Microfinance
Dexia Micro Credit Fund (DMCF), the first microfinance mutual fund, was created in Geneva in 1998 by Blue Orchard, of which de Pury Pictet Turrettini was a founder shareholder.
Blue Orchard is a Swiss company with a solid 10-year track record of expertise in microfinance. Its highly qualified and motivated employees combine both high-level financial expertise and field experience in social commitment before personally choosing microfinance, which is why they apply the highest corporate standards even though the social objective is predominant. With some 800 loans extended to microfinance institutions since its creation and no defaults to date, Blue Orchard has a sound balance sheet and stable and committed shareholders as well as a Board of Directors Vice Chaired by Mr. Melchior de Muralt.
Microfinance is an investment vector which has a very strong social impact and is a sustainable contributor to reducing poverty and inequality, both of which are a major source of risks for world equilibrium. The purpose is to sustainably combat poverty by giving poor people access to loans so that they can do business while enabling them to have access to housing, health insurance and education.
This investment sector is just now entering a phase of strong growth:
- microfinance investments have had compound annual growth of 90% since 2005, doubling between 2007 and 2008 to some $10 billion, and that growth is being confirmed;
- despite the crisis and over time, investment quality has remained high, with a risk portfolio of less than 2%;
- performances have been stable (see our 10-year track record);
- even today, the return on that investment is not very correlated with other asset classes;
- the social impact is strong and satisfies investors aware of their responsibilities.
It is therefore a highly appropriate asset class to diversify their investment portfolios.