MICROCAPITAL BRIEF: MicroRate Founder Damian von Stauffenberg is First to be Named to LuxFLAG Microfinance Label Eligibility Committee

The Luxembourg Fund Labelling Agency (LuxFLAG), a microfinance investment vehicle (MIV) and environment-related investment vehicle (EIV) certification organization, recently announced that Mr Damian von Stauffenberg, the founder of US-based microfinance rating agency MicroRate, has been named to the eligibility committee of LuxFLAG’s Microfinance Label [1]. The remaining committee members are to be announced shortly [2]. Mr Stauffenberg served as the Chairman of MicroRate until 2009 and has also worked with the World Bank and its private sector affiliate, the International Finance Corporation. Mr Kenneth Hay, Chairman of LuxFLAG, says, “The appointment of Damian von Stauffenberg to the eligibility committee not only brings to LuxFLAG the expertise and experience of one of the leaders in the microfinance industry, but will also help promote the recognition of LuxFLAG as a Labelling Agency of truly international dimension.”

The LuxFLAG Microfinance Label is granted to MIVs in an effort to “reassure investors that the MIV actually invests, directly or indirectly, in the microfinance sector.” The role of the eligibility committee is to examine applications for the label and recommend to the Board of Directors of LuxFLAG whether or not the label should be awarded to the applicant.

By Nisha Koul, Research Associate

About MicroRate: MicroRate is a microfinance rating agency formally approved by CGAP (Consultative Group to Assist the Poor); the Inter-American Development Bank; and Peru’s Superintendency of Banking, Insurance and Pension Fund Managers (SBS). It was founded in the US in 1997 with the intent of objectively evaluating microfinance institutions (MFIs), thereby increasing transparency and driving additional funding into microfinance. MicroRate has completed approximately 600 ratings of approximately 200 MFIs worldwide as of 2012 and claims to perform its evaluations not through “rigid rating formulas,” but through the “evaluation of critical risk.” A private company, MicroRate is based in Washington, DC, with offices in Peru and Morocco.

About Luxembourg Fund Labeling Agency (LuxFLAG): Established in 2006, the Luxembourg Fund Labeling Agency (LuxFLAG) aims to “promote the raising of capital for Microfinance and Environment related sectors by awarding a recognizable label to eligible microfinance investment vehicles (MIVs) and environment-related investment vehicles (EIVs).” Its objective is to reassure investors that the MIV or EIV actually invests, directly or indirectly, in the microfinance or environment sector. LuxFLAG only certifies MIVs and EIVs that are either subject to European Union member state supervision or located in nations with financial supervision on par with countries in the European Union. As of 2011, 20 MIVs and three EIVs hold current LuxFLAG labels.

Sources and Additional Resources:

[1] Press release submitted to MicroCapital, January 2012.

[2] Email conversation between MicroCapital and LuxFLAG representatives.

MicroCapital.org story, January 13, 2012, “MICROCAPITAL BRIEF: MicroRate, LuxFlag Launch Luminis Looking to Increase Transparency of Microfinance Funds,” https://www.microcapital.org/microcapital-brief-microrate-luxflag-launch-luminis-looking-to-increase-transparency-of-microfinance-funds/

MicroCapital.org story, October 10, 2011, “MICROCAPITAL BRIEF: LuxFLAG Grants Microfinance Label to Microfinance Enhancement Facility, Selectum, Etimos Fund, Dual Return Fund Vision Microfinance Local Currency; Renews Label for Six Other Microfinance Investment Vehicles (MIVs),” https://www.microcapital.org/microcapital-brief-luxflag-grants-microfinance-label-to-microfinance-enhancement-facility-selectum-etimos-fund-dual-return-fund-vision-microfinance-local-currency-renews-label-for-six-other-micro/

MicroCapital.org story, May 18, 2010, “MICROCAPITAL BRIEF: LuxFLAG and MicroRate Announce LUMINIS Microfinance, Internet-Based Microfinance Investment Vehicle Information Service,” https://www.microcapital.org/microcapital-brief-luxflag-and-microrate-announce-luminis-microfinance-internet-based-microfinance-investment-vehicle-information-service/

MicroCapital Universe Profile: MicroRate,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroRate

MicroCapital Universe Profile: Luxembourg Fund Labeling Agency (LuxFLAG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

 

Similar Posts: