- AUM: Article 8 AUM was up €3.4bn on the previous quarter, while Article 9 funds assets were €323.94bn, up from Q1. Both are down from their 2024 peaks.
- Asset class flows: Article 8 and 9 MMFs were the most successful Q2 asset classes, with €47.26bn inflows, or 76.28% of the flows to the asset class overall.
- Money Market USD Article 8 and 9 attracted €31.08bn (-€3bn conventional), and Money Market EUR, €22.68bn (€10.12bn conventional).
- Equity US funds saw the largest Article 8 and 9 outflows (-€8.88bn), despite strong inflows for conventional funds in this classification (€13.32bn).
Sustainable Asset Class Growth
Chart 1: Article 8 Fund Asset Class AUM, Q3 2023 to Q2 2025 (€trn)
Source: LSEG Lipper
Q2 was fairly flat for Article 8 AUM: about €3.4bn up on the previous quarter. While that’s hardly pocket change, total Article 8 AUM stands at €7.99trn.
At €3.02trn, equity funds are the largest Article 8 asset class (37.82%), followed by bonds (€1.9trn/23.79%); MMFs (€1.7trn/21.22%); then mixed assets (€1.14trn/14.21%). Nothing else has more than 1.5% of the Article 8 market AUM.
Commodities saw the fastest growth in AUM over Q2, though this is from a very low base (to €1.98bn/0.02%) of the market. Conversely, alternative funds fell to 72.3% of their Q1 2025 value: though, as flows were positive, this is likely the result of funds in the asset class dropping their classification.
Chart 2: Article 9 Fund Asset Class AUM, Q3 2023 to Q2 2025 (€bn)
Source: LSEG Lipper
Article 9 funds total net assets are just 4.05% of those of Article 8. Total Q2 assets were €323.94bn, up from the previous quarter’s €321.63bn, though still well down on the peak of €351.82bn in Q3 2024.
Equity fund assets are the largest class (€216.67bn/66.88%); flowed by bonds (€78.2bn/24.14%), then mixed assets (€18.87bn/5.82%), then alternatives (€5.28bn/1.63%). No other asset class has more than 1% of overall Article 9 AUM.
The largest quarter-on-quarter asset growth was for MMFs, up 14%—but, again, from a low base of less than 0.5% of total Article 9 AUM.
Article 8 and 9 funds are slightly down from the start of the year. In that, they are broadly reflective of the general conditions in the European fund market, where total AUM in January 2025 was €16.88trn, and in June €16.45trn.
Sustainable Asset Flows
Chart 3: Article 8 quarterly flows, Q3 2023 to Q2 2025 (€bn)
Source: LSEG Lipper
Total article 8 flows for Q2 2025 were €80.26bn, up from €74.61bn the previous quarter, but down from €108.43bn in Q4 2024. MMFs saw the largest inflows (€47.07bn), then bonds (€35.51bn).
Some way behind, alternatives netted €4.4bn, moving the dial slightly. While the €297m inflows to commodity funds are small compared to total flows (0.4%), they are a considerable increase on previous months.
Meanwhile, equity funds saw their second consecutive quarter of outflows (-€9.84bn), followed by real estate funds (-€1.1bn), which are net negative for each of the eight quarters covered by the chart.
Chart 4: Article 9 quarterly flows, Q3 2023 to Q2 2025 (€bn)
Source: LSEG Lipper
The blood-red character of chart 4 is incidental, but rather reflective of the parlous state of Article 9 flows. That said, the net redemptions of €3.45bn are a considerable improvement on the previous two quarters.
MMFs were the only asset class to see inflows over Q2 2025 (€193m).
Equity funds suffered the largest outflows (-€1.98bn), but these were the smallest since Q3 2023, while bond funds reversed the previous quarter’s inflows to see redemptions of €957m, and mixed-assets funds continued their negative run (-€635m). “Other” funds (-€34m) and alternatives (-€30m) also saw outflows.
While it’s too early to say if this quarter’s figures represent a slowing of Article 9 equity redemptions, it does seem that the ebb tide for Article 8 mixed asset redemptions may be turning after a protracted period of outflows.
Sustainable Flows versus Conventional
Chart 5: Asset Class Flows, Articles 8 and 9 v Conventional, Q2 2025 (€bn)
Source: LSEG Lipper
Article 8 and 9 MMFs attracted €47.26bn over the quarter, or 76.28% of the flows to the asset class overall. Proportionately, Article 8 and 9 bond and alternatives funds did even better, netting 81.87% and 77.66% of the total flows.
Mixed-assets Article 8 and 9 funds saw inflows of €3.26bn as their conventional peers suffered outflows of €1.69bn. Meanwhile, at €297m of the total flows of €2.56bn to commodity funds (11.58%), Article 8 and 9 offerings are arguably just starting to make inroads.
However, despite the general popularity of equity funds over the quarter, with conventional funds pulling in €63.66bn, Article 8 and 9 funds in this asset class shed €11.82bn. Article 8 real estate also saw outflows of €1.1bn, in a flat market for their conventional peers.
Chart 6: Asset Class Flows, Articles 8 and 9 v Conventional, YTD 2025 (€bn)
Source: LSEG Lipper
YTD is broadly on trend with Q2, as Article 8 and 9 MMFs and bond funds take the majority of flows in their asset class (75.98% and 66.18%, respectively).
Conversely, although equities overall are the most popular asset class YTD, their Article 8 and 9 incarnations are the least popular sustainable asset class: while conventional equity funds attracted €139.13bn, Article 8 and 9 funds saw outflows of €19.93bn.
It’s clear from the figures that investors are actively shunning Article 8 and 9 equity funds, even while increasing their exposure to the equity market. Moreover, it’s not a recent thing related to shifting political sands, but something that has been running for more than two years.
Sustainable Flows by Classification
Largest positive flows
Chart 7: Largest Positive Article 8 & 9 Flows by LSEG Lipper Global Classification,
Q2 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
As the report title says, MMFs have cleaned up this quarter, as Money Market USD Article 8 and 9 attracted €31.08bn (-€3bn conventional) and Money Market EUR, €22.68bn (€10.12bn conventional).
Target Maturity Bond EUR 2020+ Article 8 and 9 also cleaned up in this classification (€16.7bn/€640m conventional), and these funds are often used as cash equivalents.
Likewise, while curves are normalising, they still aren’t steeper than before Covid, and the return on cash and Bond Global Short Term (€5.57bn/€739m conventional) and Bond EUR Short Term (€4.59bn/€2.65bn conventional) compared to longer-dated riskier equivalents is clear, even if the “green” skew isn’t.
Chart 8: Largest Positive Article 8 & 9 Flows by LSEG Lipper Global Classification, YTD 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
Money Market USD and EUR flows are ahead YTD, as with Q2. However, Money Market GBP outflows over May and June have seen these funds drop out of the table YTD. Similarly, the cooling of enthusiasm for Equity Europe as an alternative to the US market has also seen their flows subside. The classification’s ranking was in Q1, it drops out for Q2 and is ranked eighth over H1, after Equity Global. While in Q1 Article 8 and 9 flows were €6.83bn (46% of flows to the classification), in H1 they were €7.31bn and 33% of Equity Europe flows.
Equity Global conventional flows were €63.32bn over H1, while Article 8 funds took €7.07bn, and their Article 9 peers saw outflows of €3.02bn.
Money Market Funds seem to have taken equites’ role as the sustainable asset class of choice so far this year. Why this should be, I confess to having no clear idea, so anyone that does, please drop me a line.
Largest Negative flows
Chart 9: Largest Negative Article 8 & 9 Flows by LSEG Lipper Global Classification,
Q2 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
Equity US funds saw the largest Article 8 and 9 outflows (-€8.88bn) despite strong inflows for conventional funds in this classification (€13.32bn).
Investors have expressed their nervousness over the US market by exiting Equity US Small & Mid Cap funds, rather than their large-cap equivalents, and €2.56bn of this (47%) has been from Article 8 and 9 funds.
In charts 7 and 8, we saw the popularity of USD and EUR MMFs. What’s less clear is why MMF GBP and Global funds have reversed their Q1 trend overall, and have done this largely through the medium of Article 8 and 9 funds.
While Equity Sector Information Tech recovered over Q2, there were net redemptions over the period, with €1.84bn from Article 8 and 9 funds, though their conventional peers saw inflows of €871m.
Chart 10: Largest Negative Article 8 & 9 Flows by LSEG Lipper Global Classification, YTD 2025 (€bn) Vs Conventional Equivalents
Source: LSEG Lipper
A similar situation to Q2 over H1, as Equity US Article 8 and 9 funds suffered outflows of €11.56bn. Mixed Asset GBP Flexible funds saw the second-largest Article 8 and 9 outflows (-€3.99bn), with their conventional equivalents seeing redemptions of a broadly similar size (-€3.17bn), followed by Bond USD (-€3.51bn versus €690m for conventional funds).
The figures for Equity US Small & Mid Cap, of a similar magnitude to Q2, indicate that this exodus has been largely in Q2.
The €1.52bn outflows from Equity Europe ex UK, largely from Article 8 funds but with €137m of outflows from conventional equivalents, suggest that UK investors are both sceptical over H2 as to the merits of the European equity alternative to the US, although Q2 figures indicate €1.93bn flows to conventional flows in the classification, but with €545m of redemptions from Article 8 and 9 peers.
