Product differentiation in the socially responsible mutual fund industry

Alda, M. (Universidad de Zaragoza) ; Muñoz, F. (Universidad de Zaragoza) ; Vargas, M. (Universidad de Zaragoza)

Resumen: In this study, we analyse the effect of product differentiation on prices and clients’ attraction in the socially responsible (SR) mutual fund industry. Using three proxies for differentiation, including a text-based indicator, a return-based indicator, and a portfolio-holding indicator, we analyse a sample of US SR equity mutual funds in the period 1999–2019. Our findings show that the text differentiation measure better explains the product differentiation impact on prices and flows than the measures based on funds’ characteristics. Our text differentiation results indicate that younger SR funds and funds belonging to smaller families are more differentiated. In addition, differentiation allows SR funds to charge higher fees and attract more money flows. Finally, our results indicate that SR fund investors are sensitive to differentiation regarding other funds implementing the same SR strategies, but not in relation to other funds in the same Morningstar financial style category.

Idioma: Inglés

DOI: 10.1016/j.mulfin.2022.100730

Año: 2022

Publicado en: Journal of Multinational Financial Management 64, 100730 (2022), [28 pp.]
ISSN: 1042-444X

Factor impacto JCR: 4.2 (2022)

Categ. JCR: BUSINESS, FINANCE rank: 31 / 111 = 0.279 (2022) - Q2 - T1

Factor impacto CITESCORE: 6.6 - Economics, Econometrics and Finance (Q1)

Factor impacto SCIMAGO: 0.937 - Finance (Q1) - Economics and Econometrics (Q2)

Financiación: info:eu-repo/grantAgreement/ES/DGA-FEDER/S38-20R-CIBER
Financiación: info:eu-repo/grantAgreement/ES/MCIU/RTI2018-093483-B-I00
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2018-SOC-13
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2020-SOC-02

Tipo y forma: Artículo (Versión definitiva)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)