The Luxembourg Fund Labeling Agency (LuxFLAG), an organization aiming to increase transparency for investors wishing to make responsible investments in the fields of microfinance and the environment, has recently given the LuxFLAG Microfinance Label to two Swiss microfinance investment vehicles (MIVs) for the first time: the Azure Global Microfinance Fund SICAV-SIF and responsAbility SICAV Financial Inclusion Fund. The LuxFLAG Microfinance Label aims to assure investors that each fund invests the majority of its assets in the microfinance sector. As of January 2012, the Azure Global Microfinance Fund has made three investments and reports a “pipeline of 10 investable funds;” the size of the fund has not been released. Founded in 2011, the Financial Inclusion Fund is not seeking further investment beyond the USD 140 million it has received from an unnamed Swiss pension fund.
LuxFLAG has also awarded Environmental Labels to Luxembourg-based investment funds Green for Growth Fund – Southeast Europe, an initiative of the European Investment Bank and KfW Bankengruppe; Lux-Equity Eco Global, which is managed by Banque et Caisse d’Epargne de l’Etat; and Parvest Environmental Opportunities, a commodities- and energy-focused fund. Launched in 2011, the Environmental Label indicates that LuxFLAG has verified that fund’s assets are invested in environment-related sectors. Combined, the three funds have approximately USD 400 million under management.
As of 2012, LuxFLAG microfinance labels are current for 22 microfinance funds, which together hold approximately USD 3.3 billion in assets under management, and environmental labels are current for three funds.
By Charlotte Newman, Research Associate
About Luxembourg Fund Labeling Agency
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 2011, 22 MIVs and three EIVs hold current LuxFLAG labels.
About Azure Partners
Azure Partners is a Swiss company specializing in socially responsible investments. It focuses mainly on microfinance and acts as investment advisor to the Azure Global Microfinance Fund. As of January 2012, the Azure Global Microfinance Fund has made three investments and reports a “pipeline of 10 investable funds.” The size of the fund has not been released.
About responsAbility Financial Inclusion Fund
The responsAbility Financial Inclusion Fund, of Swiss investment company responsAbility Social Investments, was launched in 2011. The Financial Inclusion Fund is not seeking further investment beyond the USD 140 million it has received from an unnamed Swiss pension fund.
About Green for Growth Fund, Southeast Europe
The Green for Growth Fund, Southeast Europe, formerly known as Southeast Europe Energy Efficiency Fund, was initiated by the European Investment Bank and German Development Bank KfW in December 2009. Its goal is to increase energy efficiency and foster the use of renewable energy in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey. It is privately managed by Oppenheim Asset Management Services of Luxembourg. There is no financial information available on the Fund. Its investment advisor is Finance in Motion, a development finance firm based in Germany with reported committed capital of EUR 800 million (equivalent to USD 982 million).
About Lux-Equity Eco Global
Lux-Equity Eco Global is a Luxembourg-based equity investment fund created in 2010 that primarily invests its assets in the stock of international companies selected on the basis of environmental social, governorship and financial criteria. As of February 2012, Lux-Equity Eco Global reported total assets of EUR 18 million (USD 23.7 million). Its investees are active in renewable energies and alternatives, energy efficiency, management of forests, management of water, protection of the coasts, waste management and the fights against the climate change and local pollution.
About Parvest Environmental Opportunities
Founded in 2006, Parvest Environmental Opportunities is a Luxembourg-based small- and mid-cap fund that invests in companies that focus on the provision of clean technologies. Parvest is managed by IMPAX Asset Management, an equity manager in the environmental sector, that is a part of Paribas Investment Partners, an investment solutions provider based in France.
Sources and Additional Resources:
Association of the Luxembourg Fund Industry: Press Release- “Three Environment Funds Receive First LuxFLAG Environment Accreditation and Additional Recognition for Microfinance Funds,” http://www.alfi.lu//sites/alfi.lu/files/files/Publications_Statements/Press_releases/LuxFLAG-Press-Release-Dec2011.pdf
MicroCapital.org story, January 23, 2012, “MICROCAPITAL BRIEF: Microfinance Investment Vehicle Certification Organization Luxembourg Fund Labeling Agency (LuxFLAG) Accepting Applications for Environmental Label,” https://www.microcapital.org/microcapital-brief-microfinance-investment-vehicle-certification-organization-luxembourg-fund-labelling-agency-luxflag-accepting-applications-for-environment-label/
MicroCapital.org story, October 10, 2011, “MICROCAPITAL BRIEF: LuxFLAG Grants Microfinance Label to Microfinance Enhancement Facility, Selectum, Etimos Fund, Dual Return Fund Vision Microfinance Local Currency; Renews Label for Six Other Microfinance Investment Vehicles (MIVs),” https://www.microcapital.org/microcapital-brief-luxflag-grants-microfinance-label-to-microfinance-enhancement-facility-selectum-etimos-fund-dual-return-fund-vision-microfinance-local-currency-renews-label-for-six-other-micro/
MicroCapital Universe Profile: Luxembourg Fund Labeling Agency
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG
MicroCapital Universe Profile: Azure Partners
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Azure+Partners
MicroCapital Universe Profile: responsAbility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital Universe Profile: Green for Growth Fund, Southeast Europe
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Green+for+Growth+Fund%2C+Southeast+Europe
MicroCapital Universe Profile: Lux-Equity Eco Global
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lux-Equity+Eco+Global
MicroCapital Universe Profile: Parvest Environmental Opportunities
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Parvest+Environmental+Opportunities
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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