Zulliger, Wartegg and Personality Research Form (PRF) Tests as Predictors of Investment Performance

This article explores the utility, validity and reliability of three psychological tests in predicting fundmanagers investment performance. Two of the psychological tests-the Zulliger and Wartegg testsrepresentedimplicit psychological motives. The third test-the Personality Research Form (PRF)-represented explicit psychological motives. Investment performance was measured by analyzing the fiveyearrisk adjusted performance of forty professional fund managers in Finland. The finding of the presentwork was that the Zulliger Test predicted 45.4 %, the PRF predicted 25.4 % and the Wartegg Testpredicted 8.3 % of the investment performance. The combined three-test prediction percentage ofinvestment performance was 55.0 %. One of conclusions of this study is that implicit motives have beenneglected in behavioral finance research.