The Luxembourg Fund Labelling Agency (LuxFLAG), a microfinance investment vehicle (MIV) and environment-related investment vehicle (EIV) certification organization, has launched a request for applications for the second LuxFLAG Environment Label, which is granted to EIVs in an effort to “reassure investor[s] that labeled investment funds actually invest the majority of their assets in environment-related sectors in a responsible manner” [1]. An investment fund must have a portfolio of investments in environment-related sectors corresponding to at least 75 percent of the fund’s total assets to be eligible for the label [2]. 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, 20 MIVs and three EIVs hold current LuxFLAG labels.
The first step in applying for an EIV label is to complete a pre-questionnaire to assess eligibility for the label followed by the application form that is available at: http://www.luxflag.org/documents/criteria_procedures/Application_form_Appendix_3.xls. The application deadline is February 20, 2012. For more information, you may contact LuxFLAG at info at luxflag.org or +352 22 30 261.
By Nisha Koul, Research Associate
About Luxembourg Fund Labeling Agency (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/environment sector. LuxFLAG only certifies MIVs/ 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, 20 MIVs and three EIVs hold current LuxFLAG labels.
Sources and Additional Resources:
[1] Press release submitted to MicroCapital, January 2012.
[2] LuxFLAG Environment, “Criteria & Procedure,” http://www.luxflag.org/EIV_labelProcedure.htm
MicroCapital.org story, January 13, 2012, “MICROCAPITAL BRIEF: MicroRate, LuxFlag Launch Luminis Looking to Increase Transparency of Microfinance Funds,” https://www.microcapital.org/microcapital-brief-microrate-luxflag-launch-luminis-looking-to-increase-transparency-of-microfinance-funds/
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 (LuxFLAG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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