Microfinance Investment Survey

Microfinance Investment Summit Survey
http://www.microfinancesummit.com/

Question 1
Evaluating the growth and rate performance of microfinance as an asset
class- have microfinance investments performed better than expected
during the global economic crisis?

Top Representative Responses
1. The global economic crisis has affected the performance of
microfinance. However, microfinance demonstrates strong tendencies to
impact more people than banking.

2. yes, generally microfinance investments have proven to be less risky,
but still are not as high-yielding as other investments, and yes they have
performed better than expected

3. Yes, to my knowledge, at least in South Asia.
Question 2
How have liquidity constraints affected investments in terms of funding,
lending, and overall sustainability?


1.Liquidity constraints are real and present in Africa. There must be
improvement in liquidity for microfinance achieve significant results.

2. Less commercial funding seems available but grant funding is still there.
Sustainability depends on geography. Where we are active in Zimbabwe
this has been huge problem.
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3. Funds are still available for deserving projects, although there has been
some slow down of investments , but not much.

4. Force MFIs to take higher FX risk or less favorable terms, but most MFI
liabitilites are 3-2 year term

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Microfinance Investment Summit Survey

Question 3
Overcoming the challenges attributed to microfinance mergers and
acquisitions. Which of the following is top priority?
Percentage
Due Diligence and valuation 30.00%
Resource constraints 35.00%
Cultural Issues 15.00%
Regulatory issues 20.00%

Regulatory issues

Cultural Issues

Resource constraints

Due Diligence and valuation

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%


Microfinance Investment Summit

Question 4
What kinds of risks are being increasingly
monitored in microfinance now?
Least Moderate High
Refinancing risk 20% 20% 0%
Exchange rate risk 20% 20% 0%
Liquidity risk 0% 0% 60%
Interest rate risk 0% 20% 10%
Asset rate risk 20% 5% 10%
Risk of fraud at the local level as MFI's grow 30% 10% 20%
Quality of corporate governance. 10% 30% 0%
Total 100% 100% 100%

Quality of corporate governance.

Risk of fraud at the local level as MFI's grow

Asset rate risk

Interest rate risk

Liquidity risk

Exchange rate risk

Refinancing risk

0% 10% 20% 30% 40% 50% 60%

High Moderate Least



Question 5
How important is Social Impact Investment to your company?


1. It is Fundamental to its long term growth and sustainability.

2. Important, but not as important as yield.

3. Social impact is the "heart" of what we do.

Question 6
Which approach do you currently apply for SME finance?
Percentage
Collateral based lending 35%
Information based lending 35%
Viability based financing 20%
Cash flow lending 10%

Cash flow lending

Viability based financing

Information based lending

Collateral based lending

0% 5% 10% 15% 20% 25% 30% 35%



Question 7

What impression does Environmental, Social, and Governance (ESG) reporting have
on funds and the double bottom line mission of microfinance?


1. ESG reporting is taken into consideration, but its impact is not assessed yet.

2. This is an important factor for giving trust and it has a positive effect

3. SRI's are still growing. Information must be available in different ways by different
types of investors to meet their specific goals and needs.

4. There is a growing demand for ESG reporting. A postive effect of ESG reporting is
greater transparency. ESG reporting will continue to improve in quality. It makes
reporting and performance more comparable

Question 8
Do you plan to increase your exposure to microfinance investments in 2010 and
beyond?
Percentage
Undecided 20%
No 5%
Yes 75%

Yes

No

Undecided

0% 10% 20% 30% 40% 50% 60% 70% 80%


Microfinance Investment Survey

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