Selectivity and timing: evidence from the performance of Malaysian unit trusts

This paper presents an empirical examination of the selectivity and timing performance of 31 unit trusts in Malaysia. The empirical results indicate that during the] 990-1 995 period, Malaysian unit trusts appear to possess no market timing ability, except for the Kuala Lumpur Growth Fund. However,...

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Main Authors: Md Nassir, Annuar, Ramadilli Mohd, Shamsher Mohamad, Ngu, Mee Hua
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 1997
Online Access:http://psasir.upm.edu.my/id/eprint/3172/
http://psasir.upm.edu.my/id/eprint/3172/1/Selectivity_and_Timing_Evidence_from_the_Perfonnance.pdf
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author Md Nassir, Annuar
Ramadilli Mohd, Shamsher Mohamad
Ngu, Mee Hua
author_facet Md Nassir, Annuar
Ramadilli Mohd, Shamsher Mohamad
Ngu, Mee Hua
author_sort Md Nassir, Annuar
building UPM Institutional Repository
collection Online Access
description This paper presents an empirical examination of the selectivity and timing performance of 31 unit trusts in Malaysia. The empirical results indicate that during the] 990-1 995 period, Malaysian unit trusts appear to possess no market timing ability, except for the Kuala Lumpur Growth Fund. However, there is some evidence of superior selection ability on the part of fund managers in picking up "good" stocks. Eighty-one per cent of the sample of unit trusts are able to beat the market return and the Kuala Lumpur Growth Fund ranked highest in terms of selectivity measure. The study found a positive correlation coefficient of 0.53 between selectivity and timing performance among the unit trusts. Further evidence suggests that 81% of the unit trusts have not achieved the expected level of diversification, and risk-return characteristics of the trusts are generally inconsistent with their stated objectives.
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spelling upm-31722015-09-09T07:11:14Z http://psasir.upm.edu.my/id/eprint/3172/ Selectivity and timing: evidence from the performance of Malaysian unit trusts Md Nassir, Annuar Ramadilli Mohd, Shamsher Mohamad Ngu, Mee Hua This paper presents an empirical examination of the selectivity and timing performance of 31 unit trusts in Malaysia. The empirical results indicate that during the] 990-1 995 period, Malaysian unit trusts appear to possess no market timing ability, except for the Kuala Lumpur Growth Fund. However, there is some evidence of superior selection ability on the part of fund managers in picking up "good" stocks. Eighty-one per cent of the sample of unit trusts are able to beat the market return and the Kuala Lumpur Growth Fund ranked highest in terms of selectivity measure. The study found a positive correlation coefficient of 0.53 between selectivity and timing performance among the unit trusts. Further evidence suggests that 81% of the unit trusts have not achieved the expected level of diversification, and risk-return characteristics of the trusts are generally inconsistent with their stated objectives. Universiti Putra Malaysia Press 1997-03 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/3172/1/Selectivity_and_Timing_Evidence_from_the_Perfonnance.pdf Md Nassir, Annuar and Ramadilli Mohd, Shamsher Mohamad and Ngu, Mee Hua (1997) Selectivity and timing: evidence from the performance of Malaysian unit trusts. Pertanika Journal of Social Sciences & Humanities, 5 (1). pp. 45-57. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-5-1-3
spellingShingle Md Nassir, Annuar
Ramadilli Mohd, Shamsher Mohamad
Ngu, Mee Hua
Selectivity and timing: evidence from the performance of Malaysian unit trusts
title Selectivity and timing: evidence from the performance of Malaysian unit trusts
title_full Selectivity and timing: evidence from the performance of Malaysian unit trusts
title_fullStr Selectivity and timing: evidence from the performance of Malaysian unit trusts
title_full_unstemmed Selectivity and timing: evidence from the performance of Malaysian unit trusts
title_short Selectivity and timing: evidence from the performance of Malaysian unit trusts
title_sort selectivity and timing: evidence from the performance of malaysian unit trusts
url http://psasir.upm.edu.my/id/eprint/3172/
http://psasir.upm.edu.my/id/eprint/3172/
http://psasir.upm.edu.my/id/eprint/3172/1/Selectivity_and_Timing_Evidence_from_the_Perfonnance.pdf