Over half of Belgian public fund assets run under SFDR Article 8 or 9
SFDR article 6, 8, 9 funds are the new language of the European fund industry since the sustainable finance disclosure regulation (SFDR) came into force on 10 March 2021.
The regulation categories sustainable activity of funds marketed in Europe in three types: Article 6 which means they do not carry peculiar sustainable features or objectives, Article 8, which shelters funds presenting sustainable features and Article 9 funds, for which sustainable investment is the objective.
To assess SFDR’s implementation in the local fund industry, the Belgian financial supervisory market authority FSMA has sieved data - as of 21 May 2021 - from 706 funds and their compartments, representing more than 95% of all Belgian publicly available Ucits funds.
FSMA estimated that 68% of Belgian publicly available funds remain categorised under SFDR Article 6 while those compliant with the regulation’s Article 8 and 9 formed 25% and 3% of the fund group analysed respectively.
Nevertheless, the breakdown in terms of fund assets diverges. Hence, 50% of the €187bn invested in the Belgian funds analysed for the study are run through Article 8-compliant funds and 4% through Article 9-compliant funds. The remaining 46% assets are managed in Article 6 funds.
FSMA also found out that in the period from end February 2020 to end May 2021, funds and compartments covered by Articles 8 and 9 recorded “considerable growth.”
Net subscriptions in Article 8 funds increased €15bn (+22%) while these in Article 9 funds soared €3bn (+85.5%). On the contrary, funds and compartments covered by Article 6 faced net redemptions totalling €6bn (-7%).