The objective of this study is to evaluate the performance of the funds in Singapore. A number of theoretical issues concerning the propriety of using the Sharpe Index as the performance measure are discussed. This study attempts to evaluate not only the funds’ performance over the entire research period (61/2 years) but also their performance during the volatile Gulf War period. Generally, the funds outperformed the market index during both evaluation periods. This unexpected result offers fresh perspective on the funds’ ability to ‘beat the market’.
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