Responsible or Thematic The True Nature of of Sustainability-Themed Mutual Funds

Federia Ielasi, Monica Rossolini

2019 | Academic | Funds

Our main findings demonstrate that the risk-adjusted performance of sustainability themed funds is more closely related to their responsible nature than to their thematic approach. Sustainability-themed mutual funds are more similar to other socially responsible funds than to other thematic funds, as confirmed by performance analysis over time. They are also better than other thematic funds in overcoming financially turbulent periods and currently benefit from SRI regulation and disclosure.