responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has invested loans approximately equivalent to USD 10.2 million to FINCA International subsidiaries in Azerbaijan, Russia, Ecuador and Mexico. FINCA International is a global microfinance network operating in 21 countries reporting total assets of USD 467 million as of 2009 [2].
The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, invested USD 5 million in FINCA Azerbaijan [1]. As of 2009, FINCA Azerbaijan reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 88.1 million, a gross loan portfolio of USD 69.2 million, approximately 90,500 borrowers, return on assets (ROA) of 3.86 percent and return on equity (ROE) of 23.23 percent.
The responsAbility Microfinance Leaders Fund (rAMLF), an MIV managed by responsAbility invested approximately RUB 48 million (USD 1.6 million) in FINCA Russia [1]. Mikrofinanz-Fonds, another MIV managed by responsAbility, further invested approximately RUB 12 million (USD 408,500) in the same company [1]. As of 2009, FINCA Russia reported to MIX total assets of USD 24 million, a gross loan portfolio of USD 18.6 million, approximately 8,500 borrowers, return on assets (ROA) of -4.28 percent and return on equity (ROE) of -28.57 percent.
Mikrofinanz-Fonds and rAGMF each invested USD 500,000 in FINCA Ecuador [1]. As of 2010, FINCA Ecuador reported to MIX total assets of USD 30.8 million, a gross loan portfolio of USD 24.3 million, approximately 55,600 borrowers, return on assets (ROA) of -4.65 percent and return on equity (ROE) of -12.34 percent.
Mikrofinanz-Fonds and rAMLF made investments of approximately MXN 10.6 million (USD 888,000) and MXN 15.6 million (USD 1.3 million), respectively, in FINCA Mexcio [1]. As of 2009, FINCA Mexico reported to MIX total assets of USD 39.1 million, a gross loan portfolio of USD 29.8 million, approximately 118,400 borrowers, return on assets (ROA) of 4.79 percent and return on equity (ROE) of 17.77 percent.
By Medha Ravi, Research Associate
About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services 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 Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance vehicle (MIV) managed by responsAbility that 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. In April 2010, 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 Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.
About 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 is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.
About FINCA International:
Founded in 1984 by Dr. John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a global microfinance network based in Washington, DC serving approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.
Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital January 2011
[2] MicroCapital’s Microfinance Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International
MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru/
MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments AG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29
MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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