Melanie Schnoll-Begun, Citi Philanthropic Services managing director, says the offerings are a first of their kind by any financial institution. "This is truly a statement that we believe in this space. With the right advisory services, we can help clients move significant assets into the emerging marketplace."

Merrill Lynch and Capgemini's recent wealth report indicated that socially responsible investing and philanthropy are areas of keen interest among the Asian wealthy.

Over the next few days, Citigroup is introducing clients in Singapore and Hong Kong to the two initiatives. So far, interest has been good, says Michael Troth, managing director of Citigroup Private Bank.

The two-pronged effort comprises the Citi GIFT Microfinance Donor Fund and the Citigroup Global Microfinance fund. While they both help to fund microfinance institutions, there are distinct differences.

The donor fund aims to benefit emerging microfinance institutions, which are unregulated. They operate as non-profit organisations and need the philanthropic dollar. There is no expectation of a return, and the minimum US$50,000 donation is irrevocable.

Quarterly reports will be prepared by two independent companies, as well as conference calls with the leading personalities, including Nobel winner Muhammad Yunus himself. Yunus founded Bangladesh's Grameen bank which extends small loans to the poor, especially women.

Trips will also be arranged for donors to view the projects they are funding.

Fees at an estimated 1.1 percent a year are said to be much lower than any other donor fund where fees range between one and 3 percent. "1.1 percent is an incredible cost for getting access to such critical information. We subsidise some of the costs. We also recognise that this is not an area where we expect a large return. It's an opportunity to educate clients,' says Schnoll-Begun.

With microfinance, a sum of US$500,000 would make a huge impact, unlike the US$100 million that may be needed to build a hospital.

The Global Microfinance Fund, on the other hand, will invest in 'tier one' microfinance institutions which aim to generate a profit. The universe comprises about 150 institutions in 58 countries. The fund will be sub-advised by BlueOrchard Finance, a Swiss company set up to manage microfinance investment products. The fund aims to earn a return of Libor plus.

Citigroup itself will commit US$10 million to the fund, which is expected to raise a total of about US$100 million. Fees are expected to cost around 2.25 percent a year.

On its website, BlueOrchard estimates that micro-bankers will need between US$10 billion and US$20 billion over the next five years to meet demand. Traditional sources of funding like client savings and the international community are expected to cover just 5 percent of the needs. Hence, the need to tap capital markets.