MICROCAPITAL STORY: Australia's Christian Super to Invest in Triodos Bank and JPMorgan Microfinance

Christian Super, an Australian Christian-based superannuation (pension) fund, has announced that it will invest an undisclosed amount in two separate microfinance funds run by JP Morgan and Triodos Investment Management. The fund, worth AUS 450 million (US 304 million) is reportedly interested in investing in JP Morgan’s Microinvest II Fund and Triodos Investment Management’s Triodos-Doen, Hivos-Triodos Fund, and Triodos Fair Share Fund. Christian Super CEO Peter Murphy spoke to Australia’s Financial Standard saying that these investments present an excellent opportunity for the super fund as it will provide a good risk diversification tool. He also said that Christian Super has been interested in investing in microfinance for 12 months but that the microfinance market was lacking the sophistication level required for super funds.

Christian Super is a Christian-based pension fund focused on the Christian community in Australia. It began in 1984 as the Christian Schools Superannuation Fund and since then has merged with a number of Christian company funds. Christian Super became a public offer Fund in April 2006. Total Assets for Christian Super in June 2008 totalled AUS 478 million (USD 323 million).

Based in the Netherlands, Triodos Bank was established in 1980. Triodos’ structure allows for investment banking, private banking and European branches in the Netherlands, Belgium, the United Kingdom and Spain with a representative office in Germany. Triodos’ mission is to provide finance for socially and environmentally beneficial and sustainable enterprises in both the private and public sectors. Triodos has participated in microfinance activities since 1994, providing loans, equity investments, guarantees and short-term trade finance, through its Hivos-Triodos Fund Foundation, Triodos-Doen Foundation and Triodos Fair Share Fund. According to its 2007 Annual Report, Triodos Bank had total assets of EUR 1.8 billion (USD 2.3 billion).

Formed in 1994, Triodos-Doen, was formed in 1994 as a partnership between Triodos Bank of the Netherlands and the Doen Foundation. It invests in microfinance institutions in the form of loans and equity investments. With a total assets reported as EUR 48.6 million (USD 62 million) at the end of 2007, they support the growth of the microfinance sector on a global scale.

Hivos-Triodos Fund, established in 1994, is a Triodos Bank partnership with the Humanist Institute for Cooperation with Developing Countries (Hivos). The Hivos-Triodos Fund encourages and facilitates Triodos Bank’s clients to become involved in global microfinance activities by investing through special savings accounts. Hivos-Triodos reported assets of EUR 38.7 million (USD 49.4 million) at the end of 2007.

The Triodos Fair Share Fund was established in 2002 as a closed mutual fund to provide finance in the form of loans and equity to sustainable microfinance institutions. The fund invests globally in developing countries with a mission to give financial access to the poor. Triodos Fair Share fund reported assets of EUR 36.9 million (USD 47.1 million) at the end of 2007

Information on Microinvest II Fund was not available on JPMorgan’s website. With reference to microfinance, the launch of its Social Sector Finance Unit is the only information available, and this is also covered in this MicroCapital story.

By Lori Curtis, Research Assistant

Additional Sources:

Christian Super: “Home” “About Us” “Annual Report“

Financial Standard: “Christian Super turns to microfinance“

MicroCapital Story: “JPMorgan Launches Social Sector Finance Unit to Bring Financial Services to Microfinance and Social Enterprise“

Triodos Investment Management: “Hivos-Triodos Fund” “Triodos-Doen” “Triodos Fair Share Fund“