AIFT Seminar by Prof. Doron Avramov
Prof. Doron Avramov delivered a seminar titled “Active Fund Management when ESG Matters.” on 3 Nov 2023. The seminar focused on the development and application of an information acquisition model to analyse active fund management within the framework of environmental, social, and governance (ESG) considerations. He highlighted the positive effects of adopting sustainability-based information decisions. These include the magnification of fund heterogeneities in stock holdings and tracking errors, the amplification of the scope of active management, as well as the reduction of discount rates and improvement in price informativeness for underlying assets with sustainability profiles that depart from the average.