Do Socially Responsible Fund Managers Really Invest Differently?
- Karen L. BensonAffiliated withUQ Business School, The University of Queensland Email author
- , Timothy J. BrailsfordAffiliated withUQ Business School, The University of Queensland
- , Jacquelyn E. HumphreyAffiliated withUQ Business School, The University of Queensland
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
To date, research into socially responsible investment (SRI), and in particular the socially responsible investment funds industry, has focused on whether investing in SRI assets has any differential impact on investor returns. Prior findings generally suggest that, on a risk-adjusted basis, there is no difference in performance between SRI and conventional funds. This result has led to questions about whether SRI funds are really any different from conventional funds. This paper examines whether the portfolio allocation across industry sectors and the stock-picking ability of SRI managers are different when compared to conventional fund managers. The study finds that SRI funds exhibit different industry betas consistent with different portfolio positions, but that these differences vary from year to year. It is also found that there is little difference in stock-picking ability between the two groups of fund managers.
Keywordssocially responsible investment managed funds portfolio composition ethical investment
- Do Socially Responsible Fund Managers Really Invest Differently?
Journal of Business Ethics
Volume 65, Issue 4 , pp 337-357
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- socially responsible investment
- managed funds
- portfolio composition
- ethical investment
- Industry Sectors