Preferences for Sustainable and Responsible Funds

This study addresses the issue of sustainable and responsible investment (SRI) funds and private investors’ trade-offs between fund attributes. Few previous studies have examined preferences of private investors to see which attributes that are most preferable for SRI funds. The purpose of this stud...

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Detalles Bibliográficos
Autores principales: Tibbelin, Isabelle, Wahlstedt, Ylva
Formato: Second cycle, A2E
Lenguaje:Inglés
Inglés
Publicado: 2019
Materias:
Acceso en línea:https://stud.epsilon.slu.se/14921/
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author Tibbelin, Isabelle
Wahlstedt, Ylva
author_browse Tibbelin, Isabelle
Wahlstedt, Ylva
author_facet Tibbelin, Isabelle
Wahlstedt, Ylva
author_sort Tibbelin, Isabelle
collection Epsilon Archive for Student Projects
description This study addresses the issue of sustainable and responsible investment (SRI) funds and private investors’ trade-offs between fund attributes. Few previous studies have examined preferences of private investors to see which attributes that are most preferable for SRI funds. The purpose of this study was therefore to, in an exploratory manner, examine which preferences private investors have for fund attributes and what type of sustainability strategy and aspect that affect the fund choice. Moreover, an investigation of the importance that private investors place on screening criteria was made. The data was collected from private investors in Sweden by distributing a questionnaire. The trade-offs were determined by conducting a discrete choice experiment. The results indicate that private investors prefer sustainable funds, with lower risk, low management fees and a higher return. Furthermore, the most preferred sustainability strategy is sustainability themed followed by negative screening whilst engagement and voting is the least preferred strategy. Additionally, environment is the preferred sustainability aspect over governance. The present study adds to the existing body of research by eliciting the different trade-offs that private investors make between fund attributes. Thus, a greater understanding of private investors preferences can emerge, and the communication can be tailored accordingly. Furthermore, this study contributes by improving the understanding of the importance of screening criteria in relation to SRI funds.
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spelling RepoSLU149212020-06-04T12:17:44Z https://stud.epsilon.slu.se/14921/ Preferences for Sustainable and Responsible Funds Tibbelin, Isabelle Wahlstedt, Ylva Economics and management This study addresses the issue of sustainable and responsible investment (SRI) funds and private investors’ trade-offs between fund attributes. Few previous studies have examined preferences of private investors to see which attributes that are most preferable for SRI funds. The purpose of this study was therefore to, in an exploratory manner, examine which preferences private investors have for fund attributes and what type of sustainability strategy and aspect that affect the fund choice. Moreover, an investigation of the importance that private investors place on screening criteria was made. The data was collected from private investors in Sweden by distributing a questionnaire. The trade-offs were determined by conducting a discrete choice experiment. The results indicate that private investors prefer sustainable funds, with lower risk, low management fees and a higher return. Furthermore, the most preferred sustainability strategy is sustainability themed followed by negative screening whilst engagement and voting is the least preferred strategy. Additionally, environment is the preferred sustainability aspect over governance. The present study adds to the existing body of research by eliciting the different trade-offs that private investors make between fund attributes. Thus, a greater understanding of private investors preferences can emerge, and the communication can be tailored accordingly. Furthermore, this study contributes by improving the understanding of the importance of screening criteria in relation to SRI funds. Denna studie adresserar hållbara investeringar och investerares avvägningar mellan olika fondattribut. Få studier har undersökt preferenser hos privata investerare för att se vilka attribut som privata investerare föredrar i hållbara fonder. Den här studien syftar därmed till att undersöka vilka preferenser som privata investerare har för fondattribut och vilken typ av hållbarhetsstrategi och aspekt som påverkar fondvalen. Även en undersökning om vikten av screeningkriterier utfördes. Genom att göra ett valexperiment kunde avvägningar för fondattribut tas i beaktning och data samlades in via en enkät. Resultatet indikerar att privata investerare föredrar hållbara fonder med lägre risk, lägre fondavgifter och högre avkastning. Den hållbarhetsstrategi som föredras i högst utsträckning är tema-investeringar följt av negativ screening och den strategi som har minst intresse bland respondenterna är aktiv påverkan. Privata investerare föredrar miljörelaterade aspekter över ägande och styrning. Studien bidrar till existerande forskning genom att undersöka vilka avvägningar som görs mellan de olika fondattributen, vilket utökar förståelsen för privata investerares preferenser för fondattribut och hur kommunikationen av fonder kan förbättras. 2019-08-23 Second cycle, A2E NonPeerReviewed application/pdf en https://stud.epsilon.slu.se/14921/1/tibbelin_i_wahlstedt_y_190822.pdf Tibbelin, Isabelle and Wahlstedt, Ylva, 2019. Preferences for Sustainable and Responsible Funds : a choice experiment with Swedish private investors. Second cycle, A2E. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-10845 eng
spellingShingle Economics and management
Tibbelin, Isabelle
Wahlstedt, Ylva
Preferences for Sustainable and Responsible Funds
title Preferences for Sustainable and Responsible Funds
title_full Preferences for Sustainable and Responsible Funds
title_fullStr Preferences for Sustainable and Responsible Funds
title_full_unstemmed Preferences for Sustainable and Responsible Funds
title_short Preferences for Sustainable and Responsible Funds
title_sort preferences for sustainable and responsible funds
topic Economics and management
url https://stud.epsilon.slu.se/14921/
https://stud.epsilon.slu.se/14921/