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Microfinance au Luxembourg

Microfinance au Luxembourg

Luxembourg: a first mover in the domiciliation of Microfinance Investment Vehicles (MIV)

According the Consultative Group to Assist the Poor (CGAP), 103 MIVs with a combined estimated Assets Under Management (AUM) of USD 6.6 billion were in operation as of December 2008. In 1998, Luxembourg was the chosen domicile of the first registered Microfinance fund. Today, with 24 MIVs registered in Luxembourg and gathering around 45% of the worldwide MIVs’ assets under management (or nearly USD 3 billion), the Grand-Duchy is the leading centre for the domiciliation of MIVs. Six of the largest 10 MIVs are based in Luxembourg (Source: MicroRate, Aug. 09). 

Wide range of available investment vehicles suitable for Microfinance

 Luxembourg offers a wide variety of attractive fund structures for MIVs ranging from Undertaking for Collective Investment (UCI)   Part II funds (under the 2002 Law) to more flexible structures such as the Specialised Investment Fund (SIF)  and “Société d’Investissement en Capital à Risque” (SICARs) , Securitisation Vehicles and Structured Products. 

Strong support from the Financial Regulator and the Luxembourgish Government  

In its State Budget for 2010, the Luxembourg Government has included the exemption of the subscription tax for Microfinance Investment Funds. It hereby follows a recommendation issued by ALFI which has considered for a long time that the elimination of the subscription tax will encourage the development of this fund type in Luxembourg. This initiative, in line with the government program, reflects the willingness of the Luxemburgish Government to develop Microfinance amongst the financial centre and to make Luxembourg the most attractive financial centre for a transparent and responsible Microfinance industry.

Source: Association of the Luxembourg Fund Industry  

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