The Luxembourg Finance Labelling Agency, better known as Luxflag, has granted new labels for 18 investment and insurance products. That brings the total number of current labels in use to 279, Luxflag stated in a press release on 28 March 2024.

Seven of the new investment funds are run by Tikehau, a French asset manager that is actively expanding in the grand duchy, and two by Fonds de Compensation, Luxembourg’s main public pension plan.

The number of active labels has decreased by 14.4% over the past nine months and has fallen by nearly a quarter (23.6%) from a peak of 365 in 2021.

Luxflag said its labels are valid for one year, after which time they need to be reviewed and renewed.

Cumulative assets under management across all Luxflag labelled products dropped by nearly a third (31.7%) between December 2021 and March 2024, and were down by 37.6% since a peak in mid-2022.

A Luxflag spokesperson told Delano: “The decline in the total number of financial products and assets under management can be attributed to several factors. These may include market dynamics, changes in investor preferences, shifts in regulatory frameworks or adjustments in fund strategies. While some financial products may choose not to re-apply for the Luxflag Label due to strategic reasons or changes in their focus, others may indeed face rejection during the application process.”

The representative declined to provide rejection rates to Delano “due to confidentiality reasons,” but stated: “we can assure you that we maintain a transparent and fair evaluation process for all financial products applications. Our aim is to uphold the highest standards of sustainability and responsible investing while providing support and guidance to companies throughout the application process.”

Luxflag is a not-for-profit association, founded in 2006, that checks investment fund and insurance firms’ responsible investing claims.

The agency issues four types of impact labels--microfinance, environment, climate finance and green bonds--three types of sustainability transition labels--ESG, ESG insurance products and ESG discretionary mandate--and an “applicant fund status” label.

Luxflag said the newly labelled investment products were:

- Tikehau 2027

- Tikehau Credit Plus

- Tikehau International Cross Assets

- Tikehau Short Duration

- Tikehau SubFin Fund

- Tikehau 2029

- Tikehau Special Opportunities III

- FrenchFood Positive Impact

- Silver Avenir

- FDC SICAV Global Equities Small Cap - Active 1 (FAS1)

- FDC SICAV EMMA Bonds - Active 1 (FOA1)

- Eiffel Energy Transition III SLP

In addition, Luxflag applicant fund status was delivered to:

- Eiffel Impact Direct Lending

- Argos Climate Action Fund

- Argos Climate Action SLP

- Daphni Blue

- Autofocus Transition Climat Juillet 2024

- Eco Technology Fund II

Labelled products are domiciled in eight jurisdictions--Belgium, Estonia, France, Germany, Ireland, Luxembourg, Monaco and Switzerland--and distributed in “70+ countries”, Luxflag .

Updated Tuesday 2 April at 8:30am with Luxflag comments

Updated Tuesday 2 April at 9am to clarify the types of Luxflag fund labels