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Sachin S Vankalas, Operations Officer London, 24 May 2011

Update on LuxFLAG : Understanding the Value of LuxFLAG Label. Sachin S Vankalas, Operations Officer London, 24 May 2011. Overview. About LuxFLAG LuxFLAG Microfinance Label: application criteria and procedures LuxFLAG Labelled MIVs: Factsheet Advantages of the LuxFLAG Microfinance Label

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Sachin S Vankalas, Operations Officer London, 24 May 2011

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  1. Update on LuxFLAG : Understanding the Value of LuxFLAG Label Sachin S Vankalas, Operations Officer London, 24 May 2011

  2. Overview • About LuxFLAG • LuxFLAG Microfinance Label: application criteria and procedures • LuxFLAG Labelled MIVs: Factsheet • Advantages of the LuxFLAG Microfinance Label • Role of LuxFLAG Label in fighting current microfinance crisis 1

  3. About LuxFLAG: Mission • LuxFLAG, launched in July 2006, is an independent organisation that strives to provide clarity and confidence to micro-finance investors by awarding a distinctive label upon specific published criteria to eligible Microfinance Investment Vehicles (MIVs) and Socially Responsible Investments (SRIs). 2

  4. About LuxFLAG: Governance • Honorary President: Her Royal Highness The Grand Duchess Maria Teresa of Luxembourg • Charter Members: 8 charter members representing public and private partnerships • Board of Directors representing the charter members • Eligibility Committee: LuxFLAG stakeholders and microfinance industry experts advising on the Eligibility of the candidates for the Label 3

  5. About LuxFLAG: Role in the Microfinance Industry 4

  6. LuxFLAG Microfinance Label : Application Criteria 5

  7. LuxFLAG Microfinance Label : Social Criterion • The MIV Should: • Apply double bottom line approach- must seek Social Returns in addition to the Financial Returns. • Include Social performance in the Investment Objectives. • Regularly monitor Social Performance of the portfolio. • Include Social Performance Indicators as an integral part of the due diligence process. • Regularly report to the investors on Social Performance of the portfolio. 6

  8. LuxFLAG Microfinance Label : Application Procedures 7

  9. LuxFLAGLabelled MIVs: Factsheet Contd. 8

  10. LuxFLAGLabelled MIVs: Factsheet 9

  11. LuxFLAGLabelled MIVs: Factsheet • The  number  of  MIVs  labelled  by  LuxFLAG  has  doubled  since  the  beginning  of  2010  from  8 MIVs  to  16  MIVs,  representing around  USD  2.65  billion  in  AUM.  • This  confirms  the  growing  interest  in  the  LuxFLAG  Microfinance  Label  and  reinforces  its  importance  in  terms  of  providing  greater  transparency  to  investors. LuxFLAG  expects  further  MIVs  to  apply  for  the  Microfinance Label by the end of 2011.  10

  12. LuxFLAGLabelled MIVs: Factsheet • More than 35 Luxembourg registered MIVs (out of worldwide about 110) with estimated 2,3 bn € of total assets. • As of April 2011, LuxFLAG has 16 labelled MIVs acccounting for more than 85% of the total assets of MIVs in Luxembourg • 6/10 the most important MIVs in terms of AUM hold the LuxFLAG Microfinance Label 11

  13. Advantages of the LuxFLAG Microfinance Label • Reinforces Clarity, Transparency and Credibility towards the Investors • Enhances Visibility of the MIV in the international platforms. • Helps reaching international Investment Community 12

  14. Role Of LuxFLAG in Fighting Current Microfinance Crisis • LuxFLAG’s central role in the microfinance industry helps to create greater transparency. • Robust information assessment by the Eligibility Committee of the Microfinance Label reinforces credibility about data and processes of the Labelled MIV. • Social criterion of LuxFLAG ensures the double bottom line (dual returns) from the Labelled MIVs. • Luminis: Investor Information Services (to be launched in 2011) will create a reliable and robust information database. 13

  15. Thank You Please do not forget to collect your copy of recent 14

  16. Contact us: Daniel Dax / Sachin S Vankalas Luxembourg Fund Labelling Agency ( LuxFLAG) 59, Boulevard Royal L-2449 Luxembourg Tél : +352 223026.1 Fax : +352 223093 info@luxflag.org www.luxflag.org 15

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