Is ESG investing brave enough to ride a rollercoaster?

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bachelor_Kouti_Oskari_2020.pdf (392.74 KB)

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School of Business | Bachelor's thesis
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Date

2020

Department

Rahoituksen laitos

Major/Subject

Mcode

Degree programme

Rahoitus

Language

en

Pages

21

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Abstract

By examining mutual fund flows in the U.S. before and after the Covid-19 outbreak, I find evidence that mutual fund investors collectively and consistently value sustainability, even during times of significant market volatility. While not definitive, it also seems like this effect is further amplified during the initial three months of the pandemic. During this time, a total of $10.5 billion escaped the Low sustainability funds and $1.6 billion entered highly ranked funds when compared to the average categories. Possible explanations for this phenomenon can be found from preferences of institutional investors, nonpecuniary motives, or naive expectations of higher performance. However, rational performance expectations cannot be justified based on either my data or prior research.

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Thesis advisor

Spickers, Theresa

Keywords

fund flow, sustainability, ESG, covid-19

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https://urn.fi/URN:NBN:fi:aalto-2020120656166

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[kand] Kauppakorkeakoulu / BIZ (Open Access)