„Microcredits are a way to bring money to the poor, so you can build your own business and provide for your own prosperity.“
Mohammed Yunus, Nobel Peace Prize winner
Microfinance makes an impact
The I-AM Vision Microfinance offers investors access to impact investments and invests primarily in fixed-income investments of carefully selected microfinance institutions (MFIs) in developing and emerging countries. The aim of the microfinance fund is to enable financial inclusion through investments in the poorest countries and thereby initiate sustainable and long-term development that gives low-income people the opportunity to improve their quality of life, create access to sustainable agriculture, community development, renewable energy, medical care and education and subsequently stimulate entrepreneurship so that the people reached can build a livelihood and a future for themselves.
In doing so, the fund makes a positive contribution to the United Nations Sustainable Development Goals (SDGs), including SDG 1 - No Poverty, SDG 5 - Gender Equality and SDG 8 - Decent Work and Economic Growth. The investment fund is also categorized as an Article-9-product in accordance with the Sustainable Finance Disclosure Regulation (SFDR).
Sustainable investment with stable returns
Microfinance funds are a defensive investment instrument that impress with their stable returns in relation to the performance of the equity and bond markets. This characteristic also makes this fixed ncome segment attractive for institutional investors. The short-term loans are regularly and reliably repaid and constantly adjust to market interest rates. With a microfinance strategy, investors can also make a sustainable investment with a direct social impact that actively contributes to the UN Sustainable Development Goals.
Since inception in 2007, the Vision Microfinance Fund (ISIN I tranche: LU0306115196) has achieved a very stable return of 2.7% p.a., which is hardly correlated with fixed-interest investments. The rise in interest rates is having a very positive effect on the return prospects.