Social funds

Give your social funds exposure to a wide range of investors by joining the Luxembourg Green Exchange (LGX).

The Luxembourg Green Exchange – A unique platform for social funds

LGX is a reference platform offering quality and transparency, with access to a large source of information across different sustainable financial instruments. Being displayed on one of the world’s leading reference platforms brings increased transparency and visibility for investors and issuers alike. It is easier to find reliable, relevant information in one central place. This improves comparability of products. The investors use the LGX platform on a daily basis to access information. Improved visibility also brings the opportunity of diversifying the investor base.

All social funds displayed on LGX

 

What makes a fund social?

A social fund invests its assets in sectors and activities that bring social benefits, incorporating specific investment selection strategies into its investment decisions and processes.​

  • Examples of social investment themes:

    • Microfinance: fund invests in microfinance loans, debt or equity instruments.
    • Social entrepreneurship and solidarity: fund invests in social enterprises, solidarity projects or commissions raised to charitable projects.
    • Social impact: fund invests in companies and projects aiming to generate social impact alongside a financial return, including in education, sustainable health, food and nutrition, community development, affordable basic infrastructure, affordable housing, fair-trade, sustainable agriculture, sustainable infrastructure, employment generation for specific target groups, and socioeconomic advancement and empowerment.
     

    In addition to focusing on specific social criteria, the investment selection may also consider the following investment strategies:

    • Norms-based screening – approach based upon screening in accordance with recognised frameworks, such as the UN Global Compact or Human Rights
    • Multiple exclusions strategy – approach that excludes multiple investments or classes of investments from the investible universe
    • Best-in-class – approach where leading or best performing investments within a universe, category or class are selected or weighted based on ESG criteria
    • ESG integration – approach which analyses the ESG performance of companies and considers this in the investment process
    • Engagement – active ownership through engagement with companies on ESG matters
    • Voting – active ownership through voting on ESG matters
    • ESG ethical screening – approach based on a strategy dedicated to screening in accordance with specific frameworks or values such as ESG shariah or faith-based screening
    • Investing for impact – approach where specific impact objectives are targeted, measured and reported
      

Social fund label recognised by LGX

Funds labelled by a labelling agency benefit from additional credibility, transparency and superior quality standards. Social funds having been awarded the LuxFLAG Microfinance label can display on LGX.

Asset manager with social funds on LGX

The Luxembourg Green Exchange in a nutshell

The market for sustainable finance investments has experienced rapid growth in recent years as attention has turned towards the Sustainable Development Goals and meeting the targets under the Paris Climate Agreement.

To help facilitate the development of this market, we launched, in 2016, the Luxembourg Green Exchange (LGX), a dedicated platform for sustainable securities abiding by recognised standards.

LGX aims to bring investors and issuers of sustainable financial instruments together on a single platform. To find out if your securities are eligible to join LGX, visit our How to join section. 

If you need more information

Contact us

portrait-MFL.jpg
Flavia Micilotta

Director of Luxembourg Green Exchange

+352 47 79 36 403 mfl@bourse.lu