Page 1

Featuring:

FONKOZE on p.3

Global Partnerships

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

Third Quarter 2015 | July 1 - Sept. 30, 2015

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

Photo Š Global Partnerships

Seattle Headquarters: Global Partnerships, 1932 First Avenue, Suite 400, Seattle, WA 98101, USA | Tel: 206.652.8773 | Website: www.globalpartnerships.org


| Letter from the CIOO |

November 13, 2015 Dear Investor, At Global Partnerships, our credit management philosophy includes not assuming that historically strong credit quality is an indication of future results. Credit does not usually turn from poor quality to good quality quickly, but experienced lenders will all admit that it can turn from good quality to poor quality in very little time. Thus, while our credit record has been exemplary, we are not resting on our laurels, but constantly trying to improve our risk management. Our three areas of focus in risk management are: (1) prompt and vigorous response to “red flags”; (2) constant improvements in both our due diligence and monitoring processes; and (3) strengthening the analytical capacity of our organization. In the past year, all of our loans have performed as required, but a few organizations ran into difficulties due to economic conditions, governance and management problems, or changing markets. We were able, by staying close to our partners and monitoring the expectations outlined in our loan agreements, to recognize the potential problems early on. When we did, we immediately sent some of our experienced staff into the field to spend time with these partners and determine what actions were necessary. They returned with recommendations that we considered carefully, discussed with our Investment Committee and implemented. We also learned from each of these experiences that there were things we could have done better in both our due diligence process and our ongoing monitoring process. In some cases, we’ve moved financial monitoring from quarterly to monthly, and had regular conference calls with management. In other cases, we’ve modified the factors that we review and monitor based on the risks unique to a particular sector or partner. Our due diligence reports focus more than ever on key risk factors and risk mitigants. Finally, we continue to improve our team. We added a director level position to oversee economic, financial and risk analysis, and we are in the process of adding an officer level position in this same area. Loan proposals from portfolio directors are reviewed by at least three key managers with over 50 years of combined experience in lending institutions, before they are presented to the Investment Committee. The Committee has been strengthened with the addition of two new members with many years of relevant experience. We appreciate the confidence that you as fund investors place in our stewardship of your funds. While delivering positive social impact to provide opportunity for people living in poverty is our mission, we know this cannot be accomplished without very solid disciplines in extending credit to our partner organizations. As always, thank you for your ongoing support of our mission. Best regards,

Mark Coffey Chief Investment and Operating Officer

BY THE NUMBERS 13 COUNTRIES

where Global Partnerships has worked

85 PARTNERS

with whom Global Partnerships has worked

3.4 MILLION LIVES IMPACTED

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

$171.8 MILLION Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 2

cumulative capital deployed


| Featured Partner: FONKOZE |

FONKOZE clients receive education during a group loan meeting. Photo © Global Partnerships. Click to see all partner profiles

Haiti is one of the poorest countries in the world and the poorest in the Americas. Nearly 60% of Haitians live in poverty and almost 25% live in extreme poverty. WHO FONKOZE is a microfinance institution that uses the group lending platform to deliver credit and additional services to marginalized and underserved women in Haiti. With nearly 200,000 clients, FONKOZE has several programs that provide tailored support to clients depending on their needs.

Country: Haiti Year Founded: 1995 Number of Employees: 746 Clients served: 198,614 Average Loan Size Per Client: $198 Percent Rural: 87%

WHAT

WHY

Driven by its commitment to the poor, FONKOZE runs the “Staircase out of Poverty” program, an innovative four step program designed to accompany clients on their journey out of poverty. For clients that are in extreme poverty, FONKOZE provides extensive precredit support, training, and services to first-time borrowers, and then ongoing support as clients build and grow their microenterprises. Along with group credit, education and training are the core components of FONKOZE’s programming, and they also leverage their large network of microentrepreneurs for the delivery of additional services such as health and solar products.

FONKOZE is deeply committed to its clients and works with very poor women throughout all 10 departments of the country. Many branch offices operate in areas of the country that have no other financial service providers. GP believes FONKOZE is a best-in-class organization focused on inclusion by providing critical financial and non-financial services to Haitian women living at the base of the pyramid.

Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | 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

FY15

In terms of the Fund’s underlying investments, all principal and interest payments from the Fund’s partners were once again made on time during the third quarter, reflecting the strength of the underlying investments.

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

During the third quarter of 2015, SIF2010 made a prepayment of approximately $1.7 million in principal plus interest to senior investors. Subsequent to the third quarter, in October, the Fund made a scheduled principal payment of just over $8.7 million plus interest to investors. There will be limited disbursement activity in the Fund during the remaining term, consisting only of one or two seasonal disbursements to agricultural cooperative partners to maximize the available cash in the Fund. The final scheduled investor payments will be made in June 2016.

Fund Overview FY11

FY12

FY13

FY14

FY15

PARTNER PORTFOLIO QUALITY AVERAGEPAR PAR>30 > 30 AVERAGE

Loanspast pastdue duegreater greaterthan than30 30days daysas asaa%% Loans 6

$23.9MM Capital Invested $23.3MM Total Fund Capital

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

MATCHED TREASURIES

As a %

Called

UST

$67.4MM Cumulative

Fund

Capital Deployed

0.55% 3.64% 0

1

2

3

4

4

119 Cumulative Number of

2 0

FY11

FY12

FY13

FY14

FY15

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

Loans

30

20 Number of Consecutive 946K Lives Impacted

2 1 0

FY11

FY12

FY13

FY14

FY15

Current Number of Partners

$956

Quarters PAR=0

4 3

Portfolio Overview

Average Loan Size

(Estimated number of lives impacted as a result of SIF 2010’s contribution to the meaningful opportunities delivered by partner organizations.)

77%

Inception Date October 21, 2010

56%

Fund Manager Global Partnerships

Investment Currency US$ and fully hedged local currency

Percentage of People Served Who are Women

Percentage of People Served Living in Rural Areas

Type of Fund Debt

Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 4

5


Outstanding Positions | Distribution by Institution and Country |

Social Investment Fund 2010 Percent of investable assets

1% Cash 24% Peru

20% 21% Bolivia Bolivia

14% Nicaragua

8% Mexico

2% Honduras <1% Haiti

9% El Salvador

16% Ecuador

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

BOLIVIA (21%)

HAITI (<1%)

PERU (24%)

Crecer (4%) EMPRENDER (3%) FONDECO (2%) IDEPRO (6%) Pro Rural (1%) Sembrar Sartawi (5%)

Fonkoze (<1%)

ADRA (8%) Alternativa (Peru) (2%) APROCASSI (3%) Crediflorida (1%) FONDESURCO (1%) NORANDINO (3%) Pro Mujer in Peru (6%)

ECUADOR (16%) Banco D-MIRO (3%) ESPOIR (4%) Fundaci贸n Faces (3%) Vision Fund Ecuador (6%)

EL SALVADOR (9%) ENLACE (6%) CrediCampo (3%)

HONDURAS (2%) IDH (2%) RAOS (0%)

MEXICO (8%) CESMACH (0%) CONSERVA (4%) VisionFund Mexico (4%)

CASH (1%)

NICARAGUA (14%) Aldea Global (3%) FDL (3%) MiCr茅dito (4%) Pro Mujer in Nicaragua (4%)

GUATEMALA (2%) Friendship Bridge (2%) Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 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

SIF 5.0 disbursed over $3.3 million to seven partners in the third quarter. Two of those disbursements were to new partners in El Salvador and Ecuador. During the quarter, all SIF 5.0 partners with quarterly payments due made them as agreed and all are aligned with one or more of GP’s impact areas. The Fund ended the quarter with $37.5 million in loans outstanding.

240 120 0

FY13

FY14

FY15

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

We anticipate a record amount of loan activity in the fourth quarter. The Fund recently reached its target of $50 million in committed capital and anticipates calling the remaining capital during the final quarter of 2015 and first half of 2016.

Fund Overview $37.5MM Capital Invested $40.4MM Total Fund Capital

FY13

FY14

FY15

PARTNER PORTFOLIO QUALITY AVERAGEPAR PAR > AVERAGE >30

30

Loans greater than 30 days as a as % a% Loanspast pastdue due greater than 30 days 10

UST

$46.4MM Cumulative

Fund

Capital Deployed

57 Cumulative Number of Loans

0

FY13

FY14

FY15

AVERAGEWRITEOFFS WRITEOFFS AVERAGE

Assetamount amountcharged chargedto toloss lossas asaa% % Asset 4 3 2

0

497K Lives Impacted

FY13

FY14

0

1

2

3

4

Portfolio Overview Current Number of Partners

Average Loan Size

(Estimated number of lives impacted as a result of SIF 5.0’s contribution to the meaningful opportunities delivered by partner organizations.)

55%

Inception Date March 25, 2013

71%

Fund Manager Global Partnerships

1

3.35%

$1,102

Quarters PAR=0

2

0.73%

30

10 Number of Consecutive

4

MATCHED TREASURIES

As a %

Called

8 6

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

Investment Currency US$ and fully hedged local currency

Percentage of People Served Who are Women

Percentage of People Served Living in Rural Areas

FY15

Type of Fund Debt

Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 6

5


Outstanding Positions | Distribution by Institution and Country |

Social Investment Fund 5.0 Percent of investable assets

3% Colombia

19% Bolivia

18% Ecuador

5% Cash 4% El Salvador

9% Paraguay

7% Guatemala 2% Latin America

8% Peru 14% Nicaragua

14% Mexico

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

PARAGUAY (9%)

BOLIVIA (19%)

EL SALVADOR (4%)

Emprender (4%) FONDECO (2%) Idepro (5%) PRO RURAL (2%) Sembrar Sartawi (6%)

CrediCampo (3%) FADEMYPE (1%) NEW

Arasy (5%) BioExport (4%)

GUATEMALA (7%)

PERU (8%) Cenfrocafe (2%) Coop Sol y Caf茅 (1%) Pro Mujer in Peru (5%)

Fundaci贸n Amanecer (3%)

CDRO (1%) Fundea (5%) FECCEG/ECEG (0%) PROFASA (1%)

ECUADOR (18%)

MEXICO (14%)

Banco D-MIRO (5%) CEPESIU (1%) NEW ESPOIR (4%) Fundaci贸n Alternativa (4%) Vision Fund Ecuador (4%)

Pro Mujer Mexico (8%) Vision Fund Mexico (6%)

Greenlight Planet (1%) Tecnosol (1%)

NICARAGUA (14%)

CASH (5%)

COLOMBIA (3%)

LATIN AMERICA (MULTICOUNTRY) (2%)

COOPEFACSA (1%) FDL (5%) Fundenuse (3%) Pro Mujer in Nicaragua (5%) Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 7


Outstanding Positions | Distribution by Institution and Country |

All Funds

Percent of investable assets 5% Paraguay 1% Latin America

3% 1% Honduras Cash 5% Guatemala

<1% Haiti

5% El Salvador

2% Colombia

11% Mexico

14% Nicaragua

17% Ecuador

15% Peru 20% Bolivia

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

BOLIVIA (20%)

PARAGUAY (5%)

COLOMBIA (2%)

PERU (15%)

ECUADOR (17%)

LATIN AMERICA (MULTICOUNTRY) (1%)

EL SALVADOR (5%) CASH (3%) GUATEMALA (5%) HAITI (<1%) HONDURAS (1%) MEXICO (11%) NICARAGUA (14%)

Global Partnerships | Q3 2015 | As of Sept. 30, 2015 | Page 8

GP Investors Report | Q3 | 2015  
Advertisement