GLS Alternative Investments – Microfinance Fonds managt by FSFS
The main objective of the "GLS Alternative Investments - Mikrofinanzfonds" is to enable borrowers in emerging and developing countries to access financial services, which would otherwise be limited or impossible. The resources of the fund are used to refinance microfinance institutions ( "MFIs") and where applicable offer technical assistance or financial education.
The fund invests mainly in non-certificated loan receivables (optional equity) to refinance microfinance institutions. The microfinance institutions usually show in particular the following essential characteristics:
- They are especially located in Africa, Asia, Southeast Asia, Central America, South America, the Caucasus region or Southeast Europe.
- It may be a regulated or unregulated institution; their legal forms may be different;
- The main activity of it is granting loans to micro and small entrepreneurs. In addition, they can also offer other financial services.
As part of this selection process the following criteria are checked in particular:
- The MFI has high cost transparency for the final borrower established and client protection standards are implemented.
- The MFI complies with the minimum requirements of the Smart Campaign (The Client Protection Principles)
In addition to the above criteria, a social-ecological selection of microfinance institutions based on both negative (e.g. armour and weapons, gambling, casinos and similar institutions etc.) and positive criteria (e.g. financing of small and medium enterprises, particularly in rural areas; Organized in the form of a cooperative, NGO and other principle, not profit-maximizing-oriented legal forms) is another major determining factor.
For further information please contact us directly.