Mise à jour du Prospectus

Decembre 2018

Dear Shareholders,

On behalf of the board of directors of the Fund (the « Board« ) and in relation to your investment in the Fund, we hereby notify you the update and amendment of certain provisions of the last version of the prospectus of the Fund dated October 2017.

The principal updates and changes are detailed here below:


Changes applicable to the general part of the Prospectus (i.e. relevant to all shareholders)


Update of the members of the Board

The reference to the Board members has been updated in the new version of the Prospectus to reflect the current composition of the Board which is the following:

  • Chair: Mr Raymond Schadeck, independent

Other members:

  • Mr Michel Haas, Ministry of Finance
  • Mr Patrick Losch, Independent Director
  • Mr Max Meyer, Appui au Développement Autonome (ADA)
  • Ms Natalia Oskian, Independent Director
  • Mr Raoul Stefanetti, Banque Internationale à Luxembourg
  • Mr Dzemal Tomic, Banque et Caisse d’Epargne de l’Etat
  • Ms Monica Tiuba, Independent Director
  • Mr Kaspar Wansleben, Executive Director
  • Mr Claude Faber, Directorate of Development Cooperation, Ministry of Foreign and European Affairs


Data Protection update

Further to the applicability on 25 May 2018 of Regulation (EU) 2016/679 of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation), the Board has decided to publish a privacy notice which is available at www.lmdf.lu/en/privacy and which provides in particular detailed information about how personal data is processed. The relevant sections of the Prospectus have been updated to refer to such privacy notice and to disclose therein the key terms of the privacy notice.


Changes applicable to the sub-fund Luxembourg Microfinance and Development Fund (the “sub-fund”) (i.e. only relevant to the shareholders of the sub-fund)

As approved by the general meeting of shareholders held on 5 July 2018, the Board has decided to modify the investment policy and strategies of the Sub-Fund.

The Board has decided to amend Sub-Section “Focus on promising MFIs” of Section 4 “Investment Policy and Strategies” of Section II “Sub-Fund Particulars” of the Prospectus in order to, in particular, improve the Sub-Fund’s ability to target small Tier 3 MFIs and to clarify the maximum eligible portfolio allocation to Tier 3 MFIs which will clarify the risk profile for the investors of the Sub-Fund.

The two last paragraphs of the Sub-Section referred to above have therefore been amended as follows:

  • “Market data suggests that ca. 15% of all MFIs are Tier 1 MFIs, ca. 25% are Tier 2 MFIs and the remaining 60% are Tier 3 MFIs. The data also suggest that Tier 2 MFIs and some Tier 3 MFIs are likely to correspond to the Sub-Fund’s requirements in terms of portfolio quality, sustainability and efficiency, that Tier 2 and Tier 3 MFIs reach deeper into poorer segments of clients by targeting populations with lower loan amounts and finally that Tier 2 MFIs are likely to be found in regions and niches less developed in terms of financial inclusion.
  • The Sub-Fund’s investment focus is in principle focused on Tier 2 MFIs with strong social visions and missions focused on positive impact for the ultimate clients. The Sub-Fund may also invest up to 20% of its net assets to finance promising Tier 3 MFIs. The Sub-Fund may invest in Tier 1 MFIs (1) in case a MFI financed by the Fund becomes a Tier 1 MFI or (2) in exceptional circumstances and for the purpose of efficient portfolio management.”

The Board is convinced that such change will increase the Sub-Fund’s social profile in markets where Tier 3s remain very valuable institutions to promote financial inclusion either because such market is still less developed, or the mainstream microfinance market leaves certain niches unattended (rural areas, special groups of population, etc).

Shareholders of the Sub-Fund have received this notice by registered letter. The Shareholders that would disagree with the changes outlined above may redeem their Shares free of charge until December 30th, 2018. The redemptions will be carried out in accordance with the terms of the Prospectus.

A copy of the new version of the prospectus reflecting, among others, the above changes is available on the website by clicking HERE or upon request at the registered office of the Fund.

We value your continued investment and commitment to the Fund. If you have any further questions about the above-mentioned changes, please contact Kaspar Wansleben (+352 27 47 35 or kaspar@lmdf.lu).