Money-market managers rebrand almost USD 1trn of funds as ESG

Money market funds have quietly been reclassifying their legal status to market themselves as promoters of ESG, with close to USD 1trn of highly liquid client assets registered as ESG.
Photo: Christoph Schmidt/AP/Ritzau Scanpix
Photo: Christoph Schmidt/AP/Ritzau Scanpix
By Natasha White and Frances Schwartzkopff / Bloomberg

The designation in question is known as Article 8, which under European Union rules means a financial product “promotes” environmental, social and good governance goals. Asset managers have been attaching it to funds that specialize in ultra-short-term assets at a pace that’s transformed the market since European ESG investing rules were first enforced in 2021. 

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