Analysis Of Green Transformation Performance Of Funds

In recent years,the country has advocated and implemented high-quality economic development,and the effective solution of environmental pollution has become particularly urgent.In order to effectively protect the environment,the Chinese government has continuously and effectively explored a more harmonious and green economic development model.In this context,the green fund came into being.As an important investment method of green financial activities,green funds play a vital role in promoting enterprise transformation and supporting the development of green economy.In the process of the gradual development of green funds,the phenomenon of traditional funds transforming into green funds is in the ascendant in China.So,whether the performance of the traditional fund is more outstanding after it is transformed into a green fund,especially whether the environmental performance has been improved after the transformation,and whether the "green" investment goal has really been achieved,these issues need further exploration by scholars.This paper first reviews the research on green funds at home and abroad,then analyzes the impact mechanism of the fund’s green transformation on its performance,and selects Tianzhi Low-Carbon Fund as a case fund to explore the effectiveness of China’s green fund transformation.In the case analysis part,based on matching the nongreen traditional fund control group,this paper analyzes the fund performance after the transformation from the perspective of finance and environment.For financial performance,this paper first evaluates the direct income and risk of the fund’s green transformation,and then evaluates the risk-adjusted income of the fund based on the single factor model.For environmental performance,this paper first analyzes the investment portfolio allocation of the fund,and then uses the economic input-output life cycle model(EIO-LCA)to convert the environmental impact of the enterprises invested by the fund into carbon emissions,and evaluate the environmental performance of the fund.The results of the case study show that:(1)In terms of financial performance,the performance of Tianzhi Low-carbon Hybrid Fund after the green transformation has improved compared with that before the transformation,but the performance is not significantly better than that of traditional funds.(2)In terms of environmental performance: the coincidence ratio of investment portfolio allocation of Tianzhi Lowcarbon Fund and environmental protection indexes has improved in recent years,and the EIO-LCA model shows that Tianzhi Low-carbon Fund has better environmental performance than traditional fund groups.Based on the above conclusions,we believe that the fund’s green transformation has performed better in improving environmental performance,and its financial performance has also improved.Investors,fund managers,governments and enterprises should establish correct investment concepts,improve the fund performance evaluation system,implement regulatory responsibilities,and perform information disclosure business to promote the continuous development of green funds.