27 January 2011
Press Release - Finance in Motion signs the Principles for Investors in Inclusive Finance
Finance in Motion announced today that it has signed the “Principles for Investors in Inclusive Finance”. With this step Finance in Motion helps shape an inclusive financial services industry that keeps the interest of its low-income clients at its core. The launch of the Principles took place today at the “Responsible Finance Forum”, hosted by the Dutch Ministry of Foreign Affairs in The Hague, the Netherlands.
By signing up to the Principles, investors and fund managers state their commitment to fair treatment and protection of the interests of the ultimate client in inclusive finance – low-income private households and micro and small enterprises.
The Principles for Investors in Inclusive Finance is the initiative of a core group of investors and Her Royal Highness Princess Máxima, the UN Secretary-General’s Special Advocate for Inclusive Finance for Development. The group developed the Principles together with the Nations-backed Principles for Responsible Investment (PRI) and in consultation with CGAP (Consultative Group to Assist the Poor) and other industry players.
Over the past years, the inclusive financial services industry has witnessed significant growth. Micro and small enterprises as well as poor populations now have significantly better access to financial products and services. Yet, despite this positive impact, the upward trend has also shown its downside – for instance, non-transparent lending practices and pricing of financial products have put many users of financial services at the risk of over-indebtedness. As a result, it has become a major concern for the traditional banking sector and the microfinance industry to ensure responsible growth and transparency and enable client protection and financial literacy.
By signing the Principles for Investors in Inclusive Finance, Finance in Motion has committed itself to support retail providers to innovate and expand the range of financial services available to low-income people as well as to include environmental, social and corporate governance (ESG) issues in its investment policies and reporting, and to promote transparency in all aspects. Furthermore, Finance in Motion has asserted the goal of striving for balanced long-term social and financial risk-adjusted return that recognizes the interests of clients, retail providers and investors. It has also declared its support for collaboration to set harmonized investor standards that help the further development of inclusive finance.
Finance in Motion is also a signatory of the UN PRI and the SMART Campaign’s Client Protection Principles for microfinance.
“We are pleased to be among the first signatories of the Principles for Investors in Inclusive Finance”, said Klaus Maurer, Chairman of the Supervisory Board of Finance in Motion. “From the onset, Finance in Motion has been committed to integrating responsible practices in its investment policies. We will further enhance our policies in respect of the Principles and continue to play an active role in promoting responsible investing by sharing our knowledge and expertise in this area.”
About Finance in Motion
Finance in Motion - based in Frankfurt am Main in Germany - is an alternative asset management firm focused on development finance. It provides professional fund management and technical assistance management services to public and private investors as well as international financial institutions. Finance in Motion specializes in sectors such as microfinance, small and medium enterprise finance and housing finance as well as energy efficiency and renewable energy finance. With over 70 staff, Finance in Motion is advising funds with committed capital from investors of currently over EUR 900 million. This includes the European Fund for Southeast Europe (EFSE), with an investment portfolio of EUR 665 million the world’s largest microfinance investment fund. As of January 2011, an amount of EUR 715 million is invested in 67 partner institutions in 15 countries in Southeast Europe and the Caucasus, where the firm maintains eight regional offices.
Samir Djikić, Manager Communications
Tel: +49 (0)69 / 977 876 50-26
Fax: +49 (0)69 / 977 876 50-10