'Dark green' Article 9 funds may be few in number but they have potential to provide strong returns given the growing need to tackle the climate crisis, but this limited pool may hamper investors.
There are only 1,028 Article 9 funds on the market, according to data from Morningstar's SFDR Article 8 and Article 9 Funds: Q3 2023 in Review, representing just 3.7% of all funds on sale. As such, Bethan Dixon, portfolio manager of Quilter's WealthSelect managed portfolio service, argued the sector "requires much more intensive research", while Seb Beloe, head of research at WHEB Asset Management, noted it has "not been an easy couple of years for Article 9 funds". Flows into global sustainable funds slow in Q3 as AUM drops 4.2% Beloe explained that as sustainable equities typical...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
