LuxFLAG launches its website
Luxembourg, June, 06 2007 -
At the first Annual General Meeting of the Luxembourg Fund Labeling Agency (LuxFLAG), created in July 2006 to grant a distinctive label to microfinance investment funds, the Charter Members were informed of the launch of its new website.
Since its creation in July 2006, LuxFLAG has established a set of criteria and granted its Label to three microfinance investment vehicles (MIV):
- The Dexia Micro-Credit Fund
- The European Fund for Southeast Europe(EFSE)
- The responsAbility Global Microfinance Fund.
Details of the three funds, which are promoted by major European financial institutions, are available on the recently launched LuxFLAG website: www.luxflag.org. This site also contains details of the eligibility criteria and a form that can be downloaded by entities wishing to apply for the Label.
The Charter Members of LuxFLAG noted that the MIV market doubled in size during 2006 to reach USD 2 billion and is projected to grow by 80% this year. Over 60 investment vehicles exist, using widely varying legal structures (source: PlaNet Finance).
LuxFLAG will be actively approaching MIVs over the months to come and encourages fund managers to make contact with the Agency. Eligible MIVs may be domiciled in any jurisdiction that has supervision equivalent to that which is available in EU countries.
The purpose of the Label is to promote the raising of capital in microfinance by reassuring investors that the MIV is really invested in microfinance. It is not a guarantee of performance nor does it constitute a recommendation to invest.