Non-sustainability funds expected to dominate EU market after SFDR overhaul

Author's Summary

Morningstar predicts that the SFDR overhaul will drastically cut back on sustainability-labelled funds in the EU, paving the way for Article 6 products to lead the market. (142 characters)

Key Insight

Morningstar indicates the SFDR changes will significantly diminish funds branded as sustainable. Article 6 products, which fall outside strict sustainability criteria, are poised to take the lead across the EU fund landscape. This shift stems directly from the regulatory updates.

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Investment & Pensions Europe Investment & Pensions Europe — 2025-11-28

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