DEXIA MICRO-CREDIT FUND (DMCF)
Product summary
The DMCF is a Luxembourg investment company ( Société d'Investissement à Capital Variable or SICAV ) dedicated to direct debt financing of microfinance programs worldwide. Over the last ten years, the fund has built an impressive track record of innovation and success, earning stable returns.
The DMCF is a Luxembourg investment company ( Société d'Investissement à Capital Variable or SICAV ) dedicated to direct debt financing of microfinance programs worldwide. Over the last ten years, the fund has built an impressive track record of innovation and success, earning stable returns.
The DMCF invests in microfinance institutions (MFIs) with a strong performance history and a promising future. Our analysts continually monitor and report on the activities of each MFI to ensure that they meet our strict investment criteria, are able to deliver returns that meet the DMCF’s objectives, and effectively serve the needs of their clients, ensuring that the DMCF always delivers the best financial and social returns.
The MFIs financed by the DMCF provide small loans and other financial services to micro-entrepreneurs who lack access to traditional banking services. With the capital provided by these loans, micro-entrepreneurs are able to develop and grow productive businesses and improve their families' standard of living. Thus, the DMCF seeks to achieve an attractive return for investors while providing important social progress and economic inclusion.
The target annual return of the fund is 6-month Libor plus 1-2%.
Background
In 1998, Dexia Banque Internationale à Luxembourg created the SICAV Dexia Micro-Credit Fund, the first commercial investment fund designed to finance microfinance institutions specialized in providing financial services to small companies in emerging markets. In 2001, BlueOrchard Finance S.A. was established to advise the portfolio and the company was staffed with microfinance experts who came in with a high-quality network of contacts. BlueOrchard was officially made co-manager of the DMCF in 2004.
Today the DMCF is one of the most successful and best-known funds in a new asset class that offers socially responsible investments and an attractive risk/return profile. It is active in emerging or recovering countries across Latin America, Central, Eastern and Southern Asia, Central and Eastern Europe, Sub-Saharan Africa, and North Africa and the Middle East and finances a wide range of MFIs, who in turn serve millions of micro-entrepreneurs.
Key product features
- Solid historical returns: Annualized performance in excess of 5% for the USD share class over the last 5-years.
- Risk profile:
- No repayment defaults by MFIs, since inception;
- Lower volatility than emerging market equities and bonds;
- Low correlation with mainstream asset classes;
- High insulation from macro-economic shocks;
- Careful geographic diversification.
- Investments are made in a wide range of currencies, but always hedged back to USD;
- Share classes available in USD, EUR and CHF.
For several years in a row now, the
Luxembourg Fund Labelling Agency ///
(LuxFLAG) gave its label to the Dexia Micro-Credit Fund, making DMCF one of the first microfinance funds to receive this distinction. More [+]
Social Impact
- Contribution to income-generation, job creation and general growth in emerging economies;
- Supporting the alleviation of poverty, leading to better housing, nutrition, health and education;
- Empowering marginalized groups, such as women, rural entrepreneurs and food producers.
BlueOrchard Microfinance Fund for US Investors
The BlueOrchard Microfinance Fund for US Investors invests in the Dexia Micro-Credit Fund and is only available to US Accredited Investors.
Read more:
Sustainable and responsible investment >
Sustainable and responsible investment >
Key figures as of 6 January 2010
| NAV | USD 524.4 million | ||
| Share value | USD 16'921.73 | EUR 13'016.22 | CHF 12'178.77 |
| Return* since inception | 4.76% | 4.00% | 2.50% |
| Inception date | Sept. 1998 | April 2003 | Dec. 2001 |
| * annualized |
DMCF Social performance indicators as of 2 December 2009 (unless indcated otherwise)
|
Total # of microentrepreneurs reached by MFIs in the portfolio |
9'884'580 |
| # of microentrepreneurs reached by funding provided by DMCF | 401'398 |
| % of rural clients (as of June 2009) | 43% |
| % of female clients (as of June 2009) | 52% |
| Average loan outstanding in USD | 1'539 |
DMCF exposure by region as of % of total assets (as of 2 December 2009)
