Providing vulnerable population with financing solutions
An estimated 1.7 billion people worldwide do not have a bank account. Microfinance provides financial services to individuals and small businesses who lack access to conventional banking, primarily in developing countries. By allowing people to take on reasonable small business loans safely, it gives impoverished people an opportunity to become self-sufficient.
Returns on microfinance are driven by the interest rate on the loans. Connected invests through established microfinance funds with a wide network of local microfinance institutions (MFIs), diversifying credit and country risk. Returns have low correlation to other asset classes and currency risks are minimised through hedging.
Empowering businesswomen in Asia
Sonata Finance, an Indian microfinance institution, has worked to promote and efficiently deliver micro-finance services to underserved and excluded women across India since its foundation in 2005.
Connected is invested in Sonata Finance Private Limited through the Japan ASEAN Women Empowerment Fund (JAWEF), managed by BlueOrchard.