10April2025ESMA50-524821-36460ESMATRVRiskAnalysisSustainableFinanceFundnames:ESG-relatedchangesandtheirimpactoninvestmentflowsESMATRVRiskAnalysis10April20252ESMAReportonTrends,RisksandVulnerabilitiesRiskAnalysis©EuropeanSecuritiesandMarketsAuthority,Paris,2025.Allrightsreserved.Briefexcerptsmaybereproducedortranslatedprovidedthesourceiscitedadequately.LegalreferenceforthisReport:Regulation(EU)No.1095/2010oftheEuropeanParliamentandoftheCouncilof24November2010establishingaEuropeanSupervisoryAuthority(EuropeanSecuritiesandMarketsAuthority),amendingDecisionNo716/2009/ECandrepealingCommissionDecision2009/77/EC,Article32‘Assessmentofmarketdevelopments,includingstresstests’,‘1.TheAuthorityshallmonitorandassessmarketdevelopmentsintheareaofitscompetenceand,wherenecessary,informtheEuropeanSupervisoryAuthority(EuropeanBankingAuthority),andtheEuropeanSupervisoryAuthority(EuropeanInsuranceandOccupationalPensionsAuthority),theEuropeanSystemicRiskBoard,andtheEuropeanParliament,theCouncilandtheCommissionabouttherelevantmicro-prudentialtrends,potentialrisksandvulnerabilities.TheAuthorityshallincludeinitsassessmentsananalysisofthemarketsinwhichfinancialmarketparticipantsoperateandanassessmentoftheimpactofpotentialmarketdevelopmentsonsuchfinancialmarketparticipants.’Theinformationcontainedinthispublication,includingtext,chartsanddata,exclusivelyservesanalyticalpurposes.Itdoesnotprovideforecastsorinvestmentadvice,nordoesitprejudice,precludeorinfluenceinanywaypast,existingorfutureregulatoryorsupervisoryobligationsbymarketparticipants.Thechartsandanalysesinthisreportare,fullyorinpart,basedondatanotproprietarytoESMA,includingfromcommercialdataprovidersandpublicauthorities.ESMAusesthesedataingoodfaithanddoesnottakeresponsibilityfortheiraccuracyorcompleteness.ESMAiscommittedtoconstantlyimprovingitsdatasourcesandreservestherighttoalterdatasourcesatanytime.Thethird-partydatausedinthispublicationmaybesubjecttoprovider-specificdisclaimers,especiallyregardingtheirownership,theirreusebynon-customersand,inparticular,theiraccuracy,completenessortimeliness,andtheprovider’sliabilityrelatedthereto.Pleaseconsultthewebsitesoftheindividualdataproviders,whosenamesaregiventhroughoutthisreport,formoredetailsonthesedisclaimers.Wherethird-partydataareusedtocreateachartortableortoundertakeananalysis,thethirdpartyisidentifiedandcreditedasthesource.Ineachcase,ESMAiscitedbydefaultasasource,reflectinganydatamanagementorcleaning,processing,matching,analytical,editorialorotheradjustmentstorawdataundertaken.EuropeanSecuritiesandMarketsAuthority(ESMA)Economics,FinancialStabilityandRiskDepartment201-203RuedeBercyFR-75012Parisrisk.analysis@esma.europa.euESMA-201-203ruedeBercy-CS80910-75589ParisCedex12-France-www.esma.europa.euCoverphoto:ImageMicrosoft365ESMATRVRiskAnalysis10April20253SustainableFinanceFundnames:ESG-relatedchangesandtheirimpactoninvestmentflowsContact:nils.brouwer@esma.europa.eu1SummaryFundnamesaremostlikelythefirstpieceofinformationinvestorsencounteraboutafundandarethusacrucialsignalofthefund’sstrategyandaims.However,whenfundnamesdonotaccuratelyreflecttheunderlyinginvestmentsoractualinvestmentstrategy,theycanunderminetheirsignallingfunctionandmisleadinvestors.BuildingonapreviousESMAstudyonEUfundnames,thisarticleexploreswhetherthesimpledecisionoffundmanagersincorporatingenvironmental,social,governance...
