Luxflag

Luxembourg Fund Labelling Agency (LuxFLAG)

LuxFLAG 1 is an independent, non-for-profit association that aims to promote the raising of capital for microfinance and environment-related sectors. It was established in July 2006.

LuxFLAG logo

Scope and function

The Primary function of LuxFLAG is the awarding of a quality label to eligible investment vehicles, which are usually investment funds. The objective of this label is to reassure investors that the vehicle actually invests, directly or indirectly, in the microfinance or environment sector.

Eligible investment vehicles May Be domiciled in any jurisdiction that is subject to a level of national supervision equivalent to the one available in member states of the European Union.

Elegible investment vehicles can be either Microfinance Investment Vehicle (MIVs) 2 or Environment-related Investment Vehicles (EIVs). To this extent LuxFLAG can award two different labels: a Microfinance label and an Environment one. To be elegible of the Microfinance label, a vehicle should invest more than 50% of its assets in Microfinance. It is not required to invest directly in Microfinance: it can invest "indirectly", meaning that the MIV can invest into other MIVs that invest in Microfinance. For the environment label, the eligibility criteria require an investment vehicle to have a portfolio of investments in environment-related sectors corresponding to at least 75% of its total assets.

The investment vehicles that are awarded LuxFLAG label may use the LuxFLAG logo in their marketing and promotional activity.

Governance

The honorary president of LuxFLAG is Maria Teresa, Grand Duchess of Luxembourg.

The agency was founded in Luxembourg on 20 July 2006 by seven local institutions : the European Investment Fund (EIF) 3, the Association of the Luxembourg Fund Industry (ALFI) 4, the Luxembourg Bankers’ Association (ABBL) 5, the Luxembourg Stock Exchange 6, the Financial Technology Transfer Agency (ATTF) 7, the Appui au Développement Autonome (ADA) 8, the Luxembourg Ministry of Finance 9 and the Luxembourg Ministry of Foreign Affairs 10. In December 2009 Luxembourg For Finance (LFF) 11, a financial sector promotion agency, joined as a member, while in December 2011 it was the time for the Ministry of Sustainable Development and Infrastructure 12. At the same time the European Investment Bank (EIB) 13 took the place of the European Investment Fund. LuxFLAG counts now 8 Charter Members: the State of Granduchy of Luxembourg is indeed represented by its three Ministries.