Second, explicitly analyzing fees allows us to determine whether investors in SRI funds pay an explicit price for the ethical value of their investments. Our results also shed light on the way in which mutual fund fees are determined, particularly on the question of whether fees simply reflect funds' operating costs or, as argued by Christofersen and Musto (2002) and Gil-Bazo and Ruiz-Verdú (2009), they are set taking into account the performance sensitivity of funds' clienteles. This is especially relevant in the context of the recent debate in the literature regarding the sensitivity of SRI fund investors to performance (Bollen,.
