Investor heterogeneity and the cross-section of U.K. investment trust performance

We use the upper and lower bounds derived by Ferson and Lin (2010) to examine the impact of investor heterogeneity on the performance of U.K. investment trusts relative to alternative linear factor models. We find using the upper bounds that investor heterogeneity has an important impact for nearly all investment trusts. The upper bounds are large in economic terms and significantly different from zero. We find no evidence of any trusts where all investors agree on the sign of performance beyond what we expect by chance. Using the lower bound, we find that trusts with a larger disagreement about trust performance have a weaker relation between the trust premium and past Net Asset Value (NAV) performance

Study on the discounts and performance of UK investment trusts 1980-1994

Available from British Library Document Supply Centre-DSC:DXN045578 / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

A Study on trust restoration efforts in the UK retail banking industry

YesThis paper aims to capture the perception of banking services providers on how to restore their customers’ trust in the UK banking industry. Twenty frontline employees (FLEs) who have customer-facing responsibilities are interviewed and a thematic analysis of the interview transcripts is undertaken. Through the emergence of three different major themes and a number of sub-themes, we have presented our findings in the form of a trust restoration model. Interviewees have reported three major themes as an action framework to restore their customers’ trust. Firstly, banks are implementing enhanced transparency in their operations, by appropriately disclosing the key features of their lending and other banking activities. Secondly, they are implementing policies and procedures that can help strengthen their relationship banking, such as improving employee and customer engagement activities for supporting small businesses and the community. Thirdly, they are promoting operational efficiency by adequately investing in information technology infrastructure. However, some financial service practices identified by the interviewees, for example, the deliberate sale of financial products that are unsuitable for their customers or too complex to understand, still continues. Ultimately, this ‘sale before service’ tactic is incompatible with the industry claims of compliance with the new financial regulations