Microfinance is emerging as an innovative asset class that can play an interesting role in private banking. It is attractive for several reasons. On the one hand it is arguably one of the most effective techniques for poverty alleviation - which speaks to the conscience of wealthy investors. On the other hand, from a purely financial perspective, recent research has shown that microfinance has a useful portfolio diversification value, because of its low correlation to general market movements.

In this context we enjoyed speaking to Jean-Philippe de Schrevel, Founder and Managing Director of BlueOrchard, a successul microfinance investment manager. BlueOrchard employs 16 finance professionals in Geneva and New York. It manages several funds of totally almost 500 million dollars, invested in over 34 countries and 92 microfinance institutions.

Enjoy the video:

Some more resources:

• FT article (subscription required): Investing in microfinance institutions not as risky
• FT article (subscription required): Research on microfinance

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