Absolute Portfolio Management GmbH, an Austrian investment company that specializes in microfinance, recently reported that the Dual Return Fund – Vision Microfinance Local Currency, a sub-fund of Absolute’s Vision Microfinance that provides loans to microfinance institutions (MFIs) exclusively in local currencies, made debt investments totaling the equivalent of USD 1.5 million in unnamed MFIs in Colombia and the Dominican Republic [1]. Absolute reports that this is the first time that the fund has invested in an institution in the Dominican Republic.
In August 2011, the fund’s total microfinance investment portfolio experienced an annualized yield of 11 percent and an investment level of approximately 85 percent. As of the same month, the fund reported a total fund volume of EUR 21.2 million (USD 29 million) and loans outstanding to 27 MFIs in 18 emerging markets.
By Nisha Koul, Research Associate
About Dual Return Fund: The Dual Return Fund is a sub-fund of Vision Microfinance, both of which were created in 2006 by Absolute Portfolio Management GmbH, an Austrian investment company specializing in microfinance. The Vision Microfinance Local Currency fund disburses local-currency loans directly to microfinance institutions (MFIs). In August 2011, the fund’s total microfinance investment portfolio experienced an annualized yield of 11 percent and an investment level of approximately 85 percent. As of the same month, the fund reported a total fund volume of EUR 21.2 million (USD 29 million) and loans outstanding to 27 MFIs in 18 emerging markets. 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.
By Nisha Koul, Research Associate
Sources and Additional Resources:
[1] “Dual Return Fund – Vision Microfinance Local Currency Factsheet August, 2011” submitted to MicroCapital, September 2011
MicroCapital.org, August 16, 2011, “MICROCAPITAL BRIEF: Dual Return Fund of Vision Microfinance Loans $5m to Microfinance Institutions in Colombia, Kazakhstan, Russia, the Philippines,” https://www.microcapital.org/microcapital-brief-dual-return-fund-of-vision-microfinance-loans-5m-to-microfinance-institutions-in-colombia-kazakhstan-russia-the-philippines/
MicroCapital.org story, July 14, 2011, “MICROCAPITAL BRIEF: Dual Return Fund of Vision Microfinance Loans $3m to Microfinance Institutions in Mongolia, Georgia, Azerbaijan, Kyrgyzstan, Ecuador,” https://www.microcapital.org/microcapital-brief-dual-return-fund-of-vision-microfinance-loans-3m-to-microfinance-institutions-in-mongolia-georgia-azerbaijan-kyrgyzstan-ecuador/
MicroCapital.org story, May 12, 2011, “MICROCAPITAL BRIEF: Vision Microfinance’s Dual Return Fund Loans $6m to MFIs in Armenia, Ecuador, Georgia, Mexico, Peru; Unspecified Mexican MFI Defaults,” https://www.microcapital.org/microcapital-brief-vision-microfinance%E2%80%99s-dual-return-fund-loans-6m-to-mfis-in-armenia-ecuador-georgia-mexico-peru-unspecified-mexican-mfi-defaults/
MicroCapital Universe Profile: Dual Return Vision Microfinance Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DUAL+RETURN+VISION+MICROFINANCE+FUND
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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