In order to minimise primary risks as much as possible, the Fund operates according to two key elements:
Diligent selection of partners and close monitoring of their progress
LMDF and its investment adviser ADA form a team with over 35 years of experience in microfinance and created together an eight-step selection process. Additionally, is rigorous due diligence has been put in place to ensure that only emerging MFIs with a solid track record are included in the investment portfolio. Monitoring is also done quarterly as well as annually on-site to ensure that these institutions are moving in the right direction.