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

Article 8 Fund Inflows Rebound, Article 9 Outflows Persist: Morningstar

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.

Classification of Funds Under EU Sustainable Finance Disclosure Regulation

Article 6 funds do not integrate sustainability in their investment process, focusing mainly on financial returns without specific ESG factors.
Article 8 funds, known as “light green” funds, promote environmental and social characteristics but do not have sustainability as their core goal; they include ESG factors in decisions but may invest in companies with varied sustainability standards.
Article 9 funds, or “dark green” funds, prioritize sustainable investments with measurable environmental or social outcomes as their main objective.

Q3 2025 Fund Flow Highlights

In the third quarter of 2025, Article 8 funds saw an estimated €75 billion in net new money, up from €47 billion in the previous quarter. Despite this growth, their inflows remained below those of Article 6 funds, which attracted €134 billion, despite representing a smaller share of total EU fund assets. Article 9 funds experienced outflows for the eighth consecutive quarter, with redemptions rising 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

These trends highlight a stronger market preference for funds that balance sustainability with broader investment criteria over those solely committed to sustainable objectives.

Author’s summary: Article 8 funds saw a significant rebound in inflows driven by market trends, whereas Article 9 funds faced continued outflows, reflecting investor cautiousness toward strict sustainability mandates.

Funds Europe — 2025-11-03