Publication: The performance of socially responsible mutual funds: the role of fees and management companies
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2008-06
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Abstract
In this paper, we shed light on the debate about the financial performance of socially responsible
investment (SRI) mutual funds by separately analyzing the contributions of before-fee performance and
fees to SRI funds' performance and by investigating the role played by fund management companies in
the determination of those variables. We apply the matching estimator methodology to obtain our results
and find that in the period 1997-2005, US SRI funds had significantly higher fees and better before- and
after-fee performance than conventional funds with similar characteristics. Differences, however, were
driven exclusively by SRI funds run by management companies specialized in socially responsible
investment.
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Socially responsible investment, Mutual fund fees, Mutual fund performance, Matching estimators