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Laxman Pai, Opalesque Asia: Investment flows towards EU ESG UCITS funds surged last year. Article 8 and Article 9 funds reached EUR 6.2tn at end-2023, an increase of EUR 1tn year-on-year, and assets under management (AUM) are now projected to reach over EUR 9tn ($9.8tn) by 2027, revealed a study.
According to the report by PwC Luxembourg, since the implementation of the SFDR in 2021, there has been an undeniable surge in ESG investments.
By the end of 2023, the AUM of funds disclosed under Art.8 and Art.9 of the regulation reached an impressive EUR 6.2 tn, marking a substantial increase of over EUR 1 tn compared to 2022, when the AUM of Art.8 and Art.9 totaled EUR 5.1 tn.
"Our projections indicate that by 2027, these figures will soar to EUR 9.4 tn, demonstrating a CAGR of 10.9% and representing approximately 75% of the total EU ESG UCITS AUM (up from 61.5% in 2023)," said the fifth edition of our EU ESG UCITS poster aims at helping stakeholders in the Asset and Wealth Management (AWM) industry keep track of the latest ESG developments in the European AWM landscape.
Despite still representing a minority within the exchange-traded funds (ETFs) landscape, the collective AUM of Art. 8 and Art. 9 ETFs exceeded EUR 367 bn in 2023. This accounted for 24.4% of the total AUM of EU ETFs, marking a significant increase of 59% compared to 2022. This underscores the growing interest in sustainable investment products within the ETF universe.
Luxembourg remains the lead...................... To view our full article Click here
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