Share

Oxfam launches its first investment fund

Barbara Stocking, CEO, Oxfam
News

Oxfam launches its first investment fund

Finance | Vibeka Mair | 24 Jan 2012

Oxfam has launched an investment fund, with social and financial returns, which will target small and medium companies in developing countries by investing in local financial intermediaries which focus on small enterprise development.

The fund, called the Small Enterprise Impact Investment Fund (SEIIF) is a joint initiative between Oxfam and asset management group Symbiotics, which already manages $200m in 24 microfinance funds.  It will target small and medium enterprises in developing countries, and give investors both measurable social impacts and financial returns. Investors are being sought for the fund.

An Oxfam spokeswoman said: “There are huge numbers of small businesses in Africa and Asia stifled by underfunding and limited access to credit, despite being recognised as a critical engine of growth in many economies.

“This sector is not being met by the existing microfinance asset class, so the SEIIF will target this financing gap by investing in a variety of local financial intermediaries which focus on small enterprise development.”

Oxfam will take an ‘impact adviser’ role for the Fund, and use its local knowledge and development experience to offer independent intelligence on the impact of investee activities. Its primary focus will be activities which build women’s empowerment, job creation and food security in low-income economies. The fund aims to directly create 100,000 good quality jobs in its first five years.

The target size of SEIIF is $100m after three years, which will be invested in a portfolio of debt and equity instruments, targeting those with low-risk, high-impact profiles.

Roland Domincé, chief executive of Symbiotics, said the SEIFF will seek low risks through high diversification and clear exits.

The fund will have targeted returns of 5 per cent with capital preservation. Initially, investors will be locked in for five years, and get quarterly redemptions thereafter. The management fee will be 1.5 per cent, and will be split between Symbiotics and Oxfam.

Barbara Stocking, chief executive of Oxfam, added: “Impact investing is still a relatively new concept for both financial markets and the development community. Oxfam has long talked about the role the investment industry could play in poverty eradication, but now we’ve decided to prove it.

"As well as providing capital to an under-served market, the SEIFF’s biggest job will be demonstrating success and leading the way for a new wave of impact investment centred on SMEs in developing economies – helping them become an asset class in their own right.”

 

 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Kids Company could close without more government funding

22 Sep 2014

The chief executive of the children’s charity Kids Company has said that it is at risk of closure unless...

Labour to focus on grant funding for charities

22 Sep 2014

Labour politicians last night unveiled a series of priorities for the voluntary sector, including a drive...

Over £11m raised for MND Association and Macmillan from ice bucket challenge

19 Sep 2014

The Motor Neurone Disease Association has raised £6.8m from the viral fundraising craze the ice bucket...

Kids Company could close without more government funding

22 Sep 2014

The chief executive of the children’s charity Kids Company has said that it is at risk of closure unless...

Labour to focus on grant funding for charities

22 Sep 2014

Labour politicians last night unveiled a series of priorities for the voluntary sector, including a drive...

Lobbying Act comes into force today

19 Sep 2014

The Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014 comes into...

JustGiving page for Manchester Dogs’ Home receives four donations a second

15 Sep 2014

JustGiving has said that donations going to an appeal for the Manchester Dogs’ Home following an arson...

Commission's new online charity search to launch soon after delay

15 Sep 2014

The Charity Commission’s searchable online register of charities is due to launch in beta this autumn,...

Charities warned that digital campaigns can be 'counterproductive'

9 Sep 2014

Charity digital campaigns can be counterproductive and will need to change to keep the attention of those...

Join the discussion

 Twitter button

@CSFinance