Microfinance is an interesting asset class with a double bottom line. Social as well as financial returns can be generated and therefore fit in today’s time as many institutional and private investors seek for sustainable investments. Up to now, a single digit billion market size indicates that the market is not mature. However, firstly it is growing tremendously. Secondly, for strategic asset allocation purposes also small asset categories can be considered and emerge with investors’ money. A perfect example for this is the cat bond market with about USD 16 billion currently outstanding.
KeywordsScenario Analysis Hedge Fund Private Equity Asset Allocation Asset Class
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