Transparency nurtures the trust that is vital to the growth of the sustainable finance sector. Product labelling increases transparency and fosters confidence. Labels provide reassurance that any given investment does exactly what it says on the tin. 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 and high-quality labelling process. The agency aims to promote transparency in the raising of capital for the Responsible Investment sector by awarding a recognisable label to investment vehicles which comply with pre-defined eligibility criteria. These labels reassure investors that a labelled 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 prevailing in European Union countries.
LuxFLAG grants five distinct labels: Microfinance, Environment, ESG, Climate Finance and the most recent addition, a label for Green Bonds. As of March 2020, 196 investment vehicles boasted LuxFLAG labels. These products are domiciled in seven jurisdictions, from promoters from 16 countries.
With the LuxFLAG label, OFI's fund meets the best sustainable standard and extends the perspective of international development and distribution, the LuxFLAG label being independent and internationally acknowledged.