MICROCAPITAL BRIEF: Absolute Portfolio Management (APM) Issues $12.5m in Credits from Dual Return Funds to Microfinance Institutions in Asia, Latin America

Absolute Portfolio Management (APM), an Austria-based asset management company that offers investment and advisory services to microfinance institutions (MFIs), recently issued approximately USD 12.5 million in credit to unspecified MFIs in Armenia, Azerbaijan, Bolivia, Cambodia, Costa Rica, Ecuador, Nicaragua and Tajikistan.The loans were made through APM’s two microfinance funds, Dual Return Fund- Vision Microfinance and Dual Return Fund- Vision Microfinance Local Currency. One of the investments made through Dual Return Fund- Vision Microfinance is to Diaconia, a Bolivia-based MFI that provides loans to new entrepreneurs of whom a majority are women. Further information on the investments has not been released.

Absolute Portfolio Management’s Dual Return Fund- Vision Microfinance was created in 2006 and reported USD 95.9 in total assets as of February 25, 2013. As of October 2012, the Dual Return Fund- Microfinance Local Currency, which allows for investments in local-currency microfinance debt instruments, held outstanding loans to 30 MFIs in 16 emerging markets. Its total assets were USD 41.4 million as of February 25, 2013. Diaconia FRIF had USD 79.8 million in total assets, a gross loan portfolio of USD 75 million, 66,600 borrowers, 8.3 percent return on assets (ROA) and 15.6 percent return on equity (ROE) as of December 2012.

By Megan McGowan, Research Associate

About The Dual Return Fund – Vision Microfinance

The Dual Return Fund – Vision Microfinance is a sub-fund of Vision Microfinance, both of which were created in 2006 by Absolute Portfolio Management GmbH, an Austrian investment company with a focus on microfinance. As of October 2012, the fund reported loans outstanding to 62 microfinance institutions (MFIs) in 22 emerging markets. Its total assets were USD 95.8 million as of February 25, 2013. As of November 2012, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector.

About the Dual Return Fund- Vision Microfinance Local Currency:

The Dual Return Fund – Vision Microfinance Local Currency is a sub-fund of Vision Microfinance, both of which were created in 2006 by Absolute Portfolio Management GmbH, an Austrian investment company with a focus on microfinance. The fund disburses local-currency loans directly to microfinance institutions (MFIs). As of October 2012, the fund volume reached USD 32.2 million and held loans outstanding to 30 MFIs in 16 emerging markets. As of November 2012, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. Its total assets were USD 41.4 million as of February 25, 2013.

About Absolute Portfolio Management:

Absolute Portfolio Management GmbH (APM) is an Austria-based asset management company that offers investment and advisory services in microfinance and other sectors. The firm’s Dual Return Vision Microfinance and Dual Return Fund – Vision Microfinance Local Currency were created in 2006 and report USD 95.9 million and USD 41.4 million in total assets, respectively, as of February 25, 2013.

About Diaconia

Diaconia FRIF (Fondo Rotativo de Inversion y Fomento) is a Bolivian microfinance institution (MFI) that was established in 1991 to provide loans, insurance and fund transfer services. According the US-based Microfinance Information Exchange (MIX Market), Diaconia FRIF had USD 79.8 million in total assets, a gross loan portfolio of USD 75 million, 66,600 borrowers, 37 branches, 8.3 percent return on assets (ROA) and 15.6 percent return on equity (ROE) as of December 2012.

Sources and Additional Resources

[1] Information sent to Microfinance.org from Absolute Portfolio Management, “Vision Microfinance: Social Impact Investing.”

MicroCapital.org Article, August 8, 2013, “MICROCAPITAL BRIEF: Austria’s Absolute Portfolio Management Issues Credits Worth $4m to Microfinance Institutions in Azerbaijan, Cambodia, Georgia, Honduras, Indonesia,” https://www.microcapital.org/microcapital-brief-austrias-absolute-portfolio-management-issues-credits-worth-4m-to-microfinance-institutions-in-azerbaijan-cambodia-georgia-honduras-indonesia/

MicroCapital.org Article, July 15, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management’s Dual Return Funds Invest $9.5m in Microfinance Institutions (MFIs) of Eight European, Asian, Latin American Countries,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-managements-dual-return-funds-invest-9-5m-in-microfinance-institutions-mfis-of-eight-european-asian-latin-american-countries/

MicroCapital.org Article, May 10, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $13m from Dual Return Funds to Microfinance Institutions (MFIs) in South America, Eurasia Including FINCA Armenia,”  https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-loans-13m-from-dual-return-funds-to-microfinance-institutions-mfis-in-south-america-eurasia-including-finca-armenia/

MicroCapital Universe Profile: Absolute Portfolio Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Absolute+Portfolio+Management

MicroCapital Universe Profile: Diaconia FRIF (Fondo Rotativo de Inversion y Fomento), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Diaconia

MicroCapital Universe Profile: Dual Return Fund Vision Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DUAL+RETURN+VISION+MICROFINANCE+FUND

MicroCapital Universe Profile: Dual Return Fund Vision Microfinance Local Currency, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dual+Return+-+Vision+Microfinance+Local+Currency+Fund

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