Asset Management

Fund groups shelve ‘dark green’ funds as new launches hit record low

Asset managers have pressed pause on new products amid fears of greenwashing and regulatory uncertainty

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The EU’s highest-rated ESG funds bled €7.1bn between July and September — their eighth consecutive quarter of redemptions Photo: Getty Images

Asset managers have stopped launching ‘dark green’ funds in Europe, as greenwashing fears prompt many to steer clear of products with the region’s highest sustainability rating.

According to data from Morningstar, just four Article 9 funds were launched during the third quarter of 2025 — the lowest number rolled out over a three month period since the sustainable investment boom in 2021.

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