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Is international trust performance predictable over time? A note

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  • Jonathan Fletcher
  • Andrew Marshall

Abstract

We examine whether past return measures have any significant predictive ability for future returns of UK unit trusts with international equity objectives. We find significant positive persistence between the past return performance of the trust relative to its investment sector and future trust returns relative to its sector. This result holds at short‐run and long‐run return horizons. The persistence is stronger in trusts that perform well relative to their sector. Our findings suggest that the past return performance of the trust relative to their sector provides a useful guide to future return performance relative to their sector.

Suggested Citation

  • Jonathan Fletcher & Andrew Marshall, 2008. "Is international trust performance predictable over time? A note," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 48(1), pages 123-132, March.
    • Handle: RePEc:bla:acctfi:v:48:y:2008:i:1:p:123-132
    DOI: 10.1111/j.1467-629X.2007.00237.x
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    References listed on IDEAS

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