responsAbility Microfinanz-Fonds and responsAbility Global Microfinance Fund (rAGMF), microfinance investment vehicles managed by responsAbility Social Investments AG of Switzerland, recently reported to MicroCapital the details of five debt investments made during the month of July 2010, totaling the equivalent of USD 3.77 million.
The funds were loaned to three microfinance institutions: Consejo de Asistencia al Microemprendedor (CAME) of Mexico, Fondo de Desarrollo Comunal (Fondeco) of Bolivia, and Fundación para el Desarrollo Microempresarial (D-Miro) of Ecuador [1]. The details of these transactions are as follows.
responsAbility Microfinanz-Fonds, which invests in microfinance institutions (MFIs) mainly through debt securities and equity investments, loaned USD 500,000 at a fixed interest rate of 8.5 percent per year over two years to Fondo de Desarrollo Comunal (Fondeco) of Bolivia, a non-bank microfinance institution. As of mid-2010, Fondeco reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, USD 15.1 million in assets, a gross loan portfolio of USD 9.8 million, 12,465 active borrowers, a return on assets of 1.45 percent and a return on equity of 6.73 percent.
The rAGMF, which invests in MFIs and microfinance investment vehicles (MIVs) mostly through short- to medium-term debt securities, loaned USD 1.25 million at an annual interest rate of 8 percent per year over two years to the Fundación para el Desarrollo Microempresarial (D-Miro), an independent microfinance institution serving approximately 167,000 clients in Ecuador. responsAbility Microfinanz-Fonds loaned USD 750,000 to D-Miro of Ecuador under the same terms. In 2009, D-Miro reported to the MIX assets of USD 23.6 million, 29,359 active borrowers, a gross loan portfolio of USD 19.8 million, a return on assets of -2.88 percent and a return on equity of -11.8 percent.
responsAbility Microfinanz-Fonds loaned MXN 5.5 million (the equivalent of USD 429,855) to CAME of Mexico at a fixed rate of 12 percent per year over two years. The rAGMF invested MXN 10.5 million (USD 830,085) in CAME, also at a fixed rate of 12 percent per year over two years. CAME reported to the MIX in 2009 assets of USD 49.4 million, a gross loan portfolio of USD 35.8 million, 186,620 active borrowers at an average loan balance of USD 192 per borrower, a return on assets of 1.02 percent and a return on equity of 4.6 percent.
According to the MIX, the rAGMF reports assets of USD 475 million as of mid-2010 and holds 202 active microfinance investments. responsAbility Microfinanz-Fonds reports to the MIX Market assets of USD 103 million and holds 130 active microfinance investments. In May, rAGMF announced that it would temporarily suspend accepting investment, in order to reduce liquidity [2].
By Lindsey Shaughnessy, Research Associate
About responsAbility Global Microfinance Fund (rAGMF): The responsAbility Global Microfinance Fund (rAGMF) invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed the rAGMF’s label as of April 2010. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, the rAGMF reports assets of USD 475 million in mid-2010 and holds 202 active microfinance investments.
About responsAbility Mikrofinanz-Fonds: The responsAbility Mikrofinanz-Fonds is a microfinance investment vehicle managed by responsAbility Social Investments AG, a social investment company based in Switzerland. responsAbility Microfinanz-Fonds invests in microfinance institutions (MFIs) through debt securities and equity investments. The fund was created in 2007 by responsAbility, and is financed by Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse Düsseldorf, a German bank. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed the rAGMF’s label as of April 2010. responsAbility Microfinanz-Fonds reports to the MIX Market assets of USD 103 million and holds 130 active microfinance investments.
About Consejo de Asistencia al Microemprendedor, S.A. de C.V., SOFIPO (CAME): CAME is a Mexican microfinance institution (MFI), serving approximately 167,000 borrowers and savers in and around Mexico City. CAME reported to the MIX in 2009 assets of USD 49.4 million, a gross loan portfolio of USD 35.8 million, and 186,620 active borrowers at an average loan balance of USD 192 per borrower, a return on assets of 1.02 percent, and a return on equity of 4.6 percent.
About Fondo de Desarrollo Comunal (FONDECO): Fondeco was established as a non-bank microfinance institution in Bolivia in 1995, and is today part of the Grameen Foundation’s partner network. Fondeco targets those without access to financial services in rural Bolivia, especially small-scale farmers, entrepreneurs and traders. As of mid-2010, Fondeco reports to the MIX USD 15.1 million in assets, a gross loan portfolio of USD 9.8 million, 12,465 active borrowers, a return on assets of 1.45 percent and a return on equity of 6.73 percent. 60 percent of Fondeco’s borrowers are women.
About Fundación para el Desarrollo Microempresarial (D-Miro): D-Miro was started by Norway-based Mision Alianza in 1997 in Ecuador, but has operated as an independent microfinance organization since 2006. In 2009, D-Miro reported to the MIX assets of USD 23.6 million, 29,359 active borrowers, a gross loan portfolio of USD 19.8 million, a return on assets of -2.88 percent, and a return on equity of -11.8 percent.
Sources and Additional Resources:
[1] Per data submitted by responsAbility Social Investments AG to MicroCapital August 4, 2010
[2] MICROCAPITAL BRIEF: “responsAbility to Stop Issuing Shares for Global Microfinance Fund”, May 10, 2010. https://www.microcapital.org/microcapital-brief-responsability-to-stop-issuing-shares-for-global-microfinance-fund/
MicroCapital’s Microfinance Universe profile: responsAbility Global Microfinance Fund
MicroCapital’s Microfinance Universe profile: responsAbility Mikrofinanz-Fonds
MicroCapital’s Microfinance Universe profile: Consejo de Asistencia al Microemprendedor, S.A. de C.V., SOFIPO (CAME)
MicroCapital’s Microfinance Universe profile: Fondo de Desarrollo Comunal (FONDECO)
MicroCapital’s Microfinance Universe profile: Fundación para el Desarrollo Microempresarial (D-Miro)
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