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APROCASSI on p.3

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Global Partnerships

IN V E STORS RE P ORT www.globalpartnerships.org

Fourth Quarter 2014 | Oct.1 - Dec. 31, 2014

For more information contact: Jason Henning, VP, Investor and Donor Relations jhenning@globalpartnerships.org | 206.456.7832

1932 First Avenue, Suite 400 | Seattle, WA 98101, USA | 206.652.8773 // De Enitel Villa Fontana 2c. Este, 30v. Norte | Edificio Opus Of. 205 | Managua, Nicaragua


| Letter from the CIOO |

February 13, 2015 Dear Investor, Worldwide about 500 million small-scale farmers, most of whom live in rural poverty, need access to financing, training and markets in order to improve their lives. Reaching these farmers has always been important for Global Partnerships. In 2011, we started expanding our Rural Livelihoods initiative when we began financing various agricultural cooperatives, along with certain savings and credit cooperatives that work primarily with farmers. This type of financing has been fruitful for our funds, in that all of the loans made to date have performed according to terms. But more importantly, our investments have enabled our partners to deliver impact at the farmer household level through their provision of: • • • •

access to fair trade and specialty product markets, with attendant pricing advantages, technical assistance from the cooperatives to the farmers, value-add processing at the cooperative level, and credit, primarily in the form of working capital loans.

Challenges have presented themselves along the way, with the most obvious being the devastating coffee rust that has ravaged crops, particularly in Central America, Mexico and Peru. Our partners have been managing through that challenge admirably, and our team has worked hard to identify great partners and to stay in close touch with them. Perhaps a larger challenge from an impact standpoint is how to scale our work to greater numbers of small-scale farmers. In researching the best way to do this, we have studied a number of organizations that we call “outgrowers,” who provide many of the same services as a cooperative, but on a much larger scale. We are interested in outgrower organizations that work with small-scale farmers (usually 1-10 hectares in Latin America) to: • • •

provide technical assistance, introduce farmers to higher-value crops, and provide credit in the form of seeds or other materials.

These organizations also provide processing and export services, and work to develop markets for high-value and emerging products. Our recent work in Guatemala and entry into Paraguay (in the first quarter of 2015) have focused on outgrowers that provide technical assistance on crops such BY THE NUMBERS as sesame and chia, and then export these products to high-demand developed markets in Asia, Europe and North America. In future additions of this report, we will profile one of these partners. 12 COUNTRIES Within this report we profile a Peruvian agricultural cooperative, APROCASSI. We are now in our fourth annual cycle of working with this excellent organization to improve the lives of small-scale coffee farmers in the northern zone of the country. Our investment funds maintain diversification between various sectors of the economy, but small-scale agriculture is likely to remain an important sector because of its important impact on the quality of life of the rural household. Thank you for making this work possible.

Mark Coffey Chief Investment and Operating Officer Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 2

where Global Partnerships has worked

78 PARTNERS

with whom Global Partnerships has worked

2.9 MILLION LIVES IMPACTED

(an estimate number of lives impacted as a result of GP’s contribution to the meaningful opportunities delivered by partner organizations)

$154.3 MILLION

cumulative capital deployed


| Featured Partner: APROCASSI |

With APROCASSI’s help, Zara is now a certified organic grower, which means she can charge 30 percent more for her coffee beans. Because of the training APROCASSI provides—such as one-onone technical assistance and workshops—she has been able to improve her yields and the quality of her product, and thus her profits. Photo © Global Partnerships. Click to see all partner profiles online

APROCASSI operates in Cajamarca, Peru, where over half the population lives below the poverty line. WHO

WHAT

WHY

APROCASSI is a 100% fair trade certified coffee cooperative dedicated to improving the quality of life of small producers in northern Peru. In order to further its mission, APROCASSI founded APROCREDI, a rural savings and credit cooperative that provides members with access to pre-harvest credit as well as longer term loans for plant rejuvenation and general household needs between harvests.

APROCASSI provides its members with technical assistance, commercialization, and education services. The cooperative supports farmers in obtaining necessary certifications, negotiating contracts, processing, marketing and exporting the coffee.

Cajamarca, Peru, where the cooperative operates, is the second largest coffee growing region in the country. In this region, over half of the population lives below the national poverty line. Global Partnerships invests in APROCASSI because it provides small-holder farmers with a complete selection of services that broadly support the farmers from preharvest activities to selling their product in specialty markets.

Country: Peru Year Founded: 2000 Number of Employees: 15 Number of Borrowers: 410 Outstanding Loan Portfolio: $1.1MM Average Loan Size Per Borrower: $2,726 Percent of Rural Clients: 100%

Ultimately members are able to capitalize on improved crop practices by gaining access to specialty markets where they can obtain better prices. Access to credit and savings via APROCREDI allows farmers to maintain their households between harvests and periodically replace their crop with new plants to maintain high yields of quality product.

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 3


| Social Investment Fund 2010 |

Fund Manager’s Comments SCALE TOTAL LOANPORTFOLIO PORTFOLIO TOTAL PARTNER PARTNER LOAN US USdollars dollarsin in millions millions 1000 800 600 400 200 0

FY11

FY12

FY13

FY14

TOTALPEOPLE PEOPLESERVED SERVED TOTAL Inmillions millions In 1.2 1.0 0.8 0.6 0.4 0.2 0

During the fourth quarter of 2014, the Fund disbursed seven loans and renewed two credits, for a total of just over $8 million of loan activity. SIF2010’s outstanding loan balances have now surpassed the Fund’s original committed capital of $25 million. With the end of the Fund less than 18 months away and with the first repayment of over $10 million due to investors less than 10 months away, loan activity will be limited to short-term renewals or short-term loans to our trade finance (cooperative) partners. In the fourth quarter of 2014, all principal and interest payments were once again made on time, reflecting the strength of the underlying investments.

Fund Overview $25.3MM Capital Invested

FY11

FY12

FY13

FY14

$25.0MM Total Fund Capital

FUND RETURN v. DURATION-MATCHED FUND RETURN v. DURATIONTREASURIES

MATCHED TREASURIES

As a %

0.57%

UST

PARTNER PORTFOLIO QUALITY

$65.4MM Cumulative Capital Deployed

Fund

3.64% 0

AVERAGEPAR PAR>30 > 30 AVERAGE Loanspast pastdue duegreater greaterthan than30 30days daysas asaa%% Loans 6 4

2

3

4

Portfolio Overview 35 Current Number of Partners

Quarters PAR=0 FY11

FY12

FY13

$959

FY14

AVERAGEWRITEOFFS WRITEOFFS AVERAGE Assetamount amountcharged chargedto toloss loss as as aa % % Asset 4 3

651K Lives Impacted

(an estimate number of lives impacted as a result of SIF 5.0’s contribution to the meaningful opportunities delivered by partner organizations.) Inception Date October 21, 2010

2 1 0

Loans

17 Number of Consecutive

2 0

109 Cumulative Number of

1

FY11

FY12

FY13

FY14

Fund Manager Global Partnerships Type of Fund Debt

Investment Currency US$ and fully hedged local currency

Average Loan Size

77%

Percentage of People Served Who are Women

59%

Percentage of People Served Living in Rural Areas

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 4

5


| Social Investment Fund 5.0 |

Fund Manager’s Comments SCALE TOTAL PARTNER LOAN PORTFOLIO TOTAL PARTNER LOAN PORTFOLIO US dollarsinin millions US dollars millions 600 480 360

During the fourth quarter, the Fund disbursed $4.2 million to seven partners, including three partners new to GP. One of those, Greenlight Planet, is a manufacturer and distributor of solar powered home lights designed primarily for off-grid households. The purpose of our loan is to increase their distribution in Latin America and the Caribbean through enhanced credit terms to distributors in the region.

240 120 0

FY13

FY14

TOTALPEOPLE PEOPLESERVED SERVED TOTAL In Inmillions millions 1.2 1.0 0.8 0.6 0.4 0.2 0

The Fund is continuing to accept new commitments from investors and we anticipate calling additional capital during the 1st quarter as we maintain a high-level of planned disbursement activity and as we begin our first renewals in the Fund. Meanwhile, all partners have made payments as agreed and all partners are aligned with one or more of GP’s impact areas.

Fund Overview $28.0MM Capital Invested FY13

FY14

$31.5MM Total Fund Capital

FUND RETURN v. DURATION-MATCHED FUND RETURN v. DURATIONTREASURIES

MATCHED TREASURIES

As a %

0.95%

UST

PARTNER PORTFOLIO QUALITY

$31.0MM Cumulative Capital Deployed

AVERAGEPAR PAR > AVERAGE >30

Loans greater than 30 days as a as % a% Loanspast pastdue due greater than 30 days

36 Cumulative Number of Loans

8 6

7 Number of Consecutive

4 2 0

1

2

3

4

Portfolio Overview 24 Current Number of Partners

Quarters PAR=0 FY13

$1,099

FY14

154K Lives Impacted AVERAGEWRITEOFFS WRITEOFFS AVERAGE Assetamount amountcharged chargedto toloss lossas asaa% % Asset 4 3

(an estimate number of lives impacted as a result of SIF 5.0’s contribution to the meaningful opportunities delivered by partner organizations.) Inception Date October 21, 2010

2 1 0

3.52% 0

30

10

Fund

FY13

FY14

Fund Manager Global Partnerships Type of Fund Debt

Investment Currency US$ and fully hedged local currency

Average Loan Size

59%

Percentage of People Served Who are Women

72%

Percentage of People Served Living in Rural Areas

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 5

5


Outstanding Positions | Distribution by Institution and Country |

Social Investment Fund 2010 Percent of investable assets

<1% Cash

24% Peru

20% Bolivia 1% Colombia <1% Dominican Republic

14% Nicaragua

16% Ecuador

10% Mexico

9% El Salvador

3% Honduras

2% Guatemala 1% Haiti Note: All percentages have been rounded to the nearest whole number.

BOLIVIA (20%)

EL SALVADOR (9%)

NICARAGUA (14%)

Crecer (4%) EMPRENDER (3%) FONDECO (2%) IDEPRO (6%) Pro Rural (1%) Sembrar Sartawi (4%)

ENLACE (6%) CrediCampo (3%)

Aldea Global (3%) FDL (3%) MiCr茅dito (4%) Pro Mujer in Nicaragua (4%)

COLOMBIA (1%) Fundaci贸n Amanecer (1%)

DOMINICAN REPUBLIC (<1%)

GUATEMALA (2%) Friendship Bridge (2%)

ADRA (8%) Alternativa (Peru) (2%) APROCASSI (<1%) Arariwa (<1%) Crediflorida (1%) FONDESURCO (3%) NORANDINO (3%) Pro Mujer in Peru (7%)

Fonkoze (1%)

HONDURAS (3%)

Esperanza (<1%)

COMIXMUL (1%) IDH (2%) RAOS (0%)

ECUADOR (16%)

MEXICO (10%)

Banco D-MIRO (3%) ESPOIR (4%) Fundaci贸n Faces (3%) Vision Fund Ecuador (6%)

PERU (24%)

HAITI (1%)

CESMACH (1%) CONSERVA (4%) Triunfo Verde (0%) VisionFund Mexico (5%)

CASH (<1%)

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 6


Outstanding Positions | Distribution by Institution and Country |

Social Investment Fund 5.0 Percent of investable assets

2% Colombia 24% Bolivia

3% Latin America Region

22% Ecuador

8% Cash

8% Peru 12% Nicaragua

9% Guatemala

3% El Salvador

12% Mexico 1% Honduras Note: All percentages have been rounded to the nearest whole number.

BOLIVIA (24%) Emprender (5%) FONDECO (3%) Idepro (7%) PRO RURAL (3%) Sembrar Sartawi (6%)

GUATEMALA (9%) Fundea (7%) FECCEG/ECEG (1%) NEW Profasa (1%) NEW

PERU (8%) Cenfrocafe (1%) Pro Mujer in Peru (7%)

LATIN AMERICA REGION (3%)

COMIXMUL (1%)

Greenlight Planet (2%) NEW Tecnosol (1%)

Fundaci贸n Amanecer (2%)

MEXICO (12%)

CASH (8%)

ECUADOR (22%)

Pro Mujer Mexico (7%) Vision Fund Mexico (5%)

COLOMBIA (2%)

Banco D-MIRO (7%) ESPOIR (5%) Fundaci贸n Alternativa (5%) Vision Fund Ecuador (5%)

EL SALVADOR (3%)

HONDURAS (1%)

NICARAGUA (12%) FDL (3%) Fundenuse (2%) Pro Mujer in Nicaragua (7%)

CrediCampo (3%)

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 7


Outstanding Positions | Distribution by Institution and Country |

All Funds

<1% Dominican Republic

Percent of investable assets

<1% Haiti

1% Latin America Region

2% Colombia 4% Cash

2% Honduras 6% Guatemala 6% El Salvador

10% Mexico 13% Nicaragua 19% Ecuador 15% Peru 22% Bolivia

Note: All percentages have been rounded to the nearest whole number.

BOLIVIA (22%)

NICARAGUA (13%)

COLOMBIA (2%)

PERU (15%)

DOMINICAN REPUBLIC (<1%)

LATIN AMERICA REGION (1%)

ECUADOR (19%)

CASH (4%)

EL SALVADOR (6%) GUATEMALA (6%) HAITI (<1%) HONDURAS (2%) MEXICO (10%)

Global Partnerships | Q4 2014 | As of Dec. 31, 2014 | Page 8

GP Investors Report | Q4 | 2014  

This is the Investors Report for the fourth quarter of 2014, covering investment activity between Oct. 1 - Dec. 31, 2014.

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