A is for alpha tricks and trends
Download
1 / 16

A is for Alpha ( Tricks and Trends) - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

A is for Alpha ( Tricks and Trends). Damian von Stauffenberg April 11th, 2007. What Shapes MFIs ?. What Shapes MFIs?. Growth. Portfolio Growth – 40 Latin American MFIs. 40 Latin American MFIs. Two Examples. 2000 2006 WWB Cali Portfolio ($mm) 12.8 146.2

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' A is for Alpha ( Tricks and Trends)' - falala


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
A is for alpha tricks and trends

A is for Alpha(Tricks and Trends)

Damian von Stauffenberg

April 11th, 2007






Two examples
Two Examples

20002006

WWB Cali

Portfolio ($mm) 12.8 146.2

Clients 33,000 149,000

Crear Arequipa

Portfolio ($mm) 2.3 29.0

Clients 2,400 26,100


What shapes mfis cont d
What Shapes MFIs ? (Cont’d)

  • Do the Clothes Still Fit? Where to look:

    • Consistent Methodology

    • Delegation

    • Controls

    • Governance

    • Organ. & Staff

    • Financial Structure


How do we rate
How Do We Rate ?

  • Microfinance Operations

  • Portfolio Quality

  • Management & Organization

  • Governance & Strategic Positioning

  • Financial Position


Main trends in addition to growth
Main Trends (In addition to growth)

  • Increasing Competition

    • Dropping Rates

    • Greater Efficiency

    • More (and better) Products

  • Commercial Funds Have Replaced Donor Money

  • NGOs Convert into Financial Intermediaries


Bumps on the road mfis
Bumps on the Road (MFIs)

  • Over- Indebtedness of Borrowers

  • Some MFIs will Overreach

  • Populist Politics

  • Economic Cycles haven’t ended!


Bumps on the road funders
Bumps on the Road (Funders)

  • Oversupply of Foreign Funding

    • Crowding Out

    • Too many MIVs chasing too few MFIs?

  • Lack of Transparency

    • Returns don’t match risks

    • No Benchmarks

    • No Independent Performance Evaluation


Direct international financial institution investments in microfinance institutions
Direct International Financial Institution Investments in Microfinance Institutions

Source: CGAP Public Investor Microfinance Portfolio - 2005 Survey


International Financial Institutions Lending to Latin American MFIs Rated by MicroRate 2005Growth Ratesby Rating Grade

In 2005, IFI’s increased their investments in the strongest MFIs and decreased their investments in the weakest MFIs.


Growth of microfinance investment vehicles mivs 2003 2005

1,800

$1,533

1,600

1,400

$1066

1,200

$1,008

1,000

82%

USD Millions

800

$554

600

400

200

0

MicroRate MIV Universe: 2004

MicroRate MIV Universe: 2005

Total Assets

Microfinance Portfolio

Growth of Microfinance Investment Vehicles (MIVs)2003-2005


MIV Microfinance Portfolio

Geographic Investment Analysis

Round 2 MIVs

14 MIVs

Asia

12%

Eastern Europe

Latin America

17%

&

Caribbean

56%

Africa

8%

Other Regions

&

World Wide

7%

Africa

Eastern Europe

Asia

Latin America and the Caribbean

Other Regions/World Wide



ad