scholarly journals Efficiency of the Public Pensions Funds on the Socially Responsible Equities of Mexico

2018 ◽  
Vol 11 (1) ◽  
pp. 178
Author(s):  
Oscar De la Torre-Torres ◽  
Evaristo Galeana-Figueroa ◽  
José Álvarez-García
Keyword(s):  
Investment Strategy ◽  
Pension Funds ◽  
Socially Responsible Investment ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Risk Indices ◽  
Investment Level ◽  
Significant Difference ◽  
Time Periods ◽  
Mean Variance

In the present work, we test the mean-variance efficiency that Mexican public pension funds would have shown had these invested their local equity portfolio component only in socially responsible stocks. With a daily simulation (from 1 January 2005 to 31 July 2018) of the Standard & Poors (S&P) Mexico target risk indices, we found that there was no significant difference between the more conservative pension funds that invested only in the Price Index and Quotations (IPC) sustainable index against the ones that invested in the conventional IPC. In the case of the more aggressive type of pension funds (those with a higher Mexican equity investment level), a lower mean-variance efficiency would have been observed had these invested in the IPC sustainable index. We also found, with a two-regime Markov-switching analysis, that socially responsible investment would have been better for most of these pension funds during distress time periods. Even if our results do not give strong short-term proof for the use of a socially responsible investment strategy in the most aggressive pension funds, we found that the benefits will be observed in the long-term, due to a better performance during distress time periods and the lag effect of mid and small-cap stocks in the performance.

Environmentally friendly and socially responsible investment in and by occupational pension funds in the USA and in the EU

2021 ◽  
pp. 138826272110269
Author(s):  
Lauren Daniels ◽  
Yves Stevens ◽  
David Pratt
Keyword(s):  
Financial Performance ◽  
Investment Decision ◽  
Pension Funds ◽  
Socially Responsible Investment ◽  
Occupational Pension ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Occupational Pensions ◽  
The Usa ◽  
The Eu

Worldwide pension funds, in their capacity as large institutional investors, are under increasing pressure to take social and environmental considerations into account in their investment decision-making process. The concepts Socially Responsible Investment (SRI) and Environmental Social Governance (ESG) are indeed ubiquitous in the current investment and pension community. This article aims to provide some insight into the conceptual relationship between SRI and ESG and its legal implications for the investment behaviour of private pension funds in the USA and the EU. Hence, the first part of the article gives some background to the distinct concepts of SRI and ESG. This leads to the finding that SRI goes one step further than ESG by prioritising moral or ethical considerations that may not be material to an investment’s financial performance, whereas ESG functions as a guideline to enhance financial performance. The second part analyses the legal possibilities and constraints for responsible investment in American occupational pensions and the third part does the same for European occupational pensions. The article concludes with a summary and comparative overview of the American and European lessons.

scholarly journals ANALISIS KEBIJAKAN PENYAMPAIANSUSTAINABILITY REPORTING

2019 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Linda Linda
Keyword(s):  
Theoretical Model ◽  
Firm Performance ◽  
Supply And Demand ◽  
Market Value ◽  
Sustainability Reporting ◽  
Socially Responsible Investment ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Significant Difference ◽  
Demand Condition

Sustainability reporting in Indonesia is voluntary not mandatory, there for, it is needed firm policy on its implementation. A theoretical model supply and demand for socially responsible investment is still argues, whether these activities will improve, reduce or have no impact on a firm’s market value. This research aim to determine the differences in firm performance between the firm that do sustainability reporting and those don’t sustainability reporting in IDX. The result shows that no significant difference in firm performance between the firm that do sustainability reporting and don’t sustainability reporting. This supply and demand condition is not favorable cause of the implementation of sustainability reporting have no impact on firm performance.

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.

scholarly journals International Socially Responsible Investment Funds

10.3846/153 ◽  
2011 ◽  
Vol 1 (3) ◽  
pp. 56-60
Author(s):  
Modestas Plakys
Keyword(s):  
Alternative Energy ◽  
Pension Funds ◽  
Socially Responsible Investment ◽  
Public Pension ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Environment Changes ◽  
Socially Responsible Investments ◽  
Private And Public

The study deals with socially responsible investment funds as the type of investment funds universe. European and USA market for socially responsible investment funds is presented. The dynamics of assets under the management and number of these funds in the market are considered. The approaches for socially responsible investments are studied and reasons for increased interest in such investments are named. The main reasons why the global socially responsible funds become more and more popular are: an increase of interest of community in socially responsible companies, in problems regarding climate and environment changes, in government attitude towards alternative energy and investments of private and public pension funds.

scholarly journals APPLICATION OF VALUES-BASED INVESTING CONCEPT IN WORLD INVESTMENT PRACTICE

2020 ◽  
pp. 220-226
Author(s):  
О. Zakharkin ◽  
L. Zakharkina ◽  
Yu. Solomko ◽  
D. Yemelianov
Keyword(s):  
Investment Strategy ◽  
Socially Responsible Investment ◽  
Economic Effects ◽  
Social Value ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Cost Approach ◽  
The Social ◽  
The World ◽  
The Cost

The article considers theoretical and practical aspects of investments’ implementation at enterprises inclusive of the account the socio-economic effects arising from this. It is proved that side by side with the positive results investments can make negative impact on the surrounding community, which will require additional costs on reduction and neutralization. Thus, the need arises while calculating the cost indices of the company also take into account the indicators of "social value". The aim of the work is to analyze the world experience of forming investment strategies for business development based on the application of a cost approach with the principles of socially responsible investment. The research used methods of scientific abstraction, comparative and systematic analysis and synthesis, systematization and logical generalization. Provision of the combination of the interests of investors and society is possible by the use of the concept of "values-based investing" (VBI). It is the investment, which is based on the cost approach and consists in the selection of investments that provide the greatest increase in total cost, that is, not only to create value for the enterprise, but also to make the social value in the form of positive environmental, social and economic effects. Thus, it is a socially-responsible investment, the orientation of which is becoming more widespread in the world. The paper provides classification of areas of socially responsible investment, which includes investment by criteria of the social, ecological areas, the corporate management, the integrating multiple criteria for choosing investments. It is characterized the main types of strategies that can be implemented by enterprise within the limits of value-oriented investing and analyzed the global dynamics and structure of investment choices of socially-responsible investing. The analysis showed that in recent years the most dynamic investment strategy spread with maximum consideration of ESG factors, involving the formation of an investment portfolio based on a systematic combination of traditional financial analysis with assessment of environmental, social and governance impacts.

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