The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that microfinance vehicles (MIVs) actually invest in the microfinance sector, announced that it has granted the LuxFLAG Microfinance Label to five MIVs: KCD-Mikrofinanzfonds I Global and KCD Mikrofinanzfonds II Latin America of Luxembourg; Finethic Microfinance SCA of Switzerland; Triodos SICAV II (Triodos Microfinance Fund) of the Netherlands and Wallberg Global Microfinance Fund of Luxembourg. The number of LuxFLAG-certified MIVs now stands at 14 [1]. The criteria to obtain a LuxFLAG label include having at least 50 percent of the MIV’s total assets invested in microfinance and having at least 25 percent of its portfolio invested in microfinance institutions (MFIs) rated by a firm that is recognized by LuxFLAG [2].
About LuxFLAG: LuxFLAG was established in 2006 to promote the raising of capital for microfinance by acting as a recognizable symbol of reputable microfinance investment vehicles (MIVs). It certifies MIVs based on their direct or indirect investment in the microfinance sector. LuxFLAG only certifies MIVs located in nations with financial supervision on par with countries in the European Union.
About Finethic Microfinance SICAR: Finethic Microfinance SICAR (the French acronym for risk capital investment company) is a microfinance investment vehicle (MIV) established in 2005 and based in Switzerland. It aims to use microfinance as a tool to serve disadvantaged people. Finethic allots all its management fees to the Finethic Foundation, which supports projects targeting education, health and eradicating child labor in developing countries. The Foundation also funds microentrepreneurial projects. In October 2010, Finethic was granted the Microfinance Label of the Luxembourg Fund Labeling Agency (LuxFLAG), an MIV certification organization founded in 2006 to promote the raising of capital for microfinance by certifying whether funds actually invest in the microfinance sector. Finethic does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
About Triodos (Triodos Microfinance Fund): The Triodos Microfinance Fund is a microfinance investment vehicle that mobilizes capital for microfinance institutions (MFIs). The Triodos Microfinance Fund invests 80 percent of its portfolio in established microfinance institutions (MFIs) and 20 percent in start-up institutions. The fund allocates approximately 30 percent of its holdings to equity and 70 percent to loans and debt securities. Investors include the Netherlands-based insurance company Achmea, CCLA Investment Management Limited and The Waterloo Foundation, a UK-based independent grant-making foundation. In October 2010, the Triodos Microfinance Fund was granted the Microfinance Label of the Luxembourg Fund Labeling Agency (LuxFLAG), an MIV certification organization founded in 2006 to promote the raising of capital for microfinance by certifying whether funds actually invest in the microfinance sector. As of 2009, Triodos Microfinance Fund has assets under management worth EUR 200 million (USD 277 million).
About KCD Mikrofinanzfonds: KCD Mikrofinanzfonds is a microfinance investment vehicle (MIV) established in Luxembourg in February 2009. It is promoted by German bank Bank im Bistum Essen. KCD Mikrofinanzfonds does not report financial information to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
About The Wallberg Global Microfinance Fund: The Wallberg Global Microfinance Fund is a microfinance investment vehicle (MIV) established in October 2008 in Luxembourg. It is managed by Symbiotics Investment Management SA and holds EUR 41 million (USD 57 million) in assets.
By Diana Baide, Research Assistant
[1] LuxFLAG: Press Release. “5 new Microfinance Investment Vehicles obtain the LuxFLAG Microfinance Label”
http://www.luxflag.org/documents/press_releases/2010/LuxFLAG_Press_Release_Sept2010_Labels_EN.pdf
[2] LuxFLAG: Obtaining a Label: Criteria
http://www.luxflag.org/listingProcedure.htm
MicroCapital’s Microfinance Universe profile: LuxFLAG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG
MicroCapital’s Microfinance Universe profile: Finethic Microfinance SICAR
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Finethic+Microfinance
MicroCapital’s Microfinance Universe profile: Triodos Microfinance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Microfinance+Fund
MicroCapital’s Microfinance Universe profile: KCD Mikrofinanzfonds
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KCD+Mikrofinanzfonds
MicroCapital’s Microfinance Universe profile: Wallberg Global Microfinance Fund
Browse the MicroCapital Universe and add your entry to the wiki at:
https://www.microcapital.org/microfinanceuniverse/
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