Triodos Microfinance Fund

About the fund

Triodos SICAV II – Triodos Microfinance Fund aims to increase access to financial services for the working poor in developing countries by providing loans and equity to microfinance institutions (MFIs), while achieving an attractive financial return for investors. Triodos Investment Management acts as investment manager of the fund.

Financial profile

• Expected annual return over a medium term period: 6-9% after costs
• Low correlation with other assets classes
• Diversification: portfolio is spread over a large number of microfinance institutions in various countries and regions
• Local currencies hedged through currency forward contracts if available. At least 40% of the portfolio will be either in hard currencies or hedged local currencies

Investment policy

• Established microfinance institutions with a proven track record (80%) and start-up microfinance institutions (20%)
• Geographic scope: Latin America, Africa, Asia and Eastern Europe
• Expected allocation: equity (25-30%), quasi equity (10%), debt (50-60%) and liquidity (10%)

Social impact

• Increasing the access to financial services for low-income people in developing countries, ranging from credit facilities and savings accounts to payment services and microinsurance
• A values-driven contribution to the development of a sustainable financial sector in developing countries
• Stimulate local entrepreneurship