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MARKETING COMMUNICATION

Two paths, one goal: Impact through microfinance and solar energy

What does real impact investing mean – beyond the stories? In our latest Impact Report, we reveal how we measure impact, which indicators we track and how they can be interpreted in a concrete manner.

📍 Focus on Southeast Asia
How is microfinance evolving in this dynamic region? And what are the implications when microloans become part of the formal banking sector?

☀️ Solar Energy in Sub-Saharan Africa
We report on new initiatives that finance clean energy – thereby transforming not only the climate but entire circumstances of life.

📊 Transparency that delivers results
Alongside key insights into our work, the report includes key financial metrics, our sustainability performance and the activities with which we have further advanced impact investing in 2024.

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MARKETING COMMUNICATION

32 target countries, 95 refinanced financial institutions, 404,537 final borrowers reached – that is our impressive track record in 2023.

Since its foundation 18 years ago Invest in Visions GmbH has been driven by the idea that public funds and philanthropic resources are not enough to tackle social and environmental challenges. According to the latest UNCTAD (United Nations Conference on Trade and Development) mid-term report, an incredible USD 4 to 4.3 trillion is needed annually to close the financing gap to achieve the UN Sustainable Development Goals by 2030 in the Global South. Microfinance can help here. It is an important instrument for promoting economic development and combating poverty.

Microfinance, and impact investing in general, requires an intention to have an impact, an impact contribution and an impact measurement based on relevant indicators. The impact contribution is the central element. How this can be achieved is described in the so-called “theory of change”. This is a method for the planning and process-oriented evaluation of programmes, projects and investments that are intended to promote social change.

Microfinance, and impact investing in general, requires an intention to have an impact, an impact contribution and an impact measurement based on relevant indicators. The impact contribution is the central element. How this can be achieved is described in the so-called “Theory of Change”. This is a method for the planning and process-oriented evaluation of programmes, projects and investments that are intended to promote social change.

A an outsourced financial portfolio manager for the funds we manage, Invest in Visions’ main contribution to impact is the allocation of capital to an underserved market: the funds refinance microfinance institutions in developing and emerging countries, which pass the money on to sub-borrowers in the form of micro and small loans. Discussions with the microfinance institutions about customer protection play just as important a role as the steadily increasing proportion of loans granted in local currency.

Whether in the focus region of the current Impact Report, Latin America, where 35 per cent of the invested funds were allocated at the end of 2023, or in general, the contribution of the funds managed by Invest in Visions to supporting jobs and value creation can at least be estimated using the JIM database[1]. Although it is not possible to measure the specific contribution to reducing poverty and inequality, scientific studies can be used to assess whether microfinance generally has the potential to have a positive impact in these areas.

[1] Joint Impact Models (JIM): Spin-off of the Dutch development bank FMO

 

 

Download Impact Report 2023

Aye Finance, a leading Non-Banking Financial Company (NBFC) focused on micro, small and medium-sized enterprises (MSMEs) in India, secures EUR 15 million (approximately INR 137 crore) in debt funding from IIV Mikrofinanzfonds managed by Invest in Visions, a leading German impact investment and portfolio management firm, with execution support from Agents For Impact (AFI), a sustainability connector of investors and social impact organizations. This fresh infusion of capital will further strengthen Aye Finance’s ability to provide crucial financial support to underserved MSMEs across India. The funds will be used for on-lending to these businesses, enabling them to grow and contribute to the nation’s economic development.

Aye Finance, recognized for its unique “phygital” model and “Cluster-based Credit Assessment” methodology, has established itself as a pioneer in transforming micro enterprise lending in India. The company offers a diverse range of loan products specifically tailored to the distinct needs of MSMEs, empowering them to navigate critical growth stages, overcome financial hurdles, and contribute meaningfully to the economic metrics of the country. The lender recently closed its Series F equity round of INR 310 crore which was led by British International Investment. Aye also announced last month that it had disbursed over INR 10,000 crore in loans to grassroots businesses in India demonstrating its commitment to empowering small businesses and fostering inclusive growth. The company has an active client base which exceeds 4.5 lacs micro enterprises and an AUM of over INR 4,000 crore.

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We are delighted to partner with Invest in Visions. Their commitment to supporting inclusive growth aligns perfectly with our mission to empower MSMEs in India. This new funding will allow us to reach out to a larger population of micro enterprises and offer them innovative financial products designed to meet the diverse needs of MSMEs. We are confident that this will enable us to empower even more entrepreneurs and unlock their full potential, ultimately contributing to job creation and economic prosperity across the country.

“

Krishan Gopal, CFO, Aye Finance

Camellia Genova, Senior Portfolio Manager at Invest in Visions commented about her latest visit of Aye Finance at the end of January 2024: “We very much appreciate our cooperation with Aye Finance in their mission to provide socially responsible funding to MSMEs in India, which are traditionally underserved by banks and often grown out of microfinance. Financing of micro enterprises and SMEs, often referred to as “the missing middle”, is crucial as they provide most of the jobs in the country. Visiting clients of Aye Finance revealed how entrepreneurial Indian citizens are, and how successful they can be in their businesses with the right financial partners.”

  • Is microfinance suitable as a diversifier for an investment portfolio?
  • How strongly does microfinance correlate with other asset classes?
  • Does microfinance only increase the social return or also the efficiency of a portfolio from a risk-return perspective?

 

Due to the considerable growth of the microfinance sector in recent decades, microfinance as an asset class has increasingly come to the attention of investors.

The question quickly arose as to how the asset class should be categorised against the background of risk-return considerations. Previously, it was thought that microfinance did not correlate with traditional asset classes.

The empirical study of a bachelor’s thesis at the TH Köln now sheds light on this. Over an observation period of 18 years, it has been shown that demonstrable trends are emerging with regard to the direction and strength of correlation and that investors will have to differentiate more strongly in future when adding microfinance funds.

We have analysed for you the latest findings on the correlation strength of microfinance investments to other asset classes, their development and their behaviour in times of crisis. This white paper also looks at the opportunities that arise from the use of microfinance products for risk-related portfolio optimisation.

 

Fill in the form and read the whitepaper

Would you like to find out more? Then please fill in the form below and you will receive the whitepaper in your mailbox immediately. Or send us a message to info@investinvisions.com.

Invest in Visions wins two Boutiquen Awards

The Impact investor Invest in Visions has won the Boutiquen Award in the categories “Sustainability” and “Investor Communication”. The Boutiquen Awards are reserved for investment funds of smaller independent asset managers that stand out from the competition, among other things, through good product quality and high transparency.

Initiated by Mein Geld Medien, AECON Fondsmarketing and Pro Boutiquen Fonds, the prizes are awarded in ten different categories. The jury is made up of experienced industry experts, including Dr Hendrik Leber, Managing Partner of ACATIS Investment KVG mbH, Detlef Glow, Head of Lipper EMEA Research, Refinitiv and Roland Kölsch, Qualitätssicherungsgesellschaft Nachhaltiger Geldanlagen mbH.

Laudator Jörg Stotz, Spokesman of the Management Board at HANSAINVEST, who presented the award in the category “Investor Communication”, particularly emphasised the transparency as well as the increasing opinion leadership of Invest in Visions: “Using content strategies, the employees produce product-neutral blog posts to convey their impact investing messages to investors.” In this way, Invest in Visions is significantly contributing to a better understanding of impact investing and microfinance in particular.

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This company has understood marketing, all channels are used in a diversified way to reach the many different customer groups in the best possible way

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Jörg Stotz, Spokesman of the Management Board at HANSAINVEST

In his laudation in the category “Sustainability”, Gunnar Rieke, Head of Investor Services at Donner & Reuschel, praised the sustainability positioning of Invest in Visions as a whole, not just an individual investment fund: “From formal guidelines with a sustainability strategy at both company and portfolio level, to concrete SDG targets within the framework of Art. 9 of the Disclosure Regulation with clear KPIs and a related structured review process, to regular reporting by means of various communication channels, everything a professional impact manager needs is in place at Invest in Visions.”

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Invest in Visions is a worthy winner of this year’s Boutiques Sustainability Award.

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Gunnar Rieke, Head of Investor Services at Donner & Reuschel.

Edda Schröder, Founder and Managing Director of Invest in Visions, proudly accepted the two awards: “My team and I are very pleased that we have been awarded in the categories ‘Investor Communication’ and ‘Sustainability’. It is important to us that we make the impact investing expertise we have acquired over more than 15 years available to a broad public and that we, as impact investors, always go the extra mile when it comes to sustainability.” Special thanks go to the entire international team of Invest in Visions, without whom the awards could not have been won.

The awards were presented at a gala event in Frankfurt on 12th of October 2023. Picture (from left to right): Stefanie Weber, Valerie Leip, Edda Schröder, Maischa Friedrich and Ariane Schoen.

IIV Mikrofinanzfonds issues first parallel loan with IFC to Uzbek financial institution

  • Loan amount equivalent to up to USD 10 mio. in Uzbek S’om (UZS) goes to PJSCB DAVR Bank
  • Parallel lending in the same amount by the International Finance Cooperation (IFC)

The German Impact Investor Invest in Visions has granted a loan through its managed IIV Mikrofinanzfonds in the amount of USD 10 mio. in Uzbek S’om (UZS) with a term of three years to the Uzbek PJSCB DAVR Bank. The special feature is that it is a parallel loan given in the same amount by the International Finance Corporation (IFC). The IFC had already issued DAVR Bank a loan of USD 5 million in 2020, which was repaid in December 2022.

Targeting micro, small and medium-sized enterprises (MSMEs), DAVR Bank is one of Uzbekistan’s few private financial institutions. In a state-dominated banking system, it is well positioned to effectively channel funds from the loan investment package to borrowers. The two loans are intended to enable DAVR Bank to further expand its presence among MSMEs, including among women-owned enterprises. MSMEs account for about 45 per cent of DAVR Bank’s gross portfolio, of which 16.4 per cent are loans to women entrepreneurs.

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This loan will make a significant contribution to the development of the Uzbek economy and further promote MSME financing.

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Mirsodiq Mirzakhidov, Head of the International Cooperation Department at PJSCB DAVR BANK

“We expect the UZS financing package, worth a total of USD 20 million, to improve access to finance for non-bank financed MSMEs. The lending is expected to strengthen the providers of MSME financing, such as DAVR Bank, and at the same time to empower entrepreneurs,” says Edda Schröder, Founder and Managing Director of Invest in Visions.

LEGAL NOTICE

The information contained herein does not constitute an investment recommendation or other advice. The opinions expressed herein are those of Invest in Visions. These opinions are subject to change at any time. Although great care has been taken to ensure that the information contained in this document is accurate, no responsibility can be accepted for errors or omissions of any kind, as well as for any actions based on them. The publisher is Invest in Visions GmbH with its registered office at Freiherr-vom-Stein-Str. 24-26, 60323 Frankfurt am Main, Germany.

The impact investor Invest in Visions GmbH appoints Lars Siebert (44) with immediate effect as the second managing director alongside founder Edda Schröder. The business graduate has been Chief Operating Officer at the company since October 2019 and will focus on on operational topics. He has around 20 years of professional experience in the banking and finance industry, including several years in management and leadership positions. In his career he has been in charge of various focal points such as risk management, portfolio risk management project and process management, contract and outsourcing management as well as various regulatory and audit topics. With his appointment as managing director, the company underscores the increasing importance of regulatory and operational requirements.

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Lars Siebert has made a significant contribution to the operational stability and improvement of our internal processes in recent years. We are pleased that he is is expanding his responsibilities with this position.

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Edda Schröder

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I would like to continue to contribute to the vision and strategy of Invest in Visions successfully and further strengthen them. Above all, the that as an impact investor we help people in developing countries and we contribute to a fairer world motivates me to continuously expand our company together with the team. continuously expand our company in a future-oriented way.

“

Lars Siebert

About Invest in Visions

Invest in Visions GmbH is a pioneer in impact investments and microfinance. Founded in 2006 by Edda Schröder, Invest in Visions currently manages around one billion EUR in mutual and special funds (as of 30.04.2023). The focus is always on developing and emerging countries.
The Impact Investor gives institutional and private investors access to investments that offer not only a financial but also a social return and have a positive impact on society and the environment. In 2011, Invest in Visions reached an important milestone and initiated the first microfinance fund in Germany, which is also open to private investors.

“People do anything for money – even good things!”

Society and the financial sector are on the verge of an epochal transformation. Systems that were thought to be stable are overloaded. Financial flows must be channelled into necessary change processes. But how? These and other questions will be addressed at the 9th Fair Finance Week from 7 to 11 November 2022 in Frankfurt. On five evenings starting at 7:30 p.m., experts from politics, business and science will discuss under the motto “People do anything for money – even Good!”

If you don’t want us to be only concerned with disaster management in the future, you have to put all investment and consumption decisions on ‘green’ now. This applies to politics, the economy, citizens – and in a very special way also to the financial sector,” said political scientist and economist Prof. Reinhard Loske. He continued: “When dealing with the climate crisis, we must finally move from footprint to handprint, from what we do in terms of ecological damage to what we do through credible and joint action to create good and prevent the worst. The financial sector can make a key contribution to this if it finally becomes honest and resists the temptations of mere ‘green-washing’. Good!”

Prof. Loske is one of the speakers at the event. Dr. Robert Habeck, Federal Minister for Economic Affairs and Climate Action, will kick off the Fair Finance Week with a greeting message, followed by the Treasurer of the City of Frankfurt, Dr. Bastian Bergerhoff. Other exciting impulses will be provided by a representative of Fridays for Future (tba), Michael Dittrich, Secretary General of the German Federal Environmental Foundation, Jessica Espinoza, CEO 2X Collaborative and Dr. Michael Pahle from the Potsdam Institute for Climate Change Research.

The Fair Finance Network Frankfurt is a cooperation of banks and financial organisations in the financial centre of Frankfurt am Main, which are committed to strengthening the sustainable financial sector through joint education and public relations work. Its members are Evangelische Bank Frankfurt, GLS Bank, Invest in Visions, Oikocredit Hessen-Pfalz and Triodos Bank Deutschland.
Participation in the event, organized by the Fair Finance Network Frankfurt, is free of charge and is aimed at all interested parties.

 

 

Invest in Visions sets the course for the future

• FS Invest Holding acquires a stake in Invest in Visions as of 01.08.2022
• Invest in Visions well equipped for further business development

With FS Invest Holding GmbH, Invest in Visions GmbH is bringing a long-term investor on board and setting the course for further growth in the field of impact investing. The investor holds a 74.9% stake in Invest in Visions GmbH. FS Invest Holding is part of the Helmig family’s group of companies, which is already active in the financial sector through a number of other investments.

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I founded Invest in Visions 16 years ago. Together with a strong partner, I would like to continue to drive growth and expand the business in the future. At a time when impact investing is highly valued and a growth area, it is important to be able to build up appropriate resources and know-how. With FS Invest Holding as a new anchor shareholder, we have a guarantee for the stability of our business model. Now we can take the next step in our development and expand our product offering in the area of impact investing.

“

Edda Schröder, founder and managing director of Invest in Visions

Invest in Visions is one of the first impact investors. The IIV Microfinance Fund, which the company launched in 2011, was the first fund of this asset class in Germany for private and institutional investors. The international and experienced portfolio management provides loans to selected microfinance institutions as well as to small and medium-sized enterprises in developing countries.

ABOUT INVEST IN VISIONS

Invest in Visions GmbH was founded in 2006 by Edda Schröder with the vision of giving institutional and private investors access to impact investments, i.e. investments that offer positive social impact in addition to financial returns.
Invest in Visions has made a name for itself as a microfinance investor from the very beginning and reached an important milestone in 2011 with the launch of the IIV Microfinance Fund as the first fund of this asset class in Germany for private and institutional investors.

“

We are very excited about this milestone. When I founded Invest in Visions in 2006, the topic of microfinance was still quite unknown in the industry and we had to do a lot of convincing investors about the positive effects, and convey that social commitment hand in hand with financial returns is quite possible

“

Edda Schröder, Managing Director of Invest in Visions GmbH

In 2011, the Impact Investor launched the IIV Microfinance Fund – the first microfinance fund in Germany for private and institutional investors. The first loan was granted to a small microfinance institution in Tajikistan, and today Invest in Visions has 99 microfinance institutions (MFIs) in 35 countries. In 2021, the target countries were expanded to include Botswana, Costa Rica, Colombia, Nigeria, Romania and Tanzania. The focus is on small and medium-sized MFIs, mainly in South America (around 24%), followed by Central America and the Caribbean (around 16%) and Central Asia (around 14%).

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We are constantly looking for new investment opportunities. Due to macroeconomic, geopolitical or risk-related influences, it is always a challenge to maintain our high quality standards. After all, we are not only committed to the United Nations Sustainable Development Goals, but also have a responsibility to our investors,

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Edda Schröder, Managing Director of Invest in Visions GmbH

With the launch of the fund, the concept convinced the investors. In the summer of 2015, the fund volume reached 160 million euros, but one year later it reached 298 million euros. Almost eleven years after its launch, the IIV Microfinance Fund alone, the flagship of Invest in Visions, has now grown to a volume of 893.56 million euros* and inspires countless investors – both institutional and private individuals. The Invest in Visions fund family also includes two special funds, the IIV Microfinance Bond and the IIV Sustainable SME Debt Fund EM – Finance for Future, which was launched in 2021 for institutional investors.

“

icht nur das stete Wachstum freut uns, sondern auch, dass viele Investoren nach wie vor von unserem Konzept überzeugt sind und uns seit Jahren ihre Gelder anvertrauen

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Edda Schröder

As the volume has grown, so has the number of employees at Invest in Visions to 25. But that’s not all: “I see our success above all in our positive social impact, which we measure, among other things, on the basis of the final borrowers reached. In 2021 alone, we were able to increase this number by around 30,000 new final borrowers despite Corona restrictions and now have more than 690,000 people for whom we have been able to enable a better, future-oriented life with our funds,” says Schröder.
* As of March 31, 2022

Award-winning: The IIV Microfinance Fund receives the prize “Best Bond Fund” as part of the Fund Boutique Award

At the first-ever presence event for the Boutiques Awards 2021, the IIV Microfinance Fund was awarded “Best Pension Fund”.
The initiators Mein Geld Medien, AECON Fondsmarketing and Pro BoutiquenFonds had to a well-attended awards gala in a Frankfurt event location and over 200 guests accepted the invitation. over 200 guests accepted the invitation.

The awards are investment funds from smaller independent asset managers whose assets under management could not exceed €1 billion. One multi-year, positive performance and a convincing investment concept were necessary in order to let the expert jury come to your conclusion.

The aim of the Boutiques Awards and the public distinction is to bring fund boutiques with their often very creative and rather non-benchmarked strategies more strongly into the light of the public.

This succeeds with a very good performance only in the rarest cases and here the fund initiators are to be supported in the future by the annual Award presentation.

The Invest in Visions team is very pleased to receive this prestigious award and congratulates the other award winners.