The State of Microfinance Investment 2012: MicroRate's 7th Annual Survey and Analysis of MIVs

This report presents MicroRate's 7th annual survey and analysis of microfinance investment vehicles (MIVs). It is based on interviews with MIV managers and a survey of 102 active MIVs with total assets under management of USD 7.5 billion, as of December 2011. The report highlights the key role that MIVs play in connecting private and public capital with MFIs around the world. Key findings include:

• MIVs' total asset growth settled into a "new normal" at 11% during 2011, it was a record year for investor redemptions and fund maturities;
• Growth at existing and new funds resulted in a net inflow;
• Liquidity levels stabilized as excess cash from 2009 was reinvested in 2010;
• MFI demand returned, though with large regional and country differences;
• Latin America had the largest share of growth, but the pace of growth was faster in East Asia, the Pacific, and Africa;
• Continuous shift from debt to equity and an increase in non-microfinance investment, such as housing, and fair trade was witnessed in 2011;
• Institutional investors' demands show increasing importance of financial performance.