ADA acts as investment advisor to the Luxembourg Microfinance and Development Fund SICAV (LMDF). The fund was an initiative by ADA and multiple public and private stakeholders: the Luxembourg Government, the actors of the Luxembourg financial center. LMDF is a socially responsible fund that supports financial institutions with the aim of reducing poverty in developing countries in Africa, Asia and Latin America.
Socially responsible investment
The model of the LMDF fund is inspired by the vision and experience of Luxmint, an investment programme dedicated to microfinance institutions (MFIs) managed by ADA from 1999 to 2010. Almost half of Luxmint’s investments, that is to say €900,000.-, were transferred to LMDF.
LMDF is open to the general public. It generates returns to cover at least the inflation to preserve the real value of capital invested. Therefore, it is not a purely financial investment but a choice of investing while having a socially responsible approach.
LMDF was set up with an initial capital of €5.4 million. The aim is to achieve a portfolio of €25 million by 2015.
Financing microfinance institutions
As an intermediary, ADA identifies MFIs which are eligible for funding, carries out the financing process and follows the relationship with the institutions which benefit from LMDF funding.
