Market-timing skills of socially responsible investment fund managers: The case of North America versus Europe

2014 ◽  
Vol 15 (6) ◽  
pp. 366-377 ◽  
Author(s):  
Wei Rong Ang ◽  
Greg N Gregoriou ◽  
Hooi Hooi Lean
Keyword(s):  
North America ◽  
Market Timing ◽  
Socially Responsible Investment ◽  
Investment Fund ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers

scholarly journals Do Socially Responsible Investment Funds Sell Losses and Ride Gains? The Disposition Effect in SRI Funds

2021 ◽  
Vol 13 (15) ◽  
pp. 8142
Author(s):  
Beatrice Boumda ◽  
Darren Duxbury ◽  
Cristina Ortiz ◽  
Luis Vicente
Keyword(s):  
Mutual Fund ◽  
Economic Loss ◽  
Investment Strategy ◽  
Socially Responsible Investment ◽  
Disposition Effect ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Fund Managers ◽  
Ethical Investments

An increasing percentage of the total net assets under professional management is devoted to ethical investments. Socially responsible investment (SRI) funds have a dual objective: building an investment strategy based on environmental, social, and corporate governance (ESG) screens and providing financial returns to investors. In the current study, we investigate whether this dual objective has an influence on the behavior of mutual fund managers in the realization of gains and losses. Evidence has shown that most investors in SRI funds invest in those funds primarily because of their social concerns. If the motivations of SRI managers align with those of SRI investors, SRI managers might then have more incentives than conventional managers to hold onto losing stocks if they feel their social value compensates for the economic loss. We hypothesize that SRI managers would be less prone to the disposition effect than conventional managers. Pertaining to the disposition effect, we do not find evidence of a difference in the behavior of SRI fund managers compared with that of conventional fund managers. Our results hold, even when considering market trends, management structure, gender, and prior performance.

Socially responsible investment fund performance: the impact of screening intensity

2010 ◽  
Vol 50 (2) ◽  
pp. 351-370 ◽  
Author(s):  
Darren D. Lee ◽  
Jacquelyn E. Humphrey ◽  
Karen L. Benson ◽  
Jason Y. K. Ahn
Keyword(s):  
Fund Performance ◽  
Socially Responsible Investment ◽  
Investment Fund ◽  
Socially Responsible ◽  
Responsible Investment ◽  
The Impact

Purpose-washing of impact investing funds: motivations, occurrence and prevention

2019 ◽  
Vol 15 (7) ◽  
pp. 853-873 ◽  
Author(s):  
Suzanne Findlay ◽  
Michael Moran
Keyword(s):  
Design Methodology ◽  
Socially Responsible Investment ◽  
Global Markets ◽  
Socially Responsible ◽  
Impact Investing ◽  
Content Type ◽  
Responsible Investment ◽  
Fund Managers ◽  
Market Participants ◽  
Systematic Appraisal

Purpose As an emerging field of financing, impact investing is under-institutionalised and is in a legitimacy building phase. In an attempt to unpack how impact investing is deployed in global markets, the key elements of its definition (intentionality, returns and measurement) are examined through a review of academic and practitioner literature. A refined definition is developed which emphasises the key elements of intentionality and measurement as separating impact investment from the established field of socially responsible investment (SRI). Design/methodology/approach Funds and products from a publicly available database are systematically analysed against the refined definition to determine the rigour with which intentionality and measurement are applied by self-identified market participants. These elements are used as a proxy to determine “purpose-washing” – a process where funds are presented as impact investments but do not satisfy a tightly applied definition. Purpose-washing enables the possibility of “retrofitting”, where funds originally defined as other products (e.g. SRI) retrospectively claim to be impact investments. Findings Having found evidence of purpose-washing but not retrofitting, actions are identified to enhance impact investment’s integrity, focussing on intentionality, measurement and transparency. Clarity of definition and purpose are important for a field in the market-building phase, as a lack of clarity could have negative implications for integrity and growth. The authors postulate that purpose-washing may be attributed to twin but distinctive motivations by market participants: interest in fee-generation among fund managers and attempts to bolster field legitimacy by demonstrating sector growth among impact investing proponents. Originality value This paper represents a unique analysis of impact investments against a robust and refined definition. By doing so, it offers a systematic appraisal of impact investments and an overall assessment of market integrity in its field-building phase.

scholarly journals Responsible Investing: A Study on Non-Economic Goals and Investors’ Characteristics

2020 ◽  
Vol 9 (SI) ◽  
pp. 63-78
Author(s):  
Renuka Sharma ◽  
Kiran Mehta ◽  
Vishal Vyas
Keyword(s):  
Socially Responsible Investment ◽  
Individual Investors ◽  
Wealth Creation ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Responsible Investing ◽  
Sustainable Investment ◽  
Rational Investment ◽  
The Relationship

The notion of rational investment is not attuned with the idea of socially responsible investment. Incongruence with conventional investments, the SRI/sustainable investment/ethical investment is pertained to ethical, environmental and social criteria (Eccles and Viviers,2011). All investors are not single-minded for an objective of wealth creation. The welfare of society and the environment are among the other drivers of investment. In certain cases, investors do prefer sustainable development to personal financial aspects (Beal et al., 2005). The present study has primarily focused on assessing the relationship between individual investors’ attributes and their noneconomic goal in order to comprehend their socially responsible investment behaviour specifically in Indian scenario. The findings of study are useful for fund managers, regulators and researchers as study has provided useful insights regarding behaviour of Indian investors for responsible investments.

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