What’s in a (Green) Name? The Consequences of Greening Fund Names on Fund Flows, Turnover, and Performance

22 Pages Posted: 24 Jun 2020 Last revised: 29 Oct 2020

See all articles by Sadok El Ghoul

Sadok El Ghoul

University of Alberta - Campus Saint-Jean

Aymen Karoui

York University

Date Written: April 9, 2020

Abstract

We examine a sample of U.S. mutual funds and find that, between 2003 and 2018, 28 funds have changed their name to a sustainability-related appellation. Following the name change, we observe three main outcomes:

(i) an increase in fund flows,

(ii) a significant rise in portfolio turnover, and

(iii) no substantial change in fund betas and alpha.

Keywords: Mutual Fund Flows; Socially Responsible Investing; Fund Names; Fund Performance; Turnover; Sustainability

JEL Classification: G11; G23; M14

Suggested Citation

El Ghoul, Sadok and Karoui, Aymen, What’s in a (Green) Name? The Consequences of Greening Fund Names on Fund Flows, Turnover, and Performance (April 9, 2020). Finance Research Letters, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3593056 or http://dx.doi.org/10.2139/ssrn.3593056

Sadok El Ghoul

University of Alberta - Campus Saint-Jean ( email )

Edmonton, Alberta T6G 2R3
Canada
780-465-8725 (Phone)
780-465-8760 (Fax)

Aymen Karoui (Contact Author)

York University ( email )

2275, avenue Bayview
Toronto, Ontario M4N 3M6
Canada

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