30.04.2012 - As the sole shareholder of SIFEM, the Swiss Confederation approved the 2011 Annual Report and audited financial statements at the General Assembly held on 30 April 2012. Overall, SIFEM is on track and contributes significantly to job creation.
SIFEM’s priorities in its first year under public ownership lay in completing the various start-up tasks and assuming responsibility for the investment portfolio from SECO, the State Secretariat for Economic Affairs. Despite a difficult economic environment, SIFEM delivered satisfactory results in 2011.
While the income statement posted an operating loss of CHF 11.3 million, the bulk of this was actually in the form of a paper loss. The Internal Rate of Return (IRR) remained quite solid at 11%, just slightly below the long-term average, an indication that the investment portfolio is holding up well against the unfavourable markets. New investments accounted for CHF 52.3 million, which was higher than in previous years. Clearly, SIFEM is finding sufficient investment opportunities that satisfy its financial viability and development policy criteria.
The development impact sought with SIFEM’s investments is measured primarily in terms of jobs. Since 2005, its investment portfolio has contributed to the creation or retention of over 170,000 jobs. Meanwhile, SIFEM’s investments also help to promote financial sector diversification and resilience in the local markets and better operational management in its portfolio companies.
SIFEM is a limited company under private law held by the Swiss Confederation. Most of its investments take the form of venture capital in developing countries and emerging economies, giving SMEs there an opportunity to access long-term financing. SIFEM thus contributes to these companies’ sustainable growth and job creation as well as private sector development and poverty reduction in the target countries. A detailed account of SIFEM’s operations and financial statements can be found in its 2011 Annual Report, available for download at www.sifem.ch.
While the income statement posted an operating loss of CHF 11.3 million, the bulk of this was actually in the form of a paper loss. The Internal Rate of Return (IRR) remained quite solid at 11%, just slightly below the long-term average, an indication that the investment portfolio is holding up well against the unfavourable markets. New investments accounted for CHF 52.3 million, which was higher than in previous years. Clearly, SIFEM is finding sufficient investment opportunities that satisfy its financial viability and development policy criteria.
The development impact sought with SIFEM’s investments is measured primarily in terms of jobs. Since 2005, its investment portfolio has contributed to the creation or retention of over 170,000 jobs. Meanwhile, SIFEM’s investments also help to promote financial sector diversification and resilience in the local markets and better operational management in its portfolio companies.
SIFEM is a limited company under private law held by the Swiss Confederation. Most of its investments take the form of venture capital in developing countries and emerging economies, giving SMEs there an opportunity to access long-term financing. SIFEM thus contributes to these companies’ sustainable growth and job creation as well as private sector development and poverty reduction in the target countries. A detailed account of SIFEM’s operations and financial statements can be found in its 2011 Annual Report, available for download at www.sifem.ch.
14.12.2011 - SIFEM invests USD 3m in the Higher Education Finance Fund see Portfolio
06.09.2011 - SIFEM invests EUR 7m in the Maghreb Private Equity Fund III see Portfolio
01.09.2011 - SIFEM invests USD 10m in the GEF Africa Sustainable Forestry Fund see Portfolio
18.08.2011 - SIFEM becomes Switzerland’s Development Finance Institution, owned and capitalised by the Swiss Confederation and managed by Obviam, a privately-owned management advisory group more
Since 2005, SIFEM ("Swiss Investment Fund for Emerging Markets"), a Swiss limited company based in Bern, has managed a portfolio of development-oriented private equity, mezzanine, debt and structured investments on behalf of the State Secretariat for Economic Affairs (SECO) of Switzerland. In August 2011, the Swiss Confederation has acquired SIFEM, which holds the investment portfolio, thereby completing SIFEM’s transformation into a full-fledged, capitalised Development Finance Institution. SIFEM remains a member of the association of European Development Finance Institutions (EDFI), which unites it with its sister organisations from other European countries.
Obviam, a newly founded and privately-owned management advisory group, has been entrusted with the management of SIFEM. The senior management of Obviam has been in charge of managing SIFEM’s investment portfolio since the 1990s and formed Obviam in order to continue this activity. The choice to outsource the management of SIFEM to a private company was motivated by the Swiss Confederation’s objective of mobilising private investments for development. Obviam’s private ownership and organisation enables the team to accept other mandates and thereby leverage private capital for investment in SIFEM’s target countries.
The Swiss government has selected an experienced Board of Directors for SIFEM. Within the scope of strategic objectives established by the Swiss government, the Board will determine SIFEM’s investment strategy and supervise its outsourced management. The Board is chaired by the former State Secretary and World Bank Executive Director Jean-Daniel Gerber. He will be seconded by Vice-Chairman Michel Juvet, a private banker at Bordier & Cie in Geneva. The other members of the Board are Julia Balandina, Jean-Luc Bernasconi, Hugo Fasel, Susanne Grossmann and Iain Tulloch. The Board of Directors will report to its shareholder, the Government of Switzerland, which will be represented by the State Secretariat for Economic Affairs.
The investment mandate of SIFEM remains largely unchanged. SIFEM is a key pillar of the Swiss Confederation’s efforts to promote sustainable private sector-led growth in developing and transition economies with the goal of reducing poverty and contributing to increased living standards. Through its local partners SIFEM invests in companies that are most likely to be financially sustainable, and requires environmental, social and governance best practice. Moreover, SIFEM’s investments are development-oriented, aiming to achieve a broad set of objectives beyond the financial rate of return such as job creation, training, and sector deepening and diversification. SIFEM can only invest in countries with GNI per capita below the World Bank’s IBRD graduation threshold (currently at USD 6,725). The partner countries of the Swiss development cooperation are treated with priority. At least 60% of SIFEM's investment volume in any year must be allocated to these priority countries.
Obviam, a newly founded and privately-owned management advisory group, has been entrusted with the management of SIFEM. The senior management of Obviam has been in charge of managing SIFEM’s investment portfolio since the 1990s and formed Obviam in order to continue this activity. The choice to outsource the management of SIFEM to a private company was motivated by the Swiss Confederation’s objective of mobilising private investments for development. Obviam’s private ownership and organisation enables the team to accept other mandates and thereby leverage private capital for investment in SIFEM’s target countries.
The Swiss government has selected an experienced Board of Directors for SIFEM. Within the scope of strategic objectives established by the Swiss government, the Board will determine SIFEM’s investment strategy and supervise its outsourced management. The Board is chaired by the former State Secretary and World Bank Executive Director Jean-Daniel Gerber. He will be seconded by Vice-Chairman Michel Juvet, a private banker at Bordier & Cie in Geneva. The other members of the Board are Julia Balandina, Jean-Luc Bernasconi, Hugo Fasel, Susanne Grossmann and Iain Tulloch. The Board of Directors will report to its shareholder, the Government of Switzerland, which will be represented by the State Secretariat for Economic Affairs.
The investment mandate of SIFEM remains largely unchanged. SIFEM is a key pillar of the Swiss Confederation’s efforts to promote sustainable private sector-led growth in developing and transition economies with the goal of reducing poverty and contributing to increased living standards. Through its local partners SIFEM invests in companies that are most likely to be financially sustainable, and requires environmental, social and governance best practice. Moreover, SIFEM’s investments are development-oriented, aiming to achieve a broad set of objectives beyond the financial rate of return such as job creation, training, and sector deepening and diversification. SIFEM can only invest in countries with GNI per capita below the World Bank’s IBRD graduation threshold (currently at USD 6,725). The partner countries of the Swiss development cooperation are treated with priority. At least 60% of SIFEM's investment volume in any year must be allocated to these priority countries.