Triodos Microfinance Fund expects to direct more capital towards emerging markets that demonstrate greater resilience to higher interest rates and have strongly developing domestic economies. In addition, countries with a greater market potential for financial inclusion, for instance in Asia and Africa, will be targeted. Aligning with its strategy, the fund will continue to build up its portfolio with players that target the underserved SME sector and employ innovative methods to increase financial inclusion, while also safeguarding the environment and operating sustainably.
The inclusive finance market is expected to grow by between 10% and 15% in 2016, which is slightly less than in 2015. The volatility on the currency markets is likely to remain high for the time being. As a consequence, hedging costs will also remain high.