Article 8 funds rebound in Q1 2024

Inflows into Article 8 funds rose in Q1, seeing EUR 14 billion of new money.

New data from Morningstar shows that in the first quarter of 2024 flows into Article 8 funds rebounded, seeing EUR 14 billion of new money following three quarters of outflows. However, Article 9 funds saw more outflows of almost EUR 4 billion.

Combined assets in Article 8 and Article 9 funds increased by more than 4% over the first quarter to a record EUR 5.5 trillion. Article 8 and Article 9 funds’ market share have now reached nearly 60% of the EU market following the continued reclassification from Article 6 to Article 8 or 9.

Morningstar says that they have identified about 220 funds that altered their SFDR status in Q1, including 190 that upgraded to Article 8 from Article 6. Over one third of Article 8 funds and almost 80% of Article 9 funds target environmental investments, while 26% of Article 8 funds and 55% of Article 9 funds commit to hold social investments.