A new report by the European Fund and Asset Management Association (Efama) reveals significant growth of SFDR Article 8 funds, accounting for 45% of the Ucits and AIF market at €6.4 trillion.
The market insights report, ‘The SFDR fund market – State of play, latest market developments and outstanding regulatory issues’, examines the fluctuating SFDR fund market and provides policy recommendations for the future.
According to the report, net assets of SFDR Article 8 funds reached 45% of the total Ucits and AIF market by the end of 2022, amounting to €6.4 trillion. Meanwhile, Article 9 funds represented 2.4% of the European fund market, totalling €341 billion at the end of 2022.
The report identifies Luxembourg, Ireland, France, the Netherlands and Sweden as the main domiciles for SFDR Article 8 funds. It notes significant reclassifications of Article 9 to Article 8 funds due to the fund industry’s interpretation of ESMA guidance issued in June 2022.
The report recommends addressing the lack of reliable, standardised data on investee companies, providing further guidance and clarification within existing frameworks, ensuring consistent implementation of rules across Europe and allowing industries time and room for transition.
Anyve Arakelijan, regulatory policy adviser at EFAMA, highlighted the progress made despite industry challenges, stating, “Revisions to the SFDR RTS are underway… In parallel, the recently adopted phased-in CSRD framework should improve the accessibility and credibility of ESG data over time.”
EFAMA’s director general, Tanguy van de Werve, emphasised the importance of regulatory changes providing “clarity and stability to support Europe’s transition to net-zero.”
© 2023 funds europe
