MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Funds Loan $5m to Microfinance Institutions in Ecuador, Peru

Absolute Portfolio Management GmbH (APM), an Austrian investment company that specializes in asset allocation, analysis and management as well as microfinance, recently disbursed loans to four microfinance institutions (MFIs) in Peru and one in Ecuador. Through APM’S Dual Return Fund, a sub-fund of APM’S Vision Microfinance Fund, USD 1.5 million was disbursed to Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo, a savings and credit cooperative in Ecuador. As of 2011, COAC Jardín Azuayo reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 243 million, a gross loan portfolio of USD 214 million, approximately 50,750 borrowers,  deposits of USD 192 million,135,480 depositors, return on assets (ROA) of 2.7 percent and return on equity (ROE) of 19.1 percent.

USD 1 million was disbursed to EDPYME Raiz, a Peruvian microfinance institution that facilitates the growth of micro- and small enterprises by providing loans. As of 2011, Raiz reported USD 189 million in assets, a gross loan portfolio of USD 166 million, 87,870 active borrowers. USD 1 million was also disbursed to Nueva Vision, a Peruvian microfinance bank. As of 2011, Nueva Vision reported total assets of USD 69 million and a gross loan portfolio of USD 59.8 million disbursed to approximately 20,700 borrowers.

USD 750,000 was disbursed to Fondo de Desarrollo Regional (FONDESURCO), a microfinance institution (MFI) in Peru that specializes in provision of microcredit. As of 2011, FONDESURCO reported total assets of USD 27.3 million, a gross loan portfolio of USD 19.8 million, approximately 10,975 active borrowers. APM also loaned the local currency equivalent of USD 750,000 to EDPYME Alternativa, a non-banking financial institution (NBFI) that serves micro- and small-scale entrepreneurs in Peru through its sub-fund, Dual Return Fund-Vision Microfinance Local Currency. As of 2011, Alternativa had total assets of USD 26.6 million, gross loan portfolio of USD 24 million and 21,736 active borrowers.

APM’s Dual Return-Vision Microfinance and Dual Return Fund-Vision Microfinance Local Currency report USD 87.4 million and USD 32.2 million in total assets, respectively as of 2011.

By Chioma Okwudiafor, Research Associate

About Absolute Portfolio Management (APM)
Absolute Portfolio Management  GmbH is an Austrian-based management company that invests in microfinance and other sectors. As of 2011, APM’s Dual Return Fund-Vision Microfinance and Dual Return Fund-Vision Microfinance Local Currency report USD 87.4 million and USD 32.2 million in total assets, respectively.

About Dual Return Fund-Vision Microfinance
The Dual Return Fund is a sub-fund of Vision Microfinance, which was created in 2006 by Absolute Portfolio Management GmbH, an Austrian investment company that is active in microfinance and other sectors. In 2011, the fund provided investors in its EUR (I) Share Class with net returns of 3.23 percent. As of August 2012, the fund’s volume reached EUR 79 million (USD 102 million) with loans outstanding to 59 MFIs in 24 emerging markets. In April 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 Dual Return Fund-Vision Microfinance Local Currency
The Dual Return Fund-Vision Microfinance Local Currency is a sub-fund of Vision Microfinance, which was created in 2006 by Absolute Portfolio Management GmbH, an Austrian investment company active in microfinance and other sectors. The Vision Microfinance Local Currency fund disburses local-currency loans directly to microfinance institutions (MFIs). During 2011, the fund provided investors in its USD (I) share class with net returns of 4.55 percent, achieved a fund volume of USD 22.9 million and held loans outstanding to 27 MFIs in 16 emerging markets. In April 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 EDPYME Alternativa
Established in 2001 in Peru, Edpyme Alternativa is a non-banking financial institution (NBFI) that serves micro- and small-scale entrepreneurs in Lima and the northern and northeastern regions of Peru. In addition to loans, Edpyme Alternativa provides disability and life microinsurance to its clients. In 2009, Edpyme Alternativa reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 30 million, a gross loan portfolio of USD 21 million, approximately 23,800 borrowers, return on assets (ROA) of 3.6 percent and return on equity (ROE) of 19.3 percent.

About Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo
Established in 1996 in Ecuador, Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo is a savings and credit cooperative. Its services include voluntary savings, insurance, fund transfers and loans for individuals and local infrastructure projects. As of 2010, Jardin Azuayo reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 181 million, a gross loan portfolio of USD 155 million, approximately 44,300 borrowers, return on assets (ROA) of 2.7 percent and return on equity (ROE) of 19.1 percent.

About Fondo de Desarrollo Regional (FONDESURCO)
Fondo de Desarrollo Regional (FONDESURCO) is a microfinance institution (MFI) that was established in Peru in 1994. The organization’s mission is to improve the economic status of poor individuals living in remote villages through the provision of microcredit. As of December 31, 2010, FONDESURCO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.4 million, a gross loan portfolio of USD 17.2 million, return on assets (ROA) of 2.58 percent, return on equity (ROE) of 16 percent and approximately 10,000 active borrowers.

About Nueva Vision
Nueva Vision is a Peruvian microfinance bank that was formed in 1998. As of 2011, Nueva Vision reported total assets of USD 69 million and a gross loan portfolio of USD 59.8 million disbursed to approximately 20,700 borrowers.

About EDPYME Raiz
Edpyme Raíz is a Peruvian microfinance institution that was established in 1999 and aims to facilitate the growth of micro- and small enterprises by providing them loans.. As of December 2011, Edpyme Raíz reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 189 million in assets, a gross loan portfolio of USD 166 million, 87,876 active borrowers, return on assets (ROA) of 1.84 percent and return on equity (ROE) of 7.66 percent.

Sources and Additional Resources:

Information submitted by Absolute Portfolio Management GmbH to MicroCapital.

MicroCapital.org Story: May 9, 2012, “MICROFINANCE EVENT: Absolute Portfolio Management’s ‘Developments and New Opportunities in Microfinance’ Webinar” https://www.microcapital.org/microfinance-event-absolute-portfolio-managements-developments-and-new-opportunities-in-microfinance-webinar-may-9-2012/

MicroCapital.org Story: September 14, 2011, “MICROCAPITAL BRIEF: Dual Return Fund of Vision Microfinance Loans $1.5m to Microfinance Institutions in Colombia, Dominican Republic” https://www.microcapital.org/microcapital-brief-dual-return-fund-of-vision-microfinance-loans-1-5m-to-microfinance-institutions-in-colombia-dominican-republic/

MicroCapital.org Story: September 30, 2010, “MICROCAPITAL BRIEF: Austrian Absolute Portfolio Management to Launch Dual Return Fund-Vision Microfinance Local Currency” https://www.microcapital.org/microcapital-brief-austrian-absolute-portfolio-management-to-launch-dual-return-fund-vision-microfinance-local-currency/

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

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

MicroCapital Universe Profile: The Dual Return Fund – Vision Microfinance Local Currency
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Dual+Return++Vision+Microfinance+Local+Currency+Fund

MicroCapital Universe Profile: EDPYME Alternativa
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Edpyme+Alternativa

MicroCapital Universe Profile: Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo  https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Cooperativa+de+Ahorro+y+Cr%C3%A9dito+%28COAC%29+Jard%C3%ADn+Azuayo

MicroCapital Universe Profile: Fondo de Desarrollo Regional (FONDESURCO)
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Fondo+de+Desarrollo+Regional+%28Fondesurco%29

MicroCapital Universe Profile: Nueva Vision
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nueva+Vision

MicroCapital Universe Profile: EDPYME Raiz
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Edpyme+Raiz

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