BBVA CODESPA MICROFINANCE FUND
Product summary
Launched by the Spanish bank Banco Bilbao Viscaya Argentaria (BBVA), this fund invests in microfinance institutions located in Latin America, providing them with loans in the respective local currencies whenever possible. The aim of the fund is to promote sustainable development across Latin America by enabling greater provision of basic financial services to boost the activities of micro-entrepreneurs .
A variety of hedging instruments are used to cover the foreign exchange risk associated with the fund’s structure, while up to 30% of the fund can invested in non-hedgeable currencies, such as the Paraguayan Guarani, Honduran Lempira and Guatemalan Quetzal.
BlueOrchard Finance S.A. is co-advisor of the fund, in charge of peforming the analysis and due diligence of MFIs for the investment decisions made by BBVA’s Asset Management division.
Key product features
- Latin American focus;
- EUR-denominated fund, with most investments (at least 70%) hedged to EUR;
- Some unhedged foreign exchange risk;
- Low correlation with other asset classes;
- Low default risk.
Social Impact
- Contribution to economic growth across Latin America;
- Supporting the alleviation of poverty;
- Empowering marginalized groups, such as women, rural entrepreneurs and food producers.
Further information
For more information about the BBVA Codespa Microfinance Hedge Fund, please contact us at: communication@blueorchard.com
Key figures as of 4 January 2010
| NAV | EUR 28 million | ||
| Microfinance portfolio | EUR 19.7 million | ||
| Return year-to-date | -1.68% | ||
| 3 top positions | Procredit 4.93% | Finsol MX 4.91% | Vision 3.53% |
| Inception date | 30 Oct. 2006 |
Microfinance portfolio - geographical distribution
Fund description and disclaimer
Inception date: 30 Oct. 2006
Fund manager: BBVA ASSET MANAGEMENT, S.S., S.G.I.I.C.
Deposit bank: BANCO DEPOSITARIO BBVA, S.A.
Fund advisor: BlueOrchard Finance S.A.
ISIN: ES0113955035
No. registre CNMV: 1
Valuation date: monthly; each working day of the month
Management fee 2.00%
Dposit: 0.15%
Subscription: n/a
Redemptions: < one year: 3.00%; + / = one year: 2.00%; two years+: 1.00%; + / = 3 years: n/a
Disclaimer:
Above information is provided solely for indication and should be verified with the fund manager, BBVA Asset Management S.A. The BBVA Codespa Microfinanzas is an investment fund as per the following characteristics provided by BBVA: "Fondo de inversión libre. El Fondo se configura como una IIC de Inversión Libre caracterizada por la inversión en cualesquiera valores no cotizados emitidos por instituciones microfinancieras o en otros valores o instrumentos con la finalidad de financiar la actividad de tales instituciones, consistente en promover el desarrollo sostenible en países en vías de desarrollo (fundamentalmente de América Latina) mediante el impulso de la actividad de financiación a pequeños empresarios sin recursos económicos a traves de la provisión de servicios financieros básicos. El objetivo del fondo es contribuir mediante sus inversiones al desarrollo de la industria microfinanciera, a la vez que generar una rentabilidad positiva para sus participes ."
The information contained herein does not constitute an offer to sell or an invitation to purchase units of the BBVA Microfinanzas fund. The BBVA Microfinanzas fund is not authorised for public sale in Switzerland and must therefore not be publicly marketed in Switzerland. The units of the BBVA Microfinanzas fund must not be purchased, held by or transferred to investors who are domiciled in or are nationals of the USA or its territories. Neither the fund manager nor BlueOrchard Finance SA are liable for any damages or losses of any kind that may arise from the use of the information contained herein.
By accessing, visiting or using the web pages on the BBVA Microfinanzas fund, you, personally and/or on behalf of any legal entity of which you are a representative, agent or employee, when acting in such capacity, agree to the following disclaimer: the contents of this website are for information purposes only. The information on this website does not constitute an offer or solicitation to invest. Additionally, no information constitutes a concrete investment recommendation or service. Access to the products and funds mentioned on this website shall not be granted to persons who are nationals of, or domiciled in, countries where local law or regulations forbid access to such information. The same shall apply to the prospectuses of these products. The information contained in this website is protected by intellectual property rights that are owned or claimed by BlueOrchard Finance SA and any associated or affiliated company.
The performance data quoted in these web pages represents past performance, and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate so that your shares or accumulation units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted herein.
