Morgan Stanley’s social finance activities focus on business models that provide basic services – such as financial services (microfinance), housing, micro-energy, healthcare and water – to those at the base of the economic pyramid. By intermediating the flow of capital to businesses that generate financial and social returns, we help expand economic opportunities to disadvantaged communities.

International Microfinance
Microfinance is recognized as an effective tool for empowering the working poor to achieve financial independence. To meet the tremendous demand for financial services, microfinance institutions (MFIs) need consistent and affordable access to capital. Morgan Stanley meets this need by providing specialized technical expertise and acting as an intermediary that connects MFIs with the capital markets. Since 2006, we have intermediated over $550 million of microfinance securities across a range of transactions – each a landmark for the industry – to facilitate access to capital for over 30 MFIs. This has benefited several million low-income entrepreneurs.

Domestic financial inclusion
We are committed to supporting the development of inclusive financial services in the U.S., applying our international social finance experience to help organizations increase their impact by growing and achieving financial sustainability. We provide capital and technical assistance to a range of organizations that work to broaden the range of financial services available to unbanked communities in the U.S.

Thought leadership
Morgan Stanley supports strategic dialogues and research that provide investors with insights into investment opportunities in social finance. For example, we recently provided financial sponsorship and strategic guidance for a study on best practices and guidelines for handling debt defaults by microfinance institutions, published by the International Association of Microfinance Investors (IAMFI).

Read our 2012 Sustainability Report for more information.