MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $8.5m From Dual Return Funds to Microfinance Institutions (MFIs) in Cambodia, Colombia, the Dominican Republic, Georgia, Indonesia, Russia
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Monday, March 4, 2013

MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $8.5m From Dual Return Funds to Microfinance Institutions (MFIs) in Cambodia, Colombia, the Dominican Republic, Georgia, Indonesia, Russia

» Posted by in Category: Deals,Eastern Europe and Central Asia at 2:27 pm

Absolute Portfolio Management (APM), an Austria-based microfinance investment and asset management company, has told MicroCapital that it issued the equivalent of USD 8.5 million in credit through funds it manages to microfinance institutions (MFIs) in Cambodia, Colombia, the Dominican Republic, Georgia, Indonesia and Russia during the month of February. Of this amount, the equivalent of USD 5.5 million was provided by the Dual Return Fund  – Vision Microfinance, and the equivalent of USD 3 million was issued by the Dual Return Fund  – Vision Microfinance Local Currency, which disburses local-currency loans to MFIs.

While the other investees were not named, the local currency equivalent of EUR 1 million (USD 1.3 million) was disbursed from the Dual Return Fund – Vision Microfinance to FINCA Russia, a subsidiary of the US-based nonprofit microfinance network FINCA International, through a fully-hedged loan contract of RUB 40 million (USD 1.3 million).

As of December 31, 2011, FINCA Russia reported to the US-based nonprofit Microfinance Information Exchange (MIX) assets of USD 41.4 million, a gross loan portfolio of USD 33.6 million, 11,281 active borrowers, return on assets (ROA) of 0.84 percent, and return on equity (ROE) of 5.15 percent. The institution does not accept deposits. FINCA International serves 900,000 clients in 21 countries as of 2011.

By Nicole Boyd, Research Associate

About FINCA Russia
FINCA Russia is a microfinance institution (MFI) and a subsidiary of FINCA International, a US-based nonprofit microfinance network that serves approximately 900,000 people through its microfinance subsidiaries in 21 countries. As of December 31, 2011, FINCA Russia reported to the US-based nonprofit Microfinance Information Exchange (MIX) assets of USD 41.4 million, a gross loan portfolio of USD 33.6 million, 11,281 active borrowers, return on assets (ROA) of 0.84 percent, and return on equity (ROE) of 5.15 percent. The institution does not accept deposits.

About FINCA International
Founded in 1984 by Dr John Hatch, who is known for helping to develop village banking, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. As of December 2011, FINCA International served 900,000 clients through its subsidiaries in 21 countries. It had total assets of USD 719 million in the 2011 fiscal year, with an operating profit of USD 33.9 million. In December 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC, with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), ResponsAbility Social Investments AG and Triple Jump.

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 95.9 million and USD 41.4 million in total assets, respectively, as of February 25, 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 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 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.

Sources and Additional Resources:

Information provided by Absolute Portfolio Management to MicroCapital.

MicroCapital. November 2, 2012, “MICROCAPITAL BRIEF: Absolute Dual Return-Vision Microfinance Fund Invests $3.2m in FINCA Russia, AzerCredit of Azerbaijan, Bank Constanta of Georgia, Mikrofin of Bosnia and Herzegovina,” http://www.microcapital.org/microcapital-brief-absolute-dual-return-vision-microfinance-fund-invests-3-2m-in-finca-russia-azercredit-of-azerbaijan-bank-constanta-of-georgia-mikrofin-of-bosnia-and-herzegovina/

MicroCapital. September 27, 2012, “MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Fund Loans $8m to Microfinance Institutions in Azerbaijan, Cambodia, Ecuador, Indonesia, Kazakhstan, Tajikistan,” http://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-fund-loans-8m-to-microfinance-institutions-in-azerbaijan-cambodia-ecuador-indonesia-kazakhstan-tajikistan-3/

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

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

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

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

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