Fund Performance, Managers’ Genuine Stock Selection Skills and Managerial Replacement: Evidence from the UK Unit Trust Industry

2010 ◽  
Author(s):  
Zhichao Zhang ◽  
Li Ding ◽  
Si Zhou
Keyword(s):  
Fund Performance ◽  
Stock Selection ◽  
Unit Trust ◽  
The Uk ◽  
Trust Industry

scholarly journals The persistence of active fund management performance

2005 ◽  
Vol 36 (2) ◽  
pp. 71-84 ◽  
Author(s):  
D. R. Wessels ◽  
J. D. Krige
Keyword(s):  
South African ◽  
Fund Performance ◽  
Performance Persistence ◽  
Long Run ◽  
Equity Funds ◽  
Under Performing ◽  
Unit Trust ◽  
Manager Skill ◽  
Trust Industry ◽  
Random Nature

This study focuses on the performance persistence of equity funds in the South African Unit Trust Industry against its appropriate index benchmark (ALSI) over the period 1988 to 2003. A few funds exhibited extraordinary persistence - either in out-performing or under-performing. In general it was found that over the short term (month-to-month and quarter-to-quarter basis) there was a tendency that the current performance of a fund would be repeated, with a greater tendency among the top performing funds to remain a top performer.However, when the persistence of fund performance was measured on a year-to-year basis, less consistency among funds was identified. The decile ranking movement of a fund - upwards, downwards or sideways - became more random in nature. When the forward-looking period was extended to three years, however, the chances that the fund would have stayed in the same decile became very slim.Herein lies the danger of placing your trust with one active manager only; over the long run the performance ranking of managers can assume a random nature if manager skill is not persistent.

scholarly journals The persistence of unit trust performance for the period July 1985-June 1995

1998 ◽  
Vol 29 (3) ◽  
pp. 100-108 ◽  
Author(s):  
Margaret C. Meyer
Keyword(s):  
South Africa ◽  
Superior Performance ◽  
Time Periods ◽  
Unit Trust ◽  
Trust Industry

The purpose of this study was to determine whether any persistence of performance existed in the unit trust industry in South Africa over the ten-year period from July 1985 to June 1995. Calculations were done over different time periods (one-, two- and four-year periods) and using different definitions of superior performance (positive Jensen alphas or winner/loser phenomena). Results of nominal returns and risk-adjusted returns were also compared. Results obtained show that persistence in performance does exist, but that it is more of a 'loser' phenomenon than a 'winner' phenomenon.

scholarly journals Mutual Fund Performance: Evidence from India

2019 ◽  
Vol 8 (4) ◽  
pp. 11714-11723
Keyword(s):  
Portfolio Management ◽  
Mutual Fund ◽  
Market Timing ◽  
Investment Strategy ◽  
Fund Performance ◽  
Mutual Fund Performance ◽  
Stock Selection ◽  
Multifactor Models ◽  
Fund Managers ◽  
Timing Ability

We empirically examine fund managers’ stock selection and market timing ability using various risk-adjusted measures such as CAPM and multifactor models of FamaFrench (1993) and Carhart (1997) to gauge mutual fund performance in India. The sample consists of 183 actively managed equity-oriented funds and covers the period from April 2000 to March 2018. The study, on the whole, documents some evidence of positive and significant stock selection ability but fails to yield any notable evidence of market timing ability of fund managers. Our results are robust according to various riskadjusted performance evaluation techniques, sub-period analysis, excluding the crisis period and at the individual fund level. The findings of our study are in line with the previous studies that report limited selectivity skill and market timing ability among fund managers. The main implication of the study is that active portfolio management may not be very rewarding in comparison to a passive investment strategy.

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