MICROCAPITAL BRIEF: IIV Mikrofinanzfonds Reports Losses Under 3%; Invests $3.4m Refinancing Microfinance Institutions in Mexico, Tajikistan

Microfinance institutions in Mexico and Tajikistan recently sold packages of non-securitized loan claims for MXN 61.3 million (USD 2.66 million) and USD 750,000 and to IIV Mikrofinanzfonds, a fund managed by Germany-based Invest in Visions (IIV). The names of the microlenders have not released.

During the first four months of 2020, the two share classes of IIV Mikrofinanzfonds generated losses of 2.7 percent to 2.9 percent. This follows two years of positive annual returns of 1.0 percent to 1.7 percent.

Launched in 2006, IIV offers “investments in sustainable agriculture, social enterprises and social impact lending.” The firm created IIV Mikrofinanzfonds in 2011 to invest in micro-, small and medium-sized enterprises via intermediaries in developing countries. Its “focus is on small and medium-sized MFIs, particularly in rural areas.” The minimum investment in the fund is EUR 100 (USD 109). Since inception, it has produced average annual returns of 1.5 percent and 2.1 percent for its two investor classes as of May 2020. With a volume of EUR 778 million (USD 874 million), the fund supported 334,000 microborrowers with an average loan size of USD 2,400. Of these microborrowers, 55 percent are women and 21 percent work in agriculture.

By Madigan Ruch, Research Associate

Sources and Additional Resources

IIV Mikrofinanzfonds monthly report
https://www.investinvisions.com/files/2004_factsheet_april_2020_englisch.pdf

IIV homepage
https://www.investinvisions.com

Previous MicroCapital news on IIV Mikrofinanzfonds
https://www.microcapital.org/microcapital-brief-mfis-in-bosnia-and-herzegovina-georgia-india-panama-tajikistan-uzbekistan-refinance-38m-in-microloans-via-sales-to-iiv-mikrofinanzfonds/

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