MicroCapital Monitor

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Funds Universe

Commercial Funds: Funds that seek financial return

Commercially-Oriented Funds: Funds that eventually seek financial return

Non-Commercial Funds: Funds that do not seek financial return

INTRODUCTION

Welcome to the universe of microfinance investment vehicles. Please enjoy key figures and highlights on microfinance investment funds or vehicles (”funds”) derived from the MIX Market, the microfinance information clearinghouse which we support as the industry standard. We synchronize with the MIX Market periodically, most recently on April 15, 2007.The Universe consists of 89 funds. In this universe, the funds are classified into three major categories based on a study by the MicroBanking Bulletin (The MicroBanking Bulletin, Special Edition on Financing, the Scope of Funding Mechanisms, issue no. 11, August 2005, Bulletin Highlights - Supply of Funding, Isabelle Barres, page 47.), one of the principal outputs of MIX. Those three categories include i. Commercial Funds; ii. Commercially-Oriented Funds; and iii. Non-commercial Funds. A commercial fund is defined as one that “seeks financial return”, while a commercial-oriented fund is one that “eventually seeks financial return”, and finally, a non-commercial fund “does not seek financial return”. In addition, funds in the third category are then divided further into three sub-categories, which are development fund, development agency, and foundation/NGO (please see definitions of these categories below).

Only fifty funds are covered in the aforementioned study by MIX, however, we apply this same criteria to all funds in the Universe by cross-checking objectives/philosophy, legal status and actual performance from the data available in MIX Market and the fund’s official website. Generally, funds reflect in their mission statement if they seek financial return, while legal status and past performance help to confirm their objectives. For example, we consider a fund as “commercial” when it clearly states its commercial or financial target, is incorporated as Limited Liability Company, or actually generates a positive financial return in recent year (ROA, ROE, etc.). Funds which cannot be placed into any peculiar category (due to a lack of clear or available information) are housed in the “Other Funds” category. In addition to the type of fund, we also provide information on type of current and prospect shareholders (underlying “funders”) when available. This helps you quickly understand which funds are open to your investment. We at MicroCapital do not recommend any of these funds; but rather we provide this list for informational purposes only.

Commercial Funds: Funds that seek financial return