Critical success factors of unit trusts investments. A case study approach

Abstract

This study mainly focused on investigating the critical success factors of unit trusts using a case study approach. Countries that were part of the case study analysis include South Africa, Zimbabwe, Malaysia, United Kingdom and Singapore. Very few studies have so far focused on the critical success factors of unit trusts. Although some empirical studies have revealed the conditions under which unit trusts can be said to be viable, it appears the literature on the critical success factors on unit trusts is very scant. Lambrechts (1999), Woodlin (2003) and Nicoll (2005) are some of the few empirical researchers who explained unit trusts viability or success. However, the absence of focus on critical success factors of unit trusts among previous empirical studies prompted this study. This study revealed the following as critical success factors of unit trusts. These include unit trusts public education, better disclosure standards, government support, effective unit trusts products distribution channels, deregulation of unit trusts industry, stringent and prudent unit trusts regulation, deregulation of service charges and management fees, absence of trustee monopoly, relaxed exchange control regulations, unit trusts differentiation strategy, fund management specialization, financial sector liberalization, improved unit trusts regulation and favourable tax incentives. The study recommends that authorities should ensure these critical success factors are in place and well implemented to ensure the viability of unit trusts in their countries