Article 8 Fund Inflows Rebound, Article 9 Outflows Persist: Morningstar
Capital flows into Article 8 funds increased, aligning with overall market trends, while Article 9 funds continued to face net redemptions, according to Morningstar data.
EU Sustainable Finance Disclosure Regulation Overview
The EU classifies funds under Sustainable Finance Disclosure Regulation (SFDR) into Articles 6, 8, and 9 based on sustainability integration:
- Article 6 funds: Do not incorporate sustainability in investment decisions; focus mainly on financial returns.
- Article 8 funds (“light green” funds): Promote environmental and social characteristics, include ESG factors but do not prioritize sustainability as the main goal.
- Article 9 funds (“dark green” funds): Aim for sustainable investments with measurable environmental or social outcomes as their primary objective.
2025 Q3 Capital Flows Analysis
- Article 8 funds recorded an estimated €75 billion in net new money, increasing from €47 billion in Q2 2025.
- Despite growth, Article 8 inflows remained lower than Article 6 funds, which attracted €134 billion, even though they hold a smaller share of total EU fund assets.
- Article 9 funds experienced outflows for the eighth straight quarter, with redemptions rising to €7 billion in Q3.
"Capital flows into Article 8 funds increased in line with overall market trends, while Article 9 funds continued to experience net redemptions, according to Morningstar’s data."
Morningstar’s data highlights a rebound in Article 8 fund inflows despite persistent outflows from Article 9 funds, reflecting ongoing investor preferences in sustainable finance.
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Funds Europe — 2025-11-03