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Latin America - Another 60 Million Potential Microentrepreneurs

Eric Josephson, head of international development, ECLOF Peru

The [http://www.eclof.org/ Ecumenical Church Loan Fund] has a loan fund aimed at addressing poverty, inequality and social injustice.

The poor in urban areas of Peru are already well served in the developed Peruvian microfinance sector. Rural areas much less so. Challenges to a rural presence include the cost of transport/communication; clients have fewer assets than those in cities; scarcity of funding for rural outreach programs.

Appropriate Allocation of Capital and Competition for Microfinance Investment

Moderator: Tracey Pettengill Turner, founder and general manager, [http://www.microplace.com MicroPlace] (an eBay Company)
Panelists:
*Gil Crawford, CEO, [http://www.microvestfund.com/ MicroVest Capital Management]
*Henk Nijland, Manager, micro and small enterprise fund (MASSIF), and campacity development fund, [http://www.fmo.nl/ FMO] - Netherlands development finance company

Tracey lives in the San Francisco Bay area.

Benchmarking Microfinance Against Other Asset Classes

Peter Johnson

Is microfinance an asset class? No. It's like "banking" in that regard.

What defines an asset class? Similar characteristics; similar behavior; volume.

Do MF "asset classes" behave distinctly? There isn't enough data, volume, to develop proper benchmarks for measuring behavior.

But MFIs show asset growth despite volatility of other assets, which suggests that they behave differently than other asset classes. "That suggests distinct behavior." MFI net income shows steady growth when other markets have not had steady performance.

Microfinance and Capital Markets

Ira W. Lieberman, Ph.d., [http://www.manta.com/coms2/dnbcompany_05wxrr|LIPAM International, Inc.]

The initial listing/public offering of four leading institutions. The four institutions are:
*Banco Compartamos
*Equity ank
*Bank Rakyat Indonesia (BRI)
*Brac Bank

Microfinance is changing fast now. In the early stages, it was mainly NGOs with assorted models, using mainly donor funds. It's now in the take-off stage, with players including NGOs, banks.. Capital markets represent an additional option to raise funds for MFIs.

Bank Rakya Indonesia (BRI)

Equity Investment Exit Strategies and the Future of a Secondary Market

Presenter: Alex Silva, President and Founder, OMTRIX Financial Consultants and former director, PROFUND

Emily says he (and PROFUND) are some of the coolest things she's seen in the field of microfinance in terms of what they've accomplished.

Vikam Akula, CEO, SKS

[http://web.archive.org/web/20070521020143/http://www.sksindia.com/|SKS] is the largest microfinance institution in India. Current portfolio is $320 million; portfolio at risk is less than 1 percent; 10% profit margin.

The Evolution of Fixed Income Investment in Microfinance - Identify the Opportunity, Negotiate and Execute

Roland Dominicé, Senior Manager, Investment Services, Symbiotics

Investment strategies: Pioneer funds, development funds, social investment funds, blended value funds, global balanced funds, commercial funds, leveraged funds. There's a diversification of ways to look at the market and structure the strategy of the fund. There's more and more control of the risk into these funds, whereas the later funds have a strategy. The return of these funds has increased over time and is increasing. The efficiency, more importantly, has improved.

Country Case tudy: Scaling Up India - Formalization of Microfinance Institutions

Vineet Rai, co-founder and director, Intellecap

[http://www.intellecap.net/|Intellecap] stands for "intellectual capital."

60% of the company is owned by Vineet, friends and employees.

Microfinance and india is an exciting market. Estimated market size is between 57.9 and 245.7 million clients. (57.9 million households are below the national poverty line.)

Together there have been disbursals of around US$3.7 billion, addressing "almost seven percent of our demand estimates of US$51.4 billion).

The Future of the Microfinance Industry

Louise Westerlind, [http://www.cgap.org/|CGAP]:

Five big things in 2007:

  • Exponential growth of socially responsible investment (SRI): (>US$4 trillion)
  • Investors made big strides in addressing the need for local currency products
  • [http://www.nextbillion.net/newsroom/2007/12/17/compartamos-ipo-sparks-ideological-debate-over-microfinance|Compartamos IPO] triggered healthy discussion about investors' motivations. (Stock ticker BMOSF).
  • THe handful of IFIs and the 95 MIVs investing in microfinance are doubling their aggregate portfolio

Global Microfinance Investment Congress

The following are my notes from the [http://www.microfinancecongress.com|Global Microfinance Congress], which I'm attending today with Emily Allred from the [http://www.wccnica.org|Wisconsin Coordinating Council on Nicaragua]. I'm catching these notes on the fly, so I can't promise that I'm quoting everyone accurately or fully.

Comments by Arnaud Ventura, vice president, PlaNet Finance

Banks and international finance institutions are becoming important players in microfinance. It's more than just the talk and noise about it; it's concrete actions in the field.

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