New report: “Microfinance Funds–10 years of Research and Practice”
New report: “Microfinance Funds – 10 years of Research and Practice” published by Symbiotics and CGAP
Geneva, Switzerland, December 13, 2016 – In the last decade, global microfinance funds’ contributions to financial inclusion in frontier and emerging markets have grown fivefold, demonstrating the increasing interest from private sector investors.
The report on microfinance investment vehicles (MIV), co-published with The Consultative Group to Assist the Poor (CGAP), compiles and analyzes ten years of research on global microfinance funds. It allows for a greater understanding of the market’s evolution and the changes occurring in funds’ portfolios, investor markets and their social outreach.
Key highlights of the study:
- The fund class grew fivefold: from USD 2 billion in 2006 up to USD 11 billion in 2015
- Registered average net returns of 3.3% in USD for fixed-income funds
- South Asia, East Asia and the Pacific was the fastest growing region with an annual compound growth rate of 38%
- Microfinance funds financed nearly 24 million borrowers
“CGAP believes deeply in the power of data – both as a tool to support evidence-based decision making and as a mechanism to make markets work better. The MIV survey has served both purposes, validating the potential of a new financing vehicle while standardizing and improving information flows to boost investor confidence. The CGAP-Symbiotics partnership is another success story…” - Greta Bull, CEO, CGAP
Symbiotics is one of the leading firms dedicated to sustainable and inclusive finance in emerging markets. Since inception in 2005, it has invested USD 3 billion in more than 300 institutions in 60 emerging countries, working as an advisor or manager of about 30 investment funds and many institutional investors. The firm is headquartered in Switzerland, with offices in Cape Town, London, Mexico City, Singapore and Zurich regrouping 100 employees globally. Symbiotics currently reaches out, indirectly through its investments, to 1,450,000 small enterprises and low income households at the base of the pyramid in emerging and frontier markets.
The Consultative Group to Assist the Poor is a global partnership of 34 leading organizations that seek to advance financial inclusion. CGAP develops innovative solutions through practical research and active engagement with financial service providers, policy makers and funders to enable approaches at scale. Housed at the World Bank, CGAP combines a pragmatic approach to responsible market development with an evidence-based advocacy platform to increase access to the financial services the poor need to improve their lives. www.cgap.org