Our approach

Why Dutch Microfund?

 

Dutch Microfund is an investment fund that invests in banks, funds and organizations that finance and support small entrepreneurs in developing countries. Normally these local entrepreneurs have no access to traditional financial services. Like entrepreneurs here, local entrepreneurs there need to invest in order to keep their business going. Microfinance is one of the initiatives set up to solve this problem, providing these entrepreneurs with small loans that give them the chance of purchasing necessary items such as livestock, a sewing machine or a shop. That’s a way they get to improve their financial position over time.

  

• Social and financial returns: benefit from attractive financial returns from your investment; on the other hand local entrepreneurs have access to financial services to start or expand their small business. You help solve a problem the world faces. 

• Today only 10-20% of the entrepreneurs in developing countries have access to financial services. So there is a large pool of people to be tapped, meaning that there is a large potential for the microfinance market.     

• Dutch Microfund invests in a broad range of microfinance products world widely. This strategy enables the fund to be flexible and keeps risk down. 
    
• The returns offered by microfinance show low correlation with the mainstream market performance. The performance of MFIs retains stable in the economic cycles.   

• Estimated annual total return 7-9%   

• Estimated annual stock dividend 3%

Factors we consider in setting investment objectives include:

Time Horizon

this is one of the most important factors and is also integral to our financial planning approach. Time horizon intervals are defined as: short, medium and long term. These represent the number of years of access to capital required.

Risk Tolerance

the specified risk tolerance of a fund is an important element of the investment objectives.

Expected Return

once the risk objective has been set, the return objectives can be determined in a consistent manner.