The Financial Performance of Solidarity-based Investment Funds

La performance financière des fonds d'investissement solidaires en France

Philippe Devin ()
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Philippe Devin: Chaire Energie & Prospérité - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - GENES - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - Institut Louis Bachelier, Université Sorbonne Paris Nord, ACT - Analyse des Crises et Transitions - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - Université Sorbonne Paris Nord

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Abstract: This article examines the financial performance of French solidarity-based investment funds, also known as "90-10 funds", which combine 90% responsible listed assets and 10% solidarity assets from Social and Solidarity Economy (SSE) enterprises. These funds have grown significantly since the early 2000s, in response to the challenges of sustainable development and SSE financing. However, their dual objectives-stemming from their hybrid structure, which seeks both financial returns and social impact-raise important questions about their (under)performance compared to conventional funds. Based on an original sample of 49 French solidarity-based investment funds, this study investigates the factors influencing their financial performance, with particular attention to the role of their solidarity component and their level of sustainability commitment over the period 2020-2023. Key insights emerge from this study: i) the in-depth statistical analysis reveal that these funds perform close to their benchmarks, while displaying lower volatility and risk exposure, as evidenced by beta coefficients and information ratios; ii) the econometric analysis, highlights a statistically significant and substantial negative impact of the solidarity component on financial performance. However, this factor alone does not fully account for the observed underperformance, which also reflects the influence of sustainability constraints and the presence of a non-linear relationship between ESG intensity and returns.

Keywords: solidarity-based funds financial performance ESG responsible investment impact investing A13 D14 G11; solidarity-based funds; financial performance; ESG; responsible investment; impact investing (search for similar items in EconPapers)
Date: 2025-06-06
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