Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study

This study aims to examine the performance, stock selection ability, market timing ability, and persistence of Malaysian unit trusts in different market condition. We found that in bull phases, unit trusts are more likely to outperform the market. Similarly to the performance on annual basis, equity...

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Main Author: Cheong, Jiunn Yan
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/57218/
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author Cheong, Jiunn Yan
author_facet Cheong, Jiunn Yan
author_sort Cheong, Jiunn Yan
building Nottingham Research Data Repository
collection Online Access
description This study aims to examine the performance, stock selection ability, market timing ability, and persistence of Malaysian unit trusts in different market condition. We found that in bull phases, unit trusts are more likely to outperform the market. Similarly to the performance on annual basis, equity funds were most likely to outperform the market compared to other fund styles. The outperformance of these unit trust were due to the manager’s superior stock selection ability, with also equity fund managers more likely to have superior stock selection ability compared to other funds style. Most unit trust managers, regardless of fund style, have poor timing ability. Most Malaysian unit trust were found to have lack stock selection ability and have poor market timing ability across both market state. There is a trade-off between stock selection ability and market timing ability. For persistence of unit trust performance, we found no conclusive pattern in any market state.
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format Dissertation (University of Nottingham only)
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language English
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spelling nottingham-572182020-05-07T10:47:43Z https://eprints.nottingham.ac.uk/57218/ Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study Cheong, Jiunn Yan This study aims to examine the performance, stock selection ability, market timing ability, and persistence of Malaysian unit trusts in different market condition. We found that in bull phases, unit trusts are more likely to outperform the market. Similarly to the performance on annual basis, equity funds were most likely to outperform the market compared to other fund styles. The outperformance of these unit trust were due to the manager’s superior stock selection ability, with also equity fund managers more likely to have superior stock selection ability compared to other funds style. Most unit trust managers, regardless of fund style, have poor timing ability. Most Malaysian unit trust were found to have lack stock selection ability and have poor market timing ability across both market state. There is a trade-off between stock selection ability and market timing ability. For persistence of unit trust performance, we found no conclusive pattern in any market state. 2019-02-23 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57218/1/Cheong%20Jiunn%20Yan.pdf Cheong, Jiunn Yan (2019) Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study. [Dissertation (University of Nottingham only)]
spellingShingle Cheong, Jiunn Yan
Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title_full Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title_fullStr Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title_full_unstemmed Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title_short Performance, stock selection ability, timing ability and persistence in bull and bear phase: a Malaysian unit trust study
title_sort performance, stock selection ability, timing ability and persistence in bull and bear phase: a malaysian unit trust study
url https://eprints.nottingham.ac.uk/57218/