MicroVest screens for institution responsibility as rigorously as it does financial stability. Factors like management quality, sound governance, ethical behavior, and fair treatment of customers are among variables that weigh heavily on our assessment of a Responsible Financial Institution or “RFI”. Our social screens also help to exclude institutions that may correlate with higher environmental, social and governance risks, any of which could undermine the value of the investment and impair impact performance.
MicroVest maintains continuous monitoring of its portfolio companies throughout the duration of the investment and collects data on a quarterly basis to glean insight into institutions’ financial performance, loan portfolio trends, corporate updates, end borrower demographics, and compliance with covenants.
MicroVest utilizes the ALINUS tool (Aligning Investors Due Diligence with Universal Standards) to support the social measurement of an RFI’s performance across dimensions that include 1) the company’s ability to monitor social goals; 2) commitment to social goals; 3) affinity for designing products that meet clients’ needs; 4) the fair treatment of clients; 5) the fair treatment of employees; and 6) the balance between social and financial performance.