As reported in Citywire Fund Manager International, Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish financial institution engaged in retail, private, and wholesale banking and asset management, has launched a hedge fund focused on microfinance called BBVA Codespa Microfinanzas, and provided å¥20 million in seed funding. The fund has an ethical orientation and aims to foster social and economic development in Latin American countries by promoting banking among the poor and supporting companies that would not qualify for bank loans. It will lend money to international organizations, cooperatives, and non governmental organizations that will in turn provide loans to micro companies. As reported by Jes̼s Segarra Sobral, “The managers will use derivatives to offset the socially responsible investments and will keep 15% of the fund in cash to be able to maximize market momentum.” Minimum investment in BBVA Codespa Microfinanzas is å¥50,000.

Continue reading “BBVA Launches a Microfinance Hedge Fund Advised by Blue Orchard and Fundacion Codespa”