East Capital GEM fund is awarded LuxFLAG ESG certification
East Capital, the specialist emerging and frontier markets asset manager, is pleased to announce that its East Capital Global Emerging Markets Sustainable fund has been certified with the LuxFLAG ESG Label.
The Luxembourg Finance Labelling Agency (LuxFLAG) is an independent and international non-profit association created in Luxembourg in July 2006 by seven public and private founding partners. The Luxembourg Government, ALFI, ABBL, ADA, the European Investment Bank, Luxembourg for Finance and the Luxembourg Stock Exchange are its Charter members.
The primary objective of the LuxFLAG ESG Label is to reassure investors that the strategy of a certified fund incorporates ESG (Environmental, Social and Governance) considerations throughout its entire investment process. To be eligible for the ESG Label a fund must screen 100% of its invested portfolio according to the ESG strategies and standards recognised by LuxFLAG.
Karine Hirn, Partner and Chief Sustainability Officer at East Capital, said: “The strategy of our fund is to invest in companies that successfully manage sustainability risks and opportunities, while contributing to sustainable development in Emerging Markets. It combines a thorough and proprietary ESG analysis with active ownership. LuxFLAG’s evaluation process is very rigorous, so we are pleased that our efforts have been recognised and can be brought to the attention of the wider market.”
Sachin Vankalas, Director General of LuxFLAG, said: “It’s a testament to the qualities of East Capital Global Emerging Markets Sustainable fund that it has been awarded the LuxFLAG ESG Label for use throughout 2020. The LuxFLAG ESG Label is widely recognized for its rigorous approach in assessing a fund’s investment strategy, the level of integration of ESG criteria into the investment process and the degree of transparency provided to investors.”
East Capital Global Emerging Markets Sustainable aims to deliver superior returns by investing in companies in Emerging Markets. It has outperformed benchmark by 8.45% since its launch on January 9, 20191. The fund targets a low turnover rate by investing in high quality companies with long-term growth prospects. The five largest sectors represented in the fund’s portfolio are financial services, technology, cyclical consumer goods, communication services and real estate. East Capital assesses and monitors companies using a proprietary ESG scorecard system to generate a sustainability rating for its holdings, which it uses for the portfolio allocation and risk management of the fund as well as to define engagement activities.
 Share Class A (EUR), January 9, 2020
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East Capital is an award-winning active asset manager specialising in emerging and frontier markets. Our investment teams base their investment strategy on in-depth knowledge of local markets, fundamental analysis and frequent company visits. ESG-related risks and opportunities are evaluated as an integral part of the investment process. We prefer investments in companies that show long-term sustainable growth and have responsible owners.
East Capital is part of East Capital Group, which was founded in Sweden in 1997 and has offices in Stockholm, Dubai, Hong Kong, Luxembourg, Moscow, Oslo and Tallinn. East Capital Group manages EUR 4.9 billion for a range of international investors including leading institutions, companies and private individuals.
For further information, please visit our website.
LuxFLAG is an independent and international non-profit organisation that aims to promote the raising of capital for sustainable investment. LuxFLAG ESG Label is awarded to investment funds that incorporate the analysis of environmental, social and corporate governance (“ESG”) considerations throughout their entire investment process. To be eligible for such a label, applicants must screen 100% of their invested portfolio in line with best industry standards. As at 12 December 2019, 183 financial products representing Euro 72.5 billion AuM, managed by 81 Managers and domiciled in 7 countries have been granted the use of LuxFLAG Labels.