Capital flows into Article 8 funds increased in line with overall market trends, while Article 9 funds continued to experience net redemptions, according to Morningstar’s data.
Under the EU’s Sustainable Finance Disclosure Regulation, Articles 6, 8, and 9 classify funds based on their approach to sustainability. Article 6 funds are those that do not integrate sustainability into their investment process, focusing primarily on financial returns without specific ESG considerations. Article 8 funds, often referred to as “light green” funds, promote environmental and social characteristics but do not have sustainability as their core objective. These funds include ESG factors in their investment decisions, though they may still invest in companies without high sustainability standards. In contrast, Article 9 funds, or “dark green” funds, aim for sustainable investments as a primary objective, targeting measurable environmental or social outcomes.
In tQ3 of 2025, Article 8 funds recorded an estimated €75 billion in net new money, up from €47 billion in the previous quarter. Despite this growth, inflows remained below those of Article 6 funds, which attracted €134 billion, even though Article 6 funds represent a smaller portion of total EU fund assets.
Article 9 funds saw outflows for the eighth consecutive quarter, with redemptions rising to €7.1 billion, compared with €1.4 billion in Q2.
Fixed income strategies dominated flows, with Article 8 fixed income funds drawing €49 billion, while Article 6 fixed income funds gathered €34 billion.
Combined assets in Article 8 and Article 9 funds increased by 6% to €6.8 trillion, supported by market gains.
During Q3, 121 Article 8 and 9 funds were renamed: 64 dropped ESG-related terms, 44 swapped them, and 13 added new ones. Since January 2024, an estimated 1,450 funds—around 31% of those in scope—have undergone renaming. “Sustainable” remains the most common term used in fund names, appearing in over 860 funds, followed by “ESG” (709) and “transition” (around 310), according to Morningstar’s data.
“Article 8 fund inflows rebounded over the past three months, reaching their highest levels since 2021. However, the recovery was more modest compared to the broader market. Demand for Article 8 equity funds remains subdued, while redemptions from dark green Article 9 funds continue, despite this year’s outperformance of renewable energy stocks. Meanwhile, fixed income remained a bright spot for Article 8 and Article 9 funds, buoyed by growing investor appetite for high-yield bond strategies amid easing interest rates”, explained Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics.
