Performance of socially responsible funds during high-uncertainty periods: Evidence from Europe

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School of Business | Bachelor's thesis
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Date

2023

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Mcode

Degree programme

Rahoitus

Language

en

Pages

15+3

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Abstract

This thesis examines the comparative performance of Socially Responsible Investment (SRI) equity funds and conventional equity funds in European markets during periods of high economic uncertainty from 2013 to 2023. The study aims to understand how SRI funds, which use different responsible investment strategies, fare against conventional funds in times of high market volatility. The research methodology employs a portfolio analysis approach using asset pricing models and dummy variables to categorize funds and market states, enabling a detailed evaluation of fund performance in both high-uncertainty and normal periods. The existing literature on this topic, including the impact of various screening strategies on returns, is also thoroughly reviewed. The findings of this study indicate that there is not statistically significant difference in returns between the SRI funds and conventional funds across all market conditions.

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Thesis advisor

Luotonen, Niilo

Keywords

SRI, ESG, economic uncertainty, investment screening, VSTOXX

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