MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $22m to Microfinance Institutions (MFIs) Worldwide, Including $2m to Costa Rican MFI National Cooperative of Educators (Coopenae), $1m Renewed to FINCA Ecuador

During November, Dual Return-Vision Microfinance and Dual Return-Vision Microfinance Local Currency, two funds managed by Austria-based investment and asset management company Absolute Portfolio Management (APM), issued the equivalent of USD 22 million in loans to microfinance institutions (MFIs) globally, with much of the funds going to MFIs in Latin America and Asia.  As of October 2012, the two funds report total assets of USD 81.6 million and USD 31 million, respectively. The funds are investing in 92 MFIS in 38 developing nations combined as of the same period.

While not all of the investees were named, the first investment by either fund in Costa Rica was disbursed in local currency equivalent to USD 2 million to National Cooperative of Educators (Coopenae), a San Jose-based MFI established in 1966 to support teachers. Coopenae became a regulated finance company in 1983 and now offers credit, savings and insurance products to the general public through 19 branches in the country. As of 2011, Coopenae reports total assets of CRC 355 billion (USD 696 million), return on assets (ROA) of 1.92 percent, return on equity (ROE) of 10.1 percent and approximately 50,000 clients.

APM also renewed a 2-year term loan worth USD 1 million to Foundation for International Community Assistance (FINCA) Ecuador, a subsidiary of US-based nonprofit FINCA International, which offers financial services to low-income entrepreneurs in an effort to create jobs. As of 2011, FINCA Ecuador reports total assets of USD 44.1 million, a gross loan portfolio of USD 39 million outstanding from approximately 59,200 borrowers, return on assets (ROA) of 0.66 percent, return on equity (ROE) of 2.28 percent and USD 8.5 million in deposits from 44,000 depositors. FINCA International has operations in 21 countries.

By Sarah Benali, Research Associate

About National Cooperative of Educators (Coopenae)
The National Cooperative of Educators (Coopenae) is a Costa Rican financial services company that is organized as a cooperative. Coopenae was established in 1966 to support teachers, but transformed into a national, regulated finance company in 1983. Coopenae now offers credit, savings and insurance products through 19 branches in Costa Rica. As of 2011, Coopenae reports total assets of CRC 355 billion (USD 696 million), return on assets (ROA) of 1.92 percent, return on equity (ROE) of 10.1 percent and approximately 50,000 clients. Coopenae does not report financial data to the US-based nonprofit Microfinance Information Exchange (MIX).

About FINCA Ecuador
FINCA Ecuador, a subsidiary of US-based nonprofit Foundation for International Community Assistance (FINCA) International, was established in 1994 as a credit program. It provides financial services to low-income entrepreneurs in an effort to create jobs, build assets and improve living standards. As of 2011, it reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 44.1 million, a gross loan portfolio of USD 39 million outstanding from approximately 59,200 borrowers, return on assets (ROA) of 0.66 percent, return on equity (ROE) of 2.28 percent and USD 8.5 million in deposits from 44,040 depositors.

About Dual Return-Vision Microfinance
The Dual Return Fund 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. In October 2012, the fund’s total microfinance investment portfolio experienced an annualized return of 3.15 percent. As of the same month, Dual Return Fund reported loans outstanding to 62 microfinance institutions (MFIs) in 22 emerging markets. Dual Return Fund reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of EUR 81.6 million (USD 108 million) as of October 2012. 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 Dual Return-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 Vision Microfinance Local Currency fund disburses local-currency loans directly to microfinance institutions (MFIs). As of 2011, the fund provided investors with net annual returns of 4.55 percent for its USD (I) Share Class. 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.

Sources and Additional Resources

Information submitted by Absolute Portfolio Management GmbH to MicroCapital.

MicroCapital.org story: “MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Funds Loan $5m to Microfinance Institutions in Ecuador, Peru,” November 6, 2012, https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-funds-loan-5m-to-microfinance-institutions-in-ecuador-peru/

MicroCapital.org story: “MICROCAPITAL BRIEF: International Finance Corporation Loans $15m to National Cooperative of Educators in Costa Rica (Coopenae) for Enterprise Microfinance,” March 1, 2012, https://www.microcapital.org/microcapital-brief-international-finance-corporation-gives-15m-to-national-cooperative-of-educators-in-costa-rica-coopenae-for-enterprise-microfinance/

MicroCapital.org story: “MICROCAPITAL BRIEF: Global Parternships Lends $3.7m to Microfinance Institutions FINCA Ecuador, Credito con Educacion Rural (CRECER) of Bolivia, Crediflorida of Peru,” October 19, 2011, https://www.microcapital.org/microcapital-brief-global-partnerships-lends-3-7m-to-microfinance-institutions-finca-ecuador-credito-con-educacion-rural-crecer-of-bolivia-crediflorida-of-peru/

MicroCapital Universe Profile: National Cooperative of Educators (Coopenae)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Cooperative+of+Educators+%28Coopenae%29

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

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

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

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