Blended value funds typically target smaller MFIs experiencing lower growth rates than the MFIs financed by commercial fixed-income investment funds and regulated mutual funds which also focus on more under served regions and rural areas. This category of funds is more mission driven and targets both a social and a financial return. According to the Consultative Group to Assist the Poor (CGAP), the average return is 1.5%¹. In Switzerland the International Guarantee Fund (FIG), a not-for-profit guarantee fund issues guarantees to local banks, ECLOF a not-for-profit organization based on Christian values, which lends through its local network of affiliates, and lastly, the Aga Khan Agency for Microfinance which has established its own network of MFIs and supports it through loans and share capital stakes. Each of these MIV has their own region of focus. Their average loan size is also much smaller than other MIVs and requires efficient due diligence which also explains the higher total expense ratio of all MIVs.

• Fixed-income funds

• Equity funds

• Guarantee funds

¹ The Consultative Group to Assist the Poor (CGAP) Focus Note Nbr. 44: Foreign Capital Investment in Microfinance