Which investors support the transition toward a low-carbon economy? Exit and Voice in mutual funds

IF 1.5 Q3 BUSINESS, FINANCE
Jonas Zink
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Abstract

Reducing portfolio carbon footprints (Exit) and voting in favor of climate-related shareholder proposals (Voice) are among the main actions that investors can take to promote an accelerated transition toward a low-carbon economy. This paper studies three important investor groups that can be instrumental in driving the transition and evaluates their Exit and Voice behavior. I find that the five largest asset managers perform poorly on Exit and Voice over the full sample period but improved on both in more recent years. Only a small fraction of signatories to sustainable investor initiatives are supportive of the transition. Counterintuitively, investors who perform poorly on Exit, perform well on Voice. Finally, I examine the financial consequences of employing Exit and Voice and find that Exit is positively related to risk-adjusted fund returns; however, this is not necessarily attributable to superior skill of fund managers.

Abstract Image

哪些投资者支持向低碳经济转型?共同基金的退出和发言权
减少投资组合的碳足迹("退出")和投票支持与气候相关的股东提案("声音")是投资者为促进加速向低碳经济转型而可以采取的主要行动之一。本文研究了可在推动转型方面发挥重要作用的三个重要投资者群体,并评估了他们的 "退出 "和 "声音 "行为。我发现,在整个样本期间,五家最大的资产管理公司在退出和声音方面表现不佳,但在最近几年,这两方面都有所改善。只有一小部分签署可持续投资者倡议的投资者支持转型。与直觉相反的是,在 "退出 "方面表现不佳的投资者在 "声音 "方面却表现良好。最后,我研究了采用 "退出 "和 "声音 "的财务后果,发现 "退出 "与风险调整后的基金回报呈正相关;但这并不一定归因于基金经理的高超技能。
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来源期刊
Journal of Asset Management
Journal of Asset Management BUSINESS, FINANCE-
CiteScore
4.10
自引率
0.00%
发文量
44
期刊介绍: The Journal of Asset Management covers:new investment strategies, methodologies and techniquesnew products and trading developmentsimportant regulatory and legal developmentsemerging trends in asset managementUnder the guidance of its expert Editors and an eminent international Editorial Board, Journal of Asset Management has developed to provide an international forum for latest thinking, techniques and developments for the Fund Management Industry, from high-growth investment strategies to modelling and managing risk, from active management to index tracking. The Journal has established itself as a key bridge between applied academic research, commercial best practice and regulatory interests, globally.Each issue of Journal of Asset Management publishes detailed, authoritative briefings, analysis, research and reviews by leading experts in the field, to keep subscribers up to date with the latest developments and thinking in asset management.Journal of Asset Management covers:asset allocation hedge fund strategies risk definition and management index tracking performance measurement stock selection investment methodologies and techniques portfolio management and weighting product development and innovation active asset management style analysis strategies to match client profiles time horizons emerging markets alternative investments derivatives and hedging instruments pensions economics
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