Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia

This study analyses the performance of unit trusts in Malaysia during the period from January 2002 to December 2007. The issues of risk-adjusted performance, benchmarks appropriateness, timing ability and selectivity as well as performance persistence are addressed. We draw on the Capital Asset Pric...

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Main Author: Kanteyineza, Norbert
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2009
Online Access:https://eprints.nottingham.ac.uk/23987/
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author Kanteyineza, Norbert
author_facet Kanteyineza, Norbert
author_sort Kanteyineza, Norbert
building Nottingham Research Data Repository
collection Online Access
description This study analyses the performance of unit trusts in Malaysia during the period from January 2002 to December 2007. The issues of risk-adjusted performance, benchmarks appropriateness, timing ability and selectivity as well as performance persistence are addressed. We draw on the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT) and Jensen’ alpha performance measurement, to examine monthly returns on the sample funds relative to the performance of different benchmarks specifications. Henriksson and Merton (1981) model is used to examine selectivity and timing ability of top performing unit trust managers. Performance persistence of top performing unit trusts is assessed at successive one-year intervals. The results show evidence of general underperformance unit trust Malaysia. This failure is further analyzed in terms of benchmarks appropriateness and the results show that both CAPM and APT benchmarks specification are equally appropriate to assess unit trusts performance. Although, top performing managers have selectivity ability, they do not demonstrate any market timing skills. This study shows also a weak evidence of short-term persistence performance among top performing managers.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
last_indexed 2025-11-14T18:48:11Z
publishDate 2009
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spelling nottingham-239872018-02-01T04:40:24Z https://eprints.nottingham.ac.uk/23987/ Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia Kanteyineza, Norbert This study analyses the performance of unit trusts in Malaysia during the period from January 2002 to December 2007. The issues of risk-adjusted performance, benchmarks appropriateness, timing ability and selectivity as well as performance persistence are addressed. We draw on the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT) and Jensen’ alpha performance measurement, to examine monthly returns on the sample funds relative to the performance of different benchmarks specifications. Henriksson and Merton (1981) model is used to examine selectivity and timing ability of top performing unit trust managers. Performance persistence of top performing unit trusts is assessed at successive one-year intervals. The results show evidence of general underperformance unit trust Malaysia. This failure is further analyzed in terms of benchmarks appropriateness and the results show that both CAPM and APT benchmarks specification are equally appropriate to assess unit trusts performance. Although, top performing managers have selectivity ability, they do not demonstrate any market timing skills. This study shows also a weak evidence of short-term persistence performance among top performing managers. 2009 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23987/1/norbertkanteyineza.pdf Kanteyineza, Norbert (2009) Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Kanteyineza, Norbert
Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title_full Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title_fullStr Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title_full_unstemmed Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title_short Performance, Persistence, Benchmarks, Timing Ability and Selectivity of Unit Trusts in Malaysia
title_sort performance, persistence, benchmarks, timing ability and selectivity of unit trusts in malaysia
url https://eprints.nottingham.ac.uk/23987/