Open AccessSEARCHING FOR THE MOST PROFITABLE AND SUSTAINABLE INVESTMENT STRATEGY: EVIDENCE FROM SOVEREIGN BOND FUNDS
Author(s) -
María Vargas,
Ruth Vicente,
Fernando Muñoz
Publication year - 2014
Publication title -
journal of business economics and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.485
H-Index - 37
eISSN - 1611-1699
pISSN - 2029-4433
DOI - 10.3846/16111699.2012.745818
Subject(s) - sovereign wealth fund , per capita , bond , business , global assets under management , sustainability , investment (military) , fund of funds , investment strategy , sample (material) , index (typography) , passive management , economics , monetary economics , institutional investor , finance , financial system , foreign direct investment , corporate governance , macroeconomics , population , law , ecology , chemistry , sociology , world wide web , computer science , biology , chromatography , political science , demography , politics , market liquidity
The aim of this study is to provide the sovereign bond fund investor with a guide to finding the most profitable and sustainable investment strategy. For this purpose, a Global Sustainable Competitiveness Index is applied to a sample of 48 funds.We have conducted a best-in-class analysis, and our evidence supports the idea that the best strategy consists of investing in funds representing high GDP-per-capita countries, and registering the best-in-class sustainable performance scores.Additionally, other useful findings are that the screening of the funds is beneficial with respect to sustainable performance, and that there is no strong relationship between sustainability and GDP per capita.