responsAbility Social Investments AG, a Swiss investment company that manages four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investment totaling USD 749,439 in microfinance institutions Pearl Microfinance Limited of Uganda and Association Al Karama de Micro Credit (Al Karama) of Morocco [1]. The investments have been made through three MIVs: responsAbility Global Microfinance Fund (rAGMF), responsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds.
In Uganda, Mikrofinanz-Fonds made a local-currency debt investment equivalent to USD 249,439 to Pearl Microfinance Limited, an MFI aiming to provide “suitable financial services sustainably to the economically active population in Uganda.” As of 2010, Pearl operates in 16 districts in Uganda and reported total loans of USD 7.6 million. Pearl does not report its financial information to the US-based nonprofit Microfinance Information Exchange (MIX).
In Morocco, rAGMF and rAMLF made a total debt investment of USD 500,000 in Al Karama, an MFI focused on microcredit. As of 2009, Al Karama reported to MIX total assets of USD 5.6 million, a gross loan portfolio of USD 4.8 million, approximately 15,300 borrowers, return on assets (ROA) of 0.69 percent and return on equity (ROE) of 1.55 percent.
According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets.
By Nisha Koul, Research Associate
About Pearl Microfinance Limited: Formerly known as the Community Banking Programme, Pearl Microfinance Limited is a microfinance institution and community bank founded in 1997 in Uganda. It is an affiliate of Feed the Children Uganda (FTCU), a nonprofit Christian organization that aims to “relieve Ugandan children of hunger and poverty.” As of 2010, Pearl operates in 16 districts in Uganda and reported total loans of USD 7.6 million. Pearl does not report its financial information to the US-based nonprofit Microfinance Information Exchange (MIX).
About Association Al Karama de Micro Credit (Al Karama): Al Karama, founded in 1999, is a microfinance institution based in Morocco that is focused on microcredit, supporting microenterprises and the inclusion of women. As of 2009, Al Karama reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 5.6 million, a gross loan portfolio of USD 4.8 million, approximately 15,300 borrowers, return on assets (ROA) of 0.69 percent and return on equity (ROE) of 1.55 percent.
About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
About responsAbility Global Microfinance Fund (rAGMF): rAGMF is a microfinance investment vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and other MIVs, mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. In March 2011, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the US-based nonprofit Microfinance Information Exchange (MIX) that it had USD 474 million in fund assets as of 2010.
About responsAbility Microfinance Leaders Fund (rAMLF): The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMLF’s label in March 2011.
About responsAbility Mikrofinanz-Fonds: Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and funded by German Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in short- to medium-term income-bearing debt securities of microfinance institutions (MFIs). Mikrofinanz-Fonds reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, that it held USD 103 million in assets as of 2010. In April 2011, 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:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital, August 2011
MicroCapital.org story, October 11, 2010, “MICROCAPITAL BRIEF: Social Investment Company responsAbility Makes Debt Investments Totaling $2.8m in Microfinance Institutions (MFIs) Pearl Microfinance Limited of Uganda and fondiBESA of Albania,” https://www.microcapital.org/microcapital-brief-social-investment-company-responsability-makes-debt-investments-totaling-2-8m-in-microfinance-institutions-mfis-pearl-microfinance-limited-of-uganda-and-fondibesa-of-albania/
MicroCapital.org story, August 29, 2007, “MICROCAPITAL STORY: Swiss ResponsAbility Microfinanz-Fonds Begins Microfinance Investing and Loans USD 500,000 and USD 344,456 Respectively to PRESTANIC in Latin America and Al Karama in Middle East,” https://www.microcapital.org/microcapital-story-swiss-responsability-microfinanz-fonds-begins-microfinance-investing-and-loans-usd-500000-and-usd-344456-respectively-to-prestanic-in-latin-america-and-al-karama-in-middle-east/
MicroCapital Universe Profile: Pearl Microfinance Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pearl+Microfinance+Limited
MicroCapital Universe Profile: Association Al Karama de Micro Credit (Al Karama), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Karama
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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