Investments in microfinance by institutional investors are growing. The investors benefit from
a dual return investment opportunity by balancing financial and social returns. Yet commercial
microfinance institutions tend to focus on their financial performance. Reaching out to
wealthier clients while crowding out poorer clients enhances their profitability - a phenomenon
called mission drift. Pim Engels has analysed the data of 600 microfinance institutions
operating in 84 countries and presents now new insights to the phenomenon of mission drift.
Based on his findings investors can recognise and prevent mission drift taking place amongst
the microfinance institutions in their portfolio.
