responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it invested approximately USD 11 million in an unspecified Indian money market fund via the UTI Wealth Creator 4 fund, which is organized under UTI International Limited, a subsidiary of UTI Asset Management Company of India. The purpose of the investment is to keep open the option of investing the amount in one or more unspecified Indian microlenders at a later point in time. Under Indian rules for foreign debt investments, permission to invest the funds would have been withdrawn if such a move had not been taken.
The responsAbility Microfinance Leaders Fund (rAMLF) and Mikrofinanz-Fonds, microfinance investment vehicles (MIVs) managed by responsAbility, each invested USD 2.78 million while the responsAbility Global Microfinance Fund (rAGMF), another MIV managed by responsAbility, invested USD 5.56 million [1].
As of December 2010, responsAbility reported that it has invested 3.3 percent of its total portfolio in India [2].
UTI Asset Management Company, which reports USD 15 billion in assets managed, does not report financial information to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider.
Please note that this story has been corrected since its original publication.
By Jacqueline Foelster, Research Associate
About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company that aims 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 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 responsAbility Microfinance Leaders Fund (rAMLF): The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label as of April 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. 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 UTI Asset Management: Unit Trust of India Asset Management Company (UTI AMC) is an asset management company catering to a diverse group of individual and institutional investors through a variety of equity and debt funds. UTI AMC manages domestic mutual funds, as well as provide portfolio management services and manage overseas, venture capital and private equity funds.
Sources and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital January and February 2011
[2] responsAbility, http://www.responsability.com/site/index.cfm?id_art=65778&vsprache=EN
MicroCapital.org Article, February 8, 2011: “responsAbility Social Investments Announces Equity Investment in PlaNet Finance Investment Services (PlaNIS)”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-announces-equity-investment-in-planet-finance-investment-services-planis/
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 Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
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: Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds
MicroCapital’s Microfinance Universe Profile: Unit Trust of India Asset Management Company (UTI AMC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unit+Trust+of+India+Asset+Management+Company+%28UTI+AMC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
Similar Posts:
- MICROCAPITAL BRIEF: AFI Invests $5m in Microfinance Institution AFK of Kosovo from Invest in Visions (IIV)
- MICROCAPITAL BRIEF: Annapurna Finance Borrowing $25m from responsAbility to Boost Renewable Energy, Energy-efficiency in India
- MICROCAPITAL BRIEF: ResponsAbility Invests $40m in Equity in eFishery of Indonesia for Technology Helping Fish, Shrimp Farmers with Feeding, Water Quality, Documenting Sustainable Practices, Market Linkages
- MICROCAPITAL BRIEF: IDB Invest, Sura Investments Channeling $25m in Loans to SMEs, Mid-market Firms in Colombia
- MICROCAPITAL BRIEF: DPAM, Korys Buy Equity in Incofin Investment Management to Boost Impact, Including Via Climate, Gender Funds
