Implicit biases among some investors perpetuate the misconception that integrating a gender lens increases risk, often based on unfounded assumptions that investments in women-led ventures are more likely to fail. 52 However, research consistently shows that portfolio diversification—including investments that prioritize gender equity—can actually reduce risk and enhance returns. 53 The urgency of addressing gender equity issues calls for immediate action rather than hesitation. Blended finance mechanisms are emerging as a powerful tool to de-risk these investments and mobilize capital. Below are some examples of these mechanisms in Asia: n Japan ASEAN Women Empowerment Fund (JAWEF) is a microfinance initiative managed by BlueOrchard Finance Ltd. 54 The Sasakawa Peace Foundation committed US$30 million to this fund, supported by a de-risking strategy from junior investors like the Japan International Cooperation Agency (JICA) and the Japan Bank for International Cooperation (JBIC), who accepted lower returns to incentivize senior investment participation. 55 n Impact Investment Exchange (IIX) issues the Women’s Livelihood Bond annually, with the seventh bond launched in 2024. 56 These bonds incorporate a US$500,000 first-loss tranche and a 50 percent loan portfolio guarantee. 57 n Investing in Women (IW) , an initiative led by the Australian Government and the Department of Foreign Affairs and Trade (DFAT), has provided critical grant capital to fund managers like SEAF, Patamar, C4D, and Root Capital. 58 These grants support investments in women entrepreneurs across Vietnam, Indonesia, and the Philippines, while also enabling fund managers to shift internal strategies, refine gender-focused approaches, and expand their investment pipelines. 59 By taking on perceived higher-risk investments, these funds have demonstrated their viability, attracting larger-scale capital and inspiring replication across the broader market. For organizations looking to develop a gender-lens strategy, 60 formulating effective indicators and approaches can be challenging. The GIIN (Global Impact Investing Network) provides a repository of research and case studies for impact investors interested in integrating a gender lens strategy. Industry leaders like Acumen, Calvert Impact Capital, and The Criterion Institute provide their own approaches and how-to guides for investors to work towards their goals. 61 One example is Patamar Capital, a venture capital firm operating in Southeast and South Asia, which has made significant strides in the GLI (Gender Lens Investing) space.
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Ten Years in the Making
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