HNWIs help FIIG close bond fund
Fixed income specialist, FIIG Securities has announced it managed to close its VisionFund International fund, which only launched last week with World Vision microfinance subsidiary.
The fund raised $20 million in less than three days thanks to a strong demand from high net worth (HNW) investors.
The fund, which was aimed to help fund global financial inclusion initiatives, saw a surge in interest from HNWIs, who accounted for 80% of the raised funds, for investments that balanced a favourable financial return on investments with demonstrable social impact.
Following this, the funds would be used by VisionFund to help grow its microfinance institutions which complemented World Vision’s development work.
According to the firm’s estimates, over five years the investments would impact 470,000 people in developing countries of which 274,000 beneficiaries would be children.
Jim Stening, managing director of FIIG Securities, said that Australians consistently ranked in the world’s top five countries for charitable giving in the last 10 years according to the World Giving Index.
“This impact investment will benefit those living under the poverty line, so most investors view this as a key part of their philanthropic investment allocation,” he said.
“It also has the added benefit of providing diversification as it is not exposed to the Australian economic environment but instead to many developing countries around the world without the risk of exchange rate volatility.”
The five-year bond was unsecured and unsubordinated and offered a fixed rate of 5% per annum, paid semi-annually, FIIG said.
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