Triple Jump 2014 Annual Review

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Triple JumpAnnual Review 2014

Responsible Investment Management & Advisory Services

Number of entrepreneurs served by portfolio companies:

8 M Triple Jump portfolio companies that endorsed the SMART Campaign’s Client Protection Principles:

88%

Key financial ratios across all portfolio companies in the Triple Jump portfolio in 2014

Return on Equity: 12%

Solvency: 20%

PAR+resch >30: 3%

Write-off ratio: 1%

Women 69% & Men 31% entrepreneurs

Facts & Figures 2014

Assets under Management in Millions of Euros

Geographic distribution of all investments managed

Asia 13%Caucasus 14%Central America 14%Central Asia 17%Eastern Europe 3%Global projects 3%Middle East-North Africa 1%South America 24%Sub-Saharan Africa 11%

Breakdown of local currency funding in Euro equivalentDecember 2014

24%

14%

17%

11% 13%

1%3%

3%

14%

KZT

AZN

KG

S

MXN XO

F

TJS

CO

P

HN

L

NG

N

BO

B

PE

N

PK

R

XAF

AM

D

TZS

KH

R

GTQ

ZMK

RW

F

UG

X

ZAR

VN

D

BR

L

PY

G

MW

K

IDR

ZMW

KE

S

DO

P

ETB

HTG

AR

S

GH

S

10.000.000

8.000.000

6.000.000

4.000.000

2.000.000

0

Investment portfolio2012 2013 2014

Assets under management EUR 322 M EUR 339 M EUR 475 M

Number of portfolio companies 177 163 168

Average Exposure per portfolio Company

EUR 1.6 M EUR 1.6 M EUR 1.6 M

Number of financial intermediaries ‘jumping’ to commercial funds

6 3 7

HighlightsAssets under management

€475MPortfolio companies

168Equity investments

21Entrepreneurs reached

390,000Rural

63%

150

140

130

120

110

100

2012 2013 2014201120102009200820072006200520042003

ASN-Novib Microcredit Fund Cumulative Total Net Return (EUR)

Dedicated team of >60 professionals

Over 10+ years of fund management experience

500

400

300

200

100

0

2012 2013 201420112010

322339

475

307284

Triple Jump structures, manages and advises funds that aim to positively impact underserved segments of society. Our clients are social investors ranging from international development organizations to insurance companies, banks, and governments. Our investees are both financial service providers and funds serving our end-clients, which are micro and small & medium sized enterprises operating in developing countries. Each fund entrusted to us has a specific target group and different risk and return objectives. This mix of funds allows Triple Jump to serve financial service providers, mainly microfinance institutions, throughout their entire life cycle.

Our Advisory Services team contributes to a social and solid sector and helps portfolio companies to further the finance frontier by providing capacity building services on a cost-sharing basis. Our services areas focus on product/channel development (mobile banking, upscaling), risk management (including IT/MIS, Internal Audit) and Social Performance Management (making impact assessment affordable). The team also provides Seed Capital & Business Development services to Intermediary Funds and the SME’s they serve.

About us

02 Facts & Figures 2014

04 About us 09 From the Supervisory Board10 Our Profile12 From the Management15 Financial Results16 Social Performance

20 Investment Funds21 ASN-Novib Microcredit Fund21 Oxfam Novib Fund22 MicroBuild Fund22 Triple Jump Innovation Fund23 The Dutch Good Growth Fund

26 Products and Services27 Advisory Services28 Equity29 Housing

Contents

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Eastern Europe, The Caucasus and Central Asia:

Growth in a Time of Challenges

Focus on: TBC LeasingOne of the first loans of the Innovation Fund was made to TBC Leasing in Georgia. TBC Leasing was selected for the Innovation Fund as it provides a different form of financing for Micro- and Small Enterprises (MSE). Leasing is underdeveloped in the region and Georgia is no exception. TBC primarily targets the upper end of microfinance entrepreneurs, and small to medium sized businesses, providing them with productive equipment through financial leasing. However, the real added value is their unique knowledge on assets, and ability to purchase agricultural equipment abroad thus making it available in Georgia where there is no local outlet for such things as agricultural machinery. This sets TBC Leasing apart from MFIs and commercial banks targeting the SME sector. With USD 31 million Lease Portfolio and 450 clients, the company holds 60% of the Georgian market share among 3 operating companies in this sector.

In 2014, we had significant portfolio growth of nearly 25% in Eastern Europe, Caucasus and Central Asia (ECA). Particularly with the Innovation Fund, we have been able to reach out to new investees, but we have also seen new partners appearing in all the funds we offer in the region. We expect 2015 to be a challenging year for our partners due to the volatility of local currencies, but still expect growth. In the Balkans, MFIs are recovering from a difficult economic period and as this region is rather isolated from the spill-over effects of the recession in Russia, growth is likely to take place there. The Caucasus and Central Asia are more exposed to the Russian economy but the past has shown that micro-entrepreneurs and MFIs are resilient so we remain cautiously optimistic.

Borrower from Asian Credit Fund with her livestock in Issyk, Kazakhstan.

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Good Governance Triple Jump is governed by a Supervisory Board, which acts as an independent supervisory body. By virtue of its investment company license, Triple Jump is regulated by the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank. Triple Jump’s business operations must satisfy the obligations under the Market in Financial Instruments Directive (MiFID). The rules of conduct are designed to ensure that clients are treated with care and client protection is embedded in Triple Jump’s processes, procedures and company culture. We have no incidents to report for 2014 and conclude that Triple Jump satisfies the requirements set for eligibility for the license.

Fund Governance As a fund management company, Triple Jump is committed to complying with the Principles of Fund Governance established by the Dutch Fund Association (DUFAS). The objective of this code is to provide additional guidelines to guarantee investors that fund managers operate in an ethical manner, with due care and in the best interest of the investors. The Supervisory Board assesses compliance based on a number of factors, including the report issued by the Compliance Officer, which notes, among other things, whether any conflicts of interest have been identified. The Supervisory Board is of the view that the company is in compliance with this code of conduct. In line with this code, where the funds managed by Triple Jump have their own separate governance structure, the Supervisory Board is not responsible for supervision of the individual fund policies.

Activities Performed in 2014 The Triple Jump Management Board and Supervisory Board consult with each other on a regular basis, during

which they discuss the company strategy, activities, organization and development of Triple Jump in detail. The main focus of the six joint board meetings held in 2014 was risk management, financial and social performance, new mandates and IT.

The Supervisory Board is happy to ascertain that the Management board has further tightened its compliance, risk management and monitoring policy in anticipation of receiving an Alternative Investment Fund Management Derivatives (AIFMD) license as an investment institution, and has almost finalized the implementation of the strategy plan for 2013-2015. The Supervisory Board believes that the company continues to maintain a good balance between its financial goals and its social results. The Supervisory Board has extensively discussed the fiduciary responsibilities of managing the Dutch Good Growth Fund.

We would like to thank the Triple Jump Management Board and all the employees of Triple Jump for their professionalism and commitment to the company.

Ab Engelsman, Chairman of the Board April 2015

The Supervisory BoardAb Engelsman (Chairman), Esha van der Hulst-Haldar, Bart Hartman, Eduard van Gelderen, Ewoud Goudswaard

From The Supervisory BoardWe hereby present Triple Jump’s 2014 Annual Review prepared by the Management Board. This year, the board meetings primarily focused on risk management, financial and social performance, new mandates and IT. The board is satisfied that the Management Board has nearly finalized the implementation of the strategy plan for 2013-2015. Additionally, the Supervisory Board has extensively discussed the fiduciary responsibilities of managing the Dutch Good Growth Fund.

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History, Mission and VisionAfter spinning off from Oxfam Novib in 2006, the new fund management company, Triple Jump BV, was created. Since then, Triple Jump has grown exponentially and currently manages five investment funds. Our mission is to promote financial inclusion for micro, small and medium enterprises in developing countries. We offer a unique financial opportunity to our investees and end-clients, which we believe results in positive social outcomes that would not otherwise occur.

Our vision is an inclusive and innovative financial sector that contributes to social impact beyond financial returns. We work with financial service providers and intermediary funds that reach out to micro, small and medium enterprises. By providing debt financing, equity capital, knowledge transfer and capacity development programmes, we assist these providers in realizing their full potential.

OrganizationThe Triple Jump head office and more than half of our staff are located in Amsterdam. The entire team consists of more than 60 professionals with ample field experience and in-depth financial knowledge. Our advisory services staff works in partnership with the investment team, which is organized along regional lines, with regional offices in Lima, Mexico City, Tbilisi, Bangkok and Nairobi. Triple Jump’s fund administration operations are ISAE 3402-II compliant.

Legal StructureTriple Jump BV is a private company with limited liability, organized and existing under the laws of the Netherlands. Triple Jump is a regulated investment firm under the supervision of The Dutch Authority for the Financial Markets and the Dutch Central Bank. The company has four shareholders: ASN Bank, Oxfam Novib, NOTS and the management of Triple Jump.

Our Profile

Triple Jump BV

Management Board

Supervisory Board

Latin America

Peru

Mexico

Fund Investments

Internal Audit

Europe, Caucasus

& Central Asia

Fund Accounting

Georgia

Debt

PR

Africa & Middle East

Administration

Kenya

Equity

Asia & Pacific Treasury

Thailand

AdvisoryServices

Investor Relations

Compliance

Finance &Control

HR

PortfolioManagement

Risk

Legal Transactions

ICT

Ab EngelsmanChairman of the Board

Esha van der HulstBoard Member

Bart HartmanBoard Member

Eduard van Gelderen Board Member

Ewoud GoudswaardBoard Member

Mark van Doesburgh Managing Director

Steven Evers Managing Director

Eelco MolHead of Debt

Marnix MulderHead of Triple Jump Advisory Services

Claudia VroomManager Investor Relations | Business Development

Ward BouwersHead of Equity

Clemens GerteiserHead Fund of FundsInvestments

Luca PaonessaHead PortfolioManagement

Katherine SavilleHead of Legal Transactions

Johan WierdaHead Finance & Control

Asim MalikManager Applications & IT

Gabriela BustamenteCompliance Officer &Company Secretary

Orsolya FarkasSenior Equity Investment Officer

Luis GuerraSenior Equity Investment Officer Latin America

Christophe BochatayManager Social Performance & Impact

Camilla McLeanSenior Investor Relations

Hoda SalmanSenior Investment Officer Africa & Middle East

Andrea HuszthyInvestment OfficerAfrica & Middle East

Christofer ChinaInvestment Officer Africa & Middle East

Florian HugonnetInvestment OfficerAfrica & Middle East

Gerlof de KorteRegional Manager ECA

Lida VardaniaSenior Investment Officer ECA

Raushana KolbayevaInvestment OfficerECA

Tatiana BabiiInvestment OfficerECA

Tamar BasilashviliPortfolio Analyst ECA

Todd MasonRegional ManagerAfrica, Middle East& Asia Pacific

Gustavo SantivañezRegional Manager South America

Claudia RojasRegional ManagerCentral America &Caribbean

Irina-Maria GamanInvestment OfficerLatin America

Luis Gabriel Alba GarciaInvestment Officer Latin America

Daniel NäfInvestment Officer Latin America

Gabriela Perez MollInvestment Officer Latin America

Jarri JungInvestment OfficerLatin America

Steije de LatPortfolio Analyst Latin America

Wiwit Kiat-anupongInvestment OfficerAsia & Pacific

Jeanette BoumanHR Officer

Guancong YinSenior Fund Accountant

Juan Nieto SolisFinancial Administrator

Ed SpekFinancial Administrator

Chi Veldhuizen TuFinancial Administrator

Diederik van TerwisgaFinancial Administrator

Marek MichalczykBusiness Analyst

Nines EspinaLegal Officer

Mirjam MuisLegal Officer

Josefina AguileraLegal Assistant

Dionne KibbelaarInterim Legal Officer

Seger VisserLegal Assistant

Peter DriessenSupport OfficerFinance & Control

Lisa SlotOffice Manager &Executive Assistant

Jessica HellerPR Officer

Supervisory Board

Head Office

Regional Office

Advisory Services

Gildas MichaudPortfolio Management Officer

Ralitsa RizvanolliPortfolio Management Officer

Irina BarbuntoiuPortfolio Management Officer

Davide LoriggiolaSME Finance Advisor

Barbara RademakerAdvisor Latin America

Gareth EvansSenior Adviser Africa

Oscar CarlssonInvestment ManagerFund of Funds Investments

Natascha KorvinusInvestment AssociateFund of Funds Investments

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Overview 2014 has been a year of transition for Triple Jump. We rolled out a new organizational structure capable of handling the projected growth over the next years. As part of this plan, we invested considerable resources in business development capabilities and have immediately benefited from this by gaining a new mandate from the Dutch Government. In 2014, Triple Jump received further recognition as a socially responsible investment manager for being the first MIV, in cooperation with three of our investees, to conduct a Performance Monitoring Tool study. The financial and social results of the funds under our management remained very satisfying. In particular, portfolio quality of the funds under management was excellent with a net increment of provisions of only 0.2%. Triple Jump was able to directly reach nearly 390,000 end-clients, of which 69% were women.

Organization The new organizational set up has been largely implemented in 2014. In practice, this meant further decentralization by appointing local Regional Managers, more prominent roles for Investor Relations/Business Development, Portfolio Management, Risk and a separate equity team. Triple Jump has taken important steps to further diversify its assets under management and managed to further boost its institutional depth. In line with our strategy, we expanded our geographic footprint with a new client coverage team based in Nairobi. We served 168 portfolio companies in 57 countries across the globe.

Dutch Good Growth FundIn May 2014, Triple Jump, in consortium with PriceWaterhouseCoopers, won the bid for the mandate of the Dutch Good Growth Fund (DGGF), a EUR 175 million fund of funds mandate (plus EUR 26 million Seed

Capital and Business Development budget) targeting SMEs in developing countries.

Market In general, our investees performed well in 2014 and their portfolios grew 15%-20%. Interest rates to investees were at stable levels, although there is still pressure on the rates, particularly in Latin America. Overindebtedness in smaller countries is becoming more of a concern, although Financial Service Providers (FSPs), investors and local governments are more aware of the problem and are taking measures to prevent it. Overall portfolio quality of the funds under management has remained excellent with very little increment in provisions. We continue to keep a close eye on the developments in the Caucasus and Central Asia following the strong slowdown in Russia’s economy as a result of the sanctions implemented by the EU and US on Russia, together with the substantial decrease in oil price.

Looking ForwardIn 2015, we expect a healthy growth of the portfolio under management spurred by the first DGGF investments. Furthermore, we expect to obtain the AIFMD license. We would like to express our gratitude to our staff, investment committee members and all our stakeholders for their support and contribution to our company.

Mark van Doesburgh Steven Evers

Management Board

From The ManagementIn 2014, we managed to further diversify our assets under management, most notably by winning a very exciting mandate, the Dutch Good Growth Fund. We expanded our global footprint by establishing regional presence in Nairobi. The financial and social results of the funds under our management remained very satisfying.

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A borrower from Óptima Servicios Financieros in urban Apopa, El Salvador talks about her experience with the MFI and her micro-business.

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Near San Miguel, El Salvador, a Credicampo loan officer shares seed knowledge with a borrower.

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Overview At the end of 2014, Triple Jump had outstanding investments in 168 organizations, serving more than 8 million borrowers across the globe.

The total of the invested portfolios managed by Triple Jump remained stable in 2014 at EUR 268 million, while the amount committed grew from EUR 339 million in 2013 to EUR 475 million, due to the new Dutch Good Growth Fund mandate awarded to us in June 2014.

During 2014, we increased the invested portfolio for the MicroBuild Fund and Innovation Fund in line with our targets. The residual portfolio of the SNS Institutional Microfinance Funds, for which Triple Jump acted as a sub-advisor, was handed back to the fund manager, as the maturity date of the two closed-ended funds approached.

The portfolios under management continued to perform well in 2014, with positive results across the board. Exchange rate fluctuations, which affected our investments negatively in 2013, reversed their effects in 2014. Thanks to good portfolio performance and favorable EUR/USD exchange rate trends, the ASN-Novib Microcredit Fund registered a 12-months return to investors of 5.7%, which compares very positively to the 3.7% return registered in 2013.

Last year, we confirmed the reliability and consistency of our investment process, based on solid principles of thorough risk analysis, high diversification and active portfolio management: our portfolio companies registered a return on equity of 12% on average, with a very healthy level of non-performing assets (portfolio at risk 2.5% and write-off ratio 1.1%).

Overall, we are happy to report a very small net increment in provisioning of 0.2% on the funds under our management for the year ending in December 2014.

The Eastern Europe, Central Asia and Caucasus region, in which approximately 1/3 of our clients’ total portfolio is invested, experienced serious turmoil in 2014 following the Ukraine crisis and the sanctions imposed on Russia. Our investees in the region continue to perform well, but looking forward we do expect economic slowdown and further devaluation pressures for the countries with closer ties to the Russian economy.

Financial Results 2014Due to the new Dutch Good Growth Fund mandate awarded to Triple Jump in 2014, assets under management grew significantly from EUR 339 million to EUR 475 million. We had outstanding investments in 168 organizations worldwide, and increased the investment portfolio for both our MicroBuild Fund and Innovation Fund. Although Eastern Europe, Central Asia and the Caucasus region experienced serious turmoil in 2014, our portfolios under management performed well, with positive results across the board.

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2014 resultsIn order to ensure we select financial service providers (FSPs) that act responsibly towards their stakeholders and are the most likely to have a positive socio-economic impact on their borrowers, Triple Jump developed a social performance scorecard. This scorecard is used as a tool to analyze the social mission of the FSPs (intent), the processes and systems they have in place to ensure their operations are aligned with their mission (implementation) as well as the actual results they achieve in terms of outreach to underserved client segments (results).

Approximately 20% of the financed FSPs scored above 80% or “Excellent” and can be considered best practice institutions in terms of social performance management. As part of our mandate of developing an inclusive financial sector, Triple Jump also supports institutions that do not yet have good practices. While these represent a small percentage of our portfolio, we ensure that these financial institutions have the minimum standards in place and are positioned to improve their practice. In terms of regional differences, we continue to see FSPs in Africa lagging behind other regions. This is due to the more challenging operating environment in Africa and to the fact that FSPs in Africa have been less exposed to best international practices although this is improving rapidly. FSPs score best on intent, which means that they usually have a clear social mission and objective. However, they must further improve their institutional systems to better measure their social results and ensure effective monitoring of their social mission.

As we have seen in previous years, of the six social performance dimensions assessed in our tool, Client Protection scores the highest, indicating that most FSPs have the measures in place to ensure responsible and appropriate service to clients. 88% of the FSPs financed have endorsed the internationally recognized Client Protection Principles. As part of client protection, prevention of over-indebtedness is actively monitored at portfolio level. In 2014, Triple Jump significantly reduced its exposure to Mexico due to concerns of multiple

borrowings, over-indebtedness and high interest rates. Outreach also scores high, which demonstrates that Triple Jump’s investees reach a significant number of financially underserved individuals and target groups. In December 2014, the funds managed by Triple Jump were financing a total of 387,813 borrowers, of which 69% are women and 63% live in rural areas. “Client Satisfaction” and “Social Performance Information” receive the lowest scores, although both are at acceptable levels. This reflects the fact that too few FSPs continuously collect client feedback, and that more FSPs need to integrate social performance indicators into their management systems.

Balanced returnsIn 2014, Triple Jump continued to actively participate in the debate on balanced returns through the sharing of our Interest Rate Traffic Light and Executive Compensation Questionnaire. All institutions in our portfolio are specifically screened with these tools to ensure their pricing policy and management remuneration are in line with responsible practices.

Understanding impactMeasuring and understanding the impact of financial inclusion on the businesses and lives of end-clients is as important as ensuring good social performance practices. One of the key challenges for inclusive finance is to assess impact on a systematic but affordable manner. Triple Jump Advisory Services helps financial institutions improve the way they monitor the outcomes of their work. In 2014 we published a report on how three microfinance institutions in Latin America can extract valuable outcome information from their existing client databases.

Other sector initiativesTriple Jump is committed to promoting best practices in social performance management and in so doing is an active member of the Investors Working Group of the Social Performance Task Force (SPTF). Triple Jump is also a member of the Global Impact Investing Network (GIIN) and a signatory of the Principles for Investors in Inclusive Finance (UNPRI).

Social PerformanceSocial performance assessment is an integral part of Triple Jump’s investment process. As of December 2014, the average social performance score of Triple Jump’s portfolio was 73%. The bulk of the portfolio scores in the range of 61-80% which corresponds to having good social performance.

Social Performance Dimension Scores

Human Recources

66%

Client Satisfaction 58%

Social Performance

Information63%

Gender63%Outreach

72%

Client Protection

84%

Social Performance Pathway Scores

84%

72%

65%

Intent

Implementation

Results

The 7 Client Protection Principles:

➡ Appropriate product design and delivery➡ Prevention of over-indebtedness➡ Transparency➡ Responsible pricing➡ Fair and respectful treatment of clients➡ Privacy of client data➡ Mechanism for complaint resolution

19%

5%

76%

Distribution of SPM scoresA Excellent (>80%): 19%B Good (61-80%): 76%C Minimum Required (51-60%): 5%D Insufficient (≤50%): 0%

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Christophe Bochatay, Senior Investment Officer for francophone Africa and coordinator for social performance at Triple Jump (photo, right), meets with women entrepreneurs in Goma. Women of Goma, the city in the troubled Kivu region of DR Congo, have to live in the face of extraordinary hardship. The recent history of Goma is dominated by several wars, and also by volcanic eruptions. In fact these women’s houses are built with the lava rocks of the volcano that destroyed more than 40% of the city in 2002. Needless to say, Goma is not the most attractive city for a bank to set up a branch. The microfinance institution Hekima, supported by Triple Jump since 2011, is one of the very few institutions providing financial services to the women of Goma. Christophe: “What makes my work at Triple Jump particularly fascinating is the diversity of financial institutions we partner with, from large banks that service medium size enterprises with sophisticated products, to smaller institutions with a strong humanitarian purpose such as Hekima, who attend to very poor women in difficult environments. Each of these provides much needed services to the many hardworking entrepreneurs in Africa.”

Clients of ALSOL, an MFI in Chiapas, Mexico.

Central America and The Caribbean: Positive OutlookDuring 2014, we experienced many changes in Central America and Caribbean region. Following the new TJ organizational structure, a Regional Manager was appointed to this region, and three new investment officers were hired. As of December 2014, the team was in charge of monitoring a portfolio of 32 investees adding up to USD 47 million.

In terms of portfolio, while we decreased our exposure with Oxfam Novib Fund given its gradual shift to Africa, we maintained the outstanding investments from the ASN-Novib Microcredit Fund and increased exposure for the Innovation Fund and Microbuild Fund. With the Innovation Fund, we closed five new loans with Financial Service Providers (FSP’s) in Honduras and Nicaragua, all of which are rural and agricultural MFIs; and in Dominican Republic with an FSP which offers financial education and loans to highly marginalized clients such as ex-convicts, young entrepreneurs and Haitian refugees; and, an FSP offering SME and factoring loans in El Salvador. During 2014, we visited new institutions focusing on the educational sector in both Mexico and rural Panama, as well as institutions offering environmental products in Nicaragua, to be disbursed in early 2015.

With MBF, we gained two more investees in El Salvador and Nicaragua. Enlace in El Salvador is a pioneer in housing microfinance, using their successful model of village banking and solidarity. This bottom-up initiative started as a result of observations from loan officers, who monitor the usage of funds. They realized end-clients channeled part -and sometimes all- of their loans into maintenance for their homes.

Financiera Fama in Nicaragua is one of the largest in the country, and had a housing product since 2002, which has been recently successfully re-launched, as it substantially decreased during the No Pago Movement crisis in the country. For 2015, we expect to close several more deals with the MBF in Costa Rica, Nicaragua, Guatemala, Dominican Republic, and Honduras, and continue contributing to the development of the housing market in the region.

Focus on: Fundenuse SAFundenuse SA is an innovative MFI that operates in northern Nicaragua. The MFI has an interesting and diversified portfolio: 28% for commercial loans, 23% for agricultural activities, 22% home improvement loans, 11% consumption loans and 9% livestock loans. In addition to micro-credits, Fundenuse launched a micro-franchise program, where solar panel providers sell the product (through micro-entrepreneurs) to communities without electricity, thus allowing access to alternative sources of energy.

Furthermore, Fundenuse is piloting micro-pensions and micro-insurances, expecting to implement these products in all branches in 2015. Basic financial training is provided to all borrowers each time there is a group meeting and during disbursements. Last year, nearly 7,000 clients received training. The training component is important for all credit products, but it is especially important for the success of the abovementioned micro-franchise program. Fundenuse is also using the Progress out of Poverty Index (PPI), a tool that allows NGOs and MFIs to measure poverty. The tool consists of ten questions that measure if a household is above the poverty line and helps the MFI adequately measure the impact in the community.

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Investment FundsWe specialize in advising and managing funds that ultimately benefit micro, small and medium-sized enterprises in developing countries. Our funds generate competitive financial returns, and also aim to have an effective social impact on underserved segments of society. We aim to manage our funds in a way that the goals of both our investors and our investees are being achieved, with consistent focus on integrity, transparency and professionalism. In this section of our Annual Review, we highlight last year’s achievements in the five investment funds we currently manage.

- ASN-Novib Microcredit Fund- Oxfam Novib Fund- MicroBuild Fund- Triple Jump Innovation Fund- Dutch Good Growth Fund

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2012 2013 2014


Invested capital EUR 203 M EUR 193 M EUR 200 M


Average exposure per portfolio company

EUR 1.9 M EUR 1.8 M EUR 2 M

2012 2013 2014


Invested capital EUR 40 M EUR 37 M EUR 30 M



EUR 0.5 M EUR 0.5 M EUR 0.4 M

ASN-Novib Microcredit Fund

Oxfam Novib Fund

Asia Pacific 13%Caucasus 16%Central America 14%Central Asia 17%Eastern Europe 4%Global projects 3%Middle East-North Africa 1%South America 26%Sub-Saharan Africa 6%

Asia Pacific 13%Central America 13%Central Asia 6%Global projects 1%Middle East-North Africa 3%South America 12%Sub-Saharan Africa 52%

ASN-Novib Microcredit Fund (ANMF) was established by ASN Bank and Oxfam Novib in 1999. ANMF allows private individuals to invest in financial service providers in developing countries by issuing shares, which can be traded on a daily basis. ANMF invests in expanding and mature financial service providers in Africa, Asia, Europe and Latin America. As an open-ended fund, ANMF can offer long-term equity and follow-on investments, along with senior and subordinated debt. For 2014, ANMF achieved a net return of 5.74%.

The Oxfam Novib Fund (ONF) was established by Oxfam Novib in 1998 to support high potential and high impact financial service providers in developing countries. The fund seeks out FSPs that focus on underserved markets and target specific groups (rural communities, women borrowers, etc).

Distribution by currencyEUR 4%USD 68%Local Currency 28%

Distribution by currencyEUR 7%USD 31%Local Currency 62%

Portfolio outstanding by instrumentEquity 14%Loans 67%Subordinated loans 6%Deposit Agreements 7%Guarantees 6%

Portfolio outstanding by instrumentGuarantees 1%Loans 95%Subordinated loans 4%

26%

3%4%

17%

14%

16%

13%

1%

6%

13%52%

3% 1%12%

6%

13%

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2012 2013 2014

Assets under management USD 50 M USD 50 M USD 50 M

Invested capital USD 5 M USD 16 M USD 32 M



USD 1.2 M USD 1.7 M USD 1.5 M

2013 2014

Assets under management USD 22 M USD 22 M

Invested capital USD 4 M USD 15 M

Number of portfolio companies 5 18


USD 0.8 M USD 0.8 M

MicroBuild Fund

Triple Jump Innovation Fund

Asia Pacific 9%Caucasus 22%Central America 11%Central Asia 22%Eastern Europe 2%Middle East-North Africa 2%South America 25%Sub-Saharan Africa 7%

Asia Pacific 7%Caucasus 7%Central America 37%Central Asia 33%Middle East-North Africa 2%South America 14%

MicroBuild Fund was established jointly by Habitat for Humanity International (HFHI), Omidyar Network and Triple Jump in 2012. MicroBuild Fund supplies debt capital specifically for housing solutions that financial service providers offer to their low-income end-clients. A unique feature of the fund is that HFHI is funding and rolling out a complementary technical assistance programme to help these financial service providers develop and improve their housing products, and ultimately, serve end-clients better. The Overseas Private Investment Corporation (OPIC) invests USD 45 million of debt capital in the fund.

In 2013, Triple Jump launched Triple Jump Innovation Fund to promote and support innovation in developing countries. There are still large parts of society that are unattended or underserved. More specifically, the Innovation Fund invests in financial intermediaries that offer rural and agricultural finance, operate in difficult countries and/or offer innovative products and services that have a direct positive impact on living conditions at the base of the pyramid. This fund is the first time Triple Jump has initiated an investment fund by itself.

Distribution by currencyUSD 84%Local currency 16%

Distribution by currencyUSD 76%Local currency 24%

Portfolio outstanding by instrumentLoans 95%Deposit Agreements 5%

Portfolio outstanding by instrumentLoans 83%Subordinated loans 17%

9%7%

37%

22%

2%2%

22%

33%

2%

14%

25%

7%7%

11%

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Overview Triple Jump’s strategy to broaden its target market and increasingly focus on the missing middle has been recognized, and in July 2014, Triple Jump, along with PwC, was awarded the honor of managing the Dutch Good Growth Fund (DGGF). This opportunity will allow Triple Jump to leverage its expertise in SME finance and make a contribution to solving the missing middle problem.

The Missing MiddleWhy is it so important to provide these SMEs with access to finance? Formal SMEs employ roughly 45% of the labor force in manufacturing and contribute about 29% to GDP in developing countries. The informal sector is estimated to account for just under half of the total labor force and some 37% of GDP. In total, SMEs create more jobs than large firms, in both developed and developing countries. The total credit gap for formal SMEs in low income countries was estimated to be USD 700 billion to USD 850 billion, and the overall need of the MSME sector is anticipated to be an astonishing USD 2.1 trillion to USD 2.5 trillion (McKinsey/IFC).

Launch of the DGGFIt is for this reason that we very much welcomed and applaud the timely initiative from the Dutch Ministry of Foreign Affairs to launch the Dutch Good Growth Fund (DGGF), promoting development-relevant investments in, and trade with, SMEs in developing countries. The EUR 700 million Fund was launched in July 2014 and is divided in three parts, two of which are aimed at Dutch companies (offering finance of investments and export financing). A consortium of Triple Jump and PwC manages the part of the DGGF that provides financing for local SMEs in emerging markets and developing countries. Triple Jump’s extensive experience in portfolio construction and the management of investments in low and middle income countries and its presence on the

ground, coupled with PwC’s programmatic experience and institutional depth made this duo a strong candidate for the mandate.

Financing local SMEsThe DGGF focus on ‘local SMEs’ aims to improve financing for the missing middle through (Intermediary) Funds targeting 66 selected countries in Africa, Asia, Latin America, and Central and Eastern Europe, with a special focus on young entrepreneurs, female entrepreneurs and entrepreneurs in fragile states. By doing so, the DGGF will contribute to promoting knowledge transfer, increasing employment and production capacity, and thus becoming a driver of economic growth.

Over a period of 4 to 5 years, the fund is expected to gradually grow to its full size. We will build a diversified portfolio of ‘fund of funds’ investments. A Seed Capital and Business Development budget complements the investment services by supporting business development services for local SMEs via the intermediary funds. Additionally, it will provide Technical Assistance and Seed Capital Investment for Intermediary Funds, including the design and pilot phases of new funds that the DGGF may consider for investments at a later stage.

For years, we have seen a growing interest in the so called “missing middle”, the credit gap that exists for small and medium sized enterprises (SMEs) in low income countries, and with good reason. SMEs are crucial for job generation and fostering economic growth.

The Dutch Good Growth Fund

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Strong PipelineSince its kick-off, the interest in the DGGF has been substantial, and the Consortium of Triple Jump and PwC has received over 130 investment proposals (in Q3 and Q4 2014) from funds from a broad array of countries. These potential investments range from funds that invest in fragile states, in important sectors in sustainable development (such as health, education and energy), to fund managers with innovative approaches as well as promising local fund managers seeking international support. The DGGF will select intermediary funds (IFs) that operate in segments and/or countries where there is currently no adequate financing for the SMEs they plan to target. Finance products offered by these IFs include debt, private equity and mezzanine. Investments generally show a high level of additionality, by focusing on challenging countries, challenging sectors or providing innovative new models. We expect the first investments to take place in Q2 2015.

Seed Capital and Business DevelopmentThe Seed Capital and Business Development (SC&BD) program focuses on furthering the DGGF impact – both in terms of outreach (local SME) and SME finance market development. We provide seed capital and technical assistance to early stage initiatives that are of strategic interest for the DGGF, but too young, small or risky for an investment to form part of the DGGF investment portfolio. We also support non-financial services (Business/Ecosystem Development) via DGGF investees and will facilitate knowledge development and sharing for the sector in general. In 2014 we have built up our pipeline and selected the first proposals that will be materialized in the first half of 2015.

Nicaragua

Surinam

Bolivia

Argentina

EthiopiaSouth-Sudan

Eritrea

Somalia

Tanzania

Zambia Malawi

Zimbabwe

Mozambique

Madagascar

South Africa

Kenya

DR Congo

Kosovo

Moldavia

Macedonia(FYROM)

Mali

Benin

Nigeria

Georgia

Azerbaijan

Angola

!"#$%#&' $

Sao Tomé

JordanPalestine

YemenNigerPhilippines

Indonesia

India

Maldives

Sri Lanka

Bangladesh

BhutanNepal

Pakistan

Afghanistan

Mongolia

Vietnam

GhanaColombia

Guatemala

Peru

Senegal

Cape Verde

Gambia

Rwanda

Ivory CoastSierra Leone

Albania

Morocco

Algeria Libya

Tunisia

Egypt

Armenia

Cambodia

LaosMyanmar

Thailand

Uganda

Bosnia-Herzegovina

DGGF targets 66 countries worldwide

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Clemens Gerteiser, our Head Fund of Funds Investments, with clients in Mozambique.

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Products and ServicesIn this section of our Annual Review, we highlight a few of the products and services we provide. Triple Jump developed and published an approach to get more out of poverty measurement data. We won the CGAP Customer Centered Finance bid for small holder finance, together with Urwego Opportunity Bank, and designed the Precision Agri-Finance Burundi program together with Oxfam Novib.

- Advisory Services

- Equity

- Housing

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Overview Through Triple Jump Advisory Services, we re-invest a portion of our earnings and funds received from donors like Oxfam Novib into technical assistance projects for clients, with the objective of contributing to a solid, social, and innovative microfinance sector. Since its start in 2006, Triple Jump Advisory Services has served over 160 financial institutions in 29 countries.

ExpertiseOur expertise areas are clustered around three main topics:– Product/channel development– Risk management– Social performance management

ApproachThe core of our work consists of providing hands-on advisory services to financial intermediaries. The expertise that is built up on the ground is systematized and shared with other clients, partners and the wider community through publications and conferences. Central to our approach is collaboration with our partners – MFIs, consultants, donors – to leverage our resources and confront challenges bigger than ourselves. Global We conducted and published an Islamic finance market study, continued our support for the Risk Initiative for Microfinance (www.riminitiative.org), supported an innovative approach to SME finance and sponsored the Mimosa 2.0 project.

Africa We developed and implemented a management tool to shorten the payback time of resource intensive m-banking projects, supported several MFI and networks with up-scaling their services to the SME market, implemented product for youth in Northern Africa; won the CGAP Customer Centered Finance bid

for small holder finance together with UOB and designed the Precision Agri-Finance Burundi program together with Oxfam Novib. We’ve worked on the foundations for risk management (Internal Audit) and introduced management of liquidity and other financial risks.

Latin American and Caribbean Triple Jump supported up-scaling to the SME market and organized an agri-risk event (at the Foromic).We helped our parters introduce integrated risk management, implement advanced credit scoring, strengthen the board function and re-engineer credit procedures. We developed and published an approach to get more out of poverty measurement data and we helped an MFI introduce financial education. We’ve also engaged in the pilot ‘Voice of the Client’ in Peru, an initiative to use client panels to assess SMART campaign indicators.

Asia PacificWe supported two banks – together with FMO and IFC – with their transformation and repositioning process in the SME segment.

Advisory ServicesIn 2014, we managed 25 projects with 27 different financial intermediaries throughout Africa, Central Asia and Latin America, 13 of which were new partnerships.

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Overview Equity is one of the instruments that Triple Jump, -through its funds - offers to support financial intermediaries in their further development. Triple Jump has been actively offering equity since 2006, through the ASN-Novib Microcredit Fund. After receiving the Dutch Good Growth Fund (DGGF) mandate in 2014, we are now actively looking for direct equity stakes in financial institutions focused on SME’s in DGGF qualifying countries. When considering potential investments, Triple Jump looks in particular at shared vision and shared values. A requirement for a strong relationship amongst shareholders is mutual trust, and we always aim for this type of privileged relationship with each of our portfolio companies.

SME Bank In 2014, we expanded the equity commitments of the funds we manage only modestly in order to keep a balanced debt and equity portfolio. We finalized an equity investment in Palestine. With regard to our existing investments, we are pleased that several of our investee companies took successful steps with regard to transforming into regulated banks. Unfortunately, an investment in Azerbaijan was confronted with legal actions by the authorities as part of a wider investigation into the activities of NGO’s in the country. We continue to work with all stakeholders in order to find a solution.

Adding Value When we invest in a financial service provider on behalf of the funds we manage, we aim to add value by providing either experienced Triple Jump staff, or an expert from our extensive network, to participate on their Supervisory Board. As a member of the Board, we actively participate in the governance of the given institution. We have an extensive network of experts who assist our investees with specific issues, such as transformation into a bank and the introduction of new products, as well as improving MIS and corporate governance.

Long-termWe are long-term value investors. Long-term, because the majority of the assets we manage are open-ended, meaning that we do not maintain a strict deadline for an exit. This allows us to be patient, and to work with our partners on their medium and long-term strategies. It also means that we will look at the financial service provider’s inherent potential to grow and include more micro, small and medium entrepreneurs into the financial system.

Responsible ShareholdershipWhen participating in an institution’s capital, our strategy is to take a minority stake. We believe in autonomous development and a diversified governance structure. We assist prospective investees in finding the right mix of investors, and help them to access socially responsible capital markets. With our investees, we focus on preserving their mission while working towards increased economies of scale, which in turn can help the financial service provider to offer an increasing variety of efficiently priced products including loans, savings, insurance, pensions and remittance services. To implement these types of products one needs funding, time and expertise. As a shareholder representative for the funds we manage, Triple Jump is able to provide these requirements.

EquityIn 2014, several of our investee companies successfully took steps to transform into regulated banks. We currently manage 21 equity investments in Africa, the Caucasus, Asia and Latin America. We remain long-term value investors.

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Overview In 2012, Triple Jump and Habitat for Humanity International launched the MicroBuild Fund. With a significant number of the world’s population living in inadequate housing conditions, we believe that housing microfinance is essential to empower and improve the livelihoods of those at the bottom of the pyramid.

Incremental housing supportAlthough it is estimated that about one fifth of the total microfinance lending is used by borrowers for (incremental) housing investments, only a few financial service providers actively offer specialized housing loans. In order to address the need for such specialized housing products, Triple Jump and Habitat for Humanity International jointly established the MicroBuild fund. The fund is intended to be a source of long-term social investment capital for financial service providers, to expand their housing microfinance portfolios.

Doubling the portfolio2014 was a successful year for the MicroBuild Fund, as the total invested fund size doubled to more than USD 32 million and the number of financial service providers that accessed the fund grew from 9 to 22. A comprehensive technical assistance package, provided by Habitat for Humanity’s Centre for Innovation in Shelter and Finance, accompanies funding from the MicroBuild Fund. This technical program aims to improve the products that financial service providers offer to their customers for (incremental) housing loans.

CambodiaWith the technical assistance and loan facility from MicroBuild, HKL has successfully developed their new housing and housing improvement loan products offered to self-employed Cambodians, who have no access to housing finance and mortgages from commercial banks. Within 12 months following the disbursement of MBF’s

loan in January 2014, HKL has introduced and grown its housing portfolio to USD 3.1 million. The initial success of the pilot has prompted the MFI to further expand the housing and housing improvement portfolio. Starting in 2015, the products will be rolled out to all of the company’s network of 49 branches located across Cambodia.

El SalvadorEnlace Servicios Financieros has been able to use the four-year loan of USD 500K, disbursed by MicroBuild in May 2014, to consolidate its December 2014 USD 2.2 million housing portfolio. These loans have helped almost 4,500 families to improve their homes. Enlace is a pioneer in successfully offering a house improvement product using the group methodology, which contributes to a healthy portfolio quality: PAR30 of the housing loans is less than 1%. The MFI has welcomed Habitat’s technical assistance (TA), and it has helped Enlace shape its housing product to scale it by meeting the preferences, needs and abilities of the clients and the institution. Capacity building and the use of technology to track and geo-reference clients are important components of the TA.

Goal for 2015 Due to the success of the MicroBuild Fund to date, both in lending and in technical assistance projects, we are confident to be nearly fully invested (USD 50 million) by the end of 2015 and looking ahead to a potential increase of the fund size in 2016.

HousingIn 2014, the MicroBuild Fund further expanded and more than doubled its portfolio compared to 2013. The fund for housing microfinance has invested a total of USD 32.2 million in 22 financial service providers in 16 countries. The fund is expected to be fully invested (USD 50 million) by the second half of 2015.

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Christofer China, Triple Jump Africa Investment Officer, visits clients of Juhudi Kilimo in rural Kenya.

Triple Jump Annual Review 2014 Text Triple Jump

Photography:

Cover: Eelco Mol

Page 6-7: Tamar Basilashvili

Page 13-14: Luis Gabriel Alba Garcia

Page 18-19: ALSOL

Page 25: Clemens Gerteiser

Page 30-31: Eelco Mol

Concept, design and production Tangerine Design, The Netherlands

Cartography BosmaGrafiek.nl, made with Natural Earth

Printing Quantes Grafimedia (this Annual Review is printed on

FSC paper from mixed sources.)

Nicaragua

Bolivia

Paraguay

MexicoHonduras

Dominican Republic

Brazil

Argentina

Ethiopia

Tanzania

Zambia Malawi

Mozambique

South Africa

KenyaDR Congo

Kosovo

Belarus

Macedonia

Mali

Burkina Faso

BeninNigeria

Netherlands

GeorgiaAzerbaijan

Angola

Cameroon

PalestineJordan

Niger Chad

Tajikistan

Philippines

Indonesia

India

Pakistan

Afghanistan

Mongolia

Kyrgyzstan

Kazakhstan

Uzbekistan

Vietnam

Ghana

Costa RicaPanama

Ecuador

Colombia

El SalvadorGuatemala

Peru

Senegal

Rwanda

Namibia

Ivory Coast

Albania

LebanonMorocco

Armenia

Cambodia

Thailand

Uganda

Bosnia-Herzegovina

Haiti

Portfolio companies

168Countries

57Assets under management

€475 M Head Offices

Regional Offices

Countries where Triple Jump worked in 2014

Portfolio Companies

Facts & Figures 2014

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Triple Jump Head OfficeNachtwachtlaan 20 1058 EA AmsterdamThe NetherlandsT +31 (0) 20 512 06 20F +31 (0) 20 512 06 [email protected]

Triple Jump Georgia OfficeAkhvlediani ravine nr 3Tiblisi Georgia T +99 55 99 16 97 02

Triple Jump Kenya OfficeEden Square 7th Floor Block 1Chiromo RoadP.O. Box 856 00606Nairobi KenyaT +254 (0) 20 367 3092F +254 (0) 20 367 3231

Triple Jump Mexico OfficeAvenida Benjamin Franklin 166, Oficina 1bis, Colonia Escandón Delegación Miguel Hidalgo C.P. 11800 Mexico D.F.T +52 55 62 78 84 47

Triple Jump Peru OfficeCalle Los Zorzales 130, Of. 902San Isidro, LimaPeruT +51 (0)1 421 08 92

Triple Jump Thailand OfficeExchange Tower building (Suite 2936) 388 Sukhumvit Road, BangkokThailandT +66 21 04 91 60

Documents

Triple Jump 2014 Annual Review