Etimos Fund – Global Microfinance Debt

Based on the successful experience of Consorzio Etimos, an Italian microfinance investment vehicle with more than 20 years of experience in microfinance institutions and producers’ organizations investments, ETIMOS FUND has been launched in April 2011 in order to meet the considerable funding demands of microfinance institutions and producers organizations working with Consorzio Etimos over the past two decades. Consorzio ETIMOS is currently the Investment Advisor of the Fund.

ETIMOS FUND – Global Microfinance Debt is a sub-fund under the umbrella fund ETIMOS FUND, an open-ended SICAV-SIF with multiple compartments. The overall objective of the umbrella fund is to offer to socially responsible investors financially and socially sound investments to contribute to the sustainable development of emerging market economies by facilitating investments in micro and small enterprises and producers. The Global Microfinance Debt sub-fund seeks to achieve this purpose investing in microfinance institutions providing financial services to low-income people and boosting micro, small and medium enterprises, and in producers’ cooperatives fair trade oriented and/or organic oriented.

Financial description

Etimos Fund – Global Microfinance Debt aims to achieve its objective investing on a broadly diversified basis in short-to medium-term senior debt instruments: the Sub-Fund invests up to 90% of its assets in senior debt instruments in USD and Euro. This will include senior loans granted by the Fund to microfinance institutions. At least 10% of its assets will be invested in liquid assets.
The fund is open to well-informed investors and it is denominated in Euro.
The assumed Sub-Fund investment amount per investment project will typically be between EUR 0.5 million and EUR 5 million, but is bound by the single client exposure and other applicable investment restrictions.
The Sub-Fund offers a range of financial services to microfinance institutions and to fair trade/organic oriented producers. The beneficiaries institutions are mainly domiciled in developing and transition countries.
Investments in USD will be hedged to a large extent against EUR by the Currency Risk Manager. The hedging technique used is based on EUR/USD forward exchange contracts at the time of investment with a roll at each Valuation Day + 2 business days.
No dividend is expected to be paid to the Shareholders. The net results of the investments of the Sub-Fund and the net realized profits will not be distributed but will automatically be reinvested in the Sub-Fund.