Greener Journal of Business and Management Studies

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Greener Journal of  Business and Management Studies  Vol. 2 (1), pp. 012-021January 2012

 ISSN: 2276-7827 ©  2011 Greener Journals

Research Paper

Manuscript Number:GJMBS11017

Performance of Malaysian Islamic Unit Trusts Based on Consistency of Ranking

 

*Annuar Md Nassir1, Siti Qurratul Aini Shadi2 and Mohamad Ali Abdul Hamid3

 

1Universiti Putra Malaysia

2Graduate student, Graduate School of Management, UPM

3King Abdul Aziz University, Saudi Arabia

 

*Corresponding Author Email: annuar @putra .upm .edu.my


Abstract:

In this study, the performance of Malaysian Islamic unit trust is investigated based on consistency of ranking and can be considered as an alternative approach in evaluating portfolio performance. The Sign Test is employed to investigate consistency of ranking. The results of this study indicate that only four unit trusts namely Public Islamic Equity and CIMB Islamic Sukuk (both for short term investment) and Public Islamic Balance and CIMB Islamic Balance (both for medium term investment) exhibit non-random behavior in ranking which implies that the two unit trusts exhibit consistency and predictability in ranking. All other unit trusts show that the consistency in ranking is random and unpredictable consistent with the efficient market hypothesis.

Key words: market efficiency, unit trust, consistency, ranking

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