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Cited by 145Sustainable Finance and Green BondsFinancial Markets and Investment StrategiesCorporate Social Responsibility Reporting

The impact of the Morningstar Sustainability Rating on mutual fund flows

Open access
Ammann, Manuel, Bauer, Christopher, Fischer, Sebastian, Müller, Philipp·2019·European Financial Management
DOI 10.1111/eufm.12181
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Abstract

We examine the effect of the introduction of Morningstar's Sustainability Rating in March 2016 on mutual fund flows. Exploiting this shock to the availability of sustainability information, we find strong evidence that retail investors shift money away from low‐rated and into high‐rated funds. An average high‐rated retail fund receives between $ 4.1 million and $ 10.1 million higher net flows and an average low‐rated retail fund suffers from $ 1.0 million to $ 5.0 million lower net flows than an average‐rated fund during the first year after the publication of the Rating. Institutional investors react much more weakly to the publication of the Rating.

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Crossref · 10.1111/eufm.12181

Cites

34 of 34 references verified0 citation errors · 0 not checkable

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Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • Both institutional and retail investors show a preference for sustainability.

    “Hartzmark and Sussmann (2019) and Ammann et al. (2019) argue that both institutional and retail investors show a preference for sustainability.”

    From A review on ESG investing: Investors' expectations, beliefs and perceptions (2024) · cites this paper as Ammann et al. (2019)

  • The current literature is divided on whether institutional investors and retail investors differ in their preferences for sustainability.

    “The current literature is divided on whether institutional investors and retail investors differ along their preferences for sustainability.”

    From A review on ESG investing: Investors' expectations, beliefs and perceptions (2024) · cites this paper as Ammann et al. (2019)

  • Retail investors move money away from low sustainable funds into high sustainable funds, whereas the evidence is weaker for institutional investors.

    “Contrary to these findings, Ammann et al. (2019) find strong evidence that retail investors move money away from low sustainable funds into high sustainable funds, whereas the evidence is weaker for institutional investors.”

    From A review on ESG investing: Investors' expectations, beliefs and perceptions (2024) · cites this paper as Ammann et al. (2019)

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Authors
Ammann, M., Bauer, C., Fischer, S., & Müller, P.
Affiliations
University of St.Gallen (CH)
Corresponding author
  • Ammann, Manuel
  • Bauer, Christopher
  • Fischer, Sebastian
  • Müller, Philipp
ORCID
Venue
European Financial Management
Publisher
Wiley
Published
2018-07-22
Volume
25
Issue
3
Pages
520-553
ISSN
  • 1354-7798 (ISSN-L)
  • 1468-036X
DOI
10.1111/eufm.12181
OpenAlex
W2769727601
Cited by
145
References
35
Citations by year
2026: 17 · 2025: 26 · 2024: 30 · 2023: 22 · 2022: 20 · 2021: 12 · 2020: 9 · 2019: 8 · 2018: 1
FWCI
6.75
Type
journal article
Language
en
Open access
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
  • European Financial Management (publishedVersion)
  • SSRN Electronic Journal (publishedVersion)
  • Alexandria (UniSG) (University of St.Gallen) (acceptedVersion)
  • Alexandria (UniSG) (University of St.Gallen) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
Keywords
mutual fund flows, retail investors, institutional investors, sustainability ratings, ESG disclosure, investor behavior, fund ratings

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