BlueOrchard Microfinance Fund (BOMF)
Financial Inclusion
- Including the excluded
- +20-years track record
-
First and largest commercial microfinance fund globally
Our investment goals and strategy
Double bottom line
We focus on two bottom lines – financial returns and social impact. Our aim is to deliver returns that are stable, competitive, and unaffected by market swings. Plus, we hedge against foreign currency changes and interest rate risks.
Financial inclusion
Our fund provides private loans to microfinance and other financial institutions in emerging markets. These in turn cater to the needs of low-income groups and micro, small, and medium enterprises (MSMEs) who have difficulty accessing funding.
Diversification
You do not want to have all your eggs in one basket. So, diversify your portfolio with a microfinance fund that combines a state-of-the-art investment process with solid risk management and a local network of on-the-ground experts.
Fund characteristics
| Fund inception | September 1998 |
| Asset class | Private Debt |
| Status | Fundraising |
| Target return* | USD 6M Term SOFR + 340bps to 440bps gross of fees |
| Correlation to global stock and bond markets | low-negative |
| Liquidity | Subscription and redemption at net asset value (subject to notice periods ranging from monthly 20 to 180 days) |
| NAV frequency | Monthly |
| Expected volatility | 1-2% p.a. |
| Domicile and legal structure | Luxembourg, SICAV, Part II, AIF |
| SFDR classification | Article 9 |
| External AIFM | BlueOrchard Asset Management (Luxembourg) S.A. |
| Investment manager | BlueOrchard Finance Ltd |
| Depositary | Banque de Luxembourg |
| Administrator | European Fund Administration S.A. |
SDGs addressed
Core SDGs
Aligned SDGs
Core SDGs: Core SDGs are those that address the impact intent and/or sustainability investment objective of a given fund.
Aligned SDGs: Aligned SDGs are those that the fund’s investees promote through responsible ESG management practices.
Impact KPIs
German-domiciled investors
Italian-domiciled investors
UK-domiciled investors
Taxable value for Swiss-domiciled investors
Taxable values for investors domiciled in Austria
Local agent Netherlands
Local agent Sweden
Contact
A story of mutual growth
Banco Solidario and BlueOrchardOne of the microfinance institutions that BlueOrchard has partnered with since its beginning is Banco Solidario S.A. Banco Solidario started as a finance company in 1995, when microfinance was still unique in Ecuador. It was the first microfinance initiative in Latin America that did not begin as an NGO. The founders wanted to demonstrate that microfinance could be profitable and have a social impact without donations. Over the years, Banco Solidario has become one of the strongest brands in Ecuador. For more than 20 years, BlueOrchard has contributed to this positive development. With its loans, BlueOrchard supported the bank in both critical and in booming times, becoming a close witness to the development of a leading microfinance bank.
Empowering female entrepreneurs in Indonesia
How Reni Nuraeni established a profitable business with MBKMBK, the largest Grameen-style microfinance institution in Indonesia and long-term investee of BlueOrchard, provides working capital loans to women with low income through a so-called joint liability group model. By joining MBK in 2012, Ms. Reni Nuraeni, was able to fulfil her aspiration and become a microentrepreneur. Starting an ethnic craft bags business in Tasikmalaya, West Java area, she sources the material, designs patterns, and sews the bags, and markets them by sending the products to other cities once a week. Through her business and loan proceeds, she has been able to employ five staff to help her run the business and significantly increase her monthly net income.