South African General Equity Unit Trust Funds:Fund Performance and Characteristics

dc.contributor.advisorKruger, Ryan
dc.contributor.authorPardoe, Liam
dc.date.accessioned2019-02-04T11:23:31Z
dc.date.available2019-02-04T11:23:31Z
dc.date.issued2018
dc.date.updated2019-02-04T08:07:31Z
dc.description.abstractWe evaluate performance of general equity unit trust funds in South Africa during the period 2010 to 2017 and identify, if any, characteristics of these unit trust funds that are drivers of this performance. Performance is measured using Jensen’s Alpha with a sample that has not suffered from the full effects of survivorship bias as many other South African research studies have in past years. We used a Weighted Least Squares regression model, after weighting each funds Jensen’s alpha, to determine what characteristics impact the performance of unit trust funds. Our results showed that Beta, Fund Age, Percentage of Top 10 Holdings and Management Fees were all significant in explaining unit trust performance. We found that in the South African general equity unit trust space, funds which take higher risk relative to the market will experience higher levels of performance, younger funds tended to outperform their older counterparts and funds that charge lower management fees will outperform those with higher fees. Funds that on average throughout the period held less Top 10 JSE listed equity stocks tended to outperform those having a larger Top 10 holding exposure. We have thus been able to uncover material performance characteristics that differentiate South African unit trust performance. We have also provided meaningful parameters for investors and investment managers when structuring diversified portfolios, allowing them to improve their ability to provide outperformance consistently over time.
dc.identifier.apacitationPardoe, L. (2018). <i>South African General Equity Unit Trust Funds:Fund Performance and Characteristics</i>. (). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/29222en_ZA
dc.identifier.chicagocitationPardoe, Liam. <i>"South African General Equity Unit Trust Funds:Fund Performance and Characteristics."</i> ., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2018. http://hdl.handle.net/11427/29222en_ZA
dc.identifier.citationPardoe, L. 2018. South African General Equity Unit Trust Funds:Fund Performance and Characteristics. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Pardoe, Liam AB - We evaluate performance of general equity unit trust funds in South Africa during the period 2010 to 2017 and identify, if any, characteristics of these unit trust funds that are drivers of this performance. Performance is measured using Jensen’s Alpha with a sample that has not suffered from the full effects of survivorship bias as many other South African research studies have in past years. We used a Weighted Least Squares regression model, after weighting each funds Jensen’s alpha, to determine what characteristics impact the performance of unit trust funds. Our results showed that Beta, Fund Age, Percentage of Top 10 Holdings and Management Fees were all significant in explaining unit trust performance. We found that in the South African general equity unit trust space, funds which take higher risk relative to the market will experience higher levels of performance, younger funds tended to outperform their older counterparts and funds that charge lower management fees will outperform those with higher fees. Funds that on average throughout the period held less Top 10 JSE listed equity stocks tended to outperform those having a larger Top 10 holding exposure. We have thus been able to uncover material performance characteristics that differentiate South African unit trust performance. We have also provided meaningful parameters for investors and investment managers when structuring diversified portfolios, allowing them to improve their ability to provide outperformance consistently over time. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - South African General Equity Unit Trust Funds:Fund Performance and Characteristics TI - South African General Equity Unit Trust Funds:Fund Performance and Characteristics UR - http://hdl.handle.net/11427/29222 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29222
dc.identifier.vancouvercitationPardoe L. South African General Equity Unit Trust Funds:Fund Performance and Characteristics. []. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29222en_ZA
dc.language.isoeng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherInvestment Management
dc.titleSouth African General Equity Unit Trust Funds:Fund Performance and Characteristics
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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