MICROCAPITAL BRIEF: Austria’s Absolute Portfolio Management Loans $11m to Microfinance Institutions Through Vision Microfinance Funds, Including $1.5m to Pro Mujer Bolivia, $1.5m to PRIDE Tanzania, $750k Renewed to FINCA Tanzania

In December 2012, Dual Return-Vision Microfinance and Dual Return-Vision Microfinance Local Currency, two funds managed by Austria-based asset management company Absolute Portfolio Management (APM), disbursed a total equivalent to USD 11.75 million in loans to microfinance institutions (MFIs) worldwide, including MFIs in Latin America and Africa.

While not all of the investees were named, APM’s Dual Return-Vision Microfinance Local Currency Fund invested in Bolivia for the first time. The local currency equivalent of USD 1.5 million, approximately BOB 10.2 million, was disbursed to Pro Mujer Bolivia, an affiliate of nonprofit Pro Mujer that provides financial and non-financial services in five Latin American countries. As of 2011, Pro Mujer Bolivia reported a gross portfolio of USD 43.6 million and 102,710 active clients. Pro Mujer, which does not accept deposits, has administrative offices in the US and in Bolivia.

Two African MFIs also were funded by the Dual Return microfinance investment vehicles during the month. FINCA Tanzania, an affiliate of the US-based microfinance network FINCA International, received a two-year renewal on a loan of USD 750,000. According to the US-based nonprofit Microfinance Information Exchange (MIX), FINCA Tanzania had USD 23.8 million in assets, a loan portfolio of USD 15.8 million and deposits totaling USD 3.1 million as of 2011. The Promotion of Rural Initiative and Development Enterprises Limited (PRIDE Tanzania), an MFI that provides credit to micro- and small-scale entrepreneurs in Tanzania, received a loan of USD 1.5 million with an 18-month term. According to MIX, PRIDE had a loan portfolio of USD 37 million, deposits of USD 14.2 million and 100,055 active borrowers as of 2011.

As of October 2012, the Dual Return-Vision Microfinance and Dual Return-Vision Microfinance Local Currency funds reported total assets of USD 109 million and USD 32.2 million, respectively. The funds were investing in a total of 92 MFIs in 38 developing nations as of the same period.

By Lena Phillips, Research Associate

About Pro Mujer

Pro Mujer, which was established in 1990 and has administrative offices in the US and Bolivia, is a nonprofit organization that provides healthcare and training services in addition to financial services in five countries: Argentina, Bolivia, Mexico, Nicaragua and Peru. Both financial and non-financial services are delivered through communal banks, or peer groups, of 20 to 30 women. According to Pro Mujer’s 2011 annual report, it had a gross portfolio of USD 103 million, total client savings of USD 20.8 million and 254,307 active clients across five countries.

About FINCA Tanzania

FINCA Tanzania is an affiliate of FINCA International, a microfinance network serving 700,000 people through subsidiaries in 21 countries. As of January 2013, FINCA Tanzania has 70,658 clients. According to the US-based nonprofit Microfinance Information Exchange (MIX), FINCA Tanzania had USD 23.8 million in assets, a loan portfolio of USD 15.8 million and deposits totaling USD 3.1 million as of 2011. According to MIX, FINCA Tanzania had return on assets (ROA) of 8.8 percent and return on equity (ROE) of 130 percent as of 2009.

About PRIDE Tanzania

Promotion of Rural Initiative and Development Enterprises Limited (PRIDE Tanzania) is a microfinance institution that provides credit to micro- and small-scale entrepreneurs in Tanzania. Founded in January 1994, PRIDE uses a “modified Grameen” methodology whereby borrowers form groups to guarantee each group member’s loan. PRIDE offers loans that range in value from TZS 50,000 (USD 36) to TZS 100 million (USD 72,700). According to the US-based nonprofit Microfinance Information Exchange (MIX), PRIDE had a loan portfolio of USD 37 million, deposits of USD 14.2 million and 100,055 active borrowers as of 2011. According to 2009 data reported to MIX, PRIDE had return on assets (ROA) of 3.12 percent and return on equity (ROE) of 24.2 percent.

About Absolute Portfolio Management

Absolute Portfolio Management GmbH (APM) is an Austrian-based asset management company that offers investments and advisory services in the microfinance and in other sectors. The firm’s Dual Return-Vision Microfinance and Dual Return-Vision Microfinance Local Currency funds were created in 2006 and report USD 109 million and USD 32.2 million in total assets, respectively, as of 2011.

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 109 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– 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:

Data provided to MicroCapital by Absolute Portfolio Management.

MicroCapital.org Article, 7 December 2012: “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”, http://www.microcapital.org/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-t/#more-21468

MicroCapital.org Article, 16 July 2012: “MICROCAPITAL BRIEF: ResponseAbility Reaches Deals Totaling $1.5m with Advans Cameroun, PRIDE of Tanzania”, http://www.microcapital.org/microcapital-brief-responsability-reaches-deals-totaling-1-5m-with-advans-cameroun-pride-of-tanzania/#more-19563

MicroCapital.org Article, 6 December 2011: “MICROCAPITAL BRIEF: Working Capital for Community Needs (WCCN) Loans $1.2m to Microfinance Operations of Pro Mujer in Nicaragua, Peru”, http://www.microcapital.org/microcapital-brief-working-capital-for-community-needs-wccn-loans-1-2m-to-microfinance-operations-of-pro-mujer-in-nicaragua-peru/#more-15861

MicroCapital.org Article, 24 November 2010: “MICROCAPITAL BRIEF: REGMIFA Invests $13m in Microfinance Institutions (MFIs) Sinapi Aba Trust and First Allied Savings and Loans of Ghana, Kenya Women Finance Trust, Faulu Kenya, FINCA Tanzania, Programme d’Appui aux Mutuelles d’Epargne et de Credit au Senegal (PAMECAS)” , http://www.microcapital.org/microcapital-brief-regmifa-invests-13m-in-microfinance-institutions-mfis-sinapi-aba-trust-and-first-allied-savings-and-loans-of-ghana-kenya-women-finance-trust-faulu-kenya-finca-tanzania-programme-dap/#more-8288

MicroCapital Universe Profile: Pro Mujer, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pro+Mujer

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

MicroCapital Universe Profile: PRIDE Tanzania, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PRIDE+Tanzania

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

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

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

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