Microfinance Fund

Empower people in developing countries

The Triodos Microfinance Fund offers investors the opportunity to contribute to the development of an inclusive financial sector in developing countries. The fund is managed by Triodos Investment Management who are part of Triodos Bank. Financial inclusion is embedded in the United Nations (UN) Sustainable Development Goals. This means that all investments are actively contributing towards a more sustainable future.

Before investing it’s important to consider the level of risk you are comfortable with. The Microfinance Fund is a high-risk investment as it primarily invests in developing countries. Investors can buy and sell on the last business day of the month, however investments may be illiquid and there is no assurance that there will be sufficient liquidity to meet redemption requests.

Only certified high net worth or self-certified sophisticated investors are eligible to invest in the fund, and investors must complete a declaration of eligibility and Appropriateness Assessment before they can invest.

Why invest in the Triodos Microfinance Fund?

The call and urgency for financial inclusion is embedded in the UN Sustainable Development Goals (SDGs), a set of 17 ambitious goals to end poverty, protect the planet, and ensure prosperity for all. Bringing people into the financial system can be instrumental in attaining many SDGs, including creating jobs, improving gender equality and access to education.

The fund’s key impact indicators are the total number of loan clients reached by the financial institutions we invest in, the percentage of female loan clients and the percentage of rural clients. The online impact report highlights how the companies in the portfolio contribute to the impact goals of the Triodos Microfinance Fund

The financial institutions in the Triodos Microfinance Fund have a specific focus on reaching out to those traditionally excluded from access to affordable, effective and transparent financial services such as women and people living in rural areas. Access to financial services such as loans, savings, payment facilities and insurance products provides people with the opportunity to take control of their lives and improve their living conditions.

Triodos Investment Management has been investing in the microfinance sector since 1994. They have provided finance to over 100 microfinance institutions and banks, in more than 45 countries, making them one of the leading investors in the sector.

Features

Performance

Social performance

Based on the latest available portfolio data, updated monthly

Number of loans by MFI	17,218,580
Percentage female loan clients	76.0%
Percentage rural clients	61.0%
Average loan amount	€1,524
Number of savings clients MFI	18,307,614

Explore our online impact report

Financial performance

Return

As of November 2019

	1M	3M	YTD	1Y	3 Y avg	5 Y avg	All avg
Triodos Microfinance Fund KZ-dis	0.13%	0.50%	4.45%	4.45%	3.60%	3.78%	4.48%

All returns stated have been calculated based on net asset values, including reinvestment of dividends where applicable. Past performance is not a reliable indicator of future performance.

The above averages or annualised returns take into account the effect of cumulative losses or gains on the performance of an investment.

Calendar year return

Cumulative performance chart

Dividends

Charges

Type of charge	Annual percentage	Example based on a £10,000 investment*
Initial charge	3.00%	£300.00
Ongoing Charges Figure (OCF)	2.13%	£206.61
Total ongoing charge per year	2.13%	£206.61

*To keep things simple, we’ve assumed no investment growth for the year

Initial charge

We collect the initial charge from the amount invested in the fund. If you’re investing more £500,000 please call us on 0330 355 0355.

Ongoing Charges Figure (OCF)

The Ongoing Charges Figure (OCF, also known as the Total Expense Ratio or TER) is the ongoing costs of running the fund. The OCF includes the fund managers Annual Management Charge and other expenses of running the fund, such as the board of directors and audit fees. The Annual Management Charge is the charge taken by Triodos Investment Management to select investments based on their sustainable and financial performance.

The OCF is expressed as an annual percentage and is calculated and deducted from the fund daily. The charge is reflected in the value of the fund, you will not see this on your statement and do not need to pay for it separately.

Please note there may be a difference in the OCF for the distribution and capitalisation share classes, where this is the case, we will always show the highest figure. The OCF can be found under ‘Share price and key details’, and is correct as of 31 December 2018 and may vary.

Share prices are converted between sterling and euros when buying and selling, and a fee of 0.025% of the exchange rate used is charged. This fee is not applied directly to individual investments, it is shared by all euro and sterling investors in the fund and is already accounted for in the published share prices.

Fund details

Breakdown by region

Breakdown by asset class

Share price capitalisation (KR-cap) as of 31/12/19	£26.17
Share price distribution (KR-dis) as of 31/12/19	£22.33
Fund size (as of 31/12/19)	€437,803,875.89
Domicile	Luxembourg
Valuation	Monthly
Asset class	Alternative
Fund manager	Triodos Investment Management

This fund is domiciled in Luxembourg and regulated by the Commission de Surveillance du Secteur Financier.

Any income generated by the fund is paid out to you with distribution shares or reinvested with capitalisation shares.

Key documents

Investment decisions must be made on the basis of the information provided in the Prospectus and not only on information provided in this summary. This information is not financial advice. If you are unsure if the Microfinance fund is the right investment for you, please seek independent financial advice.

Welcome to positive change

Triodos Bank is one of the most sustainable banks in the world. We make money work for positive social, environmental and cultural change.

Start investing

Complete the appropriateness assessment

Download assessment

For institutions

Visit Triodos Investment Management Website

If you feel that the Triodos Microfinance fund is right for you please download, print off and complete the Appropriateness Assessment and send it to us at the address on the form.

If we deem that the Triodos Microfinance fund is an appropriate investment for you, we will provide you with an application pack. Please note, that assessing the appropriateness of the Triodos Microfinance fund for you is not the same as providing financial advice. If you are unsure in any way whether the Triodos Microfinance fund is a suitable investment for you, you should seek independent financial advice.

If, based on your responses to the questions in this assessment we deem that the Triodos Microfinance fund is not an appropriate investment for you, we will let you know and you will not be able to continue with your application.

Because of the complex nature of the Triodos Microfinance fund, you must complete an Appropriateness Assessment each time you wish to apply.

The Appropriateness Assessment and any subsequent applications to buy or sell must be completed and returned to the address on the forms.

The Triodos Microfinance fund has a semi-open-ended structure and is traded on a monthly basis at net asset value, allowing investors to buy and sell shares at the end of the month. Deals are placed at midday on the last working day of the month and settled cash must be received at the latest by midday the working day before. A contract note will be posted to your address on record to confirm the price received and shares purchased shortly after this date.

Dividend yield 2019	2.24%
Amount per share	£0.49
Payment date	31/05/19

Name	% of fund
ACLEDA Bank	7.19%
KazMicroFinance	4.94%
Centenary Bank	3.19%
Bancosol	3.16%
Aavishkaar Venture Management Services	2.85%