Can water mutual funds aid sustainable development?

Gbenga Ibikunle, Carmen Pilar Martí-Ballester*

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)

Abstract

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.

Original languageAmerican English
Pages (from-to)1173-1190
Number of pages18
JournalInternational Journal of Finance and Economics
Volume27
Issue number1
DOIs
Publication statusPublished - 1 Jan 2022

Keywords

  • conventional mutual funds
  • ecological mutual funds
  • financial performance assessment
  • natural resources mutual funds
  • water mutual funds

Fingerprint

Dive into the research topics of 'Can water mutual funds aid sustainable development?'. Together they form a unique fingerprint.

Cite this