This session will examine how emerging markets are growing and the role that microfinance plays in carving through the surface of this evolving asset class.

 

As a part of emerging market strategies, microfinance units are being launched within investment banks as a part of global trends. Now is the time to understand how this will shape the future direction of the banks’ policies and how it will compare to other emerging market asset classes and mainstream finance.

• Classifying microfinance as a niche for emerging market investors:
  • Absence of systematic data at a broad level
• Analysis of challenges, differences, similarities, and parallels:
  • Performance evaluations
  • Risks and rewards
  • Diversity within emerging markets
• Viewing microfinance investment opportunities across borders and asset classes

Presentation by:
Peter Johnson
Partner, Developing World Markets

Q&A Panelists:
Speaker to be confirmed
BNP Paribas

Prashant Thakker
Global Business Head – Microfinance, Standard Chartered Bank

As emerging markets develop, so do the options for alternative investments into this evolving industry. An analysis of the options on how to attract foreign capital will illustrate how to increase local currency credit to MFIs and showcase numerous benefits to the investor.

Michael Rauenhorst
Managing Director and Senior Investment Officer, Minlam Asset Management

Continuing from yesterday’s country specific case studies today will start with an emphasis on the developing MENA region. There is an obvious demand for financial services; however, the challenges are in understanding how increase possibilities for investment.

• Examining vast potential: 80% open for investment, but currently only 10 funds
• Favorable factors include:
• Low market penetration rates
• Benign government intervention
• Facing the issue of the region’s economic position
• Fundamentals of Islamic banking and its applicability within the microfinance context

Landscape:
Magdy Moussa
Head, PlaNet Finance, MENA

Case Study:
Motez El Tabaa
Executive Director, Alexandria Business Association (ABA)

MicroPlace is the first online, microfinance-focused brokerage and is dedicated to serving everyday people ("retail investors.")  Hear from the Founder and CEO, Tracey Turner, about the opportunity and the challenges associated with this new source of capital. While high net worth individuals and institutional investors have invested in microfinance for many years, just recently we have started to see the emergence of "retail investing". While insignificant individually, collectively retail investors have trillions to invest, making them the most powerful microfinance investors to date.  How will the entrance of this new source of capital impact the microfinance industry?

• Quantifying the potential of the retail investor market 
• Identifying the potential challenges and concerns associated with retail investors
• Recognizing the responsibility of unleashing this new source of capital
• Determining how retail investment capital fits in with overall microfinance capital markets 

Tracey Pettengill Turner
Founder and General Manager, MicroPlace, an eBay Company

Overcrowding within funds currently available is a major challenge for past investors and potential investors from the capital markets with only 100 funds chasing some 25 top-tier MFI. Now is the time to create some possible solutions for solving this problem.

• Establishing an investor code of conduct – distinction of health competition
• Identifying challenges across MFI tiers and potential solutions to balance capital distribution
• Classifying the role for foreign investment capital
• Explaining the traditional and future position of public sector, foundations, IMF, World Bank, et cetera:
  • To what extend should they continue investing in MIVs?
  • Impacts of increased concentration of capital into tier 2 and 3 MFIs
  • When will effects of more adequate infrastructure be realized?
• What is the appropriate role of government – how can they define the parameters for investment?

Moderator:
Tracey Pettengill Turner
Founder and General Manager, MicroPlace, an eBay Company

Panelists:
Gil Crawford
CEO, MicroVest Capital Management

Henk Nijland
Senior Investment Officer, Africa Department, FIMO

Terry Provance
Executive Director, Oikocredit

In this final regional case study, Latin America will be presented as it is the most developed and most open market for microfinance in the world. However, with such a solid groundwork already made there are many more opportunities to be had and benefits to be reaped from this region.

• Doubling efforts and adopting technologies – path to reach those still excluded:
  • Expanding coverage
  • Improving services
  • Lowering costs
  • Developing new distribution channels
• Marking progress for the future within the region through foreign capital

Overview:
Fernando Lucano Urioste
Managing Director, Cyrano Management

Case Study:
David Satterthwaite
President & CEO, Prisma Microfinance

Case Study:
Erik Josephson
Head of International Development, ECLOF Peru

One of the most prevalent challenges within the commercialization of microfinance is maintaining the original philanthropic cause that can in many ways be lost. However, the current microfinance industry is committed to maintaining both social and financial returns and this is the investor’s opportunity to hear how to set their own double bottom line goals.

• Describing positive and negative effects of this interaction
• Effect on the investor
• Social performance metrics:
  • What has been developed?
  • What is still needed?
• Determining appropriate returns
• Percentage of returns to invest in more funds versus social services
• The current status and development of a long term and sustainable business model

Presentation by:
Rocío Cavazos
Chief Financial Officer, Pro Mujer

Q&A Panel:
Roger Frank
Partner, Developing World Market

Premal Shah
President, Kiva

Sam Daley-Harris
Director, Microcredit Summit Campaign

Jacques Attali
President, PlaNet Finance

Anthony J. Walton
Vice Chairman, Americas, Standard Chartered Bank