Europe-domiciled green bond funds show net inflows, positive for sustainable investing.

From Morningstar: 2024-06-17 09:01:00

Europe-domiciled sustainable funds saw 2024 net inflows after struggling in 2023. Article 8 “light green” funds saw €16.85 billion in net inflows YTD, while Article 9 “dark green” funds had €7.13 billion in net redemptions. European funds overall saw €67.1 billion in net inflows over the first four months of the year.

Within the SFDR universe, Article 8 fixed income funds gathered €60.42 billion, while Article 9 bond funds had €4.22 billion in net inflows. Article 8 equity funds had negative €19.52 billion in net flows YTD. Passive strategies gained €13.14 billion in the sustainable landscape, with assets of Article 8 and 9 passive funds totaling €683 billion.

Despite positive net inflows for Article 8 funds in the active SFDR universe, actively managed Article 9 funds saw €7.78 billion in outflows. Article 8 funds showed a negative 0.08% organic growth rate, while Article 9 funds saw a more negative 0.88% organic growth rate. The Q2 2024 SFDR quarterly report will be published at the end of July.



Read more at Morningstar: Green Bond Funds Attract Sustainable Flows