Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Is there a cost of being ethical?
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Kostar det att vara etisk? (Swedish)
Abstract [en]

Sweden is one of the countries in the world where investing in mutual funds is most prevalent among the population. The supply of funds in the market has increased significantly in recent decades as well as the public debate on ethical issues. This has contributed to the development of the market for ethical funds. There is no clear definition of what an ethical fund is but generally it is a fund that takes into account factors related to social responsibility in different ways.

This study analyzes the ethical funds historical performance levels in comparison with the corresponding traditional mutual funds. Three questions have been answered with the help of quantitative and qualitative analysis. A computational model has been constructed in Excel to analyze historical data from a range of ethical funds and traditional mutual funds. The results of the calculations are the basis for the quantitative portion of the analysis. These have been supplemented by external expertise. The effects, which the commodity prices have had on the yield differences between traditional and ethical funds, have also been studied. In this study, the price of oil has been chosen to illustrate these effects.

It is not possible to reliably reach any general conclusions about how ethical funds as a fund category have performed in comparison with the corresponding traditional mutual funds. However, a pattern is observed, that the risk levels for the selected ethical funds, during the periods studied when the market went sharply up or down, respectively, were higher in all cases. The reason for this seems to be the diversification problems that have arisen due to the ethical constraints, something that both the underlying theory on the subject and the discussion with one of Swedbank Roburs portfolio manager’s support. The increased level of risk has contributed to the fact that ethical funds have found it harder to reach an equivalent risk-adjusted rate of return when the bull and the bear markets were examined.

Abstract [sv]

Sverige är ett av de länder i världen där sparandet i fonder är som mest utbrett bland befolkningen. Utbudet av fonder på marknaden har ökat markant de senaste decennierna och i takt med att samhällsdebatten kring etiska frågor ökat, har en ny marknad vuxit fram, marknaden för etiska fonder. Det finns ingen tydlig definition på vad en etisk fond är men generellt är det fonder som tar hänsyn till faktorer kopplade till socialt ansvarstagande på olika sätt.

Denna undersökning analyserar etiska fonders historiska prestationsnivåer i jämförelse med motsvarande traditionella aktiefonder. Tre frågeställningar har besvarats med hjälp av kvantitativ och kvalitativ analys. En beräkningsmodell har byggts i Excel i syfte att analysera historisk data från ett urval av etiska fonder och traditionella aktiefonder. Resultaten från beräkningarna ligger till grund för den kvantitativa delen av analysen som därefter har diskuterats med extern expertis. Råvaruprisernas effekter på skillnader i avkastning mellan traditionella och etiska fonder har också analyserats. I denna undersökning har oljepriset valts för att studera dessa effekter.

Det går inte att med säkerhet komma fram till några generella slutsatser kring hur etiska fonder som fondkategori presterat i jämförelse med motsvarande traditionella aktiefonder. Dock kan ett mönster observeras under de perioder som undersökts då marknaden gått kraftigt uppåt respektive neråt, nämligen att risknivåerna för de utvalda etiska fonderna varit högre i samtliga fall. Anledningen till detta tycks vara de diversifieringsproblem som uppstått till följd av de etiska restriktionerna, något som bakomliggande teori inom ämnet och intervju med en av Swedbank Roburs förvaltare stödjer. Den ökade risknivån bidrar till att de etiska fonderna haft svårare att uppnå en likvärdig riskjusterad avkastning när den uppåtgående och den nedåtgående perioden granskats.

Place, publisher, year, edition, pages
2014.
Keyword [en]
Ethical funds, SRI, risk-adjusted return
Keyword [sv]
Etiska fonder, SRI, riskjusterad avkastning
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:kth:diva-152592OAI: oai:DiVA.org:kth-152592DiVA: diva2:750496
Supervisors
Examiners
Available from: 2014-09-29 Created: 2014-09-29 Last updated: 2014-09-29Bibliographically approved

Open Access in DiVA

fulltext(1483 kB)225 downloads
File information
File name FULLTEXT01.pdfFile size 1483 kBChecksum SHA-512
7849e35d2e947c17a3ed6bc82d8e9f79c20f88ccfc347cb488b4c86cf4de062474f07511ea73ee910890ae863db0763068e155b8f079905c70216efddbf524e0
Type fulltextMimetype application/pdf

By organisation
Real Estate and Construction Management
Engineering and Technology

Search outside of DiVA

GoogleGoogle Scholar
Total: 225 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 505 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf