1994 - 2014

Social Investment Funds

INVESTORS REPORTSecond Quarter 2014 | April 1 - June 30, 2014

www.globalpartnerships.org

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

Photo: Luis and Francica are clients of our

featured partner, Contactar. Read their

story on page 3. © Global Partnerships.

For more information, contact:

Jason Henning, VP, Investor and Donor Relations

jhenning@globalpartnerships.org | 206.456.7832

Featuring: Contactar on p.3

Now Online: Your financial statements

| Letter from the CIOO |

11 COUNTRIESwhere Global Partnerships works

46 PARTNERSwith whom Global Partnerships works

132,445 PEOPLEserved by Global Partnerships through our partners

$64.2 MILLIONfund capital at work

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 2

BY THE NUMBERS

August 15, 2014

Dear Investor,

Investors interested in impact investing occasionally ask about the value of allocating their resources through a fund manager, like Global Partnerships (GP), versus making direct investments to our partners. One of the most important value-adds we provide that would be difficult for direct investors to replicate is our ability to perform regular oversight and evaluation of our investees’ management and governance. We believe that effective management is perhaps the most critical factor in our partners’ ability to fulfill their social mission, manage risk properly, and achieve long-term financial success. Below are five factors used in our evaluation of our investees’ management and governance:

1. Effective business models: The first factor is the effectiveness of the partner’s business model. The best models are structured to be sustainable in the long-term, reach a large scale, and have positive impact at the household level. We also check how well the management and board

members understand the model’s strengths and weaknesses.

2. Independent accountability: The second factor is the independence and balance between the board of directors and the management team. We assess whether the management and board have clearly defined and separate roles, if the board maintains its distance from daily operations by delegating its authority through the CEO, and if the board has independent, influential members that can hold the CEO accountable.

3. Alignment of skills and experience: Aligned with the previous factor we also look at whether the board is composed of qualified directors. We analyze if board members have different backgrounds and skills that contribute to the financial and social progress of the organization. If the board is divided by committees, we look at whether each member has the background to contribute to the committee and tackle current and expected problems.

4. Track record of good governance: We also look into our investees’ track record and discipline adhering to their own credit and governance policies. Sometimes we see organizations that have sound policies on paper, but fail to follow them by making exceptions that put the organization at risk.

5. Proactive risk mitigation: We also assess how proactive the management team is, for example, by implementing a risk management unit or by adding an internal auditor that reports independently to the board. While some investees add these capabilities into their structure following suggestions from lenders or regulators, others are more proactive and see this as a necessary function to prevent or prepare for unexpected events, rather than reacting to them.

By managing a portfolio, we can compare our investees’ management teams and governance structures, and constantly monitor their evolution. This allows us to have better controls on credit risk, make timely adjustments, and identify partners who can achieve high social impact and scale through market-sustained solutions.

Active management of our investment funds, with particular emphasis on attention to management and governance issues, has and will continue to serve you, our investors, well. We value the confidence and trust you place in us in our joint mission to provide greater opportunity for those living in poverty.

Thank you for your ongoing support of our work,

Mark Coffey Chief Investment and Operating Officer

Colombia has made significant progress against poverty, but

in rural Colombia over 7 million people live in poverty and 2 million live in extreme poverty.

| Featured Partner: Contactar |

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 3

WHO Contactar is a Colombian microfinance institution (MFI) that uses the micro-finance platform to deliver an array of services to microentrepreneurs living in southern Colombia. While Contactar initially targeted a more urban clientele, their focus has shifted to serve predominantly clients in rural areas who lack access to credit and basic services needed to lift themselves out of poverty.

WHAT Contactar offers credit coupled with financial education, agricultural assistance and health education. Most recently, they launched a portfolio of green technology products designed to improve household economics, health and productivity. Contactar’s financial education program consists of a three-module curriculum that covers the basic topics of debt management, budgeting and saving. For agricultural clients the organization provides weekly workshops on topics including sustainable agricultural practices. Understanding how health events can derail a family’s economic progress, Contactar also works with health specialists to organize preventive health campaigns.

WHY Operating in a country where the income gap is widening and financial and non-financial services are concentrated in urban centers, Contactar has distinguished itself as a rural integrated service provider. Through strategic partnerships with aligned providers, Contactar has demonstrated a cost effective model for reaching remote clients with a diverse package of value-added products and services.

Country: ColombiaYear Founded: 1991Number of Employees: 564 Number of Borrowers: 70,159 Outstanding Loan Portfolio: $71,153,197 Average Loan Size Per Borrower: $1,014 Percent Rural: 82%

Through Contactar, Luis and Francisca received a loan to purchase a biodigester, a device that turns their farm animals’ manure into cooking gas. This has helped them save money on fuel costs, allowing them to cook daily meals for their family more affordably, which also means they can save more money to care for their daughter, who has a mental disability. © Global Partnerships.

Click to see all partner profiles online

| Microfinance Fund 2008 |

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 4

Fund Manager’s Comments

During the second quarter, one loan was paid off and another had an amortization payment, so the Fund Manager elected to make a prepayment of $1,150,000 to investors. The Fund Manager may elect to make another small prepayment in September, and then the final principal payment to investors is scheduled for October. Meanwhile, all investors once again made their quarterly payments, with one small loan having its payment schedule slightly amended. The fund has built up a solid retained earnings cushion, and the fund manager expects no issues in making all remaining payments to investors on time.

October 31, 2008Inception Date

$20,510,250Capital Invested

$20,000,000Total Fund Capital

17 $864 81% 42%

Fund Manager Global Partnerships

Investment CurrencyUS$ and fully hedged local currency

Type of FundDebt

Fund Facts

Social Impact

Current number of partners

Average loan size

Percentage of borrowers served who are women

Percentage of borrowers served living in rural areas

In thousandsTOTAL BORROWERS SERVED

300400500600

800

700

FY09 FY10 FY11 FY12 FY13 FY14

2008

90

120

150

Total revenues/total expenses as a %

AVERAGE OPERATIONALSELF SUFFICIENCY

FY09 FY10 FY11 FY12 FY13 FY14

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

02468

10

FY09 FY10 FY11 FY12 FY13 FY14

Asset amount charged to loss as a %AVERAGE WRITEOFFS

0

1

2

3

4

FY09 FY10 FY11 FY12 FY13 FY14

US dollars in millionsTOTAL PARTNER LOAN PORTFOLIO

200

400

600

800

FY09 FY10 FY11 FY12 FY14FY13

GROWTH

PARTNER PORTFOLIO QUALITY

TOTAL PARTNER LOAN PORTFOLIOUS dollars in millions

TOTAL BORROWERS SERVEDIn thousands

AVERAGE OPERATIONAL SELF SUFFICIENCYTotal revenues/total expenses as a %

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

AVERAGE WRITEOFFSAsset amount charged to loss as a %

| Social Investment Fund 2010 |

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 5

Fund Manager’s Comments

There was a large amount of investment during the quarter, with one loan renewal and six new loan disbursements totaling $3 million. One of the microfinance institutions (IDH in Honduras) is a new partner. Within three days of the end of the quarter, all four of the agricultural cooperatives in Central America and southern Mexico had paid back their loans (South American co-ops by contrast normally pay back later in the year, according to the harvest cycles in their region). The fund also accelerated the amortization schedule for one loan and slightly delayed the schedule for another, based on the Fund Manager’s analysis of risk and cash flow dynamics. All principal and interest payments continued to be made on time.

October 21, 2010Inception Date

$22,678,600Capital Invested

$25,000,000Total Fund Capital

34 $943

78%

53%

Fund Manager Global Partnerships

Investment CurrencyUS$ and fully hedged local currency

Type of FundDebt

Fund Facts

Current number of partners

Average loan size

Percentage of borrowers served who are women

Percentage of borrowers served living in rural areas

Social Impact

In thousandsTOTAL BORROWERS SERVED

0200400600800

1000

FY11 FY12 FY13 FY14

Total revenues/total expenses as a %

AVERAGE OPERATIONALSELF SUFFICIENCY

90

120

150

FY11 FY12 FY13 FY14

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

0

2

4

6

FY11 FY12 FY13 FY14

Asset amount charged to loss as a %AVERAGE WRITEOFFS

0

1

2

3

4

FY11 FY12 FY13 FY14

US dollars in millionsTOTAL PARTNER LOAN PORTFOLIO

FY11 FY12 FY13 FY140

200400600800

1000

GROWTH

PARTNER PORTFOLIO QUALITY

TOTAL PARTNER LOAN PORTFOLIOUS dollars in millions

TOTAL BORROWERS SERVEDIn thousands

AVERAGE OPERATIONAL SELF SUFFICIENCYTotal revenues/total expenses as a %

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

AVERAGE WRITEOFFSAsset amount charged to loss as a %

| Social Investment Fund 5.0 |

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 6

Fund Manager’s Comments

The fund called additional capital of approximately $6 million during the quarter, bringing total called capital to $25.3 million. No additional capital is expected to be called until near the end of the 3rd quarter or in the first half of the 4th quarter. During the 2nd quarter, four new loans with combined balances of $3.5 million were closed, including one to a new GP partner, Cenfrocafe, a Peruvian cooperative providing market access, working capital and training to farmers. The fund is continuing to accept new commitments from investors. The fund manager accelerated the amortization schedule for one loan, resulting in some extra cash available for investment. Meanwhile, all partners have made payments as agreed and all partners are aligned with one or more of GP’s impact areas.

March 25, 2013Inception Date

$20,822,641Capital Invested

$25,282,612Total Fund Capital

17 $1,183

71%

40%

Fund Manager Global Partnerships

Investment CurrencyUS$ and fully hedged local currency

Type of FundDebt

Fund Facts

Current number of partners

Average loan size

Percentage of borrowers served who are women

Percentage of borrowers served living in rural areas

Social Impact

In thousandsTOTAL BORROWERS SERVED

0100200300400500

FY13 FY14

US dollars in millionsTOTAL PARTNER LOAN PORTFOLIO

0

80

160

240

320

400

FY13 FY14

90

120

150

Total revenues/total expenses as a %

AVERAGE OPERATIONALSELF SUFFICIENCY

FY13 FY14

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

0

2

4

6

8

10

FY13 FY14

Asset amount charged to loss as a %AVERAGE WRITEOFFS

0

1

2

3

4

FY13 FY14

GROWTH

PARTNER PORTFOLIO QUALITY

TOTAL PARTNER LOAN PORTFOLIOUS dollars in millions

TOTAL BORROWERS SERVEDIn thousands

AVERAGE OPERATIONAL SELF SUFFICIENCYTotal revenues/total expenses as a %

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

AVERAGE WRITEOFFSAsset amount charged to loss as a %

Outstanding PositionsDistribution by Institution and Country

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 7

| |

Microfinance Fund 2008Percent of investable assets

Social Investment Fund 2010Percent of investable assets

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

BOLIVIA (25%)CRECER (10%)Pro Mujer in Bolivia (10%)FONDECO (5%)

ECUADOR (30%)FINCA Ecuador (10%)FODEMI (10%)Banco D-MIRO (5%)Fundación Alternativa (3%)Fundación Faces (2%)

EL SALVADOR (5%)ENLACE (5%)

HONDURAS (1%)COMIXMUL (1%)

MEXICO (11%)Vision Fund Mexico (4%)

Pro Mujer in Mexico (7%)

NICARAGUA (15%)FDL (10%)Pro Mujer in Nicaragua (5%)

PERU (14%)Credivisión (6%)Pro Mujer in Peru (6%)Arariwa (2%)

CASH (<1%)

BOLIVIA (19%)Crecer (4%)EMPRENDER (3%) FONDECO (2%)IDEPRO (6%)Sembrar Sartawi (4%)

COLOMBIA (5%)Contactar (3%)Fundación Amanecer (2%)

DOMINICAN REPUBLIC (<1%)Esperanza (<1%)

ECUADOR (10%)Banco D-MIRO (3%)ESPOIR (4%)Fundación Faces (3%)

EL SALVADOR (3%)CrediCampo (3%)

GUATEMALA (2%)Friendship Bridge (2%)

HAITI (1%) Fonkoze (1%)

HONDURAS (4%)COMIXMUL (3%)IDH (1%) NEWRAOS (0%)

MEXICO (9%)CESMACH (<1%) CONSERVA (4%)Pro Mujer in Mexico (<1%)Triunfo Verde (<1%) VisionFund Mexico (5%)

NICARAGUA (8%)Aldea Global (0%) FDL (2%)MiCrédito (2%) Pro Mujer in Nicaragua (4%)

PERU (28%)ADRA (8%)Alternativa (Peru) (1%) APROCASSI (3%) Arariwa (1%)Crediflorida (3%)FONDESURCO (3%)NORANDINO (6%) Pro Mujer in Peru (3%)

CASH (10%)

14% Peru

5% El Salvador

<1% Cash

1% Honduras

25% Bolivia

30% Ecuador

11% Mexico

15% Nicaragua

14% Peru

<1% Dominican

Republic

4% Honduras

1% Haiti

19% Bolivia

5% Colombia

10% Ecuador

3% El Salvador

2% Guatemala

9% Mexico

28% Peru

10% Cash

8% Nicaragua

Outstanding PositionsDistribution by Institution and Country

Global Partnerships | Q2 2014 | As of June 30, 2014 | Page 8

| |

BOLIVIA (23%)Emprender (3%)FONDECO (4%)Idepro (8%)PRO RURAL (4%)Sembrar Sartawi (4%)

COLOMBIA (6%)Fundación Amanecer (6%)

ECUADOR (22%)Banco D-MIRO (8%)ESPOIR (6%)FODEMI (4%)Fundación Alternativa (4%)

EL SALVADOR (4%)Fundación Campo (4%)

GUATEMALA (8%)

All FundsPercent of investable assets

Fundea (8%)

HONDURAS (2%)COMIXMUL (2%)

MEXICO (8%)Pro Mujer Mexico (8%)

NICARAGUA (2%)Fundenuse (2%)

PERU (8%) Cenfrocafe (2%) NEWPro Mujer Peru (6%)

CASH (14%)

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

BOLIVIA (22%)

COLOMBIA (4%)

DOMINICAN REPUBLIC (<1%)

ECUADOR (20%)

EL SALVADOR (4%)

GUATEMALA (4%)

HAITI (<1%)

HONDURAS (2%)

MEXICO (10%)

NICARAGUA (8%)

PERU (17%)

CASH (8%)

Social Investment Fund 5.0Percent of investable assets

23% Bolivia

8% Mexico

8% Peru

14% Cash

2% Honduras

2% Nicaragua

4% El Salvador

8% Guatemala

6% Colombia

22% Ecuador

4% Colombia

<1% Haiti

<1% Dominican

Republic2% Honduras

4% Guatemala

17% Peru

8% Nicaragua

22% Bolivia

20% Ecuador

10% Mexico

4% El Salvador8%

Cash