The Luxembourg Fund Labeling Agency (LuxFLAG), a Luxembourg-based nonprofit organization that certifies the operations of investment vehicles that support microfinance and environmental initiatives, recently announced it granted its Microfinance Label for the first time. The fund is promoted by German bank Gemeinschaftsbank für Leihen und Schenken (GLS). The label is intended to assure investors that the investment fund directly or indirectly invests most of its assets in the microfinance sector.
Furthermore, LuxFLAG renewed the microfinance label for the following 14 investment funds as of April 2016. The funds are: (1) Dual Return Fund-Vision Microfinance; (2) Fefisol; (3) EU Microfinance Platform; (4) KCD III – Universal; (5) Luxembourg Microfinance and Development Fund; (6) Regional MSME Investment Fund for Sub-Saharan Africa SA; (7) responsAbility Global Microfinance Fund; (8) responsAbility SICAV (Lux) – Mikrofinanz-Fonds; (9) responsAbility SICAV (Lux) – Microfinance Leaders; (10) responsAbility SICAV (Lux)- Financial inclusion fund; (11) Rural Impulse Fund S.A.SICAV-SIF; (12) Rural Impulse Fund II S.A. SICAV-SIF; (13) SEB Microfinance Fund; (14) The European Fund for Southeast Europe SA, SICAV-SIF.
As of April 2016, 27 microfinance investment vehicles hold the LuxFLAG Microfinance Label, representing aggregated assets of approximately USD 11.6 billion. In addition, nine funds hold its Environment Label, representing assets of approximately USD 2.8 billion, and nine other funds hold its Environmental, Social and Governance (ESG) label, representing assets of approximately USD 2.9 billion.
By Kevin van den Brink, Research Associate
About LuxFLAG
Established in 2006, the Luxembourg Fund Labeling Agency (LuxFLAG) is a nonprofit organization that evaluates and certifies the operations of investment vehicles with three possible labels (1) Microfinance, (2) Environmental, or (3) Environment, Social and Governance (ESG). The labels signal investors and others that the funds have met criteria set by LuxFLAG. For example, funds must have a microfinance portfolio corresponding to at least 50 percent of the investment fund’s total assets, to earn the LuxFLAG Microfinance Label. As of April 2016, 27 microfinance investment vehicles hold the LuxFLAG Microfinance Label, representing assets of approximately USD 11.6 billion; nine funds hold its Environment Label representing assets of approximately USD 2.8 billion; and nine funds hold its ESG label representing assets of approximately USD 2.9 billion.
Sources and Additional Resources
[1] Information directly provided to MicroCapital by LuxFLAG.
MicroCapital Universe Profile: 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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