MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $13m from Dual Return Funds to Microfinance Institutions (MFIs) in South America, Eurasia Including FINCA Armenia
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Friday, 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

Absolute Portfolio Management (APM), an Austria-based firm that invests in microfinance and other sectors, recently notified MicroCapital that it loaned the equivalent of USD 13 million during April 2013 through two of the funds that it manages to microfinance institutions (MFIs) in Armenia, Azerbaijan, Ecuador, Honduras, Kyrgyzstan, Mongolia, Peru, the Philippines, Russia and Tajikistan. Of this amount, USD 7.5 million was issued in local currency.

While the names of other investees have not been released, an unspecified portion of the funds were loaned to FINCA Armenia, a subsidiary of US-based nonprofit Foundation for International Community Assistance (FINCA) International. As of December 2011, FINCA Armenia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 39.5 million, a gross loan portfolio of USD 35.2 million, 45,000 active borrowers, a return on assets (ROA) of 5.0 percent and a return on equity (ROE) of 25.0 percent.

The microfinance funds that APM manages are Dual Return Fund – Vision Microfinance and Dual Return Fund  – Vision Microfinance Local Currency. Dual Return Fund – Vision Microfinance reported total assets of EUR 99 million (USD 130 million million) as of March 2013. Dual Return Fund  – Vision Microfinance Local Currency reported total assets of USD 45 as of the same date.

By Jennifer Young, Research Associate

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 Fund – Vision Microfinance and Dual Return Fund – Vision Microfinance Local Currency were created in 2006 and report USD 130 million and USD 45 million in total assets, respectively, as of March 2013.

About 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 March 2013, the fund volume reached USD 45 million and held loans outstanding to 30 MFIs in 16 emerging markets. In the same year, 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

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 March 2013, the fund reported loans outstanding to 69 microfinance institutions (MFIs) in 25 emerging markets and total assets of EUR 99 million (USD 130 million). In the same year, 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 FINCA Armenia

Founded in 1999, FINCA Armenia is a subsidiary of US-based nonprofit Foundation for International Community Assistance (FINCA) International. It aims to provide financial services to the “world’s lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living.” As of December 2011, FINCA Armenia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 39.5 million, a gross loan portfolio of USD 35.2 million, 45,000 active borrowers, a return on assets (ROA) of 5.0 percent and a return on equity (ROE) of 25.0 percent.

Sources and Additional Resources

Information submitted by Absolute Portfolio Management (APM) to MicroCapital.

MicroCapital Story, April 8, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $9m from Dual Return Funds to Microfinance Institutions (MFIs) in Armenia, Benin, Cambodia, Georgia, Mongolia, Paraguay, Peru and Tajikistan,”
http://www.microcapital.org/microcapital-brief-absolute-portfolio-management-loans-9m-from-dual-return-funds-to-microfinance-institutions-mfis-in-armenia-benin-cambodia-georgia-mongolia-paraguay-peru-and-tajikistan/

MicroCapital Story, April 22, 2013, ”MICROCAPITAL BRIEF: Inecobank Increases Lending to Micro-, Small Businesses in Rural Armenia, Securing all of $700k Offered Through International Finance Corporation as Performance-Based Grants,”
http://www.microcapital.org/microcapital-brief-inecobank-increases-lending-to-micro-small-businesses-in-rural-armenia-securing-all-of-700k-offered-through-international-finance-corporation-as-performance-based-grants/

MicroCapital Story, January 17, 2012, “MICROCAPITAL BRIEF: responsAbility Invests $2.3m in Microfinance Institutions Arnur Credit of Kazakhstan, FINCA Armenia, FinDev of Azerbaijan,” http://www.microcapital.org/microcapital-brief-responsability-invests-2-3m-in-microfinance-institutions-arnur-credit-of-kazakhstan-finca-armenia-findev-of-azerbaijan/

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

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

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

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