The Environmental And Financial Performance Analysis Of Sustainable Investment Funds

The Sustainable Investment Fund is a kind of securities investment fund,it is to promote enterprises to improve the mode of operation,to achieve green development,sustainable development,low-carbon development as investment targets,take the enterprises that actively fulfill the environmental responsibility as investment objectives.At the same time,financial,sustainable,social,environmental and other factors are the criteria for portfolio selection of sustainable investment funds.Sustainable investment funds are one of the key financial instruments to implement the Green Finance Initiative.The key difference between sustainable investment funds and conventional funds is the former to take into account both financial targets and sustainable development goals.However,in the actual investment process,whether sustainable investment funds managers in accordance with the published investment objectives,scope and screening criteria building portfolio? Whether the environmental and financial performance of sustainable investment funds is better than traditional funds? Whether sustainable investment funds have financial and environmental sustainability? These issues not only affect whether investors' investment choices are respected,but also the capital market whether can play a positive role in promoting environmental protection.Therefore,this study comparatively assesses the environmental performance of portfolios: 14 sustainable investment funds(as K group)and 14 conventional funds(as C group).Economic Input-Output Life Cycle Assessment(EIO-LCA)model and environmental rating process were established to compare the environmental performance of the two groups.Environmental performance evaluation indicators include the investment structure in sectors of national economy,the investment trend in heavily polluting industries,and Enterprise environmental rate,and the environmental impact per one million net value.Simultaneously,by using the Fund Expense Rate,Growth Rate of Adjusted NAV,Return Benchmark,Geometric Market Risk Premium,Treynor,Jensen,Information Ratio from the aspects of operational efficiency,periodic return,investment risk and fund managers to compare the financial performance of the two groups.The research found that:(1)Environmental Performance:the two groups of funds in the economic sector similar to the investment distribution;the proportion of investment in the heavily polluting industries has been lower than that of traditional funds since 2010,but the gap between the two groups is not significant;the enterprises with an environmental rating of 2 is the main investment target for sustainable investment funds;the environmental impact of each million net worth of sustainable group funds is higher than that of traditional group funds.(2)The financial performance of sustainable investment funds is better in the period from 2008 to 2010,while traditional funds from 2011 to 2015 is better than that of sustainable investment funds.The results show that the environmental and financial performance of sustainable investment funds is not as good as that of traditional funds,and the environmental and financial objectives of current sustainable investment funds investors have not been achieved.The securities investment fund market segment is not mature enough,the basis for sustainable development of sustainable investment funds to be further consolidated.The reason for the above results may be that: the manager of sustainable investment funds assumes that investors of sustainable investment funds wish to receive the same financial and sectoral allocations as traditional investment funds,which in turn leads to an investment The basis of the combination of construction,performance comparison standards are more similar;sustainable investment funds is small and immature;the corporate social responsibility report or environmental information disclosure system is not mature;listed companies "green-wash" behavior;the current fund rating index system does not take into account environmental factors.Finally,the corresponding countermeasures are put forward for the above reasons.