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The Performance of UK International Unit Trusts

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  • Jonathan Fletcher
  • Andrew Marshall

Abstract

We evaluate the performance of UK unit trusts with international equity objectives between January 1985 and December 2000 relative to domestic benchmark strategies. We use performance measures based on Jensen (1968), Ferson and Schadt (1996), and the Chen and Knez (1996) law of one price (LOP). We find more favourable trust performance using the Jensen and Ferson and Schadt measures relative to the LOP measure. There is evidence of inferior performance by some international trusts using the unconditional LOP measure. The charges and investment sector of the trust also has an impact on the performance of the trusts using the LOP measure.

Suggested Citation

  • Jonathan Fletcher & Andrew Marshall, 2005. "The Performance of UK International Unit Trusts," European Financial Management, European Financial Management Association, vol. 11(3), pages 365-386, June.
    • Handle: RePEc:bla:eufman:v:11:y:2005:i:3:p:365-386
    DOI: 10.1111/j.1354-7798.2005.00288.x
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    Cited by:

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