Sustainable investment flows during crisis periods : Effects of Russian-Ukrainian war on SRI flows
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- Master Thesis 
The thesis focuses on political and military crises, specifically the Russian-Ukrainian war, to research the war’s effect on monetary Net Flow in European mutual funds. We found that there are statistically significant positive mutual fund flows in Europe caused by the Russian- Ukraine war. The study uses different indicators, industries, and factors such as weapon investments, Oil & Gas Investments among other indicators such as performance, ESG, screening, risks, and retail investors. We employ a difference-in-difference regression model to analyze mutual fund net flows before and after the Russian invasion of Ukraine in February 2022. Additionally, we have employed matched propensity score techniques to ensure a balance between the treatment and control groups. The central insight from this study is the analysis of different factors that impact mutual fund flows. Where the thesis attempts to understand the effects of war in European markets. Considering only the statistically significant results obtained in our study, we found that risk factors and market conditions must be considered when examining the relationship between mutual fund flows and crisis events. Retail investors were more prone to invest in funds with an Above Average ESG rating while avoiding sectors associated with weapons investments. Our study investigates retail investors preference for defensive industry investments, focusing on weapons and Oil & Gas industries, mutual fund exclusionary screening strategies, and the role of governance practices during the crisis. We expect that our findings can benefit mutual fund managers, investors, and regulators in their decision-making processes to give a more significant focus on sustainable mutual fund drivers.