MICROCAPITAL BRIEF: Austria’s Vision Microfinance Funds Loan $5m to MFIs in Colombia, Mexico, Paraguay

Austria-based asset management company Absolute Portfolio Management (APM) recently announced that it has disbursed the equivalent of USD 5 million to microfinance institutions (MFIs) in Latin America through its two Dual Return-Vision Microfinance funds in early 2013. One of the loans will go to a non-governmental organization in Colombia that Vision is investing in for the first time. The other loans will go to MFIs in Paraguay and Mexico that have existing relationships with the Dual Return funds. One of these is Solución Asea, an MFI located in Chiapas, Mexico, that received a new local-currency loan to support its social engagement activities and its work with low-income women in rural areas. The amounts of the individual loans and the names of the other MFIs were not disclosed.

Solución Asea reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 16.4 million, a loan portfolio of USD 12.7 million, 38,682 active borrowers, deposits of USD 3.3 million and 67,319 depositors 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 Dual Return-Vision Microfinance fund had investments placed in 62 MFIs in 22 emerging markets while the Local Currency Fund held loans outstanding to 30 MFIs in 16 developing countries as of the same period.

By Lena Phillips, Research Associate

About Solución Asea

Solución Asea is a Mexico-based microfinance institution established in 2002. Its mission is to provide quality financial services particularly in the area of micro- and small enterprises in southeastern Mexico. Solución Asea reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 16.4 million, a loan portfolio of USD 12.7 million, 38,682 active borrowers, deposits of USD 3.3 million and 67,319 depositors as of 2011. Its headquarters are in Chiapas, Mexico.

About Absolute Portfolio Management

Absolute Portfolio Management GmbH (APM) is an Austrian-based asset management company that offers investments and advisory services in microfinance and 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, 14 January 2013: “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,” https://www.microcapital.org/microcapital-brief-austrias-absolute-portfolio-management-loans-11m-to-microfinance-institutions-through-vision-microfinance-funds-including-1-5m-to-pro-mujer-bolivia-1-5m-to-pride-tanz/

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,” https://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 Universe Profile: Solución Asea, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Soluci%E1%BD%B9n+Asea

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, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=dual+return+vision+microfinance+fund

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

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