Japan: The Launch of Daiwa Microfinance Fund

Mar 2011
Tokio, Japan, March, 01 2011 - Daiwa Securities Group has developed the Daiwa Microfinance Fund to help poor and low-income entrepreneurs in developing countries increase their access to financial services.

The fund is distributed by Daiwa Securities Co. Ltd. and Daiwa Capital Markets Co. Ltd. to retail and institutional investors in Japan.

The Fund is designed to lend to microfinance institutions (MFIs) in local currencies as well as to invest in emerging currency bonds issued by international development finance institutions which support developing countries with an emphasis on social impact and which help reduce the overall risk profile of the Fund.  Investors in Japan can contribute to poverty alleviation efforts in developing countries through investment in the Fund from JPY1000. 

About the operation of the Fund

The Fund will be managed by Tokio Marine Asset Management Co., Ltd. of Japan, while the substantial operation will be managed by DWM Asset Management, LLC, a U.S. asset management company that specializes in microfinance and local currency investments.

DWM Asset Management Partner Peter Johnson says “DWM is proud to work with two leading Japanese financial institutions, Daiwa Securities and Tokio Marine Asset Management, in the creation and management of a microfinance fund for retail and institutional investors in Japan.  For over 10 year, DWM has worked to open doors to international capital markets for small and micro enterprises in the developing world.  Through the Daiwa Microfinance Fund, Japanese people, who value the spirit of social entrepreneurship and helping one another, will have an opportunity to enable small entrepreneurs in low-income countries to build viable enterprises and create employment.”

Ooba Akiyoshi CEO, Tokio Marine Asset Management says “We are delighted to work with Daiwa Securities Co., Ltd and DWM. Currently institutional investors overseas and the wealthy in Western countries actively participate in microfinance related financial products. While in Japan such products have not yet penetrated the market, we strongly hope the meaning of microfinance and its need to harness private sector investment will become clear to Japanese investors with this opportunity. It has been difficult for the mutual fund industry to unite financial and social returns in an investment vehicle and this fund makes it possible.

Suzuki Shigeharu, President and CEO of Daiwa Securities Group Inc. emphasizes the firm’s commitment to promoting Impact investing, a new trend in socially responsible investment (SRI).

"One of our missions is solving social issues by leveraging financial capabilities. Compared to Europe, SRI is very limited in scale so far in Japan. Daiwa Securities Group has actively been developing SRI products as a pioneer in this field in Japan. This fund helps MFIs’ capital structure by reducing currency risks while alleviating poverty, thus exemplifying our mission. We play a role of intermediary between investors and those who need investment capital to build a sustainable society. "



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