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