We are proud to announce that Avaron Emerging Europe Fund has been granted LuxFLAG ESG label for the 2nd consecutive year.
The label is valid for one year, starting on 1st of April 2024 and ending on 31st of March 2025. The award of the LuxFLAG ESG label emphasizes the seamless integration of ESG considerations into the investment analysis and decision-making processes as the label is renowned for its high standards and thorough evaluation of the investment products’ strategy. Furthermore, it serves as a validation of the Fund’s commitment to transparency toward investors, containing crucial elements that form the eligibility criteria for the label.
The primary objective of the LuxFLAG ESG Label is to reassure investors that the Fund incorporates ESG (Environmental, Social and Governance) criteria throughout the entire investment process while screening 100% of their invested portfolio according to three of the ESG strategies and standards recognized by LuxFLAG. The label is awarded for a one year period after which a new audit of our responsible investment processes is carried out to confirm the Fund’s compliance with the label criteria.
To our knowledge Avaron Emerging Europe Fund is still the only Emerging Europe Fund to have been granted ESG label.
“The LuxFLAG ESG Label is recognized for its high standards and rigorous assessment of funds’ investment strategy and integration of ESG into the investment analysis and decision making process as well as an affirmation of funds’ transparency towards investors”, said Isabelle Delas, the CEO of LuxFLAG after congratulating Avaron on receiving the ESG label.
Committed to responsible investing since 2011
We have integrated ESG criteria into our investment process since 2011 when Avaron joined the UN PRI, an international network of financial institutions to promote sustainable investment through the incorporation of environmental, social and corporate governance principles. Over the years we have put a lot of work into developing our ESG research and integration processes to ensure a rigorous framework that adds value in investment and risk management. Today, Avaron Emerging Europe Fund relies upon negative and norms-based screening accompanied by ESG ratings that are established by our own investment team using an internally developed rating system. Furthermore, Avaron ESG ratings are linked to the valuation of issuers ensuring full ESG integration to the investment decision-making process.
ESG integrated to investment process
Being value-oriented stock pickers, we believe it is strategically important to have ESG analysis as an integral part of the overall company fundamental research and carried out by our own team. Thus, we have opted not to use third-party ESG-related service providers but rely fully on our own tools and people. This ensures that we can swiftly react to changes in issuer ESG performance as would be the case with changes in traditional fundamental performance.
For further information on our responsible investment practices and disclosures please refer to the dedicated Responsible Investing section on our website.
The LuxFLAG ESG label has been granted to the Avaron Emerging Europe Fund until 31.03.2025.
The body issuing the label, LuxFLAG is not in any way liable for the financial performance of the fund.
