Christian Super turns to microfinance
Thursday, 6 November 2008 12:30pm
The $450 million Christian Super is ramping up its presence in the microfinance space by investing in two separate funds run by JPMorgan and Triodos Investment Management.
The super fund is currently in negotiations with JPMorgan and is looking to invest some of its $450 million into the Microinvest II Fund.
Meanwhile, another mandate will be awarded to Netherlands-based Triodos Investment Management, which offers three microfinance products - Triodos-Doen, Hivos-Triodos Fund and Triodos Fair Share Fund - that provide loans and equity investments to individuals and businesses in developing countries.
Christian Super declined to disclose the amount invested.
Christian Super chief executive Peter Murphy said that the mandates represent a "fantastic" opportunity for the super fund as microfinancing is not wholly correlated to fluctuations in the equity markets, among others. The move will be a good risk diversification tool, he said.
"We've been trying to get into the microfinancing space for the past 12 months but there wasn't a level of sophistication in the market that will allow super funds to get into that," said Murphy.
"It's fantastic for us because it resonates with our members," he said.
Murphy expects the investments to be particularly appealing to its younger client base, and is already making plans on communicating its latest venture via its member news later this month.
"It's a tangible way we can actually see that we are helping make poverty history, by trying to help the two to three billion working poor that exists in the world," he said.
Ruth Liew
