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 the Nicaraguan crisis, Armand Vardanyan, Fund Manager  said, “It is likely that some legislation will be passed, but nobody knows exactly what it will be.”
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,he also added that the Dual Return Fund has  built a valuation reserve for loan to an investee MFI in Nicaragua, making periodic loan-loss provisions. The main part of the loan was 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.

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