This report shows public data only. Is this your organisation? If so, login here to view your full report.

Cordaid Investment Management B.V.

PRI reporting framework 2017

You are in Direct - Inclusive Finance » Context

Context

IFD 01. Mission and investment objective

01.1. Indicate if you have a distinct mission and investment objective for your investment in inclusive finance.

01.2. Describe your inclusive finance mission and investment objective.

Fostering inclusive financial systems

To build flourishing communities, a healthy and inclusive financial sector is essential. Most developing countries lack access to inclusive financial services, however. Cordaid Investments fills this gap by investing in microfinance institutions and funds that offer inclusive finance to people, businesses and public service providers that have limited alternatives. Development is fostered by financially educating investees and sharing knowledge and best practices.

01.3. Additional information.

Guiding Principles

Cordaid Investments is based on the following guiding principles which apply to all investments managed by Cordaid.

Principles for Responsible Finance

Cordaid investment funds must comply with the Principles for Responsible Investment (PRI) as defined by the UN PRI as well as the Principles for Investors in Inclusive Finance (PIIF).

Client Protection Principles

Investees must adopt, endorse and comply with the generally accepted client protection principles. The Client Protection Principles are the minimum standards that clients should expect to receive when doing business with a microfinance institution.

Investees (direct)

Cordaid investment funds invests in Microfinance Institutions (MFIs). A microfinance institution (MFI) is an organization that provides financial services to the poor and low income people. This broad definition includes a wide range of providers that vary in their legal structure, mission and methodology. However, all share the common characteristic of providing financial services to clients who are poorer and more vulnerable than traditional bank clients.

Reporting

MFIs  investees must report on the Financial Performance, Social Performance and Development Impact of their activities by applying the standards and tools developed by Social Performance Task Force and Mix Market.

Balanced Returns

Cordaid investments seek an optimal social impact and an acceptable financial return.


IFD 02. Governance, management structures and processes

02.1. Provide a brief description of the governance and management structures and processes you have in place for your responsible investment activities and implementation of the PIIF.

When Cordaid Investments receives an investment plan from an MFI, a SME or a Fund, it goes throught the phases of the investment process. ESG is incorporated in each phase. During every phase investment-related decisions are taken on financial and ESG criteria.

Cordaid Investments assisted SPTF with the developed of a scorecard, SPI4, that measures alignment with the Universal Standards of Social Performance. With a group of investers we developed from this tool a due diligence tool, ALINUS. In 2016 we have started using ALINUS during our  due diligence and monitoring of all microfinance investments.

We have trained our staff (all Investment Managers) in social performance management and the knowledge on SPM is updated regularly.


IFD 03. Social targets

03.1. Indicate if you set social targets for your organisation, specific to inclusive finance.

03.2. Additional information.

Our overall target is to support financial institutions that provide services to (very) poor and low income clients in developing countries in Asia, Latin America and Sub-Saharan Africa. At least 25% of investments should in Sub-Saharan Africa. Moreover, since three years we are also targeting financial access in fragile countries and regions, especially in African countries (like South Sudan, DRC Congo and Sierra Leone).

For all investees the ESG scorecard has to be filled in. The minimum score is set at 50 out of 100.

For our Rural Agricultural Fund we have set targets for rural outreach, with a minimum of 50% (measured by number of branches in rural areas)


IFD 04. Percentage in equity, debt and guarantees

04.1. Of your total assets invested directly in inclusive finance, indicate what percentage is invested in the following:

Equity  

Debt

Guarantees

Other, specify

          
        

Total

100%

04.2. Additional information. [Optional]


IFD 05. Percentage in microfinance and/or SME finance

05.1. Of your total assets invested directly in inclusive finance, indicate what percentage is invested in the following:

Microfinance

SME finance (provide your definition of SME)

          Cordaid uses no standard definition for SME's. We look at wide range from micro to medium based on assets and no. of employees
        

Other, specify

          
        

Total

100%

05.2. Additional information. [Optional]


IFD 06. Geographical spread of microfinance investments

06.1. Indicate if you track the geographical spread of your total assets invested directly in microfinance.

06.2. Of your total assets invested directly in microfinance, indicate the geographic spread as a percentage of your portfolio.

% of portfolio

Indicate the average loan size (in US$) of your investees to active borrowers in this region.

1150

% of portfolio

Indicate the average loan size (in US$) of your investees to active borrowers in this region.

140

% of portfolio

Indicate the average loan size (in US$) of your investees to active borrowers in this region.

160

% of portfolio

Indicate the average loan size (in US$) of your investees to active borrowers in this region.

130

06.3. Additional information. [Optional]

Average loan size is tracked per investee. At moment data cannot be aggregrated per region. Above mentioned average loan size are therefore estimated.


Top