Principles for Investors in Inclusive Finance Report on Progress
New insights into fund managers’ commitments to responsible investment in inclusive finance are available in a new report released by CGAP and the UN-backed PRI Initiative’s Principles for Investors in Inclusive Finance (PIIF).
Investment manager signatories took part in a voluntary pilot of the PRI's new Reporting Framework in 2012. The aggregated results are published in a new report, PIIF Signatories' Report on Progress.
Highlights from the responses include:
- All participants have endorsed the Client Protection Principles, a set of pro-client codes of conduct and practices that together form the minimum standards that clients should expect to receive when doing business with a microfinance institution. The majority report that they are incorporating these into their policies and practices.
- Most participants’ investment decision-making takes into account the social performance of investees, but staff incentives (monetary or otherwise) are not always linked to social performance.
- Fund managers report a high commitment to investing in microfinance institutions that offer a range of financial services; just over half collect data on the proportion of the retail providers in which they invest that provide financial products beyond credit; on average, 48% provide savings and 44% offer insurance.
- Nearly 90% report a procedure to integrate environmental issues into their investment decision making.
- Active involvement in corporate governance is mixed; on average, equity investors report having board seats with half of their investees.