LuxFLAG (Luxembourg Fund Labeling Agency), the Luxembourgian microfinance investment vehicle (MIV) certification organization, and MicroRate, the microfinance institution (MFI) rating agency with offices in the US, Peru and Morocco, signed an agreement on May 12, 2010, creating LUMINIS Microfinance, an MIV information service [1]. LUMINIS is intended to allow investors to make better-informed investment decisions based on a comprehensive database of MIV performance metrics.

Sebastian von Stauffenberg, Managing Director and CEO of MicroRate, stated that the development of LUMINIS was a vital next step in the emergence of microfinance as an asset class [1].

Daniel Dax, General Manager of LuxFLAG, outlined how each partner would benefit from the relationship. “LuxFLAG will capitalize on LUMINIS’ data collection and analysis, increase its visibility and attract foreign-domiciled MIVs. In addition, LUMINIS will be able to provide LuxFLAG with in-depth, comprehensive and up-to-date information on the LuxFLAG labeled MIVs” [1].

The pricing scheme for the service has not yet been announced.

By Matthew Castner, Research Assistant

About LuxFLAG:
LuxFLAG was established in 2006 to promote investment in 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.

About MicroRate:
MicroRate was founded in the United States of America in 1997 with the intent to objectively evaluate microfinance institutions (MFIs), thus increasing transparency. As a result, MicroRate hopes to drive additional funding into microfinance. MicroRate has evaluated more than 500 MFIs worldwide, and claims to perform its evaluations not through “rigid rating formulas,” but through evaluation of critical risk. The organization has offices in the United States, Peru and Morocco as of 2010.

About LUMINIS Microfinance:
LuxFLAG (Luxembourg Fund Labeling Agency), the Luxembourgian microfinance investment vehicle (MIV) certification organization, and MicroRate, the microfinance institution rating agency with offices in the United States, Peru and Morocco, signed an agreement on May 12, 2010, creating LUMINIS Microfinance, an MIV information service. LUMINIS will be a library of MIV performance data, intended to allow investors to make better informed investment decisions.

Additional Resources

[1] http://microrate.com/wp-content/uploads/2010/05/Press-release-Investor-Information-Service-12-May-20102.pdf

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

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

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

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