GP Investors Report | Q3 | 2015

Global Partnerships

INVESTORS REPORTThird Quarter 2015 | July 1 - Sept. 30, 2015

www.globalpartnerships.org

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

For more information, contact:

Jason Henning, VP, Investor and Donor Relations

[email protected] | 206.456.7832

Featuring: FONKOZE on p.3

Photo © Global Partnerships

http://www.globalpartnerships.org

http://globalpartnerships.org

mailto:jhenning%40globalpartnerships.org?subject=

mailto:jhenning%40globalpartnerships.org?subject=

http://www.impactassets.org/ia50/fund.php?id=a01E000000CHJiQIAX

| Letter from the CIOO |

13 COUNTRIESwhere Global Partnerships has worked

85 PARTNERSwith 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 MILLIONcumulative capital deployed

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

BY THE NUMBERS

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

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.

Country: HaitiYear Founded: 1995

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

| Featured Partner: FONKOZE |


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.

WHAT 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 pre-credit 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.

WHY 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.

FONKOZE clients receive education during a group loan meeting. Photo © Global Partnerships.

Click to see all partner profiles

http://www.globalpartnerships.org/partners

| Social Investment Fund 2010 |


Fund Manager’s Comments

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.

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.

$23.9MM Capital Invested

$23.3MM Total Fund Capital Called

$67.4MM Cumulative Capital Deployed

119 Cumulative Number of Loans

20 Number of Consecutive

Quarters PAR=0

946K Lives Impacted (Estimated number of lives impacted as a result of SIF 2010’s contribution to the meaningful opportunities delivered by partner organizations.)

30Current Number of Partners

$956 Average Loan Size

77%Percentage of People Served Who are Women

56%Percentage of People Served Living in Rural Areas

Fund Overview

Inception DateOctober 21, 2010

Fund Manager Global Partnerships

Type of FundDebt

Investment CurrencyUS$ and fully hedged local currency

Portfolio Overview

In millionsTOTAL PEOPLE SERVED

00.20.40.60.81.01.2

FY11 FY12 FY13 FY14 FY15

Loans past due greater than 30 days as a %AVERAGE PAR >30

0

2

4

6


Asset amount charged to loss as a %AVERAGE WRITEOFFS

0

1

2

3

4


US dollars in millionsTOTAL PARTNER LOAN PORTFOLIO


200400600800

1000

SCALE

PARTNER PORTFOLIO QUALITY

TOTAL PARTNER LOAN PORTFOLIOUS dollars in millions

TOTAL PEOPLE SERVEDIn millions

AVERAGE PAR > 30Loans past due greater than 30 days as a %

AVERAGE WRITEOFFSAsset amount charged to loss as a %

As a %

0.55%

3.64%

FUND RETURN v. DURATION-MATCHED TREASURIES

0 1 2 3 4 5

Fund

UST


Outstanding PositionsDistribution by Institution and Country


| |

Social Investment Fund 2010Percent of investable assets

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

BOLIVIA (21%)Crecer (4%)EMPRENDER (3%) FONDECO (2%)IDEPRO (6%)Pro Rural (1%)Sembrar Sartawi (5%)

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

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

GUATEMALA (2%)Friendship Bridge (2%)

HAITI (<1%) Fonkoze (<1%)

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

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

NICARAGUA (14%)Aldea Global (3%)FDL (3%)MiCrédito (4%) Pro Mujer in Nicaragua (4%)

PERU (24%)ADRA (8%)Alternativa (Peru) (2%) APROCASSI (3%)Crediflorida (1%)FONDESURCO (1%)NORANDINO (3%) Pro Mujer in Peru (6%)

CASH (1%)

20%Bolivia

1% Cash

2% Guatemala<1% Haiti

2% Honduras

16%Ecuador

8%Mexico

14%Nicaragua

24%Peru

9%El

Salvador

21%Bolivia

| Social Investment Fund 5.0 |


Fund Manager’s Comments

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.

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.

$37.5MM Capital Invested

$40.4MM Total Fund Capital Called

$46.4MM Cumulative Capital Deployed

57 Cumulative Number of Loans

10 Number of Consecutive

Quarters PAR=0

497K Lives Impacted (Estimated number of lives impacted as a result of SIF 5.0’s contribution to the meaningful opportunities delivered by partner organizations.)

30Current Number of Partners

$1,102 Average Loan Size

55%Percentage of People Served Who are Women

71%Percentage of People Served Living in Rural Areas

Fund Overview

Inception DateMarch 25, 2013

Fund Manager Global Partnerships

Type of FundDebt

Investment CurrencyUS$ and fully hedged local currency

Portfolio Overview

As a %

0.73%

3.35%


0 1 2 3 4 5

Fund

UST

SCALE

PARTNER PORTFOLIO QUALITY

US dollars in millionsTOTAL PARTNER LOAN PORTFOLIO

0

120

240

360

480

600

FY13 FY14 FY15

TOTAL PARTNER LOAN PORTFOLIOUS dollars in millions

In millionsTOTAL PEOPLE SERVED

00.20.40.60.81.01.2

FY13 FY14 FY15

TOTAL PEOPLE SERVEDIn millions

AVERAGE PAR >30Loans past due greater than 30 days as a %

0

2

4

6

8

10

FY13 FY14 FY15

AVERAGE PAR > 30Loans past due greater than 30 days as a %

Asset amount charged to loss as a %AVERAGE WRITEOFFS

0

1

2

3

4

FY13 FY14 FY15

AVERAGE WRITEOFFSAsset amount charged to loss as a %




| |

Social Investment Fund 5.0Percent of investable assets


BOLIVIA (19%)Emprender (4%)FONDECO (2%)Idepro (5%)PRO RURAL (2%)Sembrar Sartawi (6%)

COLOMBIA (3%)Fundación Amanecer (3%)

ECUADOR (18%)Banco D-MIRO (5%)CEPESIU (1%) NEW ESPOIR (4%)Fundación Alternativa (4%)Vision Fund Ecuador (4%)

EL SALVADOR (4%)CrediCampo (3%)FADEMYPE (1%) NEW

GUATEMALA (7%)CDRO (1%) Fundea (5%)FECCEG/ECEG (0%) PROFASA (1%)

MEXICO (14%)Pro Mujer Mexico (8%)Vision Fund Mexico (6%)

NICARAGUA (14%)COOPEFACSA (1%) FDL (5%)Fundenuse (3%)Pro Mujer in Nicaragua (5%)

PARAGUAY (9%) Arasy (5%) BioExport (4%)

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

LATIN AMERICA (MULTICOUNTRY) (2%)Greenlight Planet (1%) Tecnosol (1%)

CASH (5%)

3% Colombia

4% El Salvador

2% Latin America

5% Cash

7% Guatemala

19% Bolivia

14% Mexico

14% Nicaragua

8% Peru

9% Paraguay

18% Ecuador



| |

All FundsPercent of investable assets


BOLIVIA (20%)

COLOMBIA (2%)

ECUADOR (17%)

EL SALVADOR (5%)

GUATEMALA (5%)

HAITI (<1%)

HONDURAS (1%)

MEXICO (11%)

NICARAGUA (14%)

PARAGUAY (5%)

PERU (15%)

LATIN AMERICA (MULTICOUNTRY) (1%)

CASH (3%)

1% Honduras3% Cash

2% Colombia

<1% Haiti

1% Latin America

5% Paraguay

5% Guatemala

5% El Salvador

14% Nicaragua

15% Peru

20% Bolivia

17% Ecuador

11% Mexico

GP Investors Report | Q3 | 2015

Documents

Transcript of GP Investors Report | Q3 | 2015