Information Transparency at Socially Responsible Mutual Funds

2009 ◽  
Author(s):  
Paul Dunn
Keyword(s):  
Mutual Funds ◽  
Socially Responsible ◽  
Information Transparency ◽  
Socially Responsible Mutual Funds

Looking for sustainable development: Socially responsible mutual funds and the low‐carbon economy

2020 ◽  
Author(s):  
Amparo Soler‐Domínguez ◽  
Juan Carlos Matallín‐Sáez ◽  
Diego Víctor Mingo‐López ◽  
Emili Tortosa‐Ausina
Keyword(s):  
Sustainable Development ◽  
Mutual Funds ◽  
Low Carbon ◽  
Socially Responsible ◽  
Low Carbon Economy ◽  
Socially Responsible Mutual Funds ◽  
Carbon Economy

Style-changing behaviour in the socially responsible mutual fund industry: consequences on financial and sustainable performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Muñoz ◽  
María Vargas ◽  
Ruth Vicente
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Fixed Effects ◽  
Socially Responsible ◽  
Content Type ◽  
Sustainable Performance ◽  
Panel Regressions ◽  
Money Flows ◽  
Socially Responsible Mutual Funds ◽  
Performance Ranking

Purpose This study aims to examine style-deviation practices in the socially responsible mutual funds (SMRF) industry i.e. how mutual funds game their stated financial objectives to earn a higher relative performance ranking. In addition, the consequences of such practices on sustainable scores and money flows are studied. Design/methodology/approach A sample of 454 US equity SRMFs is studied. This paper uses panel regressions controlling for time and style fixed-effects. Findings This study finds that 17.60% of SRMF managers in the sample are engaged in style deviation practices. These practices positively impact the sustainable performance of SRMFs and negatively impact their financial performance. One effect offsets the other and they consequently do not affect money flows. Another finding is that only investors with lower portfolio sustainability scores do show return-chaser behaviour. Practical implications This paper reveals that SRMF managers deviating from their stated financial style face a dilemma that is non-existent for their conventional peers that is style deviation practices affect financial and sustainable performance in opposing ways, whereas SRMF investor utility depends positively on both dimensions. The findings are not conclusive about the effectiveness of style deviation practices in attracting SRMF money flows. Social implications SRMF industry has experienced tremendous growth in the past decade. The increased competition in this industry has led managers to strive to attract investors, sometimes by relying on irregular practices that enhance their portfolio results. Regulators should consider how to avoid such perverse behaviour with a view to improving mutual funds transparency. Originality/value This is the first research that analyses style deviation practices and their consequences for the SRMF industry.

scholarly journals The Performance of Socially Responsible Mutual Funds: The Role of Fees and Management Companies

2009 ◽  
Vol 94 (2) ◽  
pp. 243-263 ◽  
Author(s):  
Javier Gil-Bazo ◽  
Pablo Ruiz-Verdú ◽  
André A. P. Santos
Keyword(s):  
Mutual Funds ◽  
Socially Responsible ◽  
Socially Responsible Mutual Funds

Investing in socially responsible mutual funds: Proposal of non-financial ranking in Italian market

2016 ◽  
Vol 37 ◽  
pp. 541-555 ◽  
Author(s):  
Antonella Petrillo ◽  
Fabio De Felice ◽  
Mónica García-Melón ◽  
Blanca Pérez-Gladish
Keyword(s):  
Mutual Funds ◽  
Socially Responsible ◽  
Italian Market ◽  
Socially Responsible Mutual Funds
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