Zurich – The Research department of the Swiss asset manager responsAbility Investments has conducted a microfinance study to identify the factors determining interest rates for micro-borrowers. It has found that a combination of healthy competition, effective regulation, an appropriate market infrastructure and innovation help to drive efficiency gains at microfinance institutions (MFIs), resulting in lower operating costs and interest rates.
Zurich - responsAbility Participations AG successfully completed its CHF 23.5 million capital increase as of 16 December 2013. The capital will be used to further expand a portfolio of sound financial services providers with attractive growth potential in developing and emerging economies whose clients consist of low-income households as well as micro, small and medium-sized enterprises.
Zurich – The emerging markets experienced a large-scale flight of capital in 2013. Despite the sharp falls suffered by some local stock markets and currencies, companies rooted in the real economy demonstrated their solidity. responsAbility Investments AG, the world's leading independent asset manager in the area of microfinance, today published its fourth Microfinance Market Outlook that combines an analysis of the current situation in the microfinance market with an assessment of how it is likely to develop in 2014.
Zurich – In their latest study entitled 'The Microfinance Revolution in East Africa', the economists at responsAbility explore key developments in the financial sector from an emerging markets perspective. The study analyzes how the new products, services and distribution channels collectively known as 'microfinance' have revolutionized the financial sector in the region and how they are now being further strengthened by technology. The economists conclude that East Africa, in particular, has become a center of financial sector innovation, paving the way for the much swifter inclusion of rural populations in the financial system and increasing the market potential of microfinance.
Zurich – responsAbility, one of the world’s leading asset managers in the field of development-related investments, has published a study of coffee growing in Costa Rica. Based on this example, responsAbility identifies three key criteria for success in developing sustainable agriculture: outline conditions favorable to development, strong producer organizations, and access to finance. Investments in fair trade are not only financially attractive but, according to this study, also help small farmers in developing economies to earn a better living.
Zurich – responsAbility, one of the world’s leading private investors in the area of development-related financing, presents the third successive edition of its annual Microfinance Market Outlook. The central message for 2013 is that solid return potential, sustained low volatility and a contribution to social development in the investment countries will continue to create a positive outlook in microfinance investments.
In their latest study, responsAbility’s economic experts explore the social and economic impact of investments in the Indian health care market. India’s fast- growing population with its increasing purchasing power provides for a sustained increase in demand for affordable health care services. At the same time, more and more companies are offering such service solutions, creating a great opportunity for investors to participate in the growth of the Indian health care industry while generating positive social impact.
In 2011, the assets managed by responsAbility passed the USD 1 billion mark. Investments reached 748,000 microfinance clients worldwide, around 57,000 more than the previous year. Volumes of fair trade financing grew by almost 50% from USD 35.9 million to USD 53.5 million. Funding for independent media provided via investment vehicles gave around 38 million people in young democracies access to objective news coverage. Newly opened offices, an expanded range of products, and targeted new hires reflected responsAbility’s investment in its own growth. A particular area of focus for responsAbility in 2012 will be the ongoing development of its range of products and services benefiting lower-income households in developing and emerging economies.
Zurich - Fair trade is one of the fastest-growing sectors worldwide. In view of the continued high demand for fair trade products, responsAbility – one of the most important asset managers in the fair trade sector – also foresees solid performance for this market over the longer term. In view of World Fair Trade Day on May 12, 2012, this is an encouraging signal not only for producers and consumers, but also for investors looking to earn a financial return while at the same time making a positive social impact.