In this paper I document the heterogeneous response of investors to fund performance across Socially Responsible Investing (SRI) funds versus conventional funds. I first show that the Morningstar categorization of funds into socially responsible (static classification) versus conventional is...

I first show that there is a positive correlation between fund strategy based SRI classification and score based SRI classification. I then document that morningstar sustainability rating had a disciplining effect and fund managers started creating their portfolios more in line with their...