Since 2015, FS Impact Finance has been managing the GLS Alternative Investments – Microfinance Fund (EUR 220 million as of year-end 2024). The main objective of the fund is to improve financial access for people and small entrepreneurs in emerging markets through microfinance institutions, so financial inclusion is at the heart of the fund’s mission.
FS Impact Finance provides the entire range of fund management services, from investment-, risk-, portfolio-, and transaction management to FX/hedging, compliance, and anti-money laundering.
The fund contributes considerably to financial inclusion in emerging markets. Its comparatively large portfolio share in Africa, along with its strategy to target predominantly medium-sized and smaller microfinance institutions, makes it stand out. The median loan size to final borrowers of less than 2.000 €
per client clearly demonstrates that the fund is not targeting small to medium-sized corporations but aims for the unbanked clientele. Since its inception, the fund has disbursed 319 loans amounting to a total of over 490 million EUR (as of 01.07.2024).
From an investor’s perspective, the fund excels through its transparency, e.g., by fully disclosing the calculation of its number of end borrowers and their respective loan sizes.
The GLS AI – Microfinance Fund is classified as Article 9 under SFDR and meets GLS Bank’s high environmental and social standards. It adheres to positive criteria like the strengthening of end borrowers’ financial resilience and financial access for women, as well as strict exclusion criteria (consideration of IFC exclusion list; exclusion of MFIs who don’t commit to client protection / comply with internationally recognized Human Rights Standards, or who operate in locally oversaturated markets).
Contributing to a number of social impact objectives, the fund has repeatedly been awarded the LuxFlag label and was recognized with the “ECOreporter Sustainability Label” 2023 and 2024.
data as at 31/01/2025
This marketing communication is for informational purposes only and does not constitute an investment recommendation or advice or an offer to buy or sell fund units.
It is explicitly not directed at natural persons or legal entities whose place of residence or business is subject to a foreign jurisdiction that imposes restrictions on the dissemination of such information, in particular not for US citizens or persons domiciled or permanently resident in the USA.
The only basis for the purchase of fund units are the Key Information Document (KID), the current sales prospectus and the most recently published and audited semi-annual and annual report. A current version of the sales documents in German is available free of charge in paper form from the depositary, the management company and online at www.ipconcept.com.
The investment fund is subject to a risk of increased volatility. No assurance can be given that the investment objectives will be achieved. Information on past performance does not allow any conclusions about future performance. In general, every investment carries the risk of capital loss.
Any performance figures shown are net figures. If an investor wishes to purchase units for €1,000, he must pay €1,025 with an issue premium of 2.5%. The investor may incur securities account costs and other costs (e.g., custody or safekeeping costs), which reduce the performance. The tax treatment depends on the individual circumstances of each investor. An investment is associated with risks. For detailed information on opportunities and risks, please refer to the current sales documents.
The management company may decide to discontinue the arrangements it has made for the distribution of the units of its collective investment undertakings in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU. Further information on investor rights in German can be found on the management company’s website at https://www.ipconcept.com/ipc/de/anlegerinformation.html.
Information on sustainability-related aspects in accordance with EU Regulation 2019/2088 can be found at https://www.ipconcept.com/fs/getdata.php?m=getDoc&id=PSzBxMfcvdrEWZnOaY56.
Annapurna Finance Pvt. Ltd. is a microfinance institution from India that has been a partner…
