A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

Fund Solutions

Article 9 Funds Hit “New Low” – Morningstar  

Investors withdrew 20.5 billion (US$21.7 billion) from Article 8 funds under the EU’s Sustainable Finance Disclosure Regulation (SFDR) in Q3 after redeeming €21.5 billion in the previous quarter, according to research from Morningstar. It also found that Article 9 funds hit a “new low” attracting only 1.4 billion in the last three months. The data and analytics provider also identified nearly 280 funds that altered their SFDR status, including 250 upgrades, with the vast majority moving from Article 8 to Article 6. Eleven funds downgraded to Article 8 from Article 9. Other key findings from the report include close to 300 Article 8 funds revising their minimum sustainable investment commitment in Q3, a notable increase from the previous quarter’s 190, with the majority increasing their commitment. Yet, a third of Article 8 funds target no sustainable investments. Further, only 28% of Article 9 funds plan to make taxonomy-aligned investments.  A Morningstar Sustainalytics survey following the 14 September publication of the European Commission consultation on SFDR reveals that market participants are split on the future of Article 8 and Article 9 funds. Fifty percent of respondents would like to see these classifications replaced by labels, 39% would prefer to keep Article 8 and Article 9 but introduce minimum standards, and 7% voted for the status quo. 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top