| dc.description.abstract | This paper examines whether the implementation of the SFDR required labeling of mutual funds as brown, green and dark green affects flows into the different funds. We investigate flows into 673 EU mutual fund from November 17 to December 22, and after controlling for known determinators of flows (past return, fee, and size). We find parallel trends and no increase in flow towards sustainable funds. Among article 8 funds, management fees and returns positively affect fund flow compared to article 6 funds. Article 9 funds demonstrate a negative relationship with returns and management fees, indicating investor preference for sustainability. Fund size has a negative relationship across all articles. Our findings suggest minor differences between article 6 and 8 funds, while article 9 investors show a stronger emphasis on sustainability objectives. | en_US |
