Luxembourg

Microfinance Investment Vehicles 

Microfinance involves the supply of financial services to poor or low-income earning individuals, very often women, which may include microcredits i.e. very small loans, often repayable within 6 to 12 months, microsavings programs and micro-insurance.

 

Ravi Beegun

Partner
+352 22 51 51 - 6248

ravi.beegun@kpmg.lu

There are 103 microfinance investment vehicles (MIVs) globally, which manage an estimated USD 6.6 billion in assets (source: CGAP).  As a result of advantageous tax and regulatory frameworks, most MIVs are domiciled in Europe, and many in Luxembourg. As of 31 December 2009 there were 27 MIVs registered in Luxembourg (source: CSSF), representing total assets of USD 3.0 billion (source: Symbiotics). 46% of the world’s MIVs (based on assets) are registered in Luxembourg.

 

KPMG’s commitment to microfinance:

 

  • The Microfinance Rating Outlook Report 2008 – KPMG in Luxembourg assisted a microfinance organization in writing and publishing an independent report about the outlook of the ratings industry in microfinance.
  • Set up of a Luxembourg Microfinance Investment Vehicle – KPMG in Luxembourg has recently provided support in relation to the setup of the operating model for a microfinance fund and the review of its operating budget.
  • LuxFLAG: the MIV Labeling Agency - KPMG is an associate member of the LuxFLAG, a Luxembourg based association, providing labels to regulated microfinance investment vehicles.
  • Volunteer Financial Analysts at ADA – KPMG and ADA have developed a volunteer program where KPMG staff provide their professional financial expertise and input, on a voluntary basis, within ADA’s microfinance institution (MFI) data analysis process. A team of KPMG staff work with ADA’s financial analysts to analyze financial data received from MFIs and to assist ADA’s credit committee to critically evaluate the level of support that ADA wishes to give to such MFIs.