Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Bond Fund Versus Islam Bond Fund: A Comparison of the Performance of Fixed Income Funds in Malaysia

Aminah Shari, Mohd Zulkarnain Bahrun

http://dx.doi.org/10.6007/IJARAFMS/v13-i3/18903

Open access

This study examines 43 bond funds and 24 Islamic bond funds in Malaysia from 1 August 2016 to 30 July 2021. This study analyses the performance of fixed income fund portfolios using risk-adjusted models: Treynor ratio, Sharpe ratio, and Jensen alpha. The Wilcoxon signed rank test was done on the top 20 bond funds and Islamic bond funds portfolios to compare risk-adjusted performance using Sharpe, Treynor, and Jensen. Sharpe and Treynor's top 20 bond fund portfolios underperformed the market, while Islamic bond funds outperformed. Both funds outperform the market, according Jensen alpha. The performance of bond funds and Islamic bond funds differs significantly when three risk-adjusted models are utilised. This analysis reveals that Islamic bond funds are more stable over this time span.

Abdullah, F., Hassan, T., & Mohamad, S. (2007). Investigation of performance of Malaysian Islamic unit trust funds: Comparison with conventional unit trust funds. Managerial Finance, 33(2), 142–153. https://doi.org/10.1108/03074350710715854
Abdullah, F., Mohamed, S., & Hassan, T. (2002). A comparative performance of Malaysian Islamic and conventional mutual funds. Pertanika, 8(2),30–49. http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:A+Comparative+Performance+of+Malaysian+Islamic+and+Conventional+Mutual+Funds#1
Ahmad, M., & Haron, R. (2006). The Comparison of Performance of Islamic and Conventional Unit Trust Funds in Malaysia. Young Scholars Conference. http://irep.iium.edu.my/id/eprint/10836
Abdullah, N. A. H., & Shari, A. (2019). A comparative analysis of fixed income unit trust funds versus equity unit trust funds in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 15(2), 95–117. https://doi.org/10.21315/aamjaf2019.15.2.5
Bashir, M. S., & Wan Nawang, W. R. (2011). Islamic and conventional unit trusts in Malaysia?: a performance comparison. Journal of Islamic Economics, Banking and Finance, 7(4), 9–24.
Blake, C. R., Elton, E. J., & Gruber, M. J. (2016). The Performance of Bond Mutual Funds Author ( s ): Christopher R . Blake , Edwin J . Elton and Martin J . Gruber Published by?: The University of Chicago Press Stable URL?: http://www.jstor.org/stable/2353206 Accessed?: 03-04-2016 20?: 22 UTC Your use of . 66(3), 371–403.
Bond and Sukuk Information Exchange. (2019, February 13). Retrieved from Bix Malaysia: https://www.bixmalaysia.com/Learning-Center/Articles-Tutorials/Malaysia-Government-Securities-(MGS)-and-Government
CORNELL, B., & GREEN, K. (1991). The Investment Performance of Low?grade Bond Funds. The Journal of Finance, 46(1), 29–48. https://doi.org/10.1111/j.1540-6261.1991.tb03744.x
Datastream. (2021, September 24). Retrieved from Reifinitiv Eikon: https://eikon.thomsonreuters.com
Fletcher, J. (1999). The evaluation of the performance of UK American unit trusts. International Review of Economics and Finance, 8(4), 455–466. https://doi.org/10.1016/S1059-0560(99)00038-6
Fund Management & Products. (2021, September 24). Retrieved from Securities Commission Malaysia: https://www.sc.com.my/analytics/fund-management-products
Government Securities Yield. (2021, September 24). Retrieved from Central Bank of Malaysia: https://www.bnm.gov.my/government-securities-yield
Ippolito, R. A. (1993). On Studies of Mutual Fund Performance, 1962–1991. Financial Analysts Journal, 49(1), 42–50. https://doi.org/10.2469/faj.v49.n1.42
Ismainar. (2015). No TitleÉ?__. Ekp, 13(3), 1576–1580.
Jobson, J. D., & Korkie, B. (1982). Potential performance and tests of portfolio efficiency. Journal of Financial Economics, 10(4), 433–466. https://doi.org/10.1016/0304-405X(82)90019-8
Kahn, R. N., & Rudd, A. (1995). Does Historical Performance Predict Future Performance? Financial Analysts Journal, 51(6), 43–52. https://doi.org/10.2469/faj.v51.n6.1948
Leong, K. H., & Aw, M. W. (1997). Measuring unit trust performance using different benchmarks. In Capital Market Review (Issue 5(2), pp. 27–44). http://www.mfa.com.my/wp-content/uploads/2013/12/Vol.5Issue21997-003.pdf
Low, S. W. (2007). Malaysian unit trust funds’ performance during up and down market conditions: A comparison of market benchmark. Managerial Finance, 33(2), 154–166. https://doi.org/10.1108/03074350710715863
Nur Atiqah, A., & Nur Adiana Hiau, A. (2009). The Performance of Malaysian Unit Trusts Investing in Domestic Versus International Markets. Asian Academy of Management Journal of Accounting and Finance, 5(2), 77–100.
Saad, N. M., Majid, M. S. A., Kassim, S., Hamid, Z., & Yusof, R. M. (2010). A comparative analysis of the performance of conventional and Islamic unit trust companies in Malaysia. International Journal of Managerial Finance, 6(1), 24–47. https://doi.org/10.1108/17439131011015779
Sharpe, W. F. (1966). Mutual Fund Performance Author ( s ): William F . Sharpe Published by?: University of Chicago Press Stable URL?: http://www.jstor.org/stable/2351741 REFERENCES Linked references are available on JSTOR for this article?: You may need to log in to JSTOR to. Journal of Business, 39(1), 119–138.
Shariah Advisory Council. (2021, September 24). Retrieved from Securities Commision Malaysia: https://www.sc.com.my/development/icm-v2/shariah-advisory-council
Sukuk Reports. (2021, September 24). Retrieved from International Islamic Financial Market: https://www.iifm.net/sukuk-reports/
Taib, F. M., & Isa, M. (2007). Malaysian unit trust aggregate performance. Managerial Finance, 33(2), 102–121. https://doi.org/10.1108/03074350710715836
The Performance of Mutual Funds in the Period 1945-1964 Author ( s ): Michael C . Jensen Source?: The Journal of Finance , May , 1968 , Vol . 23 , No . 2 , Papers and Proceedings of the Twenty-Sixth Annual Meeting of the American Finance Association Washi. (1976). 23(2), 389–416.

N/A