Report on the Performance of LuxFLAG-Labelled MIVs

Analyzing trends of microfinance investment vehicles
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This study gives an overview of global trends in standards of living, income disparity and evolution of poverty for 2009-2010. It examines the impact of the financial and economic crisis and the food and fuel crisis on MFIs. It studies the landscape of microfinance investment vehicles (MIVs) and analyzes financial performance of the 8 MIVs labelled by The Luxembourg Fund Labelling Agency (LuxFLAG).

The study is largely based on data from two publications, namely the World Economic Outlook for 2010 published by the IMF and the MicroRate 2010 Microfinance Investment Vehicle survey. It also lists findings of the CGAP MIV Survey 2010.

The study reveals that the impact of the economic crisis on microfinance, and consequently on MIVs, became evident from 2009. Findings include:

  • LuxFLAG labelled MIVs that invested in MFIs in Central America and in Eastern and Central Europe faced the most liquidity issues;
  • Positive signs appeared in 2010 as liquidity of MIVs started declining;
  • Investors remained committed to microfinance;
  • Net Asset Values per share of the labelled funds produced modest growth during the crisis;
  • Microfinance is reshaping, and MIVs are seeking ways to invest in untapped MFIs.

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