fund launched by Tradeview Capital, in partnership with Funding Societies. It is designed to offer steady monthly income while channeling investments into Malaysia’s small and medium enterprises (SMEs).
Here’s how it works:
- The fund invests in short-term SME financing notes originated via the Funding Societies platform.
- The notes generally have maturities of three to 18 months and are carefully screened for creditworthiness.
- The fund targets an annualised net return of 6 percent, distributed monthly to investors.
While the TFSIF is not a traditional income unit trust that invests in bonds, sukuk & money market products , it operates on similar principles. Investors buy units in the fund, share in its income, and rely on professional fund management for diversification and compliance.
5. Comparing TFSIF to Traditional Income Unit Trusts
Both unit trusts and the TFSIF are professionally managed investment vehicles, but they differ in structure, risk, and underlying assets.
This makes the TFSIF an attractive complement to traditional income unit trusts for investors looking to diversify beyond public markets while maintaining regular income potential.
| Aspect | TFSIF | Traditional Income Unit Trust |
|---|---|---|
| Investor Eligibility | Exclusively for sophisticated investors | Open to retail investors |
| Underlying Assets | SME financing notes (private credit) – directly originated loans to local SMEs | Diversified mix of publicly traded assets such as equities, bonds, and commodities |
| Income Distribution | Monthly – regular cash flow from SME loan repayments | Quarterly or annual distributions, depending on fund policy |
| Economic Impact | Direct and measurable impact – financing growth of local SMEs and job creation | Indirect exposure via investments in large corporates and capital markets |
| Diversification | Low correlation with traditional asset classes – provides genuine portfolio diversification | Asset movements tend to be correlated with broader market trends |
| Liquidity | Moderate – typically subject to fund lock-in and redemption terms | High – units can be redeemed daily (subject to market conditions) |
| Return Profile | Target net annualised return of ~6% p.a. (variable) | Typically 3–5% p.a., depending on market cycles |
| Risk Profile | Private credit exposure – mitigated via Credit Enhancement Reserve and diversified SME portfolio | Market-linked – influenced by equity, bond, and interest rate fluctuations |
6. Who Should Consider Investing in Income Funds
Income funds like the TFSIF may appeal to:
- Investors seeking steady monthly income
- Those who prefer lower volatility compared to equities
- Individuals who already hold unit trusts and want to diversify with alternative fixed-income exposure
Because the TFSIF is a wholesale fund, it is available only to sophisticated investors who meet the regulatory criteria set by the Securities Commission Malaysia.
7. How to Invest or Learn More About TFSIF
If you’re interested in exploring how the Tradeview Funding Societies Income Fund fits into your portfolio, you can learn more through:
Both sources provide detailed information on the fund’s objectives, fees, and eligibility criteria.
Conclusion
The Tradeview Funding Societies Income Fund bridges the gap between traditional unit trust investing and modern asset management innovation. By combining Tradeview Capital’s expertise as a licensed asset management company with Funding Societies’ proven SME financing platform, TFSIF offers investors an opportunity to earn consistent income while supporting Malaysia’s business ecosystem.
For investors looking to diversify beyond traditional unit trusts, this income fund provides a fresh, well-regulated alternative that balances stability, return, and impact.
Disclaimer:
This article is for general informational purposes only and does not constitute to an investment advice, an offer, or a solicitation. The Tradeview Funding Societies Income Fund (TFSIF) is a wholesale fund available only to sophisticated investors. Past performance and target returns are not indicative of future results. Readers/Investors should seek independent professional advice before making any investment decisions.
References
- Tradeview Capital Official Site – Fund Information
- Funding Societies Malaysia – Tradeview Income Fund Page
- Fintech News Malaysia – “Tradeview Capital and Funding Societies Launch Income Fund”
- The Edge Malaysia – “Tradeview Capital partners Funding Societies on SME Income Fund”
- TechNode Global – “Tradeview Capital, Funding Societies launch wholesale income fund to support businesses, provide stable investor returns”
- Securities Commission Malaysia – Guidelines on Wholesale Funds
- Law Insider – “Wholesale Fund definition”
