LuxFLAG, a microfinance institution vehicle (MIV) certification organization founded in 2006, has recertified eight MIVs while adding a ninth, BlueOrchard Fund – Microfinance Fund for US Investors. The label is applied to MIVs that invest directly or indirectly in the microfinance sector and are deemed reputable by LuxFLAG and receiving a basic level of financial supervision from their home country. The nine labeled firms manage a total of USD 2.24 billion. LuxFLAG reports an unspecified number of applicants for 2010 [1].

The remaining eight firms are:

- Advans SA (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA)

- Dexia Micro?Credit Fund (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dexia+Microcredit+Fund+%28DMCF%29)

- European Fund for Southeast Europe (EFSE) (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29)

- responsAbility Global Microfinance Fund (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29)

- responsAbility SICAV (Lux) – Microfinance Leaders (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29)

- responsAbility SICAV (Lux) – Mikrofinanz?Fonds (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds)

- Dual Return – Vision Microfinance (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DUAL+RETURN+VISION+MICROFINANCE+FUND)

- Rural Impulse Fund SA (http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Fund+%28RIF%29)

By Matthew Castner, Research Assistant

Luxembourg Fund Labelling Agency (LuxFLAG):

LuxFLAG was established in 2006 to promote the raising of capital for microfinance by acting as a recognizable symbol of reputable 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.

BlueOrchard Microfinance Fund for US investors

The BlueOrchard Microfinance Fund for US investors invests all assets in the Dexia Microcredit Fund. The fund was founded in February 2009, and has a total share value of USD 17,000 as October 2009. The fund does not report to the MIX Market, the microfinance information clearinghouse.

Dexia Microcredit Fund (DMCF)

The Dexia Micro-Credit Fund (DMCF) invests in debt instruments issued by microfinance institutions (MFIs), which are retail micro-lenders. DMCF finances 88 institutions in 33 developing countries in Africa, Asia, Eastern and Central Europe and Latin America. DMCF is managed by BlueOrchard Finance SA.

[1] LuxFLAG: “One new MIV joins the list of MIVs that have successfully renewed their application for the LuxFLAG Microfinance Label in April 2010,” April, 2010,  http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA

[2] “BlueOrchard Microfinance Fund for US Investors,” BlueOrchard, October 2009,  http://iamfi.com/documents/091012_BO_MF_Fund_4_US_September_20091.pdf

MicroCapital’s Microfinance Universe profile: LuxFLAG: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

MicroCapital’s Microfinance Universe profile: BlueOrchard Microfinance Fund for US investors http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard+Microfinance+Fund+for+US+Investors

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