MicroRate, a US-based microfinance rating agency, with the financial support of the Luxembourg government and the nonprofit Luxembourg Fund Labeling Agency (LuxFLAG), has launched the “beta” version of Luminis, a web-based platform focused on increasing the transparency of microfinance investment vehicles (MIVs). In the current version, users can view basic profiles of approximately 80 MIVs at no charge. The full version, which is scheduled to launch by March, will allow access to complete profiles and reports via paid subscription.
At the core of the Luminis technology is PRSM, a method developed by MicroRate to assess fund performance, risk and social and management factors. Luminis also provides investors with search and comparison tools, research and links to market news.
As of 2012, MicroRate has completed approximately 600 ratings of approximately 200 microfinance institutions (MFIs) worldwide. Its intent is to perform its evaluations not through “rigid rating formulas,” but through the “evaluation of critical risk.”
The Luxembourg Fund Labeling Agency (LuxFLAG) was established in 2006 with the intent of promoting the raising of capital for microfinance by acting as a recognizable symbol of reputable MIVs. As of September 2011, 20 MIVs hold current LuxFLAG labels.
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 LuxFlAG
The Luxembourg Fund Labeling Agency (LuxFLAG) was established in 2006 with the intent of promoting the raising of capital for 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 domiciled located in nations with financial supervision on par with countries in the European Union. As of September 2011, 20 MIVs hold current LuxFLAG labels. LuxFLAG also offers a label for environmentally conscious investment funds.
By Ariana Malushi, Research Associate
Sources and Additional Resources:
Luminis Press Release: “Microrate Releases Luminis, First Analytical Platform on Microfinance Funds”
http://microrate.com/wp-content/uploads/2012/01/Press-Release-Luminis-Beta-Launch-Final.pdf
MicroCapital.org, August 22, 2011, “MICROCAPITAL BRIEF: MicroRate’s ‘The State of Microfinance Investments 2011’ Indicates Resilience During Economic Downturn”
https://www.microcapital.org/microcapital-brief-microrate’s-“the-state-of-microfinance-investments-2011”-indicates-resilience-during-economic-downturn/
MicroCapital.org, August 3, 2011, “MICROCAPITAL BRIEF: MicroRate Latin America Approved as Microfinance Rating Agency in Peru, Celebrates 14th Anniversary” https://www.microcapital.org/microcapital-brief-microrate-latin-america-approved-as-microfinance-rating-agency-in-peru-celebrates-14th-anniversary/
MicroCapital.org: 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: LuxFlag
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG
MicroCapital Universe Profile: Microrate
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroRate
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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