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Investment philosophy

 
Investment philosophy

Finance in Motion is strongly committed to the principles of responsible finance and investment. We are an institution that operates under a high standard of business ethics with the investments we engage in, and we expect our partner institutions to adhere to and respect these principles.

We firmly believe in the ability to connect different sources of capital available in mature financial markets to the needs for capital in undersupplied markets. Our purpose is to enable our investors to effect outcomes of a particular social, environmental or equal opportunity nature. 

In an age where the search for short-term gain seems to be the norm, we invest in long-lasting relationships. Over time, we will grow with our partner institutions and other stakeholders, contributing to the successful implementation of their business strategy.

Finance in Motion encourages competition in the chosen markets, also between investment partners financed by our advised funds, as a way to optimize the delivery of financial products and services to the end-beneficiary. In addition, Finance in Motion performs periodic in-depth impact analyses in its funds and includes social performance and responsible finance assessment in its choice and monitoring of investment partners.


Taking the example of microfinance (which is the focus of Finance in Motion's first successful mandate, the European Fund for Southeast Europe - EFSE): there are enormous dividends to be reaped through the provision of microfinance capital in social, environmental, gender, employment and overall wealth and institutional strength related terms. Equally, capital invested in microfinance loans tends to have very low correlation with other asset classes.

And, yet, the transaction costs were often deemed too high for capital to make the move.

What was therefore needed was to combine the higher willingness to take commercial risk of the public sector, which measures success foremost based on the social dividend, with the commercial approach of private sector investors and their interest in picking investment partners with strong qualities.

In this combination, the public sector obtains further leverage through private sector funds and can multiply the socially desired outcome; the private sector achieves a stable return combined with status as socially responsible investor, thereby accessing a type of assets in a geography which, on its own, would have been burdened with too high risks.


Finance in Motion advocates increased corporate transparency to enable asset managers to make investment decisions based on reliable environmental, social, and governance (ESG) information. To this end, we actively support the Principles for Responsible Investment (PRI), an investor initiative in partnership with UNEP FI and the UN Global Compact.

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Finance in Motion supports the SMART Campaign, a global consumer protection initiative to promote client protection in the microfinance industry. As endorser of the Campaign’s Client Protection Principles, Finance in Motion has committed to incorporate client protection practices in its internal systems and processes.

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