Stamford, CT, USA
Dec 16, 2021
Developing World Markets (“DWM”), a U.S.-based investment manager with more than two decades of experience, announced today its 2021 Annual Impact Report, which outlines the positive social and environmental impact of investments over the previous year. The report unveils both challenges and opportunities in identifying investible solutions that sustainably address the social, environmental, and economic needs of the developing world.
DWM is a proud signatory of the Operating Principles for Impact Management (OPIM), demonstrating its commitment to a global standard for managing investments for impact. In March 2021, DWM released its first-ever independent verification of alignment with OPIM. DWM was also named to the top ImpactAssets 50 list of impact fund managers globally for the seventh year and became a signatory to the Net Zero Asset Managers Initiative in 2021.
As of this year, DWM’s current aggregate portfolio of investments in financial inclusion contains 66 microfinance institutions and 10 small and medium enterprise lenders that provide financial services to underbanked clients in emerging and frontier countries. This demographic includes women and minority-owned businesses across impact sectors including sustainable agriculture, education, housing, health, renewable energy, displacement and water and sanitation. The portfolio also included three solar operating companies.
“Now more than ever, it’s increasingly important for investors to really look under the hood to see whether the methods used to measure the results of impact investments are both accurate and meaningful enough to tell us if we’re on track to achieving our goals,” said Hannah Schiff, newly appointed Director of Impact at DWM. “As an industry, we can concretely move the needle if investment managers seeking to make an impact are able to document progress in a measurable and efficient way.”
The 2021 Impact Report includes details on DWM’s impact strategies, new strategic partnerships, financial commitments, and client protection initiatives. Tangible measurements of DWM’s direct impact throughout 2020 include the following:
- End Client Demographic: 78% women, 67% rural, 80% low-income clients
- Top Financial Products: Loans, life insurance, loan insurance, remittance services and saving products
- Climate Impact: Total CO2 reductions of over 1.3 million metric tons (since 2016)
- Financial Inclusion Goals: Focus on five Sustainable Development Goals (SDGs) that address poverty, gender equality, decent work and economic growth, and reduced inequalities
- 80% of end clients are low-income or poor
- 32% of portfolio companies have women in management positions
- 77% of loans are for income-generating purposes, with a median loan size of $2,061.96
- 80% of end clients are low-income or poor
“As we look ahead to 2022, we see financial inclusion playing an increasingly important role in helping people in developing economies regain their financial footing and improve their lives and livelihoods,” said Edward Marshall, Co-Managing Partner of DWM. “We see particular opportunities in 2022 for financial inclusion to support underserved communities such as those forcibly displaced by conflict and climate change, and we’re developing strategies to make that happen.”
Click here to view the full report.
Founded in 1994, Developing World Markets (DWM) seeks investible solutions that sustainably address the social, environmental, and economic needs of the developing world. DWM began impact investing in 1999 and shifted exclusively to impact in 2007. DWM has over two decades of experience in emerging and frontier markets. Through DWM Asset Management, LLC, the firm’s SEC-registered investment adviser, DWM has originated and managed over $2.2 billion of private debt and private equity in impact-oriented enterprises, including over 900 loan disbursements and 25 private equity stakes in more than 70 emerging and frontier countries.
As a non-EU AIFM, with vehicles regulated by Luxembourg’s CSSF and Germany’s BAFIN, longstanding partnerships in the Netherlands, Germany, and now the Nordic region, and relations with institutional investors across the continent, DWM is dedicated to serving its European investor partners, with a shared commitment to impact.
Maggie McCuen, BackBay Communications