M&G invests an additional $30 million to empower women and promote financial inclusion in developing countries through the Global Gender-Smart Fund

Capital to be deployed via three investment advisers including responsAbility, M&G’s impact asset manager in developing markets

London, 27 June 2024 – M&G today announces it has increased its investment into the $600 million Global Gender-Smart Fund (GGSF/the Fund) – one of the world’s largest gender-focused investment funds addressing the $1.7 trillion gender gap in access to finance. M&G has boosted its commitment to US$120 million to support the growth of the portfolio, investing alongside the International Finance Corporation (IFC) and OeEB - the Austrian Development Bank, KfW Development Bank (KfW) and BMZ – the Federal Ministry for Economic Cooperation and Development.
The Fund has pivoted towards a gender-focused strategy with the aim of strengthening the provision of gender-smart and responsible financial services focusing on underserved women and female-owned/led businesses in developing markets, with the aim to improve livelihoods, increase gender balance and promote female leadership. It will also help to advance gender equality at the level of the financial institutions responsible for allocating the finance provided by the Fund to end-borrowers by encouraging them to increase their senior level gender balance and improve working conditions for women.

GGSF’s portfolio is co-managed by three impact investing portfolio managers: responsAbility, Incofin and Triple Jump, with Innpact Fund Management acting as Alternative Investment Fund Manager (AIFM). responsAbility – one of the world's leading impact investors with expert knowledge of microfinance markets - was acquired by M&G in 2022 and is part of the firm’s £73 billion Private Markets division.

M&G’s increased commitment to GGSF has been made on behalf of the M&G Impact Financing Fund alongside internal and external capital. Launched in 2018, the Impact Financing Fund is a multi-sector private debt portfolio - one of the first funds of its kind to invest predominantly in private and illiquid debt to achieve a positive social or environmental impact.

Eoin O’Shaughnessy, Co-Head of Structured Credit Research at M&G Investments, says: “We are proud to be one of the largest investors in the Global Gender Smart Fund - a unique and innovative vehicle that combines financial returns with social impact. By investing in financial institutions that empower women and promote financial inclusion, we are supporting the economic development and resilience of some of the world's poorest communities. This investment also demonstrates how different parts of M&G can work together to provide our clients with access to a diverse and attractive range of opportunities across different asset classes and geographies.”

Rochus Mommartz, CEO of responsAbility, adds: "We are proud to co-manage the Global Gender Smart Fund, leveraging our microfinance expertise to drive gender-smart financial services for underserved women and female-led businesses. With the support from M&G and the other investors, we aim to scale our efforts to advance gender equality, improve livelihoods, and promote female leadership within financial institutions. This aligns with our vision of a sustainable world with access to opportunities for all, supporting sustainable and inclusive growth in emerging markets."

M&G’s investment into GGSF marks its second microfinance commitment this year following a recent investment into the European Fund for Southeast Europe, which provided €107 million tooost entrepreneurship job creation and poverty reduction in southeastern Europe.

Ruurd Brouwer, Chairman of the Board for the Global Gender-Smart Fund, concludes: “We are thrilled to welcome M&G as investor in the Global Gender-Smart Fund. The gender financing gap can only be bridged through the mobilization of the private sector at scale. The strong support from GGSF's founding shareholders has been crucial and having M&G buying into the impact strategy as well as the risk return profile is proof that a well-structured fund can generate impact, responsible returns and catalyse the private sector. We are looking forward to our continued cooperation."

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Notes to editors

OpenAbout the Global Gender-Smart Fund

Formerly known as the Microfinance Enhancement Facility, the Global Gender-Smart Fund is one of the longest running funds of its type, founded in 2009 to ensure ongoing liquidity for microfinance institutions in the wake of the global financial crisis. GGSF provides funding to 120 financial institutions across 46 developing markets institutions which in turn extend access to finance to micro-entrepreneurs and micro, small and medium enterprises (MSMEs) that are owned or led by women - or which offer products or services which benefit women. Over the past 15 years, it has supported more than 320 financial institutions across 65 countries, with an average loan size below $3.5 million, reaching $3 billion invested by end of 2023.

OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £343.5 billion of assets under management (as at 31 December 2023). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

For more information, please visit: https://mandg.com/

OpenAbout responsAbility

responsAbility Investments AG is a leading impact asset manager specialising in private markets investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.

Since its inception in 2003, responsAbility has deployed more than US$15.4 billion in impact investments. With circa 270 employees in 8 offices, as of 31 December 2023, the company manages US$4.8 billion in assets across circa 280 portfolio companies in 69 countries. Since 2022, responsibility is part of M&G’s £73 billion Private Markets business and contributes to enhancing M&G’s capabilities in impact investing.

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