Importance of the fund management company in the performance of socially responsible mutual funds

Article


Belghitar, Y., Clark, E. and Deshmukh, N. 2017. Importance of the fund management company in the performance of socially responsible mutual funds. The Journal of Financial Research. 40 (3), pp. 349-367. https://doi.org/10.1111/jfir.12127
TypeArticle
TitleImportance of the fund management company in the performance of socially responsible mutual funds
AuthorsBelghitar, Y., Clark, E. and Deshmukh, N.
Abstract

We compare the performance of a sample of UK based SRI funds with similar conventional funds using a matched pair analysis based on size, age, investment universe and fund management company (FMC). We find that both the SRI and conventional funds outperform the market index about 50% of the time, even after fees. Sub sample tests show that the SRI funds in our sample perform better in the pre and post financial crisis periods while underperforming during the financial crisis period. Importantly, we find that the FMC plays a major role in the outperformance of both SRI and conventional funds.

LanguageEnglish
PublisherWiley
JournalThe Journal of Financial Research
ISSN0270-2592
Publication dates
Print01 Sep 2017
Publication process dates
Deposited20 Jun 2017
Accepted01 Apr 2017
Output statusPublished
Publisher's version
License
Accepted author manuscript
Copyright Statement

Final Accepted manuscript: This is the peer reviewed version of the following article: Belghitar, Y., Clark, E. and Deshmukh, N. (2017), Importance of the fund management company in the performance of socially responsible mutual funds. The Journal of Financial Research, 40: 349–367. doi:10.1111/jfir.12127, which has been published in final form at https://doi.org/10.1111/jfir.12127. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Additional information

Published version: © 2017 The Authors. The Journal of Financial Research published by Wiley Periodicals, Inc. on behalf of The Southern Finance Association and the Southwestern Finance Association
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.

Digital Object Identifier (DOI)https://doi.org/10.1111/jfir.12127
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