TY - JOUR
T1 - Can water mutual funds aid sustainable development?
AU - Ibikunle, Gbenga
AU - Martí-Ballester, Carmen Pilar
N1 - Publisher Copyright:
© 2020 John Wiley & Sons Ltd
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2022/1/1
Y1 - 2022/1/1
N2 - We conduct the first comparative analysis of the financial performance of global water mutual funds with conventional, ecology and natural resources mutual funds. Based on a unique sample of 88 water, 198 ecology, 370 natural resources, and 7,437 conventional mutual funds covering the 2008–2017 period, we contrast the financial performance of these four different fund types. On average, water mutual funds perform comparably to conventional mutual funds and outperform ecology and natural resources funds. The performance dynamics is linked to the state of the economy, such that the outperformance by water mutual funds is not observed when markets are bearish. Overall, fund risk-adjusted performance is predominantly driven by investor activity, especially with regards to their perception of environmental regulatory risk profiles of funds' constituents.
AB - We conduct the first comparative analysis of the financial performance of global water mutual funds with conventional, ecology and natural resources mutual funds. Based on a unique sample of 88 water, 198 ecology, 370 natural resources, and 7,437 conventional mutual funds covering the 2008–2017 period, we contrast the financial performance of these four different fund types. On average, water mutual funds perform comparably to conventional mutual funds and outperform ecology and natural resources funds. The performance dynamics is linked to the state of the economy, such that the outperformance by water mutual funds is not observed when markets are bearish. Overall, fund risk-adjusted performance is predominantly driven by investor activity, especially with regards to their perception of environmental regulatory risk profiles of funds' constituents.
KW - conventional mutual funds
KW - ecological mutual funds
KW - financial performance assessment
KW - natural resources mutual funds
KW - water mutual funds
UR - http://www.scopus.com/inward/record.url?scp=85089682150&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/e25fb501-1dbd-3c03-8dd4-dc9b49ce0cf3/
U2 - 10.1002/ijfe.2207
DO - 10.1002/ijfe.2207
M3 - Artículo
AN - SCOPUS:85089682150
VL - 27
SP - 1173
EP - 1190
JO - International Journal of Finance and Economics
JF - International Journal of Finance and Economics
SN - 1076-9307
IS - 1
ER -