Document summary
Since its inception microfinance has developed from a poverty alleviation initiative to an emerging asset class. Microfinance investments mainly attract social impact investors and are attractive from a diversification standpoint, due to their risk-return characteristics as they are uncorrelated with other asset classes such as bonds, commodities and equities. The sector has learned lessons from the 2008 economic and financial crisis and most regions have recovered from the lows of 2009. Economic recovery though is lagging in some areas.