An effective complement to direct investment is investment by mutual funds. It gives a lot of capital to businesses in under-served developing countries and emerging markets, so that the best possible way to grow, raise income levels for their populations and improve their business and create jobs and tax revenue for their economies and ability to contribute to economic growth and development.
Investments by mutual funds have a number of positive developmental effects on local economies and populations. By investing in funds may Swedfund capital to reach a large number of companies for each money invested in a fund, other investors become attracted who is also one of the advantages of mutual fund investments.
The fund invests in a company usually for a 4-7 years and during this period, the fund manager with its local presence and knowledge to provide guidance to each portfolio company to improve the quality of operations and developed throughout the investment period.
By making the investment period monitor the performance of fund managers together with Swedfund can business practices evolve to better in emerging markets.
Swedfund has 87 portfolio companies and is available in 87 companies located in 26 countries around the world. It invested through funds in emerging markets in Africa, Asia, Eastern Europe and Latin America, and Africa is the poorest region in the world is the biggest investment with corresponding 41% of Swedfund total committed capital. Next comes Asia with 36%, Latin America with 15% of investments and last but not least, Eastern Europe which accounts for the rest, with only two remaining portfolio companies. The largest investments in cleaner technology, financial services, microfinance institutions, and information and communication technology.