Extract from the 2014 GABV Annual Report (launched April 1, 2015)
Following on its research released in 2012, the Global Alliance has been actively working on securing new sources of long-term capital to support the growth of values-based banks. That research identified both the need for capital to support growth of values-based banking institutions and the attractive financial and non-financial returns they provide. This effort has been focused on the initiation of Sustainability | Finance | Real Economies (SFRE or Sapphire).
The Global Alliance has provided the project funding to support the development of SFRE which is structured as a Luxembourg open-ended investment fund with the potential for multiple compartments or subfunds. In addition to providing project funding, Global Alliance members have committed to invest nearly $20 million in SFRE.
SFRE has been structured and investors have been secured through the efforts of Enclude Capital Advisory UK Limited, (www.encludesolutions.com) an advisory firm that connects clients with financial resources that drive real and sustainable growth in emerging economies with a focus on the inclusive economy.
SFRE has an independent Board of Directors elected by its investors, including Jim Prouty, CEO. The Global Alliance, as owner of the Mission Share, has the right to propose one member for the Board of Directors. Changes to the investment policy, the CEO, the Investment Manager and certain other strategic decisions require the positive vote of the Mission Share representative for approval. This structure ensures that SFRE maintains its focus on supporting the growth of values-based banking.
SFRE will invest its funds in values-based banks throughout the world. The investment process for SFRE is managed by MicroVest Capital Management, LLC (www.microvestfund.com), an asset management firm with a focus on investing capital in under-banked markets and providing access to financial services for rising middle class communities around the world. SFRE investments will be approved by an Investment Committee.
SFRE is the first global open-ended investment fund focusing on providing long-term capital to valuesbased banking institutions. By being open-ended it will not face pressure to encourage the sale of its investments to provide returns to investors. Rather its focus on providing both an ongoing cash return through dividends and capital appreciation will support the long-term mission of the banking institutions in which it invests.
Although independent, SFRE will enhance the eco-system of values-based banking that the Global Alliance is developing across its various activities. Supporting the growth of these banking institutions as well as providing an incentive to become more values-based focused will be a result of this effort.
Read the SFRE press release (English, Spanish, Norwegian, German).
Download the Press Kit (English and Spanish).
Learn more at www.SFREfund.com