|
FUND NAME |
SIZE OF FUND $USD |
FUNDS ALLOCATED TO MICROFINANCE $USD |
ROI |
|
1. ProCredit Holding Aktiengesellschaft |
110,918,700 |
89,181,767 |
5-6.5% |
|
2. Oikocredit World Partnership Investments |
304,662,000 |
80,764,000 |
2% |
|
3. Dexia Microcredit Fund |
51,669,512 |
46,334,570 |
5.5-7.5% |
|
4. Blue Orchard Microfinance Securities |
40,069,833 |
38,000,000 |
4.55-8.8% |
|
5. Calvert Community Investment Notes |
80,000,000 |
20,000,000 |
3% |
|
6. Impulse Microfinance Investment Fund |
15,413,875 |
15,413,875 |
4% |
|
7. Accion Investments in Microfinance |
12,969,985 |
12,512,329 |
8-10% |
|
8. responsAbility Global Microfinance Fund |
11,449,977 |
11,449,977 |
3.56% |
|
9. ASN-Novib Fonds |
28,421,190 |
9,473,730 |
1.20% |
|
10. Triodos Fair Share Fund |
14,583,596 |
6,983,086 |
2-4% |
|
11. ALTERFIN |
11,084,244 |
3,628,790 |
6% |
|
12. CRESUD |
2,483,480 |
1,490,088 |
2.75% |
|
13. AXA World Funds |
23,073,410 |
1,481,556 |
5.10% |
|
5,340,505 |
1,450,000 |
0-2.875% |
|
|
15. Partners for the Common Good |
7,095,500 |
300,000 |
3% |
|
16. Global Bridge Fund |
1,691,000 |
not available |
0-2.875% |
|
17. MicroVest I, LP: Equity |
not available |
not available |
7-9% |
|
18. Microvest I, LP: Subordinated Debt |
not available |
not available |
4.5-6% |
|
19. mPower Investment Program |
not available |
not available |
0-3% |
Search Results for: calvert
Wall Street Journal Features Microfinance Investment as “A New Way to Do Well by Doing Good”
Microfinance investment as a stand-alone category made headlines in today’s Wall Street Journal. While this article probably represents the culmination of a break-out year for microfinance investment, we still have a lot of work to do. The Journal describes the investment options as “small change”.
Quoting from the WSJ
Small Change
Here is a sampling of microfinance investment vehicles. Several Web sites, such as www.mixmarket.org and www.microcapital.org, also list a number of investments.
|
INVESTMENT |
MINIMUM |
COMMENT |
|
Calvert Foundation Community Investment Notes www.calvertfoundation.org |
$1,000 |
Investors can earmark the notes to be invested in microfinance initiatives. Notes can earn up to 3%, depending on the note term. |
|
Oikocredit USA Global Community Note www.oikocredit.org |
$1,000 |
The capital raised from the notes is used to help finance various microlenders. Investors can choose returns of up to 2%. |
|
MicroVest I Fund www.microvestfund.com |
$100,000. Only available to accredited investors. |
Fund makes both debt and equity investments in microlenders. Equity partners can expect to earn 7% to 9% annualized returns, while debt investors might earn 4.5% to 6%. |
|
Accion Investments www.accion.org |
$250,000. Only available to accredited investors. |
Makes equity investments in microlenders and expects to generate about 8% to 10% annual returns. |
|
Grameen Foundation USA Growth Guarantees www.gfusa.org |
$1 million minimum letter of credit. |
Guarantors do not contribute any money or get an upfront charitable deduction. Instead, they provide letters of credit which help guarantee loans by the lenders in developing countries. |
Deutsche Bank Leads New Global Commercial Microfinance Consortium, a $75 Million Microfinance Investment Fund
Just recently, a group of private and public sector institutional investors and economic development agencies launched the
Investors include Merrill Lynch, AXA Group, HP, and the Calvert Social Investment Foundation. For a full list of investors visit: “Leading Institutions Investors and Development Agencies Launch the Global Commercial Microfinance Consortium.” Deutsche Bank, a full global financial services company with å¥972 billion in assets, led the arrangements to establish the fund and also facilitated its sale.
This Consortium is “microcapital” at its best. First, expert management by Deutsche Bank’s long-established and well-respected microfinance unit provides the leadership. Second, the investor group mixes mainstream investment banks, rational development agencies, and flagship social investment foundations. Third, the role of government as guarantor uses your tax dollars to support (not execute) for-profit, private innovation. Fourth, the fund investment in MFIs is well-diversified across countries, regions and types of MFIs.
With such leadership and innovation, we might one day soon establish a secure asset class for the investing public.
Additional Resources
1) Main article discussed in entry, Thames Techwire: “Group Unveils å¥63 Million ‘Micro-Entrepreneur’ Fund.”
2) “Leading Institutional Investors and Development Agencies Launch the Global Commercial Microfinance Consortium.”
3) “Global Commercial Microfinance Consortium.”
4) U.S. Agency for International Development (USAID) Press Release: “USAID, Private-Sector Partners Create Global Fund for Small Entrepreneurs and Low-Income Families: Agency Provides $15 Million Credit Guarantee to Fund Aimed at Alleviating Poverty."