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CMI believes that investment in efficient MFIs can be both profitable and socially beneficial.
Financial objective
CMI provides pension funds and other institutional investors as well as major private investors with exposure to the rapidly expanding microfinance sector which has the potential to provide investors with a combination of strong growth and attractive returns in high growth economies through an investment that is relatively non-correlated with most other asset classes.
CMI seeks to deliver to its investors an attractive internal rate of return (IRR), primarily by realizing capital gains through the sale of its investments. Alternatively, CMI may consider listing its expected, diversified portfolio of attractive, fast-growing and profitable microfinance institutions on a recognized stock exchange prior to the end of the term of the fund.
Social objective
CMI seeks to strengthen the ability of MFIs to provide much needed capital to low-income people and micro-enterprises located in poor and distressed communities that are unable to obtain proper access to traditional financial services. This in turn may trigger positive growth in the economy of the poor, thereby contributing to the overall economic revitalization of the communities in which they live and operate.
Furthermore, by investing in efficient and scalable MFIs, CMI will contribute towards creating more competition in the sector, thereby reducing the costs of financial services to low-income clients. Finally, by generating sound returns, CMI hopes to attract more mainstream investors to the Microfinance Industry. Ultimately, access to this large pool of capital is required to answer the financial needs of the poor.
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