Sustainable Funds : Performance of funds in Sweden

This thesis studies the performance of sustainable actively managed funds and sustainable passively managed funds by taking the returns of funds and risk-adjusting it with the help of alpha. Focus will be on sustainable funds with a rating of over three globes on the Morningstar rating system of which at least 85 percent of the holdings must be in Sweden. Since Morningstar sustainability rating is fairly new, data is only available from 2016 and forward so all available data from 2016 up to the third quarter of 2021 will be included. Furthermore, the scientific perspective of the thesis is of a quantitative type with a deductive approach. Findings show similarities to previous research done as actively managed funds do not overperform passively managed funds but also some contraries as actively managed funds do not underperform passively managed funds with the underlying data that is being used in this thesis. No significance has been found regarding the difference in performance between both categories, over time some signs of an increase in the alphas and test statistics can be seen for actively managed funds