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)
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.