In the investment sector, product labelling helps to raise money from investors by increasing transparency and fostering confidence. Such labels provide comfort that a given investment really does do what it claims to do. Luxembourg fund labels are based on clear, published criteria and a high level of transparency.
The Luxembourg Finance Labelling Agency (LuxFLAG) is an independent, non-profit association created in Luxembourg in 2006, which applies a rigorous, high quality labelling process. The agency aims to promote the raising of capital for the Responsible Investment sector by awarding a recognisable and transparent label to investment vehicles complying with pre-defined eligibility criteria. These labels reassure investors that a labeled investment vehicle invests, directly or indirectly, in the responsible investment sector.
The applicant may be domiciled in any jurisdiction that is subject to a level of national supervision equivalent to that available in European Union countries. The labelled funds are from various fund domiciles and asset managers based in more than 10 countries.
Today, LuxFLAG grants five labels: Microfinance, Environment, ESG, Climate Finance and a Green Bonds label.