The Fund’s investment strategy focuses on creating significant social impact. LMDF invests in microfinance institutions (MFIs) that meet the needs of some of the most marginalised populations in the world with a particular focus on women, young people and people living in rural areas. The geographic focus is on developing countries in Latin America, Africa and Asia.
LMDF finances a wide range of microfinance institutions, the majority of which are non-profit structures or cooperatives. Debt securities are the instruments of choice for providing financing to microfinance institutions to develop their business models.
LMDF is an open-ended SICAV and its diversified debt securities portfolio creates the cash flow necessary to balance the assets of the Fund and the structure of the shareholders.
LMDF’s investments in emerging microfinance institutions translate into small receipts, a high degree of consideration and country diversification in a small fund. LMDF cannot invest more than 5% of its net assets in a single counterparty and the concentration of risks per country cannot exceed 15%.
LMDF’s close collaboration with ADA, the investment adviser – ensures careful and regular monitoring of investments on a quarterly basis and an annual site visit. Maintaining relationships has been key to achieving financial and social returns.
At the same time, the Fund generates stable returns above 3% for institutional investors. With a record of six years of investment experience, LMDF brings value to its shareholders while maximising its social impact.