Is international trust performance predictable over time? A note

Research output: Contribution to journalArticle


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.
Original languageEnglish
Pages (from-to)123-132
Number of pages9
JournalAccounting and Finance
Issue number1
Publication statusPublished - 2008


  • performance persistence
  • international unit trusts
  • investment sector
  • G10
  • G12

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