- The Luxembourg Stock Exchange (LuxSE) becomes the first exchange to launch a dedicated platform for social responsible investing (SRI) funds
- 11 SRI funds are already displayed in the Luxembourg Green Exchange (LGX) fund window
- Luxembourg is the world’s second largest fund domicile – opening LGX to SRI funds is a logical step
LGX’s ambition is to facilitate global efforts towards meeting the Sustainable Development Goals (SDGs) and the targets of the Paris Climate Agreement. Granting socially responsible investing funds access to LGX, thus diversifying and opening up to include new investor segments, marks a new era for Luxembourg’s ever-growing fund industry and the role that Luxembourg’s sustainable financial centre is playing to grow sustainable finance globally.
The High Level Expert Group (HLEG) on Sustainable Finance and the European Commission’s Action Plan on Financing Sustainable Growth have generated a significant momentum for the growth of interest in the SRI segment. In Europe alone, there are already some 2,500 SRI funds[1].
At launch, LGX displays 11 SRI funds, managed by five fund managers: Humanis Gestion d’Actifs, Investing for Development, NN Investment Partners, Selectra and Sparinvest. LGX fund window’s goal is to capture and display all ESG, green and social funds recognised by leading fund labelling organisations and to provide investors with the highest level of transparency.
For SRI funds, joining LGX provides a unique opportunity to enhance visibility by being part of an internationally recognised platform for sustainable securities. Display on LGX is evidence of adhering to stringent eligibility criteria and an opportunity to attract a new more diversified investor base. Investors – via the free and unrestricted use of the LGX website – access transparent and trustworthy fund documentation. Therefore, they can make straightforward and secure comparisons of the available sustainable finance investing opportunities.
LGX, launched in 2016, was initially a platform focusing only on green bonds. After 18 months, half of the world’s green bonds are listed in Luxembourg. Encouraged by the success, LGX expanded to also encompass social and sustainable bonds. Today the platform displays more than 170 green, social and sustainability bonds from issuers across the globe, amounting to over USD 100 billion. The bonds listed on LGX are contributing to the achievement of the UN SDGs.
“The opening of the fund window works in the ultimate interest of investors. The value of our model is that LGX focuses on transparency, allowing investors to get all the information they need to make informed decisions. At the same time, fund promoters benefit from higher visibility, allowing them to diversify their investor portfolio and communicate about their sustainable investment strategy,” comments Julie Becker, Head of LGX and member of the Executive Committee of LuxSE.
The Exchange’s ambition is to maintain its position of being the world’s leading platform for information about the best sustainable finance products across asset classes, geographies, investment strategies, products and services.
[1] http://www.alfi.lu//sites/alfi.lu/files/files/Publications_Statements/Surveys/The-European-Responsible-Investment-Fund-Market-2016-FINAL.pdf
