Sustainable funds represent a rapidly growing segment of investment solutions in Europe, according to the first annual European Sustainable Investment Funds Study by Morningstar and Zeb, powered by the Association of the Luxembourg Fund Industry (ALFI).

The study found that net assets in sustainable fund products have more than doubled since 2018, attracting 52 percent of all net new flows and reflecting 11 percent of total net assets domiciled in Europe at the end of 2020.

Luxembourg was highlighted as the leading domicile, with sustainable funds accounting for €371 billion by the end of 2020 and capturing 44 percent...