Performance of UK equity unit trusts

Abstract

Studies of money manager performance are the bottom line test of market efficiency. They do not claim to uncover specific types of market failure as do the ‘anomalies’ literature of the 1980s and the behavioural finance literature of today. Rather, money manager studies ask whether there are market failures, regardless of type, that are systematically exploitable. In our opinion, the conclusion of the literature to date is a resounding ‘No’.