LuxFLAG awards first Microfinance Label to a non-Luxembourg fund
LuxFLAG has awarded its first LuxFLAG Microfinance Label to a non-Luxembourg domiciled microfinance investment vehicle (MIV). The Access Africa Fund is a Delaware company, formed by CARE USA. The fund is managed by MicroVest Capital Management and invests in microfinance projects in Sub-Saharan Africa.
At the same date, LuxFLAG awarded the Microfinance Label to FEFISOL, a Luxembourg company managed by Solidarité Internationale pour le Développement et l’Investissement (SIDI), a French NGO. FEFISOL focuses on providing local currency funding to microfinance organisations in rural areas, mainly in Sub-Saharan Africa.
So far 24 MIVs have been granted the LuxFLAG Microfinance Label, representing some USD 3.5 billion in assets under management as at April 2012.
The Label has always been available to funds of international origin, but with most of the widely distributed MIVs being domiciled in Luxembourg, demand has come from the promoters of these funds – be they from Switzerland, France, Germany or elsewhere. The choice of Luxembourg as a domicile has been driven by the existence of regulated structures that permit the investment activities specific to an MIV.
LuxFLAG is a Luxembourg based agency that supports sustainable finance by granting a recognisable label to investment funds. Two such labels are currently available from the agency: Microfinance Fund and Environment Fund. The Label assists capital raising by reassuring investors that the fund really invests the majority of its assets in the sector identified and in a responsible manner.
Details of the labelled funds are available on the LuxFLAG website. The website also contains details of the eligibility criteria and an application form that can be downloaded by entities wishing to apply for either of the two LuxFLAG Labels.
Alternatively, you can contact:
Daniel Dax, firstname.lastname@example.org
Sachin Vankalas, email@example.com
Tel: +352 22 30 26 - 1.