SAMAIF (Swiss Asset Micro Assist Income Fund) is an open ended investment fund registered in Mauritius under the umbrella of the “Lancelot PCC” which was established in 2010 by RDL management Ltd. RDL is part of an international financial services group, Stonewood Holdings Limited. As of November 2012 the group has assets under management and administration exceeding USD 16.5bn. Under this umbrella, SAMAIF came to life in mid-2012. The primary aim was to meet investors needs for an attractive and socially responsible income producing investment based on the proven and expanding Micro Finance sector. It presents a highly rewarding investment for socially responsible investors who understand the long term benefits, making a positive contribution to individuals, small business and society as a whole, in the developing countries.
The fund specialises in investments in and lending to Micro Finance Institutions (MFIs), who lend money to SME’s and individuals in developing countries – this activity is also known as “Impact Investing”. The global MFI market is an expanding sector, currently estimated at some USD 94bn and expected to grow to some USD 500bn over the next 5 years. The operational management is directed by an Executive Committee with over 100 years combined experience in auditing, risk management, commercial banking, loans management, consultancy and operations review.
The fund has been established in Mauritius as an FSC regulated open ended investment fund with independent administrators, custodians, and auditors. Investors can take comfort in the fact that the fund is audited independently to international accounting standards. BDO are the auditors in Mauritius and SAMAIF also engages KPMG for audit, tax and legal work for all other jurisdictions. The first 12 months of operations produced a return of 12.4% after fund charges. This was a little ahead of expectations. However, performance in 2013 had settled into our normally expected pattern. The target return is 8% to 10% p.a. including the dividend. Preservation of capital and maintaining a prudent level of liquidity is a priority, the fund aims to minimise risk and diversify to the greatest extent that funds allow.
The corporate strategy is to focus on a variety of greenfield operations, with a secondary allocation into existing MFI’s, in which case SAMAIF will always take a blocking minority in the equity. Loans are secured on physical assets with a minimum 200% collateral – currently (Jan 2014) collateral is at an actual average of 244% of the loans, which explains why SAMAIF has no write-offs whereas the industry standard, depending on the region, is between 2% and 3%. For additional security, borrowers are required to take life assurance for the full value of the loan. Initial operations have been invested in wholly owned operations in the Philippines and Ghana and a minority shareholding in Suriname. Our lines of business are typically short-term micro finance lending, payroll lending, vehicle & equipment leasing and pawn lending. In preparation for future expansion we are currently researching/developing Thailand, Vietnam, Laos, Madagascar, Mauritius, St-Vincent and the Grenadines, Mexico, Namibia and several South American countries. We possess state of the art IT systems, financial and reporting systems and our Standard Operating Procedures and Human Resource policies are comparable to those of major corporations and financial institutions.
CH 6340 Baar
SAMAIF Fund Benefits
The Fund Benefits are:
- PERFORMANCE: consistent and above average performance with low volatility
- DIVERSIFICATION: low correlation to equity and bond markets improves portfolio diversification
- SECURITY: underlying loans are secured on 200%+ collateral with robust approval and monitoring
- LIQUIDITY: weekly dealing and investor access to funds with one month notice, with a minimum investment of USD/GBP/EUR 10,000
- INCOME: semi-annual distribution of 8%p.a., paid out in cash or automatically reinvested
- GROWTH: excess returns above distribution target increase capital value of investor’s holding
MICROFINANCE substantially helps millions of people in developing regions. This can take many forms including:
- LOANS – to facilitate small business start-ups
- SHORT-TERM LOANS – for business expansion
- LEASING- for plant equipment or vehicles
- CHARGES – Loans are charged at fair and competitive rates and provide the financial help that otherwise is not usually available from local banks.
MICROFINANCE as an asset demonstrates a strong record of delivering attractive returns and low volatility.