Financial Inclusion
GLS AI – Microfinance Fund
Since 2015, FS Impact Finance has been managing the GLS Alternative Investments – Microfinance Fund (EUR 230 million as of 30/04/2024). The main objective of the fund is to improve financial access for people and small entrepreneurs in emerging markets through microfinance institutions, so financial inclusion is at the heart of the fund’s mission.
FS Impact Finance provides the entire range of fund management services, from investment-, risk-, portfolio-, and transaction management to FX/hedging, compliance, and anti-money laundering.
Impact
The fund contributes considerably to financial inclusion in emerging markets. Its comparatively large portfolio share in Africa, along with its strategy to target predominantly medium-sized and smaller microfinance institutions, makes it stand out. The median loan size to final borrowers of less than 2.000 € per client clearly demonstrates that the fund is not targeting small to medium-sized corporations but aims for the unbanked clientele. Since its inception, the fund has disbursed 319 loans amounting to a total of over 490 million EUR (as of 01.07.2024).
From an investor’s perspective, the fund excels through its transparency, e.g., by fully disclosing the calculation of its number of end borrowers and their respective loan sizes.
The GLS AI – Microfinance Fund is classified as Article 9 under SFDR and meets GLS Bank’s high environmental and social standards. It adheres to positive criteria like the strengthening of end borrowers’ financial resilience and financial access for women, as well as strict exclusion criteria (consideration of IFC exclusion list; exclusion of MFIs who don’t commit to client protection / comply with internationally recognized Human Rights Standards, or who operate in locally oversaturated markets).
Contributing to a number of social impact objectives, the fund has repeatedly been awarded the LuxFlag label and was recognized with the “ECOreporter Sustainability Label” 2023 and 2024.
- Europe
- Asia
- Africa
- Latin America
- Cash / other positions
Monthly Reports
Kapitalmarkt-Rückblick Q2 2024 für den GLS AI Mikrofinanzfonds
Im abgelaufenen zweiten Quartal 2024 war die erwartete und im…
06/2024: Drei neue Kredite in Südosteuropa vergeben
Im Juni wurden drei neue Kredite in der Höhe von…
05/2024: Kredite über 4,75 Millionen Euro vergeben
Im Mai wurden drei neue Kredite in der Höhe von…
04/2024: 3 neue Kredite über 5 Millionen Euro vergeben
Im April wurden drei neue Kredite in der Höhe von…
Impact Stories & Blogs
08/2022: Erster Kredit in die Demokratische Republik Kongo vergeben
Kommentar des Fondsmanagements Der GLS AI – Mikrofinanzfonds hat im August 4 Kredite über rund 6,75 Mio. EUR neu ausgereicht. Hervorzuheben ist dabei unser erster Direktkredit an Baobab in der Demokratischen Republik Kongo über 1,5 Mio. US-Dollar. Die Wertentwicklung der…
07/2022: 3 Kredite an Partnerinstitute vergeben
Im Juli wurden Kredite in Höhe von rund 2,6 Mio. EUR an drei langjährige Partnerinstitute ausgereicht. Zwei andere Kunden haben ihre Kredite vollumfänglich zurückgezahlt und das Portfolio des Fonds bis auf Weiteresverlassen. Die negative Anteilspreisentwicklung war vor allem durch die…
Ralf Burmeister im Interview mit finanzen.net
Wie funktioniert ein Kreditfonds? Welche geopolitischen und wirtschaftlichen Faktoren beeinflussen derzeit die Märkte? Und wie sehen die Auswirkungen – etwa des Kriegs in der Ukraine – auf den GLS AI – Mikrofinanzfonds aus? Antworten auf diese und weitere brandaktuelle Fragen…
FS Impact Finance joins the Client Protection Pathway
We proudly announce that we have joined the CERISE + SPTF Client Protection Pathway (“CP Pathway”)! This new initiative was created to support client protection implementation in the financial services industry. It recognizes financial service providers who are committed to client protection.…
2020 TA programme: Pesticides management trainings in Ecuador and Nicaragua
Since 2018 FS Impact Finance – in partnership with the GLS Microfinance Fund – has been sponsoring different kind of technical assistance (TA) programmes for our partner MFIs, their staff or their clients. The most established programme is our sponsorship…
Signatory organizations report on Covid-19 Pledge implementation and lessons learned
Over the past months, the financial inclusion sector has embarked on a journey to face the Covid-19 crisis. On the field, Financial Service Providers have taken measures to face the health risks, lock downs and the economic recession1. They have…
Mikrofinanz: Spezial-Anleihen oder eigene Assetklasse?
Wie hat sich das Anlageuniversum der Mikrofinanzkredite in den letzten Jahren entwickelt? Wie sieht das Tagesgeschäft eines Mikrofinanzfondsmanagers aus? Vor welche Herausforderungen stellt die Corona-Krise die Investoren in Mikrofinanzkredite und in wieweit verändert sie deren Rahmenbedingungen? SusCon – der Podcast…
An international coalition to protect microfinance institutions and their clients in the COVID-19 crisis
At the initiative of Grameen Crédit Agricole Foundation, a group of microfinance lenders and key players in inclusive finance worked on a set of principles to better support the microfinance sector in the health and economic crisis caused by the Covid-19. Grameen Crédit Agricole Foundation, ADA, Alterfin, Cerise, CIDR Pamig
Some thoughts on fixed income investing in emerging markets versus developed markets – Introduction
There seem to be rather good crash barriers on each side of the investment path for fixed income investors in developed markets as there are two very basic idioms: “Don’t fight the central bank” and “bad news is good news”.…
“Modern Microfinance”: addressing the missing middle conundrum in West Africa
The role of finance in development Appropriate financing for small and medium sized enterprises (SMEs) at national scales provides the “blood stream” that irrigates large corporations with raw materials and clients. In turn, demand and supply from corporations creates the…
