Klaus Tischhauser is Co-Founder and CEO of responsAbility. His milestones there include the launch of the world’s first retail microfinance fund in 2003, and winning the G-20 SME Finance Challenge. In this radio feature he shares his expertise on fair trade investing, the outlook for the space, how such opportunities can be made investable, the criteria used, tracking such investments, mitigating risk...
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Criteria/filters used to determine whether to allocate capital to such opportunities?
How does one invest? Is it via fixed-interest debt securities? Do you also allocate to equity?
Could you give us a sense of the amounts allocated and the timeframe?
Are loans extended directly to farmers/exporters - or only via an intermediary - such as a co-operative? Both? Both and/or other(s)?
Do you have "on the ground intelligence" - DDQ and monitoring of your investments?
How is portfolio concentration risk, which could be as high as 80% for e.g. allocated to coffee, mitigated? How is this risk hedged/minimised? How do you cope with exposure to other risks - diseases, natural catastrophes, man made disasters, theft, fraud, default, „off-taker“ risk...)
Do you buy insurance and what are the collateral requirements?
Could you elaborate on the outlook and potential for investments in the fair trade space?