Luxflag Microfinance

The world's first Microfinance Label was launched in July 2006 by LuxFLAG with the aim of reassuring investors that the fund (Microfinance Investment Vehicle - MIV) actually invests, directly or indirectly, in the microcredit sector.

Summary data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Microfinance	13	Label	Luxflag-Microfinance	t	1	1
Luxflag-Microfinance	13	Nationality	Luxembourg - English	t	1	3
Luxflag-Microfinance	13	Management	Label issued by LUXFLAG an independent Luxembourg-based non-profit rating agency	t	1	4
Luxflag-Microfinance	13	Label type	Thematic	t	1	5
Luxflag-Microfinance	13	Website	https://www.luxflag.org/labels/microfinance/	t	1	7
Luxflag-Microfinance	13	Market	The label targets Luxembourg funds and SICAVs	t	1	8
Luxflag-Microfinance	13	Products	27 to the end of June 2022	t	1	9
Luxflag-Microfinance	13	Links to funds	https://www.luxflag.org/labels/microfinance/labelled-mivs.html	t	1	10
Luxflag-Microfinance	13	Criteria	https://www.luxflag.org/media/pdf/2021-Q2-MF-List-of-LuxFLAG-Labelled-Products.xlsx	t	1	15
Luxflag-Microfinance	13	Periodicity	12 months	t	1	21

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
Luxflag-Microfinance	13	Description	The world's first Microfinance Label was launched in July 2006 by LuxFLAG and aims to reassure investors that the Microfinance Investment Vehicle (MIV) does in fact invest, directly or indirectly, in the Microfinance sector.	d	1	6
Luxflag-Microfinance	13	Genesis and development	The world's first and only Microfinance Label was launched in July 2006 by LuxFLAG. The label comprises more than 60% of the world's existing Microfinance Investment Vehicles (MIVs), representing more than 5.9 billion assets under management.	d	1	11
Luxflag-Microfinance	13	Objectives	The primary objective of the LuxFLAG Microfinance Label is to assure investors that the Microfinance Investment Vehicle (MIV) actually invests, directly or indirectly, in the microfinance sector. The MIV is authorized, rather than giving direct loans to microfinance institutions (MFIs), to invest in other MIVs themselves that invest more than 50 percent in Microfinance.	d	1	12
Luxflag-Microfinance	13	Promoters and administrators	The Label was created by the LUXEMBOURG FINANCE LABELLING AGENCY, an independent, international nonprofit association created in Luxembourg in July 2006 by seven public and private founding members with the aim of promoting the responsible investment sector by assigning a recognizable label to microfinance investment vehicles	d	1	13
Luxflag-Microfinance	13	SRI approach	In order to obtain the label, funds must have a Portfolio microfinance corresponding to at least 50% of the MIV's total assets and a well-defined impact investing strategy and objective	d	1	14
Luxflag-Microfinance	13	Mandatory Criteria	The mandatory criteria are to have a Portfolio microfinance corresponding to at least 50 percent of the MIV's total assets and to have an impact investing strategy and objectives (companiesand funds intent on generating social and environmental impact along with a financial return) whose impact is measurable and concrete.	d	1	16
Luxflag-Microfinance	13	Additional criteria	Only minimum requirements for access to the label are indicated	d	1	17
Luxflag-Microfinance	13	Allocation process	The Society applicants must verify their eligibility with Luxflag and prepare a letter of intent with a checklist of documents. The Label checks their eligibility and submitted the file to the Microfinance Label Eligibility Committee, which gives an eligibility opinion. The Board of Directors of Luxflag decides on the awarding of the label. The process takes about 2 months. The Label lasts for one year and must be renewed.	d	1	20
Luxflag-Microfinance	13	External certification	The label is valid for one year and can only be renewed after ensuring that the eligibility criteria are still met. To this end, LuxFLAG will send the fund an invitation to submit an updated application at least two months before the expiry of its label.	d	1	22
Luxflag-Microfinance	13	Focus on transparency	The fund must necessarily be classified as an Article 9 (SFDR) and publish at least annually audited financial information for investors	d	1	23
Luxflag-Microfinance	13	Focus on periodic checks	Compliance with the criteria is monitored every 12 months by LuxFLAG and in addition each fund must be subject to supervision by an EU Member State or to supervision equivalent to that of the EU Member States.	d	1	24
Luxflag-Microfinance	13	Related parties	Luxflag is a joint initiative of the Luxembourg Government, the Association for the Promotion of Finance in Luxembourg, the EIB, the trade association of fund managers (ALFI), the non-profit association ADA (Microcredit), the Association of Luxembourg Banks and the Luxembourg Stock Exchange.	d	1	25