FAQ’s

LMDF invests in emerging microfinance institutions (MFIs) located in Asia, Africa and Latin America with a strong social mission. We mainly provide debt financing used by the MFIs to lend to micro-entrepreneurs. The Fund may also invest in capital or issue guarantees in favour of MFIs.

The typical investor is interested in microfinance and development and subscribes to the double objective of social impact and financial return. In order for the Fund to realize its social mission it invests in microfinance institutions with instruments having medium (3 – 5 years) or long-term maturities (> 5 years). Investors in LMDF should invest for the medium to long term, LMDF is not suited for short term placements.

The LMDF has been only authorised to distribute its shares in the Grand Duchy of Luxembourg. If you live outside of Luxembourg, you need to verify if you can become a shareholder in LMDF within full compliance of local law. LMDF is not registered in any country apart from Luxembourg. LMDF’s shares may not be offered or sold, directly or indirectly in the USA nor to a US-person or US taxpayer.

You can invest through your bank or directly in the Fund via a simple or personalised investment (quarterly, half-yearly or annual).

Subscriptions to shares issued by the Fund can only be accepted based on the Prospectus in force, accompanied by the latest annual report or the latest semi-annual report, if the latter is more recent.

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Subscriptions for each quarter must be made before the deadline which is published on the homepage of the Fund. For further information about other subscription dates, please refer to the calendar.

No, you can invest as much or as little as you wish. Banks may have a minimum investment requirement.

LMDF wants to be an attractive investment proposition and targets at least 2% annual return for Class C investors. In practice this means we want to deliver very stable returns of between 2% and 3% with a low volatility.

Because of fiscal reasons we do not pay a dividend. You will note the return through the increase in the value of each share you have bought.

As a shareholder in Class C shares you are protected against losses arising from a credit or counterparty risks of microfinance institutions through a first loss tranche of capital subscribed by the Luxembourg State and our investment adviser, ADA. The Prospectus prescribes that this protection should be at least 20% of the Class C capital, i.e. we can lose more than 1/5 of our diversified portfolio before you start losing money.

However, all investors are exposed to country, currency, liquidity, valuation, and operational risks as described in the Prospectus.

The Fund buys back your shares at their current value (their net asset value per share) each quarter (end of June, September, December and March) if you need your investment back. The Fund keeps 10% of its assets in liquid instruments to ensure that we are able to honor all shareholder redemption requests. To help us plan the liquidity needed to buy back all the shares you have to submit your request 1.5 months (45 calendar days) before the end of the quarter.