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

Gil-Bazo, Javier; Ruiz‐Verdú, Pablo; Santos, André Alves Portela

doi:10.1007/s10551-009-0260-4

Cited by 164 publications

(102 citation statements)

References 28 publications

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“…The vast majority of US SRI funds research finds no difference in the performance of SRI and conventional funds (see Renneboog et al (2008) for a complete review). However, some studies find that social responsible investing might have better performance than 1 See, for instance, White (1995), Statman(2000), Derwall et al (2005), Benson et al (2006), Gil-Bazo et al (2010) or Derwall and Koedijk (2009). 2 See, respectively, Gregory et al (1997), Bauer et al (2007) and Fernandez and Matallin (2008). conventional funds with similar characteristics (see Kempf and Osthoff (2007) and Galema et al (2008) on US stock portfolios, or Fernandez and Matallin (2008) and GilBazo et al (2010) on Spanish and US mutual funds).…”

Section: Introductionmentioning

confidence: 99%

Green and Good? The Investment Performance of US Environmental Mutual Funds

2011

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Section: Introductionmentioning

confidence: 99%

Green and Good? The Investment Performance of US Environmental Mutual Funds

2011

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“…For example, Gil-Bazo et al (2010) show how specialist managers can obtain superior returns even in SRI funds. Similarly, Ippolito (1992) argues that a high-quality fund will be a fund that will outperform an index fund, and the higher the expected return, the higher the management quality.…”

Section: Supplier's Corporate Brand Credibilitymentioning

confidence: 99%

Buying CSR with employees’ pensions? The effect of social responsible investments on Norwegian SMEs’ choice of pension fund management

Biong

Silkoset

2017

IJBM

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PurposeEmployees often expect an emphasis on financial aspects to be predominant when their employers choose a fund management company for the investment of employees' pension fund deposits. By contrast, in an attempt to appear as socially responsible company managers may emphasize social responsibility in pension fund choices. This study examines to what extent managers for small and medium sized companies emphasize social responsibility (SR) vs. expected returns when choosing investment managers for their employees' pension funds. Design/methodology/approachA conjoint experiment among 276 Norwegian SMEs' decision makers examines their tradeoffs between social and financial goals in their choice of employees' pension management.Furthermore, the study examines how the companies' decision makers' characteristics influence their pension fund management choices. FindingsThe findings show that the employers placed the greatest weight to suppliers providing funds adhering to socially responsible investment (SRI) practices, followed by the suppliers' corporate brand credibility, the funds' expected return, and the suppliers' management fees.Second, employers with investment expertise emphasized expected returns and downplayed social responsibility in their choice, whereas employers with stated CSR-strategies downplayed expected return and emphasized SR. Originality/valueChoice of supplier to manage employees' pension funds relates to a general discussion on whether companies should do well -maximizing value, or do good, -maximizing corporate social responsibility. In this study, doing well means maximizing expected returns and minimizing costs of the pension investments, whereas doing good means emphasizing SRI in this choice. Unfortunately, the employees might pay a price for their companies' ethicality as moral considerations may conflict with maximizing the employees' pension fund value.

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“…On the one hand, Jones et al (2008) and Renneboorg et al (2008a) found that an SRI portfolio underperformed relative to a conventional portfolio. Gil-Bazo et al (2010), Climent and Soriano (2011) and Humphrey and Lee (2011) found that SRI funds performed on a par with conventional portfolios. Alam and Rajjaque (2010), Gil-Bazo et al (2010) and Lyn and Zychowicz (2010) found that an SRI portfolio outperformed the conventional portfolio.…”

Section: Introductionmentioning

confidence: 99%

Performance and performance persistence of socially responsible investment funds in Europe and North America

Lean

Ang

Smyth

2015

The North American Journal of Economics and Finance

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We analyze, and compare, performance and performance persistence of Socially Responsible Investment (SRI) funds in Europe and North America. We use a broad sample of 500 European and 248 North American SRI funds for the period January 2001 -December 2011. We find that SRI funds outperform the market benchmark in Europe and North America over this period and that North American SRI funds perform better than European SRI funds. We find little evidence of performance persistence in either region using a ranked portfolio approach; however, there is more evidence of performance persistence in European SRI funds than in their North American counterparts using a non-parametric ranked portfolio approach.

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

Cited by 164 publications

References 28 publications

Green and Good? The Investment Performance of US Environmental Mutual Funds

Green and Good? The Investment Performance of US Environmental Mutual Funds

Buying CSR with employees’ pensions? The effect of social responsible investments on Norwegian SMEs’ choice of pension fund management

Performance and performance persistence of socially responsible investment funds in Europe and North America

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