Funds that meet the EU’s highest ESG disclosure requirements attracted the lion’s share of net inflows in July.
The latest data from Morningstar shows that funds complying with the sustainability disclosure requirements drew in €45.5 billion of investment during the month.
A separate report published by Morningstar in July states that funds classified as Article 8 or 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR) could come to represent half of the region’s total assets under management in just 12 months.
Under SFDR, Article 8 and Article 9 funds are those with the highest amount of ESG disclosure. Current AUM in these funds is €2.98 trillion.
Article 8 and Article 9 funds attracted €39.8 billion and €5.7 billion of net inflows, respectively, in July.
Meanwhile, strong inflows into long-term funds in Europe as a whole signalled a healthy demand for risky assets in Europe, according to Morningstar.
Net inflows to long-term funds surpassed €71 billion, bringing the total assets in long-term funds domiciled in Europe to €11,688 billion – a new high for Europe’s fund industry.
Fixed income funds led the way in terms of asset class, bringing in over €32 billion of net flows, followed by equities which saw just over €20 billion of investment.
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