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

Article 8 Fund Inflows Rebound, Article 9 Outflows Persist

According to Morningstar data, capital inflows into Article 8 funds aligned with overall market trends, while Article 9 funds continued to face net redemptions.

EU Sustainable Finance Disclosure Regulation Explained

The EU classifies funds under Articles 6, 8, and 9 based on sustainability approaches:

Article 6 funds: Do not integrate sustainability in investments, focusing mainly on financial returns without ESG considerations.
Article 8 funds ("light green"): Promote environmental and social characteristics and include ESG factors in decisions but sustainability is not the core goal. They may still invest in companies with lower sustainability standards.
Article 9 funds ("dark green"): Prioritize sustainable investments with measurable environmental or social outcomes as their main objective.

Capital Flow Trends for Q3 2025

In the third quarter of 2025, Article 8 funds received an estimated €75 billion in net new money, up from €47 billion the previous quarter. Despite growth, their inflows remained below those of Article 6 funds, which collected €134 billion, even though Article 6 funds account for 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 reported.

Author’s summary: Article 8 funds saw a rebound in inflows in Q3 2025, yet Article 9 funds continued to suffer consistent outflows despite growing market interest in sustainability.

Funds Europe — 2025-11-04