Unit Trust Investment Products: Is the rate of return reported by fund managers to investors reliable and comparable?

Abstract

Funds under management in retail unit trust investment products have grown tenfold in the past decade and now represent the savings of some 1.5 million retail investors. These investors cannot specifically command the infomation they require and consequently rely on what the market provides. This paper provides some evidence that because of a lack of independent verification and mandated standards the investing public cannot be certain that reported rates of return are either reliable or comparable.