Article 8 Funds Suffer Q1 2022 Outflows

Funds categorised as Article 8 under Europe’s Sustainable Finance Disclosure Regulation suffered net outflows in Q1 2022, according to Morningstar, while Article 9 funds, which typically have stronger sustainability credentials, continued to experience healthy inflows. Article 8 funds saw net outflows of €3.3 billion, said the data provider, but Article 9 funds registered inflows of €8.6 billion, against a backdrop of inflationary pressure, uncertainties around interest rates, and geopolitical concerns following Russia’s invasion of Ukraine. Collectively, Article 8 and Article 9 fund assets grew by 8.5% in Q1 2022 to €4.18 trillion. As a result, the two fund groups accounted for a bigger share of the EU universe at the end of March (45.6%), than three months earlier (42.4%). Product development fell by almost half, with an estimated 138 new Article 8 and Article 9 fund launches, representing 47% of total new European funds over the period.

To Top
Newsletter SignupReceive all the latest stories from the ESG Investor editorial team

Subscribe to our free weekly newsletter below and never miss a story.