LMDF implemented a change in the investment strategy to allow the Fund to prudently invest up to 20% of total net assets in small microfinance institutions (Tier 3), a segment where LMDF’s financing is highly relevant to stimulate growth of younger business models with high social impact. The share of Tier 3 institutions increased from 3.8% (March 2018) of total net assets to 5.7% end of March 2019.
LMDF finalised, during 2018/19, 28 financing transactions with MFIs for a total disbursement close to EUR 13 mn. The microfinance portfolio of LMDF amounts to EUR 33.6 mn, an increase of 26% compared to the previous year.
True to its role as a financier in less and least developed countries, LMDF granted loans in Haiti, East-Timor and Sierra Leone. The Fund closes the financial year fully invested with a minimum liquidity level of 10.1% of total net assets. Financial returns for the 2018/19 year are 2.0% for Class B and 1.0% for Class C shareholders. At the end of March 2019, LMDF was supporting 60,058 micro-entrepreneurs of whom 80% are women. The microfinance portfolio reaches entrepreneurs in 26 countries, 56% in Latin America, 16% in southeast and central Asia and 24% in sub-Saharan and North Africa.
We look forward to continuing this work in 2019!