Briefly:

Waterloo-based Sarona Asset Management has announced its Sarona Risk Capital Fund has become an anchor investor in the MicroVest Short Duration Fund, the first North-American based microfinance liquidity fund available to private investors.

“We believe our investment in the MicroVest Short Duration Fund will allow institutional investors, non-profit organizations and foundations the ability to invest their assets in a highly liquid, low risk vehicle that supports the growth of the microfinance banking sector,” said Gerhard Pries, president of Sarona.

Sarona has committed up to US$3,300,000 to the fund and has approved an investment in MFX Solutions, which will provide hedging contracts in exotic currencies for international microfinance banking transactions.

“Our investment in MFX Solutions LLC is part of our continuing effort to develop innovative initiatives in the field of impact investing,” Pries said. “This initiative tackles one of the microfinance industry’s original sins – lending to microfinance banks in hard currency and thereby forcing them and their micro-business clients to bear the brunt of the currency risk.”

(07/28/10)

Staff

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