Blog: Billions Pulled From Controversial Fund Category: ESG Article 8 Regulation – Bloomberg

Asset managers love them, while clients seem increasingly wary of them: Article 8 funds.

It’s a category within Europe’s ESG investing rulebook that saw huge growth last quarter, as the asset-management industry slapped an Article 8 — also known as “light green” — tag on well over 600 funds that previously weren’t classified as sustainable, according to data provided by Morningstar Inc. At the same time, clients withdrew more than $30 billion from such products. A stricter environmental, social and governance classification — Article 9 — saw $6 billion of inflows.

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