Annual Report on European ESG Funds
PricewaterhouseCoopers (PwC) releases the annual report on European ESG funds, which aims to analyze the development of ESG funds in Europe and provide stakeholders with ESG data in the asset management industry.
The annual report on European ESG funds is written by PwC Luxembourg. Luxembourg is the largest registration domicile for ESG funds in Europe, and its sustainable asset management AUM ranks first in Europe.
Related Post: PwC Releases Report on Luxembourg-domiciled ESG Funds
European ESG Fund AUM
At the end of 2023, the total AUM of ESG funds in Europe was 6.2 trillion euros, of which Article 8 funds reached 5.9 trillion euros, accounting for 95%, and Article 9 funds reached 311.9 billion euros, accounting for 5%. PwC predicts that by 2027, total AUM of ESG funds in Europe will reach 9.4 trillion euros, accounting for 75% of the total AUM of European funds.
The total number of funds registered in Europe is 24,010, of which 12,566 are non-ESG funds. There are 10,481 Article 8 funds, accounting for 44%, and there are 963 Article 9 funds, accounting for 4%. By comparison, each Article 8 fund’s AUM is higher than each Article 9 fund’s AUM.
Among Article 8 funds, the AUM of equity funds is 2.45 trillion euros, the AUM of bond funds is 1.44 trillion euros, the AUM of mixed assets funds is 0.73 trillion euros, and the AUM of money market funds is 1.27 trillion euros. Among Article 9 funds, the AUM of equity funds is 0.22 trillion euros, accounting for 72%.
European ESG Fund Types
As of the end of 2023, the active management AUM of European ESG funds is 5.46 trillion euros, accounting for 88% of the total AUM of ESG funds, of which the active management AUM of Article 8 funds is 5.19 trillion euros, and the active management AUM of Article 9 funds is 0.27 trillion. The number of actively managed ESG funds is 10,242, accounting for 89% of the total ESG funds.
In terms of passive management, the total asset management AUM of ESG ETFs is 0.37 trillion euros, of which Article 8 ETF management AUM is 0.35 trillion euros and Article 9 ETF management AUM is 0.02 trillion euros. There are a total of 608 Article 8 ETFs and a total of 66 Article 9 ETFs.
European ESG Fund Registration and Sales
Among Article 8 fund registration places, Luxembourg (€2.69 trillion), Ireland (€1.27 trillion), France (€0.72 trillion), Sweden (€0.39 trillion) and Germany (€0.19 trillion) rank high. Among Article 9 fund registration places, Luxembourg (€0.19 trillion), Ireland (€0.03 trillion), Sweden (€0.029 trillion), France (€0.025 trillion) and Italy (€0.008 trillion) rank high.
In terms of Article 8 fund sales, 49.6% were sold in no more than two jurisdictions, and only 7.3% were sold in more than 20 jurisdictions. In terms of Article 9 fund sales, 40% are sold in no more than two jurisdictions, and only 4% are sold in more than 20 jurisdictions.
In terms of ESG fund capital flows, as of the end of 2023, the total inflow of European ESG funds was 18.4 billion euros, of which Article 8 funds had inflows of 18.1 billion euros and Article 8 funds had inflows of 300 million euros. These fund inflows mainly came from ETFs, with Article 8 ETF inflows of 42.6 billion euros and Article 9 ETF inflows of 2.6 billion euros. All non-ETF funds recorded capital outflows, of which Article 8 funds had outflows of 24.6 billion euros and Article 9 funds had outflows of 2.3 billion euros.
In terms of asset management companies, BlackRock (€432.6 billion), JPMorgan (€333.3 billion), Amundi (€321.9 billion), BNP Paribas (€192.7 billion), and DWS (€190.5 billion) have larger Article 8 funds under management. Pictet (€25 billion), Handelsbanken (€24.8 billion), Candriam (€23.9 billion), BNP Paribas (€18.4 billion), Mirova (€13.4 billion) larger Article 9 funds under management.
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