The ASN-Novib Microcredit Fund
Breaking News October 2010: Very good performance ASN-Novib Microcredit Fund. The Triple Jump managed ASN-Novib Microcredit Fund is the second best performing fund of all ASN Bank funds. Better than ASN Aandelenfonds, ASN Obligatiefonds, ASN Mix fonds, and ASN Groenprojectenfonds. The average yearly return of the ASN-Novib Microcredit Fund over the last 60 months was 3,9%.
Source: SPAARMOTIEF, monthly magazine from the ASN Bank, the Dutch bank committed to promoting a sustainable society.
History and Track Record
Established in 1999 by ASN Bank and Oxfam Novib, the ASN-Novib Microcredit Fund (ANF) was the first mutual retail fund for MFIs in the Netherlands. Triple Jump is the investment manager of the ANF, 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 2009, it had grown to EUR 122.6 million, of which EUR 80 million had been invested in loans to 54 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 2009.
ASN-Novib Microcredit Fund
| 2007 | 2008 | 2009 | |
| Committed | EUR 80.4 M | EUR 87.3 M | EUR 122.6 |
| Invested | EUR 55.5 M | EUR 69.9 M | EUR 79.5 M |
| Number of Investments | 43 | 50 | 54 |
| Average Investment | EUR 1.3 M | EUR 1.4 M | EUR 1.5 M |
ASN-Novib Microcredit Fund outstanding portfolio by region, December 2009
ASN-Novib Microcredit Fund outstanding portfolio by currency, December 2009
The fund achieved a net return to investors of 4.1% in 2009. When incorporating the Dutch tax incentive for social and ethical investments, investors obtained a total return of 6.61%. The ANF has around 20,000 retail investors who invest an average of EUR 6,000 per investor.
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 consistent portfolio at risk over 30 days of 0%, and no write-offs since its inception, the fund boasts an outstanding track record. Only one loan has been rescheduled to date, and this was paid back in full in 2007.
Eligibility
The ANF 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 ANF 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 2009, 7.5% 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 52,110 (2005 figure) for socially-responsible investments. These are ‘green’, social and ethical investments. In addition, there is a rebate on the income tax payable of 1.3% of the average value of exempt investments in box 3. Including these two benefits, the tax benefit can reach 1.2% + 1.3% = 2.5% of the investment. For couples, the two benefits apply up to an amount of EUR 104,220 (2005 figure).
Please click here for information on how to invest in the ASN-Novib Microcredit Fund.
