Article 8 Fund Inflows Rebound, Article 9 Outflows Persist
Capital inflows into Article 8 funds increased following overall market trends, while Article 9 funds continued to face net redemptions, according to Morningstar data.
Understanding Article Classifications Under the EU SFDR
The EU Sustainable Finance Disclosure Regulation (SFDR) categorizes funds into Articles 6, 8, and 9 based on their sustainability approach:
- Article 6 funds do not consider sustainability in their investment process and focus mainly on financial returns without specific ESG factors.
- Article 8 funds, or "light green" funds, promote environmental and social characteristics but do not have sustainability as their core goal. They include ESG factors but can invest in companies without strict sustainability standards.
- Article 9 funds, known as "dark green" funds, prioritize sustainable investments as their main objective, aiming for measurable environmental or social outcomes.
Q3 2025 Fund Flow Highlights
- Article 8 funds recorded about €75 billion in net new money, rising from €47 billion in the prior quarter.
- Article 6 funds attracted €134 billion, despite representing a smaller share of EU fund assets.
- Article 9 funds experienced outflows for the eighth consecutive quarter, with redemptions increasing to €7 billion.
According to Morningstar, "Article 8 funds increased in line with overall market trends, while Article 9 funds continued to suffer net redemptions."
Author summary: Article 8 funds saw a strong rebound in inflows in Q3 2025, but Article 9 funds continued to face persistent outflows amid evolving ESG investment dynamics.