By | Fondo de Microfinanzas “GLS AI”
The microfinance fund GLS Alternative Investments (GLS AI) has existed since 2015 and is managed by Frankfurt School Impact Finance, which is headquartered in Germany. The goal of the GLS AI finance fund is to fund local microfinance institutions (MFIs) so they can provide reliable financial services to meet the needs of individuals who have limited or no access to them.
The GLS AI microfinance fund seeks to finance this sector in a sustainable way, using different investment instruments. Therefore, in addition to funding microfinance institutions through loans, the fund also invests capital in a selection of small MFIs known specifically for their social missions. The fund also recognizes the particular importance of on-site advisory services in the microfinance sector. For this reason, a portion of the fund’s investor income is allocated for technical assistance, for example, in the form of advisory and training programs.
Frankfurt School Impact Finance, as the administrator of the GLS AI Fund, is characterized by its transparency in investment criteria, in the investment process and in the investments made. The partnership with credible microfinance institutions that have a proven track record of success aims to minimize the risk of negative effects, in particular the risk of excessive debt burden for end clients.
The GLS AI microfinance fund is aligned with the impact investment guidelines and the social performance criteria contained therein, with the goal of funding microfinance institutions that stand out for their services and for their good social and environmental practices. Experiences from the last few years have shown that women entrepreneurs can bring about social changes in their communities. Because of this, the fund prioritizes gender equality.
In many regions of the world, women do not participate equally in the economy. This also applies to accessing financial services. For this reason, the fund recognizes the positive value of microfinance institutions that provide loans mainly to women. Access to financial services can improve the status of women and promote their influence in society. It is important that microfinance institutions closely monitor and specifically support female clients. To this end, in addition to financial education, microfinance institutions sometimes offer training on social issues, such as special workshops for women to promote equal rights or services for health and well-being. We also appreciate these health and education services.
In addition to evaluating the client’s perspective, we are also interested in the representation of women in the microfinance institutions themselves. For this reason, investment managers carefully analyze the extent to which women participate at the management level within these institutions. ProMujer has been advocating for gender equality in Latin America for over 33 years and aims to empower vulnerable women, so they may develop their full potential. Thanks to their outstanding commitment to women in Nicaragua, ProMujer Nicaragua completely fulfills our criteria for social development, and we are pleased to work alongside this institution.
