The Luxembourg Fund Labeling Agency (LuxFLAG), a nonprofit organization that investigates whether investment vehicles actually support the microfinance and environment sectors, is accepting applications from microfinance investment vehicles (MIVs) for its annual Microfinance Label until May 7, 2013. To be eligible, an MIV’s loan portfolio must be equal to at least half of its total assets, a minimum of 25 percent of its investments must be in microfinance institutions (MFIs) rated by a microfinance rating agency approved by LuxFLAG and the MIV must seek a positive return on investment. A full list of criteria and the application form are available at http://www.luxflag.org/MIV_labelProcedure.htm.
Recently, LuxFLAG bestowed its environment label on BNP Paribas L1 Equity World Aqua, a mutual fund of Luxembourg-based BNP Paribas Asset Management that invests in companies that work in technologies for treating, saving and recycling water; water infrastructure; and water utilities. As of April 2013, BNP Paribas L1 Equity World Aqua has total assets of EUR 1.7 million (USD 2.2 million).
As of March 2013, 25 MIVs hold the LuxFLAG Microfinance Label, representing assets of approximately USD 3.8 billion, and seven funds hold its Environment Label representing assets of approximately USD 692 million.
By Nicole Boyd, Research Associate
About BNP Paribas L1 Equity World Aqua
BNP Paribas L1 Equity World Aqua is mutual fund of Luxembourg-based BNP Paribas Asset Management that invests in companies worldwide that work in technologies for treating, saving and recycling water; water infrastructure; and water utilities. As of April 2013, BNP Paribas L1 Equity World Aqua has total assets of EUR 1.7 million (USD 2.2 million).
About LuxFLAG
Established in 2006, the Luxembourg Fund Labeling Agency (LuxFLAG) aims to “promote the raising of capital for Microfinance and Environment related sectors by awarding a recognizable label to eligible microfinance investment vehicles (MIVs) and environment-related investment vehicles (EIVs).” Its objective is to reassure investors that the MIV or EIV actually invests, directly or indirectly, in the microfinance or environment sector. LuxFLAG only certifies MIVs and EIVs that are either subject to European Union member state supervision or located in nations with financial supervision on par with countries in the European Union. As of March 2013, 25 MIVs have been granted the LuxFLAG Microfinance Label, representing assets of approximately USD 3.8 billion, and seven funds hold its Environment Label representing assets of approximately USD 692 million.
Sources and Additional Resources:
Information sent by LuxFLAG to MicroCapital.
LuxFLAG. “Criteria and Procedure,” http://www.luxflag.org/MIV_labelProcedure.htm
MicroCapital. February 26, 2013, “MICROFINANCE EVENT: Association of the Luxembourg Fund Industry (ALFI), LuxFLAG Host “Responsible Investing Conference,” May 15, 2013, Luxembourg,” https://www.microcapital.org/microfinance-event-association-of-the-luxembourg-fund-industry-alfi-luxflag-host-responsible-investing-conference-may-15-2013-luxembourg/
MicroCapital. October 16, 2012, “MICROCAPITAL BRIEF: Capital Gestion Microfinance Fund Recognized by Luxembourg Fund Labeling Agency,” https://www.microcapital.org/microcapital-brief-capital-gestion-microfinance-fund-recognized-by-luxembourg-fund-labeling-agency/
MicroCapital. February 14, 2012, “MICROCAPITAL BRIEF: Luxembourg Fund Labeling Agency (LuxFLAG) Awards First Microfinance Label to Azure Global Microfinance Fund, responsAbility Financial Inclusion Fund,” https://www.microcapital.org/microcapital-brief-luxembourg-fund-labeling-agency-luxflag-awards-first-microfinance-label-to-azure-global-microfinance-fund-responsability-financial-inclusion-fund/
MicroCapital Universe Profile: Luxembourg Fund Labeling Agency (LuxFLAG) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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