The SNS Institutional Microfinance Fund aims at providing resources for small self-employed operators in a large number of developing countries in the world against rates that are in accordance with the market. The fund is a fund for institutional investors only and the returns are comparable with Emerging Markets returns, but are characterised by less volatility. 70% is targeted to be invested in debt instruments and 30% is targeted to be invested in equity and equity related instruments.
The fund does not grant loans to individual businesses but lends money to or invests in the share capital of microfinance institutions (MFIs), local financial institutions in the regions Latin America, Southeast Asia, Eastern Europe and Africa. These MFIs in turn grant loans to businesses, mostly ranging between $ 100 and $ 1500 for a term of between six months and one year.
With the introduction of the SNS Institutional Microfinance Fund SNS Asset Management offers a good expected return while serving the needs of the developing world's economically active poor.


What is microfinance?
Microfinance exists to provide credit and related financial services to individuals and small enterprises whose assets, income levels and/or cash flows are usually too small for local commercial banks.
Remarkably, 90% of these business operators are women, who, with a loan, improve not only their own circumstances but also those of their households and families. In this way microfinance has a good influence on the position of women in society. Next to this microfinance stimulates local economies by enabling small self-employed operators to start or to expand a business.

Cooperation
The SNS Institutional Microfinance Fund is founded in cooperation with Developing World Markets (DWM). DWM has global experience in granting loans and other financial instruments to microfinance institutions. With their broad network of contacts and their investment banking background, they are one of the world's most experienced private players in the selection of good microfinance institutions.
Triple Jump, the cooperation between ASN Bank, Novib and NOTS and manager of the ASN-Novib fund, will be responsible for part of the selection.

Funds
The first microfinance fund was founded in the middle of 2007 and this fund has been closed for new participants with a deposit of 160 million euros. The second fund, founded in November 2008, is still open for new participants.
Next to this SNS Asset Management is the advisor for the DWM Microfinance Equity Fund.