Equity Global and US Funds Sell Off
- Net assets: Article 8 TNA was up €278.59bn on the previous quarter, while
Article 9 fund assets also rose. Both are down from their 2024 peaks.
- Asset class flows: Total article 8 flows for Q3 2025 were €108.12bn, up from €79.38bn the previous quarter, while article 9 redemptions were €7.22bn.
- Money Market funds were Q3’s best sellers: Money Market USD (Article 8 and 9 +€31.08bn/-€3bn conventional) and Money Market EUR (€22.68bn/€10.12bn).
- Equity Global funds saw the largest Article 8 and 9 outflows (-€8.22bn) despite inflows for conventional funds.
Sustainable Asset Class Growth
Chart 1: Article 8 Fund Asset Class TNA, Q2 2023 to Q3 2025 (€trn)
Source: LSEG Lipper
Article 8 total net assets (TNA) stood at €8.48trn at the end of Q3 2025. That’s a quarter-on-quarter rise of €278.59bn and a year-on-year rise of €650.72bn.
At €3. 23trn, equity funds are the largest Article 8 asset class (38.05%), followed by bonds (€2.02trn/23.82%); MMFs (€1.74trn/20.52%), then mixed assets (€1.16trn/13.73%), and alternatives (€208.3bn/2.46%). Nothing else has more than 1.5% of the Article 8 market AUM.
Commodities once again saw the fastest growth in TNA over Q3, though this is from a very low base (to €2.48bn/0.03%) of the market. Meanwhile, real estate and “other” funds saw a reduction in TNA.
Chart 2: Article 9 Fund Asset Class TNA, Q2 2023 to Q3 2025 (€bn)
Source: LSEG Lipper
Article 9 funds total net assets are just 3.89% of those of Article 8—slightly down on the previous quarter. Total Q3 assets were €330.11bn, up from the previous quarter as a result of market rises, though still well down on the peak of €352bn in
Q3 2024.
Equity fund assets are the largest class (€221.94bn/67.23%), followed by bonds (€80.05bn/24.25%), then mixed assets (€18.2bn/5.51%), then alternatives (€5.01bn/1.55%). No other asset class has more than 1% of overall Article 9 AUM.
There was little change TNA at the asset class level over the quarter.
Article 8 and 9 funds have risen since 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 September €17.12trn, following a decline in March and April.
Sustainable Asset Flows
Chart 3: Article 8 quarterly flows, Q2 2023 to Q3 2025 (€bn)
Source: LSEG Lipper
Total article 8 flows for Q3 2025 were €108.12bn, up from €79.38bn the previous quarter, but marginally down on Q3 and Q4 2024.
Bonds saw the largest inflows (+€53.58bn), then MMF (€41.36bn), then mixed assets (+€6.4bn). Equities recovered from the two previous quarters’ redemptions, netting €3.79bn.
Some way behind, alternatives attracted €4.5bn, in line with Q2. Commodity funds also saw modest inflows (+€215m).
Meanwhile, real estate funds maintained their unbroken run of redemptions over the two years
(-€1.69bn), and “other” funds saw outflows (-€122m).
Chart 4: Article 9 quarterly flows, Q2 2023 to Q3 2025 (€bn)
Source: LSEG Lipper
Q2’s relative improvement in Article 9 fund redemptions stalled in Q3, as the quarter saw €7.22bn of redemptions, or 2.21% of Q2 TNA.
As can be seen from chart 4, this is dominated by equity outflows (-€6.91bn), followed by mixed assets (-€622m), MMF (-€169m), alternatives (-€108m), and “other” funds (-€14m)
However, bond funds rebounded from their Q2 redemptions (+€585m) and real estate funds saw modest inflows (+€9m).
In the Q2 2025 report, we pondered whether the slowing of Article 9 equity redemptions might represent a turning point. It seems not. However, the tide for Article 8 mixed asset redemptions seems to have turned, as minus turned to plus in Q1, and has headed up quarter on quarter.
Sustainable versus Conventional
Flows by Asset Class
Chart 5: Asset Class Flows, Articles 8 and 9 v Conventional, Q3 2025 (€bn)
Source: LSEG Lipper
Article 8 and 9 bond funds attracted €54.17bn over the quarter, or 55.46% of the flows to the asset class overall. Proportionately, Article 8 and 9 MMF did even better, netting €41.19bn (97.75%) of the total flows to the asset class.
Mixed-assets article 8 and 9 funds (actually, all article 8) saw inflows of €5.9bn as their conventional peers attracted €5.52bn. Meanwhile, article 8 and 9 alternatives saw inflows of €4.39bn as their conventional equivalents took €3.59bn.
However, despite the general popularity of equity funds over the quarter, with conventional funds pulling in €25.07bn (if down on Q2’s +€63.66bn), Article 8 and 9 funds in this asset class shed €3.12bn. Article 8 real estate also saw outflows of €1.68bn, as their conventional peers shed €1.1bn.
Chart 6: Asset Class Flows, Articles 8 and 9 v Conventional, YTD 2025 (€bn)
Source: LSEG Lipper
Article 8 and 9 bond and MMFs continue to take the majority of flows in their asset class (+€125.6bn/61.46% and +€123.78bn/66.18%, respectively). Article 8 and 9 alternatives also take the bulk of flows to the asset class (+€13.01bn/77.24%).
Over H1, equities were the most popular asset class, though July saw heavy outflows. However, while conventional funds have taken €163.46bn, their article 8 and 9 peers have shed €20.23bn. Sustainable real estate fund redemptions are more than twice than those of their conventional peers YTD (-€4.68bn/-€2.05bn, respectively).
Investors continue to actively shun Article 8 and 9 equity funds—especially the latter—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,
Q3 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
As was the case in Q2, MMFs cleaned up this quarter, led by Money Market USD (Article 8 and 9 +€31.08bn/-€3bn conventional) and Money Market EUR, €22.68bn (€10.12bn conventional). Money Market GBP also enters the running (+€5.86bn/
-€2.02bn).
The top sellers imply a very much risk-off market, as short-term bonds have also been selling well: Bond Global Short Term (+€5.02bn/+€2.86bn); Bond EUR Short Term (+€4.84bn/+€1.63bn).
The only equity classification to enter the table is Equity Europe (+€3.79bn/+€1.65bn).
Chart 8: Largest Positive Article 8 & 9 Flows by LSEG Lipper Global Classification, YTD 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
Given the trend over the past couple of quarters, it’s no surprise that Money Market USD and EUR flows are ahead YTD. However, Money Market GBP outflows over May and June saw these funds drop out of the table YTD, despite a strong Q3 (they’re now at eleventh—close, but no cigar).
We noted in the Q2 report that the waning enthusiasm for alternatives to the US equity market had seen Equity Europe pushed well behind its US and Global equivalents. In Q3 it seems that, while not quite “slow and stead wins the race”, the less volatile flows of this classification have secured its place as the top-selling equity classification YTD (+€13.41bn/ +€15.05bn conventional). The only other equity classification to make the table is Equity Global Income (+€6.65bn/+€8.26bn). After this, it’s a long trek down the twenty-third place for Equity Sector Financials (+€1.67bn/+€5.84bn).
Largest negative flows
Chart 9: Largest Negative Article 8 & 9 Flows by LSEG Lipper Global Classification, Q3 2025 (€bn) Versus Conventional Equivalents
Source: LSEG Lipper
Equity Global funds saw the largest Article 8 and 9 outflows (-€8.22bn) despite inflows for conventional funds in this classification (+€6.6bn). Digging into the data suggests these redemptions are concentrated on a small number of share classes over a short time, suggesting these are major calls by a small cohort of institutional investors with a lot of muscle.
Equity US funds also saw considerable Article 8 and 9 outflows, but this time in line with conventional flows (-€2.14bn/-€6.99bn).
Chart 9 is very much the mirror image of chart 7, with a large population of equity classifications. However, Bond USD Corporates is the most heavily sold fixed income classification, albeit fairly flat overall
(-€5.28bn/+€5.04bn).
Equity Theme – Alternative Energy’s woes continue (-€1.73bn, with all this and more coming off article 9 funds), as they have done since what went up like a rocket came down like a stick in the early part of the decade.
Chart 10: Largest Negative Article 8 & 9 Flows by LSEG Lipper Global Classification, YTD 2025 (€bn) vs Conventional Equivalents
Source: LSEG Lipper
Equity US Article 8 and 9 funds suffered outflows of €13.8bn (+€23.37bn conventional), followed by Bond USD Corporates (-€5.24bn/+€3.64bn).
Mixed Asset GBP Flexible funds also fared poorly Article 8 and 9 outflows (-€4.71bn/-€2.44bn).
Specific themes such as alternative energy
(-€4.69bn), healthcare (-€4.18bn), and water
(-€2.56bn), have also struggled YTD.
In other asset classes, Real Estate European has seen significant outflows (-€3.75bn, almost all from article 8 funds).
