The ASN-Novib Microcredit Fund

History and Track Record
Established in 1999 by ASN Bank and Oxfam Novib, the ASN-Novib Microcredit Fund (ANMF) was the first mutual retail fund for MFIs in the Netherlands. Triple Jump is the investment manager of the ANMF, which is regulated and organized as a semi-open-ended fund. The fund enables private individuals to invest in MFIs by purchasing shares sold by ASN Bank. The goal of the fund is to encourage broader participation by all types of entrepreneurs in the market economies of developing countries.

By the end of 2011, it had grown to EUR 232 million, of which EUR 181 million had been invested in loans to 92 MFIs in 24 countries, as well as several equity investments.

The following graph shows the fund's total cumulative return to investors for the period from 2000 to 2011.

ASN-Novib Microcredit Fund Cumulative Total Net Return (EUR)

ASN-Novib Microcredit Fund

ASN-Novib Microcredit Fund outstanding portfolio by region, December 2011

ASN-Novib Microcredit Fund outstanding portfolio by currency, December 2011  

Capital for MFIs
The fund provides capital for microfinance institutions which lend to micro-entrepreneurs who do not have access to the formal banking system; banks often view these entrepreneurs as either too risky or insignificant. With a portfolio at risk over 30 days of 0.9%, the fund boasts a very good track record.

Eligibility
The ANMF invests in expanding and mature microfinance institutions (primarily regulated MFIs, financial institutions and banks, but also NGOs). It operates in countries in Africa, Asia, Eastern Europe and Latin America which have been designated as Official Development Assistance countries by the OECD (the Organisation for Economic Cooperation and Development).

Products
The ANMF offers loans (including subordinated debt), guarantees for microfinance portfolio expansion, and equity investments. Although the majority of loans are granted in hard currency, local currency loans are also available. By December 2011, 18% of the total fund was denominated in local currency. The amounts invested range from EUR 500,000 to EUR 4.5 million. Investments are priced at market rates.

Tax Incentive
Investors in Social Ethical Funds such as the ASN-Novib Microcredit Fund enjoy an additional tax benefit which has been in effect since 1 January 2004. In the Dutch income tax form, there is a so-called "box 3" exemption of up to EUR 56,420 (2011 figure) for socially-responsible investments. These are ‘green’, social and ethical investments. In addition, there is a rebate on the income tax payable of 1% of the average value of exempt investments in box 3. Including these two benefits, the tax benefit can reach 1.2% + 1% = 2.2% of the investment. For couples, the two benefits apply up to an amount of EUR 112,840 (2011 figure).

Please click here for information on how to invest in the ASN-Novib Microcredit Fund.