Mutual Fund Performance and Flows During the COVID-19 Crisis

Pástor, Luboš and Blair Vorsatz
Authors registered in the RePEc Author Service: Lubos Pastor

No 15033, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We present a comprehensive analysis of the performance and flows of U.S. actively-managed equity mutual funds during the COVID-19 crisis of 2020. We find that most active funds underperform passive benchmarks during the crisis, contradicting a popular hypothesis. Funds with high sustainability ratings perform well, as do funds with high star ratings. Fund outflows largely extend pre-crisis trends. Investors favor funds that apply exclusion criteria and funds with high sustainability ratings, especially environmental ones. Our finding that investors remain focused on sustainability during this major crisis suggests they view sustainability as a necessity rather than a luxury good.

Keywords: Covid-19; Mutual funds; Sustainability (search for similar items in EconPapers)
JEL-codes: G01 G11 G12 G14 G23 (search for similar items in EconPapers)
Date: 2020-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (78)

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Related works:
Working Paper: Mutual Fund Performance and Flows During the COVID-19 Crisis (2020)
Working Paper: Mutual Fund Performance and Flows During the COVID-19 Crisis (2020)
Journal Article: Mutual Fund Performance and Flows during the COVID-19 Crisis
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