In June 2013, Absolute Portfolio Management (APM), an Austrian firm that invests in microfinance and other sectors, issued loans totaling the equivalent of USD 9.5 million to microfinance institutions (MFIs) in Azerbaijan, Bosnia & Herzegovina, Cambodia, Colombia, Ecuador, Georgia, Kyrgyzstan and Poland though its two Vision Microfinance funds, Dual Return Fund- Vision Microfinance and Dual Return Fund- Vision Microfinance Local Currency Fund.
The equivalent of approximately USD 1.5 million was allocated through its Dual Return Fund- Vision Microfinance Local Currency, which disburses local-currency loans directly to MFIs [1].
One of the investments was a loan renewal of an unspecified amount to the Ecuadorian NGO Fundación Alternativa, which supports small-scale entrepreneurs with microcredit and provides education and training in technical assistance, local economic development services and supply chain and marketing support [2]. Further details on the loan renewal are not available. Fundación Alternativa’s gross loan portfolio as of March 31, 2013 was USD 14.5 million.
APM is a member of the Austrian-based asset manager C-QUADRAT Group, which offers investment and advisory services in microfinance and other sectors. Its dual return funds invest in approximately 60 microfinance institutions in 20 different countries in Africa, Europe, Asia and Latin America. Dual Return Fund Vision Microfinance reported total assets of EUR 99 million (USD 130 million) as of March 2013. Dual Return Fund – Vision Microfinance Local Currency reported total assets of USD 45 million as of the same date.
By Anesa Kratovac, Research Associate
About Absolute Portfolio Management
Absolute Portfolio Management GmbH (APM) is an Austria-based asset management company that offers investment and advisory services in microfinance and other sectors. The firm’s Dual Return Fund – Vision Microfinance and Dual Return Fund – Vision Microfinance Local Currency were created in 2006 and report USD 95.9 million and USD 41.4 million in total assets, respectively, as of February 25, 2013.
About The Dual Return Fund- Vision Microfinance
The Dual Return Fund – Vision Microfinance 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. As of October 2012, the fund reported loans outstanding to 62 microfinance institutions (MFIs) in 22 emerging markets. Its total assets were USD 95.8 million as of February 25, 2013. 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 The Dual Return Fund- Vision Microfinance Local Currency
The Dual Return Fund – 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 fund disburses local-currency loans directly to microfinance institutions (MFIs). 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. Its total assets were USD 41.4 million as of February 25, 2013.
About Fundación Alternativa
Created in 1991, Fundación Alternativa is an Ecuadorian-based non-profit that helps small-scale entrepreneurs with micro-credit loans and enables sustainable community development through non-financial various services, such as education, marketing and training in various fields. The non-profit’s mission is to strengthen Ecuador’s microfinance sector through its microfinance lending service, Banco Solidario, which offers twelve microcredit products to reach marginalized populations in Ecuadorian cities Pichincha, Santo Domingo de los Tsáchilas, Cotopaxi and Imbabura. . It also established a training center for microcredit methodology training. As of March 31, 2013, Fundación Alternativa has 7,268 active borrowers and a gross loan portfolio worth USD 14.5 million.
Sources and Additional Resources:
[1] Information Sent to MicroCapital from VisionMicrofinance.com, “Vision Microfinance: Social Impact Investing”
[2] Mix Market website report on Fundación Alternativa, http://www.mixmarket.org/mfi/fundaci%C3%B3n-alternativa/report
MicroCapital.org Article, May 10, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $13m from Dual Return Funds to Microfinance Institutions (MFIs) in South America, Eurasia Including FINCA Armenia,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-loans-13m-from-dual-return-funds-to-microfinance-institutions-mfis-in-south-america-eurasia-including-finca-armenia/
MicroCapital.org Article, April 8, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $9m from Dual Return Funds to Microfinance Institutions (MFIs) in Armenia, Benin, Cambodia, Georgia, Mongolia, Paraguay, Peru and Tajikistan,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-loans-9m-from-dual-return-funds-to-microfinance-institutions-mfis-in-armenia-benin-cambodia-georgia-mongolia-paraguay-peru-and-tajikistan/
MicroCapital.org, March 4, 2013, “MICROCAPITAL BRIEF: Absolute Portfolio Management Loans $8.5m From Dual Return Funds to Microfinance Institutions (MFIs) in Cambodia, Colombia, the Dominican Republic, Georgia, Indonesia, Russia,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-loans-8-5m-from-dual-return-funds-to-microfinance-institutions-mfis-in-cambodia-colombia-the-dominican-republic-georgia-indonesia-russia/
MicroCapital Universe Profile: Absolute Portfolio Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Absolute+Portfolio+Management
MicroCapital Universe Profile: The Dual Return Fund- Vision Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DUAL+RETURN+VISION+MICROFINANCE+FUND
MicroCapital Universe Profile: The Dual Return Fund- Vision Microfinance Local Currency, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dual+Return+-+Vision+Microfinance+Local+Currency+Fund
MicroCapital Universe Profile: Fundación Alternativa, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundacion+Alternativa
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