Article 8 fund inflows rebound, Article 9 outflows persist: Morningstar

Article 8 Fund Inflows Rebound, Article 9 Outflows Persist

Capital inflows to Article 8 funds increased in line with overall market trends, while Article 9 funds continued to face net redemptions, according to Morningstar's data.

Sustainable Finance Disclosure Regulation (SFDR) Fund Classifications

Article 6 funds: Do not integrate sustainability into their investments, focusing mainly on financial returns without specific ESG considerations.
Article 8 funds ("light green"): Promote environmental and social characteristics but do not have sustainability as the primary goal. These funds incorporate ESG factors but may invest in companies with varying sustainability standards.
Article 9 funds ("dark green"): Aim for sustainable investments as their main objective, targeting measurable environmental or social outcomes.

Q3 2025 Fund Flow Summary

In the third quarter of 2025, Article 8 funds recorded approximately €75 billion in net new money, up from €47 billion in the previous quarter. Despite this, inflows remained below those for Article 6 funds, which attracted €134 billion, though Article 6 funds represent a smaller share of total EU fund assets.

Article 9 funds experienced outflows for the eighth consecutive quarter, with redemptions increasing to €7 billion.

“Capital flows into Article 8 funds increased in line with overall market trends, while Article 9 funds continued to experience net redemptions.” — Morningstar

Author's summary: Article 8 funds saw a strong inflow rebound in Q3 2025, while Article 9 funds continued to suffer net outflows, highlighting diverging investor preferences within sustainable finance categories.

Funds Europe — 2025-11-04