Capital Flows into Article 8 and Article 9 Funds
According to Morningstar data, capital inflows into Article 8 funds increased in line with overall market trends, while Article 9 funds continued to experience net redemptions.
Fund Classification under EU Sustainable Finance Disclosure Regulation
The EU regulation classifies funds into Articles 6, 8, and 9 based on their sustainability approach:
- Article 6 funds do not integrate sustainability into their investment process, focusing mainly on financial returns without specific ESG considerations.
- Article 8 funds, or “light green” funds, promote environmental and social characteristics but do not have sustainability as the core goal. They consider ESG factors but may invest in companies with varying sustainability standards.
- Article 9 funds, or “dark green” funds, prioritize sustainable investments with measurable environmental or social outcomes as their primary objective.
Q3 2025 Fund Flows Overview
In the third quarter of 2025, Article 8 funds recorded approximately €75 billion in net new money, an increase from €47 billion in the previous quarter. However, inflows to Article 8 funds were still below Article 6 funds, which attracted €134 billion despite representing a smaller share of total EU fund assets.
Article 9 funds experienced outflows for the eighth consecutive quarter, with redemptions rising to €7 billion.
“Capital flows into Article 8 funds increased in line with overall market trends, while Article 9 funds continued to experience net redemptions.” — Morningstar
Author’s summary: Article 8 funds saw strong inflows in Q3 2025, yet Article 9 funds continue to face persistent outflows, reflecting investor preferences within EU's evolving sustainable finance landscape.