Dual Return – Vision Microfinance Fund posts positive performance

By Matthew Fuchs

Microfinance Focus, Dec. 16, 2009: The Dual Return – Vision Microfinance Fund has posted a positive result for November, with a gain of 0.21% for its public share class (Class P) and 0.26% for its institutional class (Class I) in November, according to the fund’s monthly report.
Returns year-to-date are 2.85% and 3.46% for Class P and Class I respectively.  The fund made $3 million in direct loans during November to three MFIs in Mongolia, Ecuador and Sri Lanka.
Commenting on Nicaraguan crisis, Armand Vardanyan, an official of the fund, said, “It is likely that some legislation will be passed, but nobody knows exactly what it will be.” The fund has invested in some Nicaraguan MFIs alongwith Dexia and responsAbility Microfinance funds, which had shown declining performance.
While many international creditors are not renewing loans, which will create re-financing risk for some MFIs, cooperation between creditors is increasing to assist affected MFIs, Vardanyan said and added that the Dual Return Fund has over the past built a valuation reserve for loan to an investee MFI in Nicaragua, making periodic loan-loss provisions. The main part of the loan has been repaid upon maturity, with the remainder restructured for repayment in the next few months, he said.
The Dual Return – Vision Microfinance Fund, launched in April 2006, is a Luxembourg-registered investment vehicle which provides loans directly to MFIs. Absolute Portfolio Management, based in Vienna, manages the fund which is advised by Geneva-based firm Symbiotics. UBS Funds Services Luxembourg is the fund administrator.

Related Posts:

• Vision Microfinance Dual Return Fund yields positive returns in Jan
• MFIs expect demand for loans to recover in Q1: Dual Return Fund
• Dexia Microcredit Fund posts positive result in January: BlueOrchard
• Dexia Fund posts positive result in Jan 2010: BlueOrchard
• ResponsAbility fund performance negative in November
• ResponsAbility fund ends on positive note in 2009
• Dexia fund portfolio flat in October: BlueOrchard
• ResponsAbility Microfinance Fund opens year with positive return

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