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Triple Jump Annual Review 2009

VIEWS: 29 PAGES: 56

									  Triple Jump
Annual Review
          2009
                                                       Bosnia-




                                                   Morocco


Mexico
                       Haiti
                                                         Mali
 Guatemala Honduras                          Senegal
  El Salvador Nicaragua                                Burkina
     Costa Rica

                  Colombia                             Ghana
           Ecuador


                                    Brazil
              Peru
                          Bolivia

                               Paraguay
    The Netherlands

                 Ukraine
                                        Kazakhstan
                   Moldova                                         Mongolia
 Herzegovina Serbia      Georgia
  Montenegro Kosovo
      Albania  Macedonia        Azerbaijan       Kyrgyzstan
                       Armenia                Tajikistan
                  Lebanon
                            Palestine

                   Egypt
                                                   India

    Niger
                                                                                      Philippines
a Faso             Sudan
                                                               Cambodia
    Nigeria                                                               Vietnam
   Benin                   Ethiopia
                                                   Sri Lanka
                   Uganda
              Rwanda          Kenya
                                                                          Indonesia
                        Tanzania
         Angola
                            Mozambique




                                         Triple Jump Head Office
                                         Triple Jump Regional Office
                                         Triple Jump Office
                                         Countries where Triple Jump worked in 2009
Triple Jump manages and advises several microfinance investment
funds, each with a specific target group and different risk and return
objectives. This mix of funds allows Triple Jump to serve
microfinance institutions (MFIs) throughout their entire life cycle.
Our clients range from NGOs receiving their first non-subsidized
loans to regulated banks which intermediate savings and serve
hundreds of thousands of borrowers.



Triple Jump Advisory Services helps growing MFIs jump to the next
business level by providing cost-sharing grants and technical
assistance. Our service areas focus on strengthening governance,
technology (mobile banking, management information systems)
product development and social performance management.



Triple Jump investment figures

                                            2007             2008             2009
 Committed Capital                    EUR 126.3 M     EUR 158.2 M       EUR 222.1M
 Invested Capital                     EUR 101.4 M     EUR 135.1 M       EUR 146.3 M
 Number of Investments                          130               149          197
 Number of Clients                              98                111          132
 Number of MFIs “jumping” to                      7                 7            4
 Commercial Funds




Capital committed and invested in millions of Euros

250


200


150


100


 50
                                                       Committed
  0                                                    Invested
       2006          2007      2008      2009
  Triple Jump
Annual Review
          2009
“Microfinance can make the
difference between hope and
despair for billions of people living
in dehumanizing poverty.”
Sir Fazle Hasan Abed, founder of BRAC Bangladesh

Dr Abed was guest of honour at the Triple Jump launch in December 2006. BRAC is a
long-time partner of Oxfam Novib. Today the BRAC microfinance programme has over
6.4 million clients in Bangladesh.

In 2006 BRAC launched the BRAC Africa Loan Fund to finance the establishment of
microfinance institutions in Uganda, Tanzania and Southern Sudan. By December 2009,
these MFIs had grown to serve over 200,000 clients – exclusively women – through
234 branches, with an average loan size of USD 133. Triple Jump has participated in
the BRAC Africa Loan fund with both the ASN-Novib and the Oxfam Novib Funds.




                                                             6 Triple Jump Annual Review 2009
                 Contents
                     9 Foreword
         11 Management Review
                15 Our Company
     19 Investment Management
                 22 Results 2009
            31 Investment Funds
39 Triple Jump Advisory Services
                 47 Organization
1   Foreword
                                                         Foreword

                                                         The year 2009 will be remembered mostly as the second year of
                                                         the world economic crisis, the year when the effects of the crisis
                                                         reached many of the world’s poorest. As the world’s poorest
                                                         have been affected, so have the Micro Finance Institutions (MFIs)
                                                         that cater to them, often leading to deteriorating portfolio quality
                                                         and a slow-down in growth. In the face of these poor odds, the
                                                         Triple Jump portfolio has proven its resilience.

                                                         For the microfinance sector as well as for Triple Jump, 2009 was
                                                         a year of consolidation. Investments managed by Triple Jump
                                                         increased by almost 8% to over EUR 146 million, with a stronger
                                                         diversification both in terms of countries and number of MFIs.
                                                         Our strong focus on quality and risk management over the years
                                                         has clearly paid off, resulting in very low arrears. As we have
                                                         been unwilling to compromise on the prudency of our lending
                                                         methods, this has led to a higher level of liquidity and slightly
                                                         lower return to investors. We believe that this strategy pays off in
                                                         the long run. Our investment team continues to develop and now
                                                         includes 22 staff based in Amsterdam, Lima and Macedonia.

                                                         In 2009 Triple Jump Advisory Services expanded its local
                                                         presence to Senegal and Georgia, and grew the team to 4
                                                         professionals. The team provided 42 technical assistance
                                                         projects to 25 MFI partners, doubling our activities since 2008.

                                                         In 2009 the Board of Directors convened five times to discuss
                                                         strategy, planning and results, and to agree on a new 3-year
                                                         business plan with ambitious targets. An important goal is to
                                                         broaden our large client base with the ultimate goal to increasing
                                                         our outreach to low income entrepreneurs.

                                                         I would like to thank our shareholders, stakeholders and
                                                         clients for their continued support and cooperation.
                                                         We greatly appreciate the dedication and commitment of the
                                                         members of the Board of Directors and the Supervisory Board
                                                         to Triple Jump’s work. Finally, I would like to extend a word of
                                                         gratitude to Kim Kiszelnik for serving as board member of the
                                                         Triple Jump Advisory Services Supervisory Board. We thank
                                                         Ms. Kiszelnik and the DOEN Foundation for their important
                                                         contribution and support in the first three years of our Advisory
                                                         Services’ existence.
<<   Mrs. Ey Onn Punthea has been in the coffee
     shop business for almost 20 years now. She          We are confident that our shareholders, stakeholders and clients
     started borrowing from the microfinance             will continue to support our responsible approach to increasing
     institution Thaneakea Phum Cambodia (TPC)           access to finance for under-served entrepreneurs and
     in 2004. She has moved from accessing group         low-income households.
     loans to individual loans and from local currency
     loans to USD-denominated loans. All her             Ab Engelsman, Chairman of the Board
     children are studying. When asked why she           May 2010
     continues to borrow from TPC when she could
     be borrowing from a bank, she smiles and says       The Board of Directors of Triple Jump:
     in a typical Khmer metaphor – “You can get          Ab Engelsman, Bart Hartman and Esha van der Hulst
     coffee beans everywhere in Cambodia, but if
     you know where the good aroma is coming             The Supervisory Board of Triple Jump Advisory Services:
     from, then you stay there.’                         Ab Engelsman, Bart Hartman and Esha van der Hulst
     TPC is a client of Triple Jump through the
     ASN-Novib and Calvert Funds. (Photo: TPC)


                                                         9 Triple Jump Annual Review 2009
2   Management Review
                                                        Management Review

                                                        Triple Jump
                                                        In this period of economic crisis and turmoil in the financial
                                                        sector, our primary goal was to continue to serve MFIs while
                                                        protecting the funds entrusted to us by institutional investors and
                                                        private individuals. Overall, the funds managed by Tripe Jump
                                                        performed well in 2009. Triple Jump increased its portfolio of
                                                        investments by 8% to EUR 146 million in 2009, while maintaining
                                                        a good portfolio quality. Triple Jump Advisory Services expanded
                                                        its field presence in Africa and Central Asia, increasing the
                                                        number of MFIs benefitting from technical assistance on a
                                                        cost-sharing basis.

                                                        Microfinance Market
                                                        The economic crisis that followed the financial crisis did impact
                                                        the microfinance industry considerably. Lower remittances,
                                                        declining economic growth, unstable currencies and over-
                                                        borrowing all caused serious challenges for MFIs and their
                                                        clients, leading to limited portfolio growth.
                                                        In the first quarter of 2009, lenders were cautious and MFIs faced
                                                        a shortage of funding, but by the second quarter most MFIs had
                                                        slowed their rate of growth. Meanwhile, microfinance investment
                                                        vehicles (MIVs) continued to grow as investors were drawn by
                                                        the positive results from 2008, leading to high liquidity and
                                                        renewed pressure to disburse. This resulted in the uncommon
                                                        situation where higher perceived investment risk was accompa-
                                                        nied by declining spreads.

                                                        Given these difficult circumstances, overall performances of MFIs
                                                        were again more resilient than many expected. Performances
                                                        differed across the regions, with Central America, Eastern Europe
                                                        and Central Asia being most affected by the crisis. We found that
                                                        MFIs with traditional microfinance lending models generally
                                                        outperformed MFIs with a higher proportion of consumer and
                                                        SME lending.



                                                        Funds
                                                        In 2009, our investments allowed MFIs to reach over 390.000
                                                        clients, 78% of whom were women, a priority target group for
                                                        Triple Jump. In total, our clients serve over 9.5 million micro and
                                                        small entrepreneurs around the world. We worked with 132 MFIs
                                                        (2008: 111) ranging from NGOs to regulated banks.

                                                        The total commitments for the ASN-Novib Fund grew by 40% to
                                                        EUR 123 million. In spite of the crisis, investors continued to
                                                        demonstrate their commitment to socially responsible investing
                                                        and were rewarded with a healthy return of 4.1%.

                                                        The Oxfam Novib fund again fulfilled a catalyst role in adverse
                                                        times by providing capital to lower, often rural, market segments.
<<   Mrs. Hanni lives in Indonesia and is a proud       The local currency portion of the fund increased to 60%,
     mother of three children. Thanks to a small loan   mitigating an important risk factor for emerging MFIs. Total
     from an MFI, Mrs. Hanni was able to start duck     investments grew by 30% to EUR 31 million, while the average
     breeding, and today she has over 200 ducks,        investment was maintained at around EUR 0.35 million.
     kept in a compound next to her house.
     The microfinance institution is a client of
     Triple Jump. (Photo: Triple Jump)


                                                        11 Triple Jump Annual Review 2009
“Triple Jump really knows how
to select promising MFIs in
the early stages of their
development and guide them
to the next stage. This is exactly
what we had in mind when we
set up Triple Jump in May 2006.”

Farah Karimi
Executive Director Oxfam Novib, a Dutch
NGO fighting for a just world without poverty
The NOTS fund was launched late in the year and a first invest-       Outlook
ment was made in Peru. The fund focuses on TIER 3 MFIs and            The microfinance sector in general will face a year full of
has substantial appetite for local currency investments. Dutch        challenges in 2010. Our clients have proven their resilience
development bank FMO has taken on a catalyst role, committing         during the past year, but will continue to face an adverse
a substantial amount of subordinated capital to the fund.             economic environment. Our main goal is to continue providing
                                                                      high quality financial services to our (prospective) clients, while
The investments Triple Jump managed as sub-advisor for Calvert        maintaining a very good portfolio quality. In spite of difficult
and the SNS Institutional Microfinance funds I & II performed         market circumstances, we are encouraged by the promising
well. Our asset selection ensured good returns to investors and       signs we have observed and are confident we will attain
excellent portfolio quality.                                          our goals.

                                                                      We extend our gratitude to all our partners for their continued
   Highlights from 2009                                               support in 2009.
   – Active in 51 countries, 78% of clients reached were
      women                                                           Mark van Doesburgh and Steven Evers
   – ASN-Novib Fund generates 4.1% return to investors                Managing Directors, Triple Jump
      (6.6% including tax credit)
   – Acquired mandate for NOTS fund
   – Expanded the regional offices and strengthened the               Triple Jump Advisory Services
      investment and operations departments                           2009 was a year of expansion for Triple Jump Advisory Services,
   – Obtained SAS-70 II compliant qualification for second            as the foundation expanded its regional and country focus
      year running                                                    and built a local presence by hiring staff based in the region.
                                                                      Additionally, we increased the number of MFIs receiving
                                                                      support to 25, of which 12 were new partnerships.

Our company                                                           We had a growing demand for our services from new and
2009 was an important year for Triple Jump. Reaching a critical       current partners and hence in 2009 we completed 42 projects.
mass enabled us to increase in-house specialisation to boost          Responding to demand from both MFIs and investors, we added
service quality and delivery time. We strengthened both our           social performance management to our focus service areas.
commercial team and our operations department with the hiring         We also continued launching innovative mobile banking projects
of new staff.                                                         to increase financial access and reduce costs, among many
                                                                      other potential benefits. For 2010 we anticipate an increase in
During the year we further developed our risk-management              demand and growth in our support to MFIs for our customised,
policies. In this regard, we have seen our diversification policies   practical advice and technical assistance.
and strict monitoring systems pay their rewards in these adverse
times. Our focus on responsible lending is greater than ever.         Carol Caruso
Trainings were organised for staff in the areas of treasury           Managing Director, Triple Jump Advisory Services
management and social performance. The in-depth social
performance tool that was developed in 2008 was used
consistently.
We are very proud to have brought together such an excellent
team of professionals and would like to take the opportunity to
thank our staff and the members of our external investment
committees for their efforts.




                                                                      13 Triple Jump Annual Review 2009
3   Our Company
                                                      Our Company

                                                      Story
                                                      Triple Jump emerged as an independent organization in 2006,
                                                      when Oxfam Novib spun off the management of the ASN-Novib
                                                      Fund. Nine months later, in March 2007, the Oxfam Novib Fund
                                                      was also transferred to Triple Jump. Though we were founded as
                                                      recently as 2006, our origin as part of Oxfam Novib means that
                                                      we can trace our activities in microfinance back to the 1990s.

                                                      Name
                                                      Triple Jump takes its name from the Olympic sport, which
                                                      is characterized by speed, power, rhythm, and resilience.
                                                      The three stages of the jump reflect our ambition to help
                                                      microfinance institutions progress through the three stages
                                                      of their development.

                                                      Vision
                                                      Large groups of the population in developing countries are still
                                                      being excluded from taking an active part in society. One of the
                                                      reasons is limited access to the financial services that would
                                                      allow them to provide for their families and meet business needs.
                                                      Triple Jump is convinced that growth and reinforcement of the
                                                      microfinance sector is an important precondition to the social-
                                                      economic development of these groups. We work with MFIs to
                                                      realize their full potential through:

                                                      –   Advisory services to improve the performance of
                                                          the institution
                                                      –   Equity to strengthen the capital base
                                                      –   Loans to enlarge the microfinance portfolio

                                                      MFIs go through various stages in their development: from
                                                      emergence to expansion and maturity. Triple Jump supports
                                                      MFIs during all these stages using a tailor-made approach to
                                                      suit the individual situation of the MFI. Thanks to the Oxfam
                                                      Novib and NOTS Funds as well as our Advisory Services, we are
                                                      able to help MFIs in the emerging and expanding stages. The
                                                      range of funds we manage allows us to grow with our maturing
                                                      clients and provide the added value they need.

                                                      Triple Jump operates at the interface of commercial and develop-
                                                      ment work. On the one hand, we see ourselves as entrepreneurs
                                                      with a strong focus on results and solutions. We are constantly
                                                      on the lookout for new, promising MFIs, which we can help to
                                                      grow and become more professional. On the other hand, we
                                                      never lose sight of our social objectives and integrity. This is
                                                      reflected in the high international business standards we uphold,
                                                      in the transparency of our activities, and in the importance we
<<   Mario Valdivia Guillén is a farmer in Southern   attach to equality in the relationship with our stakeholders.
     Peru. He started borrowing money from the        Sustainable development is our goal. Sustainable development
     microfinance institution Fondesurco nine         for small entrepreneurs in developing countries, for MFIs, for our
     years ago. ‘Thanks to Fondesurco my capital      stakeholders and for ourselves.
     has increased and I was able to send my
     daughters to school. Fondesurco really has
     helped me a lot!’
     Fondesurco is a client of Triple Jump through
     the Oxfam Novib and NOTS Funds.
     (Photo: Fondesurco)


                                                      15 Triple Jump Annual Review 2009
Client Perspectives



“Without Triple Jump we would
be nowhere!”
                               Gulnara Shamshieva
                               General Manager

                               Bai Tushum serves nearly 40,000 clients and is one of
                               the largest non-bank microfinance institutions in
                               Kyrgyzstan.
                               Triple Jump started working with Bai Tushum in 2008,
                               first as a lender and since 2009 as a shareholder
                               through the ASN-Novib Fund, with a 15% share in the
                               MFI’s capital and a representative of Triple Jump in the
                               Board.

“In 2010 the microfinance company Bai Tushum & Partners will celebrate its 10th anniver-
sary. We can say with certainty that this is a mature and successful organization and one
of Central Asia’s leading MFIs.

In 2009 Bai Tushum had to increase its capital to allow for further growth of its loan
portfolio. Bai Tushum approached several social investors, including Triple Jump as advisor
to the ASN-Novib Fund. Triple Jump was the only social investor who could process our
request on time and who was willing to invest prior to Bai Tushum obtaining its deposit-
taking license. Thanks to the investment from the ASN-Novib Fund, Bai Tushum could
continue to grow its loan portfolio and attract additional financial resources from several
microfinance lenders.

We clearly express our gratitude to Triple Jump and the ASN-Novib Fund for a timely
investment and for the risk which they were willing to take. We are aware that being the
first is not always easy, but at the same time the first ones can also receive some benefits:
notwithstanding the financial crisis of 2009, Bai Tushum remained very profitable.”
                                                                         Mission
                                                                         Our mission is to improve access to financial services for small
                                                                         entrepreneurs in developing countries by supporting the
                                                                         expansion of viable microfinance institutions in all stages of
                                                                         development though providing capital and advisory services.

                                                                         Triple Jump focuses on MFIs which are committed to:
                                                                         – reducing poverty in their society;
                                                                         – reaching low-income and vulnerable groups, particularly
                                                                             women;
                                                                         – respecting society and the environment;
                                                                         – achieving maximum efficiency, financial sustainability
                                                                             and outreach.




By helping MFIs to grow, Triple Jump helps improve
access to financial services for the world’s poor.




                                                SNS Institutional
                                               Microfinance Fund

                                      ASN-Novib Fund

                          Calvert MicroPlace

                     NOTS

       Oxfam Novib Fund

        Triple Jump
                                                                    Different stages of
      Advisory Services                                             MFI development


    emerging              expanding            mature




                                                                         17 Triple Jump Annual Review 2009
4   Investment Management
                                                   Investment Management

                                                   Introduction
                                                   Triple Jump Investment Management specializes in managing
                                                   and advising microfinance investment funds. Through the funds
                                                   entrusted to us, Triple Jump targets MFIs in all stages of
                                                   development, though we view emerging and expanding MFIs (tier
                                                   2 and 3) as our niche. Supporting MFIs in the early stages of their
                                                   development allows us to grow with them. Triple Jump’s
                                                   approach is based on MFIs “graduating” or “jumping” from fund
                                                   to fund, as they go through the different phases of their develop-
                                                   ment. To this end, each of the funds that Triple Jump works with
                                                   has a specific investment profile.

                                                   Our Approach
                                                   Triple Jump serves as an intermediary between capital markets
                                                   and MFIs in developing countries. We focus on offering high
                                                   quality and results-oriented services to our funders and our
                                                   clients. Our approach entails a combination of the following:

                                                   Professional Services
                                                   At Triple Jump, we are committed to offering our stakeholders
                                                   the highest possible level of service, with a consistently profes-
                                                   sional approach to clients in all tiers of the microfinance market.
                                                   This means combining thorough analyses, clear processes and
                                                   transparent communication with tailor-made solutions. As a
                                                   flexible investment manager, Triple Jump is attentive to the needs
                                                   of its stakeholders and strives to minimize delivery time.

                                                   Market Knowledge
                                                   We consider it vitally important to have a thorough knowledge of
                                                   the markets we work in and to keep abreast of recent develop-
                                                   ments. We feel it is essential to know our clients and be able to
                                                   respond to their needs as they arise. Our carefully selected team
                                                   combines dynamism with solid experience in microfinance,
                                                   banking and development across several continents. We remain
                                                   close to clients throughout the life of our investments, with
                                                   regular monitoring of their financial and social performance.

                                                   Local Presence
                                                   In 2009, Triple Jump expanded the regional office in Lima,
                                                   Peru to oversee all client relationships in Latin America and to
                                                   strengthen our market knowledge and increase local presence.
                                                   We also have a regional office in Skopje, Macedonia.

                                                   Social Performance
                                                   Triple Jump firmly believes that with the right policies and
                                                   implementation, microfinance can help contribute to poverty
                                                   alleviation, empowerment and sustainable development. As an
                                                   endorser of the Client Protection Principles, we are committed to
                                                   helping raise awareness among MFIs about responsible lending.
                                                   Since 2008, Triple Jump has incorporated a more in-depth
                                                   social performance questionnaire into all due diligence visits.
                                                   The questionnaire is based on the Client Protection Principles
                                                   and on the Core Social Performance indicators developed by
<<   The Kidigi market in Rwanda. Many MFIs,       the Social Performance Task Force.
     such as our partner Vision Finance Company,
     have clients working in this market.
     (Photo: VFC)


                                                   19 Triple Jump Annual Review 2009
“Although the main financial
performance indicators have
weakened across the board and
the sector appeared not immune
to the global crisis, Triple Jump
has managed to maintain a very
good portfolio quality for the
ASN-Novib Fund during 2009.”

Ewoud Goudswaard
General Manager ASN Bank, a Dutch bank
committed to promoting a sustainable
society
                                                Due Diligence
                                                One of the characteristics that distinguishes Triple Jump from
                                                many of its peers is our thorough due diligence process. At Triple
                                                Jump, we put great emphasis on carrying out an on-site client
                                                assessment ourselves. As such, our due diligence process is an
                                                essential part of the Triple Jump approach. It not only allows us
                                                to analyse investment risk, but also helps us to build a strong
                                                relationship with our partners and to learn from them.

                                                Our assessment focuses on the legal, organizational, commercial
                                                and financial aspects of the organization, its social performance,
                                                and a thorough analysis of market and country risks.

                                                Risk Management
                                                Risk management is a key area for Triple Jump. We assess
                                                risk by carrying out a thorough pre-investment analysis and
                                                manage risk in the portfolio through active diversification of
                                                assets, disciplined monitoring, and a problem-solving attitude.
                                                – Triple Jump uses risk assessment tools to analyse the
                                                    financial and operational aspects of investments, adjusting
                                                    for market- and investment-specific factors. We use a risk
                                                    scoring system, relying on actual sector benchmarks, in
                                                    order to better evaluate and calibrate the level of risk
                                                    associated with our investments;
                                                – All investments are evaluated by external investment
                                                    committees, providing an unbiased external review of Triple
                                                    Jump investment proposals;
                                                – The webtool enables monthly monitoring of the portfolio,
                                                    with early warning systems in case of changes in
                                                    performance;
                                                – To better account for the increased market volatility, we
                                                    have strengthened the sensitivity analysis, liquidity gap
                                                    analysis and FX risk analysis sections of our pre-investment
                                                    assessment;
                                                – Larger investment exposures are identified and prioritised.
                                                    In additional, investments that experience sudden upward
                                                    changes in their risk profile are temporarily red-flagged and
                                                    receive more attention.




The investment process



         Identifying investment opportunities


            Due diligence & negotiations


               Investment committee


               Signing & disbursement


             Relationship management


               Monitoring & reporting


                  Advisory Services




                                                21 Triple Jump Annual Review 2009
Results 2009
By the end of 2009, we had reached over 390,000 entrepreneurs         Four MFIs initially financed by the Oxfam Novib Fund graduated
through our clients, including 78% women borrowers. This is           to one of the other funds under the Triple Jump umbrella that
a significant increase from December 2008, when we reached            target more mature MFIs. In spite of a difficult year for many
298,000 borrowers, of whom 75% were women. Overall,                   MFIs, portfolio quality has remained high for the commercial
our MFI partners reached more than 9.5 million borrowers              funds and satisfactory for the developmental Oxfam Novib Fund.
throughout the world.                                                 By the end of 2009, one client from the ASN-Novib Fund and
                                                                      four clients from the developmental Oxfam Novib Fund were in
At the end of 2009, the total investments under management            arrears, resulting in a PAR30 of 0.8% for all investments under
stood at over EUR 146 million, slightly below the amount initially    Triple Jump management.
planned. This was mainly due to non-renewals and early
repayments in combination with an over-liquid market, which
made it challenging to grow the portfolio in a responsible manner.

Triple Jump investments

                                                  2007                   2008                  2009
 Committed                                EUR 126.3 M            EUR 158.2 M           EUR 222,1 M
 Invested                                 EUR 101.4 M            EUR 135.1 M           EUR 146.3 M
 Number of Clients                                 108                    111                    132
 Average Exposure per Client               EUR 0.94 M              EUR 0.91 M            EUR 1.1 M




Performance of the funds in 2009

 Fund type                                   Developmental Funds                 Commercial Funds
 Fund Currency                                    USD                    EUR                    EUR
 Net Asset Value                            EUR 8.1 M              EUR 31.0 M          EUR 151.6 M
 Annual Return to Investors                       2.3%                  2.7%*                  4.5%

* excluding unrealized currency effects




    Investor update
    In 2009 microfinance continued to be an attractive asset         become a substantial investor in the NOTS Fund. Triple
    class for investors, however financial returns were more         Jump has been awarded the mandate of investment manager
    varied between microfinance investment vehicles than ever        for the NOTS Fund that will focus on emerging MFIs, an
    before. For the first time, investors were able to really        underserved market segment with tremendous potential.
    distinguish between the performances of different investment
    managers. Given the market turmoil, we are proud that the        In anticipation of the challenges we foresee in the coming
    investment strategies we have maintained in recent years         years, we have focused on enhancing the quality of our
    have enabled us to continue to show good returns on the          services. We have strengthened our commercial team with
    funds entrusted to us.                                           regional specialists, most notably on the equity side. At the
                                                                     same time, we have improved our risk management and
    Throughout the year we have been communicating with              operational procedures. In this regard, investors can feel
    investors about the microfinance market and our investment       confident about our core processes; for the second year
    approach. One of the fruits of these efforts has been the        running our operations have been found to be SAS-70 II
    commitment from FMO, the Dutch development bank, to              compliant by our auditors.




                                                                      22 Triple Jump Annual Review 2009
    Portfolio distribution
    Geographic distribution of all combined loans from all                                                                                                                                                                                                                                                              Distribution by currency of all combined loans from all
    investments managed by Triple Jump, December 2009                                                                                                                                                                                                                                                                   investments managed by Triple Jump, December 2009


                                                                       Global 3%
                                                                                                                                                     Africa 10%                                                                                                                                                                           Local currency 17%
   Central America, Mexico and
                                                                                                                                                                                 Middle East and North Africa 1%
   the Caribbean 11%




                                                                                                                                                                                                                Eastern Europe 16%

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  USD 62%


South America 28%                                                                                                                                                                                                                                                                                                       EUR 21%

                                                                                                                                                                                                   Caucasus 8%




                                                                                                                                                             Central Asia 15%
                                                                      Asia 8%




    Breakdown of local currency funding in EUR, December 2009


    5,000,000



    4,000,000



    3,000,000



    2,000,000



    1,000,000



            0
                Albanian Lek

                               Guatemalan Quetzal

                                                    Kenyan Shilling

                                                                       Tajikistani Somoni

                                                                                            Ghanaian New Cedi

                                                                                                                Rwandan Franc

                                                                                                                                Haitian Gourde

                                                                                                                                                 Egyptian Pound

                                                                                                                                                                  Moldovan Leu

                                                                                                                                                                                   Armenian Dram

                                                                                                                                                                                                   Moroccan Dirham

                                                                                                                                                                                                                     Indonesian Rupiah

                                                                                                                                                                                                                                         Vietnamese Dong

                                                                                                                                                                                                                                                           Bolivian Boliviano

                                                                                                                                                                                                                                                                                Azerbaijan New Manat

                                                                                                                                                                                                                                                                                                       Ethiopian Birr

                                                                                                                                                                                                                                                                                                                         Nigerian Naira

                                                                                                                                                                                                                                                                                                                                          Colombian Peso

                                                                                                                                                                                                                                                                                                                                                           Philippine Peso

                                                                                                                                                                                                                                                                                                                                                                             Paraguay Guarani

                                                                                                                                                                                                                                                                                                                                                                                                Brazilian Real

                                                                                                                                                                                                                                                                                                                                                                                                                 Cambodian Riel

                                                                                                                                                                                                                                                                                                                                                                                                                                  Kyrgyzstanian Som

                                                                                                                                                                                                                                                                                                                                                                                                                                                      Uganda Shilling

                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Tanzanian Shilling

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Honduran Lempira

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                West African CFA Franc

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Mexican Peso

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Peruvian Nuevo Sol




                                                                                                                                                                                                                                                                                                                        23 Triple Jump Annual Review 2009
5   Equity
                                                     Equity

                                                     Mutual Trust
                                                     Equity is one of the instruments we at Triple Jump can offer
                                                     to assist our partners in their development. Triple Jump has
                                                     been offering equity since 2006 through the ASN-Novib Fund,
                                                     and since 2009 through the NOTS Fund. When considering
                                                     potential investments, what we look for first and foremost are
                                                     a shared vision, shared values and an appropriate return.

                                                     Becoming a shareholder implies a special relationship of
                                                     mutual trust. At Triple Jump we aim to have this type of
                                                     privileged relationship with all of our clients. This develops
                                                     over the years, and often begins with a loan or subordinated
                                                     debt. Nonetheless, this does not preclude us from entering as
                                                     a shareholder from the start, if this is perceived as mutually
                                                     desirable.

                                                     Adding Value
                                                     Once we take on the responsibility of shareholder in an
                                                     MFI, we seek to add value by participating in the institution’s
                                                     board, either with experienced Triple Jump staff or an expert
                                                     from our extensive network. Our staff and network of experts
                                                     have a mix of skills to help contribute to the governance of
                                                     the MFI. As a member of the board, we take our role
                                                     seriously, and participate actively in the governance of the
                                                     institution. Given our focus on 2nd and 3rd tier microfinance
                                                     institutions, we may call on experts to assist our partners
                                                     with specific issues, for example transformation or the
                                                     introduction of savings products.

                                                     We promote longer-term, value investing. As investments
                                                     are made through open-ended funds, we do not face a strict
                                                     deadline for exit. This allows us to be patient, and to work
                                                     with our partners on their medium and long-term strategy.

                                                     The Equity Team
                                                     In the course of 2009 Triple Jump generated a promising
                                                     pipeline of potential future investments in Asia and Latin
                                                     America, leading to the hiring of an experienced equity
                                                     officer for the Lima office. Triple Jump’s equity team has
                                                     vast regional experience to support the investment officers
                                                     in identifying and executing new deals.




<<   Arnaldo Santiago Alvarado Villena is a
     beekeeper in Southern Peru. He borrowed
     money from microfinance institution
     Fondesurco. “Thanks to Fondesurco I could
     start my own business and increase my
     income. That is why I recommend Fondesurco
     to other people because they always help us.”
     Fondesurco is a client of Triple Jump through
     the Oxfam Novib and NOTS Funds.
     (Photo: Fondesurco)


                                                     25 Triple Jump Annual Review 2009
Regional Overview
In 2008 Triple Jump introduced a quarterly portfolio-risk           Central Asia and Caucasus: The past year has been
review to supplement the existing monthly and quarterly             challenging for MFIs in this region, especially in Tajikistan,
analysis of clients’ financial results. This review focuses on      Kazakhstan, Georgia and Armenia. Overall, remittances went
the following risk areas for MFIs: refinancing risk, foreign        down considerably (a major source of income for MFI clients)
exchange exposure, inflation and the performance of                 and currency devaluations persisted throughout the first half
consumer and SME loans in the MFI’s portfolio.                      of the year, which has decreased clients’ ability to repay
Our objective is to identify negative trends at an early            dollar-denominated or dollar-indexed loans. Overall, we see a
stage, so that we can work with our partners to find                slow recovery in the macro-economic circumstances, leading
solutions before problems escalate. Although each                   to an improved performance of MFIs across the board;
country and client is different, we have seen certain               however the crisis also exposed structural weaknesses in
trends emerging by region:                                          some countries, such as over-indebtedness, weak internal
                                                                    controls and dependence on hard currency funding. For the
Sub-Saharan Africa: In 2009 most African currencies were            coming year we forecast that loan portfolios will steadily pick
relatively stable, and inflation slowed in most markets             up growth, however this is highly dependent on a positive
compared to 2008. In the West-African monetary union                trend in the Russian economy.
(UEMOA), the new microfinance regulation has been imple-
mented slowly at the national level, leading to uncertainty         South and South East Asia: Asian economies were affected
about the legal status of MFIs, and delays in renewing permits.     by the economic downturn in 2009, although economies
Local banks have tightened their lending conditions to MFIs, in     were rebounding from the last quarter of the year onwards.
some cases leading to re-financing difficulties. In Eastern-        Generally, Asian MFIs in the Triple Jump portfolio followed
Africa, the increased availability of funding from abroad has in    this trend: loan portfolios more or less came to a standstill
some cases led to excessive growth, exposing organisational         during the first three quarters of 2009 and portfolio quality
weaknesses. Nonetheless, new microfinance regulation in a           deteriorated. While MFIs had an excellent portfolio quality
number of countries in the region opens interesting opportuni-      prior to the crisis, we saw PAR30 more than double during
ties for MFIs, allowing them to diversify their sources of          the year. As a result, provisioning costs increased and
funding and expand their product offering to clients.               profitability decreased. However, by the last quarter of 2009
                                                                    we generally saw that portfolio growth was picking up while
Middle East and North Africa: In Morocco, the crisis                quality is also improving. These signs indicate that MFIs have
reached its peak in 2008, when one MFI collapsed and others         been able to weather the adverse circumstances.
suffered significant losses. MFIs have become more cautious,
sharing borrower lists and reducing their portfolios as they        Eastern Europe: The issues of client over-indebtedness,
aim to reduce the extent of parallel lending. Losses continued      parallel loans (clients borrowing from multiple sources and
in 2009, but were less significant. In Egypt, MFIs are still        using one loan to repay another) and reduced remittances
waiting for the new microfinance law to be approved. Relative       from abroad have persisted throughout 2009 for our partners
stability in Lebanon and the West-Bank has finally allowed          in Eastern Europe. Especially in the Balkans these problems
MFIs to grow and achieve excellent portfolio quality.               have led to a decrease in portfolio quality and a decrease in
                                                                    outstanding loans. Besides a lower demand from MFI clients,
Central and South America: The countries most affected by           this decrease was also caused by MFIs strengthening their
the international economic crisis were Mexico and Central           loan monitoring and internal control policies. The macro-
America. The impact of the crisis has had a strong negative         economic forecasts for the region are moderately positive.
effect on portfolio growth and quality, and political instability   Overall, we foresee a more or less stable level of loan
in some of these countries has led to additional instability for    portfolios coupled with a stabilization of portfolio quality.
MFIs. During 2010 we expect to see a partial recovery in
Mexico and most of Central America, with high uncertainty
continuing in certain countries, especially Nicaragua. Curren-
cies may devaluate in a few Central American countries,
increasing the risk of foreign exchange loss. The microfinance
market in South America is expected to remain strong, but a                           This group of farmers share a plot of land near    >>
further increase in competition in certain countries increases                            the village of Zorgho in Burkina Faso. As a
the risk of over-indebtedness. Liquidity is high as local banks                     group, the farmers have obtained an agricultural
and international funds share a strong appetite for investing                               loan from the Zorgho branch of Premiere
in the sector. Refinancing risk for MFIs will therefore be low.                        Agence de Credit – Burkina Faso (PAMF-BF).
Most currencies have recovered from strong devaluations                               The loan has allowed them to purchase inputs
in 2008. As most South American countries have relatively                                                            to grow peanuts.
high levels of USD reserves, devaluations in 2010 are                                     PAMF-BF has been a client of Triple Jump
expected to be minimal or even negative.                                                 through the Oxfam Novib Fund since 2009.
                                                                                                                  (Photo: Triple Jump)


                                                                    26 Triple Jump Annual Review 2009
Social Performance
Social Performance Assessment Triple Jump firmly believes                    The Client Protection Principles In the second half of 2008,
that with the right policies and implementation, microfinance                CGAP and the Centre for Financial Inclusion at ACCION
can help contribute to poverty alleviation, empowerment and                  International launched the Client Protection Principles as part
sustainable development. We seek to balance the social and                   of a collaborative initiative together with a broad coalition of
financial return objectives of our investors, integrating our                microfinance institutions, networks, funders and practitioners.
commercial focus with the social dimension of microfinance.                  The Client Protection Principles (CPPs) describe the minimum
All our staff have been trained in the area of social perform-               measures that microfinance institutions should take to protect
ance by rating agencies who conduct social ratings. Triple                   low-income clients from potentially harmful financial products
Jump is a member of the Social Performance Task Force                        and to ensure that clients are treated fairly. Triple Jump,
(SPTF) and an active member of the Investor Stakeholder                      ASN Bank, Calvert Foundation, Oxfam Novib, the NOTS
Group of the SPTF.                                                           Foundation and SNS Bank have all endorsed the CPPs.
In cooperation with Oxfam Novib, Triple Jump developed an                    This means that we have committed ourselves to promoting
in-depth social performance assessment in 2008 which is                      the principles and to incorporating them into our own
used to assess all Oxfam Novib and ASN-Novib clients.                        procedures.
Our social performance tool assesses the MFI’s social intent,
the implementation of these social intentions, and the social                You can read more about the principles and the accompa-
results achieved.                                                            nying SMART campaign at www.smartcampaign.org.
                                                                             A specific client protection questionnaire is now part of the
Results are assessed in terms of client satisfaction,                        standard loan appraisal process for all funds. We hope to
client protection, outreach, gender, human resources                         raise awareness among MFIs about the steps they can take
and social performance information.                                          to protect their clients and thus help ensure that they benefit
                                                                             from the potential of microfinance. Questionnaires filled-in
These results are analysed using a spider graph, shown                       during 2009 show a stronger level of client protection in
below. The graph shows the average score received by                         regulated MFIs, as well as significant regional differences
Oxfam Novib Fund clients in 2009.                                            in terms of client protection awareness and procedures.

                       Client Protection
                                                                             Microfinance Transparency An important part of client
                               80%                                           protection is transparent communication about the costs of
                                                                             services offered. We believe that transparency in pricing is
                                                       Client Satisfaction   essential for clients to be able to compare rates, which in turn
   SPI
           67%                             62%                               is necessary for competition to lead to a decrease in rates.
                                                                             Although regulation is the most important and effective way
                                                                             of reaching transparency, there are very few countries where
                                                                             this is addressed. Where regulation does not adequately
                                                                             address pricing transparency, initiatives like MicroFinance
                                                 70%
Outreach
                 83%                                                         Transparency (MFT) have an important role to play. MFT
                                                        Gender
                                                                             works with MFIs, Central Banks and investors to bring about
                                                                             pricing transparency in the microfinance industry. Triple Jump
                               65%
                                                                             has endorsed MFTransparency, promotes the MicroFinance
                               HR
                                                                             Transparency Effective Interest Rate calculator with its
                                                                             clients, and supported the 2009 Cambodian transparency
                                                                             study with a donation.
The Triple Jump SP Assessment Tool consists of a question-
naire which is filled in by the Investment Officer together
with the MFI’s management and staff during the due diligence
visit. The outcome of the assessment helps us to identify
the strengths and weaknesses of an MFI in terms of Social
Performance, and can be used to make recommendations                                               Aliya Kerimkhanova works as a hairdresser     >>
to the MFI’s management, as well as to target potential                                               in Semey in Kazakhstan. Loans from the
interventions by Triple Jump Advisory Services and Oxfam                                         microfinance institution Bereke gave her the
Novib. The outcome and eventual recommendations are                                                opportunity to purchase equipment for her
incorporated in the loan appraisal presented to the invest-                                        business. She was also assisted with small
ment committee. Data from the questionnaires are compiled                                       loans to pay for the education of her children
and analysed for trends.                                                                          without having to use her business working
                                                                                                  capital. Her last loan amount was USD 500.
                                                                                              Bereke is supported by Triple Jump through the
                                                                                                                 Calvert Fund. (Photo: Bereke)


                                                                             28 Triple Jump Annual Review 2009
6   Investment Funds
                                                         Investment Funds

                                                         Triple Jump currently advises five microfinance funds:

                                                         –   ASN-Novib Fund
                                                         –   Oxfam Novib Fund
                                                         –   SNS Institutional Microfinance Fund
                                                         –   NOTS Microfinance Fund
                                                         –   Calvert Social Investment Foundation




<<   Margret Nalumaga operates a small retail
     shop on the local market in Fort Portal,
     Western Uganda. She had her first loan from
     microfinance institution Hofokam as a member
     of a women’s group made up of 20 people.
     At that time, her business was very small and
     she did not have many items for sale. Margret
     borrowed just 300.000 Ugandan Shillings
     (100 EUR) to buy more supplies. Over time,
     she increased her loan amounts and eventually
     borrowed as an individual client. Her latest loan
     was 3 million Shillings (1000 EUR) and with this
     she built a shop that now offers everything from
     bread and butter to hardware goods and mobile
     phone cards. “I am very happy with Hofokam”,
     she says. “All my business, everything I built up
     here I just owe to them”. When asked about her
     future plans, she needed some time to think:
     “You know, when I have all this settled, maybe
     I want to become a wholesale trader.”
     The MFI Hofokam received its first loan from
     Triple Jump through the Oxfam Novib Fund in
     2009. (Photo: Triple Jump)


                                                         31 Triple Jump Annual Review 2009
       ASN-Novib Fund
       The ASN-Novib Fund (ANF) was established in 1999 by ASN                The ANF invests in expanding and mature microfinance
       Bank and Oxfam Novib. By the end of 2009, it had grown to              institutions (primarily regulated MFIs, financial institutions and
       EUR 122.6 million, of which EUR 79.5 million had been invested         banks, but also NGOs). It operates in countries in Africa, Asia,
       in 54 MFIs in 24 countries, including 4 equity investments.            Eastern Europe and Latin America which have been designated
       The Fund achieved a net return to investors of 4.1% in 2009.           as Official Development Assistance countries by the OECD
       Including the tax break from the Regeling Sociaal Ethisch              (the Organisation for Economic Cooperation and Development).
       Beleggen for investors based in the Netherlands, investors             The ANF offers loans (including subordinated debt), guarantees
       obtained a total return of 6.6%. Triple Jump is the investment         for microfinance portfolio expansion, and equity investments.
       manager for this fund.                                                 Although the majority of loans are granted in hard currency, local
                                                                              currency loans are also available. By December 2009, 7.5% of
       The ANF was the first mutual retail fund for MFIs in the Nether-       the fund was denominated in local currency (excluding USD).
       lands, and is organized as an open-ended fund. It enables              Amounts invested range from EUR 500,000 to EUR 4.5 million
       private individuals to invest in MFIs by purchasing units sold by      and investments are priced at market rates.
       ASN Bank. Units can be purchased and sold on a daily basis.
       The goal of the fund is to encourage broader participation at all
       levels of society in the market economies of developing
       countries.

       The fund provides capital for microfinance institutions which lend
       to micro-entrepreneurs who do not have access to the formal
       banking system; banks often view these entrepreneurs as either
       too risky or insignificant. With no write-offs since its inception,
       the fund boasts an outstanding track record. Only one loan is in
       arrears, representing 0.3% of the fund’s net asset value.




       ASN-Novib Fund outstanding portfolio by region, December 2009                                                   2007              2008             2009
                                                                               Committed                      EUR 80.4 M          EUR 87.3 M EUR 122.6 M
                              Global 3%   Africa 4%                            Invested*                      EUR 55.5 M          EUR 69.9 M     EUR 79.5 M
Central America, Mexico and                                                    Number of Clients                        43                 50              54
the Caribbean 12%                                        Eastern Europe 16%    Average Exposure per            EUR 1.3 M           EUR 1.4 M         EUR 1.5 M
                                                                               Client

                                                                              * Valued at end-of-year exchange rates


                                                                Caucasus 9%




 South America 36%                                        Central Asia 13%



                                              Asia 7%


       ASN-Novib Fund outstanding portfolio by currency, December 2009        ASN-Novib Fund outstanding portfolio by instrument, December 2009



                  EUR 20%                             Local currency 8%
                                                                                    Loans 91%                                 Subordinated debt 5%

                                                                                                                                   Equity 4%

                                                              USD 72%




                                                                              32 Triple Jump Annual Review 2009
   Oxfam Novib Fund
   The Oxfam Novib Fund for investment in microfinance (ONF)                        To avoid placing the burden of exchange rate risk on the MFI
   was established in 1997. By the end of 2009, it had grown to                     or its clients, the ONF provides the majority of its loans in local
   EUR 31 million, with loans to microfinance institutions in                       currency. By December 2009, 60% of the loans were granted in
   37 countries as well as one regional and two global funds.                       local currency, 36% in US dollars (mainly in dollarized counters)
   Triple Jump is the investment manager for this fund.                             and 4% in Euros.
                                                                                    The proportion of local currency funding was particularly high
   The ONF mainly finances Tier 3 MFIs that have significant                        in Africa, at 82%. The ONF offers loans, subordinated debt, and
   potential to grow, including MFIs that have not yet reached                      guarantees for microfinance portfolio expansion. Loan amounts
   sustainability but which are demonstrating a positive trend.                     range from EUR 250,000 to EUR 1 million, and interest rates are
   By doing this, the fund acts as a catalyst for other investment                  close to market rates.
   funds. The ONF is an open-ended fund, to which EUR 8 million
   was added this year by Oxfam Novib. Most clients service a
   specific target group (such as rural areas, women borrowers or
   economically vulnerable populations). The ONF seeks to finance
   MFIs with a higher risk profile which have the potential to “jump”
   to other more commercially oriented funds with a lower risk
   profile once a certain scale has been achieved. In 2009, four
   MFIs made such a jump to one or more other funds managed
   by Triple Jump.




   Oxfam Novib Fund outstanding portfolio by region, December 2009                                                     2007           2008          2009
                                                                                    Committed                   EUR 22.8 M       EUR 24 M    EUR 39.1 M
                          Global 6%
                                                                                    Invested                    EUR 22.8 M     EUR 23.9 M     EUR 31 M
                                                 Africa 25%
Central America, Mexico and                                                         Number of Clients                    70             72           83
the Caribbean 21%                                                                   Average Exposure per          EUR 325 k      EUR 332 k    EUR 373 k
                                                                                    Client




                                                           Middle East and North
                                                           Africa 8%

                                                       Eastern Europe 3%
                                                    Caucasus 5%
      South America 22%
                                                Central Asia 2%
                                      Asia 8%



    Oxfam Novib Fund portfolio outstanding by currency, December 2009


                                       EUR 4%




              USD 36%
                                                               Local currency 60%




                                                                                    33 Triple Jump Annual Review 2009
       SNS Institutional
       Microfinance Funds
       SNS Bank is a Dutch retail bank catering to both companies and          Both SNS Funds invest in expanding and mature microfinance
       individuals. SNS was formed as the result of mergers between            institutions (primarily regulated MFIs, financial institutions and
       several savings banks in the Netherlands. Through its wholly            commercial banks, but also NGOs). Their areas of operation are
       owned subsidiary ASN Bank, SNS Bank is an indirect share-               Africa, Asia, Eastern Europe and Latin America. The funds can
       holder in Triple Jump. The SNS Institutional Microfinance Funds         offer loans (including subordinated debt), guarantees for
       (SIMF I and SIMF II) offer institutional investors the opportunity to   microfinance portfolio expansion, and equity investments.
       invest in the microfinance market, while simultaneously serving         Although the majority of loans are in Euros or United States
       the financial needs of the developing world’s economically active       Dollars, local currency loans are also possible. The amounts
       population.                                                             invested range from EUR 500,000 to EUR 10 million.

       Both SIMF I and SIMF II are organized as Closed Mutual Funds
       under Dutch law by SNS Asset Management N.V. Triple Jump is
       a sub-advisor to the funds. The portion of the funds managed by
       Triple Jump was invested in fourteen MFIs in ten countries.




       SNS-IMF portfolio outstanding by region, originated through Triple                                         2007           2008         2009

       Jump, December 2009
                                                                               Committed Capital             EUR 41 M      EUR 41 M      EUR 38 M
                                                                               Invested Capital              EUR 21 M      EUR 35 M     EUR 27.4 M
                                                                               Number of Clients                   10             16           14
                                        Africa 7%
       South America 18%                            Asia 5%                    Average Exposure per         EUR 2.1 M      EUR 2.1 M      EUR 2 M
                                                                               Client




Eastern Europe 32%
                                                          Central Asia 38%




                                                                               34 Triple Jump Annual Review 2009
NOTS Microfinance Fund

NOTS Foundation (NOTS) is a Dutch organisation that focuses        Investments will be financed by senior bondholders, mostly retail
on international development and entrepreneurship. The goal of     investors. FMO, the Dutch development bank, has committed an
NOTS is to increase the number of people in developing             amount of EUR 12 million to the fund as subordinated capital,
countries who are able to lead a self-supporting life. With the    thereby taking up a catalyst role and facilitating private sector
help of donors and investors in the Netherlands, NOTS aims         investment in the fund. Triple Jump is the investment manager
to achieve this goal by helping specific groups in developing      for this fund.
countries – entrepreneurs and families – to develop income-
generating activities. The two main activities of NOTS are
microfinance and renewable energy. Where possible these
two activities are combined.

The NOTS Fund is a semi open-ended fund targeting Tier 3
financial institutions. The fund was launched in late 2009 and
has already invested in a promising MFI in Peru. The fund aims
to provide a significant percentage of loans in local currency,
helping to mitigate foreign exchange risk for MFIs. In addition,
a portion of the fund will be reserved for early stage equity to
help emerging MFIs expand their activities. The fund’s average
investment is anticipated at EUR 1 million.




                                                                                                                                2009

                                                                   Committed Capital                                       EUR 14 M
                                                                   Invested Capital                                       EUR 0.4 M
                                                                   Number of Clients                                              1




                                                                    ENTREPRENEURIAL DEVELOPMENT AID




                                                                   35 Triple Jump Annual Review 2009
“We rely to a great extent on
Triple Jump’s vast local
experience and its in-depth
on-site due diligence for the
selection of MFIs in our
Calvert portfolio.”

Shari Berenbach
President and CEO, Calvert Foundation
Calvert Social Investment
Foundation

Calvert Social Investment Foundation is an independent                 Triple Jump is one of the three sub-advisors to the Calvert
organization launched in 1995 by the Calvert Mutual Fund               Foundation. These sub-advisors identify, negotiate and monitor
Company, which specializes in socially responsible investment.         loans to the MFIs featured on the website, which was launched
The Calvert Foundation provides investors with innovative              in September 2007. The areas of operation are Africa, Asia,
financial products and services that channel flexible, affordable      Eastern Europe and Latin America. This fund offers loans for
capital to underserved communities. In 2007, the Calvert               microfinance portfolio expansion. Loans are provided in USD,
Foundation entered into an agreement with MicroPlace Inc., an          although local currency operations can be structured through
eBay company that has developed a web-based platform for               a back-to-back/guarantee structure or a traditional hedge
making investment capital from individual investors available as       instrument. Loan amounts to MFIs range from USD 250,000 to
loans in pre-qualified MFIs. MicroPlace has also designed a            USD 2 M.
website for this purpose: www.microplace.com. Individuals in the
United States can invest in MFIs through the website.




Calvert Social Investment Foundation portfolio outstanding by region                                    2007          2008        2009

originated through Triple Jump, December 2009
                                                                       Committed Capital          USD 3.1 M     USD 9.1 M     USD 11.4
                                                                       Invested Capital           USD 3.1 M     USD 9.1 M     USD 11.4
                                                                       Number of Clients                   7           11           14
                                                                       Average Investment         USD 0.4 M     USD 0.8 M    USD 0.7 M
    Eastern Europe 16%


                                                  Africa 24%


Central Asia 8%




                                                  Asia 21%


          Caucasus 31%




                                                                       37 Triple Jump Annual Review 2009
7   Triple Jump Advisory Services
                                                          Triple Jump Advisory Services
                                                          Introduction
                                                          Triple Jump Advisory Services is a leading global capacity-
                                                          building foundation that has served 30 microfinance institution
                                                          partners that collectively serve more than 2 million clients,
                                                          representing mainly the poorest of the poor. Triple Jump Advisory
                                                          Services was established in August 2006 with funding support
                                                          from Oxfam Novib, the DOEN Foundation, the NOTS Foundation
                                                          and Triple Jump B.V. Although it operates under the Triple Jump
                                                          umbrella, Triple Jump Advisory Services is a separate foundation
                                                          with its own Supervisory Board. The Advisory Services founda-
                                                          tion has its own mandate and MFI partner selection process, and
                                                          focuses on emerging Tier 3 and 4 MFIs. Triple Jump Advisory
                                                          Services’ mission is to increase poor people’s access to
                                                          high-quality financial services. We have a proven track record of
                                                          helping MFIs by providing capacity-building services and
                                                          cost-sharing grants for strengthening governance, technology
                                                          (mobile banking, management information systems) product
                                                          development and social performance management. We develop
                                                          customer-centric approaches and technology innovations, such
                                                          as leveraging mobile banking channels.

                                                          Vision
                                                          Triple Jump Advisory Services believes that specialist expertise
                                                          can help MFIs to grow more quickly and become more effective.
                                                          We offer client-oriented, tailor-made, long-term technical
                                                          assistance to MFIs, designed to improve their sustainability over
                                                          time. Our advisory services are based on a thorough preliminary
                                                          analysis of the institution’s financial and operational performance
                                                          and needs for technical assistance and are arranged in close
                                                          cooperation with our MFI partners. To ensure that our MFI
                                                          partners have a sense of ownership of this assistance, these
                                                          partners contribute to the costs according to a sliding scale,
                                                          depending on their financial and operational situation.

                                                          Goal
                                                          Triple Jump Advisory Services helps promising microfinance
                                                          institutions by providing tailored consulting services to improve
                                                          their operations. Our goal is to guide microfinance institutions to
                                                          the next phase of development, with a particular focus on
                                                          removing the bottlenecks which can impede sustainable growth
                                                          and access to long-term sources of funds.

                                                          With this approach, Advisory Services seeks to have a real
                                                          economic and social impact in emerging markets by harnessing
                                                          entrepreneurial spirit.
<<   Michael was running a small mobile phone
     shop in Thika, Kenya, when he accessed his           Focus
     first loan from the microfinance institution Kenya   Triple Jump Advisory Services clients are mainly emerging
     ECLOF. After completing his first loan Michael       microfinance institutions that have demonstrated their commit-
     borrowed more and divested into selling              ment to making financial services available to poor and
     computers and accessories. Thanks to the             under-served people. Typically, these institutions are at the
     growth of his business, Michael is proud to          point of (or are already) becoming operationally self-sufficient
     have bought a family parcel of land and a Cab        with an aim to becoming financially self-sufficient in the near to
     for-hire. Additionally, he has created jobs and      medium-term and are in the process of expanding their product
     donated generously to the education of less          ranges and further professionalizing their systems and staff.
     privileged children in the community.
     Kenya ECLOF is a partner of Triple Jump
     Advisory Services. (Photo: Kenya ECLOF)


                                                          39 Triple Jump Annual Review 2009
Client Perspectives



“Triple Jump Advisory Services
has saved us years of our
precious time”
                               Katia Corroy Castro
                               General Manager

                               Alternativa Solidaria Chiapas (Al Sol), Mexico, began
                               offering microfinance services and social development
                               projects in 1999 in Chiapas, Mexico. It mainly serves women
                               of scarce resources living in rural areas using a village
                               banking methodology.
                               Triple Jump Advisory Services started working with
                               Al Sol end of 2008. Triple Jump has provided loan funding
                               to Al Sol since 2006.

“The impact of the Advisory Services has been very significant. The development and
implementation of the new individual loan product not only yielded a new product that
allows us to retain our most successful clients; it also fostered a culture change that has
allowed Al Sol to professionalize its financial services even further.

Currently Triple Jump Advisory Services is supporting Al Sol with its transition to ‘sofom’
(a non-regulated financial institution) by supporting the strategy development and overall
governance structure. I am pleased with the support as these topics are fully in line with
Al Sol’s business needs.

The work of the Triple Jump Advisory Services IT consultant has created huge efficiencies
in our operations. Triple Jump Advisory Services combines hands-on support with training
and knowledge transfer, to create direct tangible results. My staff has learned more from
the on-the-job Triple Jump Advisory Services training than it would in 1000 courses.

Triple Jump Advisory Services has saved us years of our precious time: it has allowed us to
make decisions much faster and with more confidence than if we would have done it only
by ourselves.”




                                                 40 Triple Jump Annual Review 2009
Triple Jump Advisory Services assists these institutions in the
subsequent jump to becoming commercially and socially viable
organizations and supports them until they are firmly established
in the next level of institutional development. The critical criterion
for partner selection is the presence of sufficient potential to
become a leader among peers. Obviously, this implies that our
partner MFIs should demonstrate a clear capacity and willing-
ness to improve their systems, governance and products.

Approach
The Triple Jump Advisory Services approach is unique compared
to other foundations and donors as we provide hands-on
management of the entire project. Advisors provide close
supervision of the project ensuring that results are tailored to the
needs of the institution and delivered at high quality. Our
Advisors are senior experts in the service areas provided and
hence offer key advice to senior management for each project.
The advisors are engaged, managing the consultant and his or
her work, and provide guidance along the way, making sure that
MFI management is active in the process without having to be
involved in the day-to-day management of the consultant’s work.
Since most MFIs have several areas that need to be strength-
ened, we adopt a step-by-step approach and try to determine,
with the MFI, which area(s) to concentrate on first and build on
them over time. Once completed, all projects undergo an internal
evaluation including gathering MFI partner feedback.

Triple Jump Advisory Services specializes in the following critical
areas, which are frequently identified as bottlenecks preventing
microfinance institutions from reaching the next stage of
development:

–   Technology (Management Information Systems (MIS)
    & Mobile Banking);
–   Governance (Strengthening leadership and management
    capacity of senior and mid-level managers) and Internal
    Controls/Audit;
–   Product and Services Development;
–   Social Performance Integration (primarily related to MIS
    automation).

Once an MFI is selected for assistance, our advisors conduct an
on-site diagnosis of the needs of that MFI. Depending on the
needs identified and agreed on with the partner, Triple Jump
Advisory Services will choose from our network of expert
consultants to assist on each project. We focus on using local
consultants whenever possible and to-date have used local
consultants for over 70 percent of our projects. These experts
have a proven track record in international finance, technology or
microfinance and are results-oriented. Advisors provide close
supervision of the project, ensuring that results are tailored to the
needs of the institution and the set goals are being achieved.

Our Mobile Banking Projects
One of the services we offer to MFIs is to design branchless
banking channels to help clients access microfinance services by
using mobile technology and retail agents. Hence, branchless
banking has the potential to expand access to financial services
to people living in rural areas and reduce costs. Since 2008,




41 Triple Jump Annual Review 2009
Triple Jump Advisory Services in Senegal

with our partner Caurie
Microfinance
                                                        Caurie is a promising MFI reaching over
                                                        20,000 clients – all women – that had
                                                        undergone rapid growth, but whose early-
                                                        stage management information system had
                                                        not kept pace. Caurie also needed to
                                                        strengthen its internal audit function as it
                                                        continues to grow.

                                                          Triple Jump Advisory Services assisted Caurie
                                                          by providing a business and technical expert
                                                          to carry out a business process mapping to
  (Photo: Caurie)                                         determine the processes that could be
                                                          automated and how to gain in operational
efficiency at each staff level and at headquarters. We then performed an analysis of the current MIS
to determine how these requirements could be integrated and customised into the current system.
Based on our recommendations, Caurie decided to purchase a new MIS and, in 2009, Triple Jump
Advisory Services provided technical assistance to manage the entire selection process.

Once Caurie recruited a new internal auditor in the second quarter of 2009, Triple Jump Advisory
Services paired him with an audit expert to review current internal audit processes and make
recommendations to improve risk management within the institution, as well as provide guidance
on the institution’s upcoming transformation into a cooperative.




                                                    42 Triple Jump Annual Review 2009
                                                  Triple Jump Advisory Services has implemented mobile banking
                                                  services for several partners in East Africa and is now launching
                                                  the first mobile banking service by a Rwandan MFI. In 2010 we
                                                  will also be pursuing various mobile banking projects in West
                                                  Africa, Latin America and the Caucasus.

                                                  For mobile banking we take a careful and methodical approach
                                                  with our MFI partners, beginning with business planning,
                                                  market and client assessment, advice on regulatory compliance,
                                                  developing the business partnership with the mobile network
                                                  operator and mobile banking product design all the way through
                                                  technical and operations integration, staff training and launch.

                                                  2009 Services Provided
                                                  Since inception in late 2006, Triple Jump Advisory Services has
                                                  supported 30 MFI partners globally. In 2009, we worked with
                                                  25 different MFI partners throughout Sub-Saharan Africa, the
                                                  Caucasus and Latin America, of which 12 were new partnerships.


                                                  We managed a total of 42 projects in 2009, an average of 1.7
                                                  projects per partner. Additional projects for many of our existing
                                                  partners are already planned for the next two years. Of the 25
                                                  MFIs we worked with in 2009, 30 percent were Tier 4 institutions
                                                  and 70 percent were Tier 3.
  TJAS MFI partners per region in 2009
                                                  Additionally, Triple Jump Advisory Services offers various
                                                  practical training courses on topics such as internal control and
  Latin America and the              Africa 46%   MIS reporting, the latter a significant and costly obstacle for
  Caribbean 36%
                                                  many MFIs. In 2009 we designed and delivered a technical
                                                  course called ‘Getting more from your MIS by using Crystal
                                                  Reports’, specifically for MIS administrators of MFIs, in Accra,
                                                  Nairobi and Guatemala City. In all, 41 participants representing
                                                  34 MFIs came from 11 different countries to attend the trainings.
                                                  Globally the participants gave an overall score of 4.55 out of 5 for
                                                  the course and all indicated that they would recommend the
                                                  course to others. For most, the courses also offered a rare
                                                  opportunity for MIS staff from various MFIs to meet and discuss
  Caucasus 18%                                    the technical issues they face and other areas related to IT.




  TJAS Projects per Service Area 2009




       Governance 33%
                                       MIS 43%




Products & Services 14%

                             Mobile Banking 10%




                                                  43 Triple Jump Annual Review 2009
Triple Jump Advisory Services in Azerbaijan

with our partner FinDev
                                                        Focused on increasing growth, FinDev
                                                        asked Triple Jump Advisory Services
                                                        for assistance in developing a strategy
                                                        to attract additional funding. Despite
                                                        strong management and the positive
                                                        results the institution had achieved,
                                                        funders were interested in seeing
                                                        further improvements. Triple Jump
                                                        Advisory Services analysed the
                                                        organizational structure and operations
                                                        and determined the need to strengthen
  (Photo: FinDev)                                       the overall governance structure and
                                                        solve MIS limitations. The institution
also needed to update and strengthen internal controls. The internal auditor worked hard but
required additional guidance from management and the board of directors.

Triple Jump Advisory Services assisted in building a proper governance structure and helped
the management and board to develop a growth strategy. We helped FinDev to define the role
of the board and its individual members, select additional board members and describe tasks to
complete (for instance writing the charter and developing subcommittees). We then delivered a
training workshop for the internal auditor providing a practical course on planning, common
internal control weaknesses and reporting.

Lastly, Triple Jump Advisory Services worked with the management team to assist with the
needs analysis and selection of a new MIS. We analyzed the current and future business needs
and translated them into an IT-strategy with concrete recommendations on which MIS software
packages were suitable for the institution. FinDev has now made its selection based on those
recommendations and is in the implementation process.




                                                    44 Triple Jump Annual Review 2009
Triple Jump Advisory Services in Honduras

with our partner Credisol
                                                         Credisol is a rapidly growing MFI dedicated to
                                                         the urban and rural poor in the North East of
                                                         Honduras. To achieve their goal of trans-
                                                         forming into a regulated NGO, they required
                                                         assistance to build a stronger and more
                                                         efficient organisation. A needs analysis
                                                         performed by a Triple Jump Advisory Services
                                                         advisor showed that Credisol had managed
                                                         its growth well and had a solid loan portfolio
                                                         but the institution faced several challenges
                                                         related to professionalizing the organization,
 (Photo: Credisol)                                       strengthening its products and improving its
                                                         management systems.

First, we worked on the development of their MIS to ensure reporting could meet Central Bank
requirements under its new institutional status and trained the IT department on how to manage and
adapt the system long-term. Throughout 2009, we focused on application development, analysis and
design, networking and information security.

Next, we completed product analysis by conducting a field market survey and revising current product
terms and offerings to meet client needs. We continued to provide support with the pilot launch of the
revised products, updated current internal manuals and provided loan officer training on the delivery of
products in the field.

In 2010, we will support Credisol by focusing on strengthening its internal control and audit function
while coaching the Board and management on strategic risk management.




                                                     45 Triple Jump Annual Review 2009
8   Our organization
                                                       Our organization

                                                       Triple Jump
                                                       The Triple Jump head office and majority of our staff are located
                                                       in Amsterdam, the Netherlands. The investment team, including
                                                       our equity specialists, is made up of 15 investment officers with
                                                       ample field experience and in-depth financial knowledge. This
                                                       team is organised along regional lines, with the Africa and Asia/
                                                       Eastern Europe regional departments based in Amsterdam,
                                                       whereas the Latin America team is based in our regional office
                                                       in Lima, Peru. Investment officers manage 12-15 client relation-
                                                       ships in their specific regions. A solid fund administration team,
                                                       including HR, PR and legal support, is located at our head office.
                                                       Triple Jump’s operations are SAS-70 II compliant.
                                                       Our Advisory Services employs three senior advisors and one
                                                       Director, with two of the senior advisors based in satellite offices
                                                       located in Senegal and Georgia.

                                                       Legal Structure
                                                       Triple Jump B.V. is a company limited by shares (besloten
                                                       vennootschap). The shares are divided among four shareholders:
                                                       ASN Bank, Oxfam Novib, NOTS Foundation and the manage-
                                                       ment of Triple Jump. The Board of Directors has three members
                                                       and meets with management on a quarterly basis.

                                                       Triple Jump Advisory Services operates under the Triple Jump
                                                       umbrella and is a separate foundation sponsored by Oxfam
                                                       Novib, Stichting DOEN, Triple Jump B.V., ASN Bank Foundation
                                                       and SNS Reaal. As an acknowledgement of the public benefit
                                                       of Triple Jump Advisory Services’ work, the foundation has
                                                       been given an ANBI status under Dutch law, meaning that all
                                                       donations to Triple Jump Advisory Services are fully tax
                                                       deductible. The Supervisory Board has representatives from
                                                       Oxfam Novib, NOTS Foundation and ASN Bank.




<<   This group of women are clients of the
     Development Exchange Center (DEC)
     Microfinance Programme in Bauchi, Nigeria.
     The women obtained a group loan from DEC
     to purchase peanuts in bulk, which they pound
     to extract the oil. As the women are Muslim,
     it is not socially accepted for them to work
     outside the compound which they live in, so
     they sell the products of their work to traders
     who will re-sell them at the market. The oil is
     used for cooking, and the dry peanut flour is
     added to sauces.
     DEC serves over 100,000 women in Northern
     Nigeria, and has been a client of Triple Jump
     through the Oxfam Novib Fund since 2007.
     (Photo: Triple Jump)


                                                       47 Triple Jump Annual Review 2009
Client Perspectives



“Triple Jump loans came at the
right time”
                              Mwangi Githaiga
                              Managing Director

                              Kenya Women Finance Trust Deposit Taking Microfinance
                              (KWFT DTM) serves close to 350,000 low-income clients,
                              all of whom are women. The MFI has 202 outlets across
                              Kenya and a loan portfolio of nearly $140 million in group
                              and individual loans. In April 2010, KWFT received a license
                              from the Central Bank of Kenya.
                              Triple Jump started working with KWFT in 2007 and has
                              provided three loans totaling EUR 5.5 million.

“We believe in empowering Kenyan families through women. We think that the best way
to fight poverty is to reach out deeply into rural areas. We recently became the second
microfinance institution in Kenya to receive a deposit-taking license. We have strengthened
KWFT DTM with experts from the banking industry, but our organizational culture remains
rooted in the field, based on close interaction with clients.

The Triple Jump loans came at a time when KWFT needed external funding to scale up its
operations and increase outreach to rural areas. It also sent a positive signal to other
international investors and helped us expand our funding base.

We have ambitious growth plans for KWFT DTM, including the opening of 20 deposit-taking
branches by the end of 2010. We will continue to develop new products, especially in the
areas of health, sanitation and agriculture, and we are very happy that Triple Jump is
helping us realize our ambitions.”
Organisational Chart


                                                  Triple Jump

                                                  Board of Directors



                           M. van Doesburgh                                         S. Evers




                        Regional                                         Regional
        PR                                               Equity                                Controller            Legal
                        Manager                                          Manager



                                        Africa                           Central
                          Asia                                                                  Admin              Compliance
                                                                         America


                        Eastern                                           South
                        Europe                                           America




                                   Triple Jump Advisory Services

                                                  Supervisory Board



          M. van Doesburgh *                           C. Caruso                                      S. Evers *




       Senior Advisor                 Senior Advisor                   Senior Advisor                       Senior Advisor
        West Africa                    East Africa                          LAC                             CA/Caucasus




* Non Executive




                                                             49 Triple Jump Annual Review 2009
Impressions from our Staff
                        Name Jeanette Bouman                         do from Amsterdam. After these positive results we decided to
                        Title Administrator/HR Officer               base the whole Latin America team in Lima. Today, three years
                        Base Amsterdam, the Netherlands              after the decision to open the regional office, we have a local
                        Work HR officer for Triple Jump and          team of five excellent professionals, directly overseeing the
                        Triple Jump Advisory Services.               investments from Mexico to Bolivia. I am certain that our local
                        As an Administrator: organizing the          presence will continue to be a strong advantage in a good and
                        investment committee meetings, manag-        fluent relation with the clients as well as for finding new invest-
ing the administration of the Calvert Foundation Fund, managing      ment opportunities.
the administration for Triple Jump Advisory Services,
organizing all social events at Triple Jump.

When I walked in to the Triple Jump office for the first time in                            Name Tiphaine Crenn
2007, I instantly had a good feeling about the company. I was                               Title Senior Advisor, West Africa
very excited to work with a group of people with the same                                   Base Dakar, Senegal
mission: helping to reduce poverty throughout the world by                                  Work Identifying partner MFIs and
providing financing. Although we each have our own tasks or                                 managing technical assistance and
focus regions, you can feel the team spirit and the social                                  advisory services in West Africa.
attitude that all TJ staff have in common.
Having clients in so many different countries means that we          Microfinance institutions in West Africa play a vital role in
communicate with different people all over the world. To me,         providing affordable formal financial services to people who
the best aspect of this rapidly growing international company        would otherwise have no access. Through our grants and
is definitely my colleagues, as we have almost as many nationali-    services, Triple Jump Advisory Services helps MFIs put in place
ties as staff! For example, our most recent hires come from          the systems to support their continued growth and to offer a
Mexico, Kazakhstan, the Philippines and Kenya. All these             wider range of financial services to their clients. This is what
cultures together make the job so interesting, with new stories,     drives my work at Triple Jump Advisory Services. The West Africa
new faces and different traditions. Each year we organize a          senior advisor position for Triple Jump Advisory Services is
potluck Easter Brunch where everyone contributes a home-             based in the region and therefore has brought considerable
cooked dish. It is a very special event where we can share           advantages in terms of identifying new MFIs as potential
traditions from our respective countries.                            partners, managing projects for our current MFI partners and
                                                                     staying informed about the changes occurring in the region on a
                                                                     regular basis. I can better coordinate our support to the microfi-
                                                                     nance sector by being based here through regular contact and
                      Name Eelco Mol                                 meetings with our partner MFIs, other donors and technical
                      Title Regional Manager Latin America           partners and identify and work with technical experts based in
                      Base Amsterdam, the Netherlands                the region. Microfinance institutions do not operate within a
                      Work Overseeing the investment team for        vacuum and it’s important for us to understand (and to live in) the
                      Latin America.                                 larger economic context the institutions work in and the issues
                                                                     their clients are facing on a daily basis. We now have a regional
                         I strongly believe that microfinance can    senior advisor based in the Caucasus, and from 2010 in East-
play a role in alleviating poverty and this job gives me the         Africa as well.
opportunity to reach as many poor entrepreneurs as possible.
In 2007 Triple Jump made an important decision. With the
expanding portfolio in Latin America, an increasing number of
clients and a competitive environment, we saw the importance                               Name Luca Paonessa
of being closer and more visible to clients in this part of the                            Title Senior Investment Officer Eastern
world. The region’s similar culture and language, the long travel                          Europe and Central Asia
distance and the time difference with Amsterdam makes Latin                                Base Amsterdam, the Netherlands
America a perfect continent to have our own Triple Jump office.                            Work Develop deal pipeline, negotiate
We started with a pilot period of one year, and my Peruvian                                terms, perform due diligence of target
colleague Javier Leon started as the first regional investment                             investees and manage portfolio of
officer from Lima, Peru. Within six months, I already saw that our   investments in MFIs in Eastern Europe and Central Asia.
assumptions were right; Triple Jump became more visible, and
with a local presence we were able to make more frequent visits      I started to work in microfinance ten days after my graduation
to clients and new potential investees than we were ever able to     from the university, in 2001. After more than 8 years in the sector,




                                                                     50 Triple Jump Annual Review 2009
I am still very happy with my original choice. I joined Triple Jump   investees and manage portfolio of investments in MFIs in Eastern
in 2008 because I liked the way in which this young company           Europe (Balkans and ex-Soviet countries).
was able to combine strong financial expertise and attention to
social values. Probably the thing that impressed me the most          What I like about the company is that it is a socially-conscious
during my first two years as investment officer was the openness      investment manager. In practice, this means that we operate on a
of the company to input and suggestions on strategic issues.          for-profit basis, but the bottom line means achieving a develop-
I found this opportunity particularly stimulating, as Triple Jump     ment impact in our work. Our profession lies at the crossroads of
works in 51 of the most difficult business environments of the        development and finance. I am motivated by the fact that our
planet. Another aspect that I find very stimulating is the interac-   investments have a positive impact on the livelihoods of thou-
tion with my colleagues. Our investment team displays an              sands of poor entrepreneurs. The fact that it is a young and
astonishing variety of cultural and professional backgrounds, and     dynamic organization makes the work more interesting. I enjoy
I feel that I am learning a lot from my colleagues. In addition to    exchanging ideas and experiences with my colleagues who
my commercial tasks as Investment Officer, I am currently             come from different countries and bring diverse perspectives to
helping Triple Jump’s management to improve the risk manage-          the work. The media tends to view Eastern Europe as a homog-
ment tools and formalize a risk management department. This           enous block, but the more you work here the more you realize
intellectually challenging task is a good complement to my            that the countries are quite distinct in terms of their level of
finance studies as a CFA candidate.                                   political and economic development. Looking at the impact of
                                                                      the 2008-2009 economic crisis, some countries were lightly
                                                                      impacted, while others were hit quite hard. Each country has
                                                                      chosen its own unique path toward democracy and free markets
                      Name Orsolya Farkas                             and this is also reflected in their degree of support for microfi-
                      Title Investment Officer East Africa            nance. Most governments have embraced it as a means to
                      Base Amsterdam, the Netherlands                 alleviate poverty, strengthen rural finance, support small business
                      Work Develop deal pipeline, negotiate           development and attract foreign investment. Unfortunately, a few
                      terms, perform due diligence of target          countries have not adopted supportive legal frameworks, thereby
                      investees and manage portfolio of               limiting its development impact.
investments in MFIs in East Africa.

I have been fortunate enough to have visited group and individual
clients of microfinance institutions in many countries, including
post-conflict areas like Rwanda and Southern Sudan. I am
impressed by the commitment of field staff in these MFIs, who
often work in very rural areas a long way from the closest
branch. Successful MFIs spend a lot of time training clients
before they even make the first loan. Clients mainly use
microloans as working capital for their small-scale trading
businesses, and the most successful have been able to
significantly increase turnover or move into new business areas
requiring more assets. African MFIs can have a strong social
impact on the communities they work with, but often lag behind
in management information systems, procedures and staff
capacity. Despite these challenges, it is encouraging for us that
we have been able to slowly increase the number of East
African MFIs receiving funding from the commercial funds
managed by Triple Jump.




                       Name Anthony Randazzo, CFA
                       Title Senior Investment Officer Eastern
                       Europe
                       Base Skopje, Macedonia
                       Work Develop deal pipeline, negotiate
                       terms, perform due diligence of target




                                                                      51 Triple Jump Annual Review 2009
Colophon
Triple Jump Annual Review 2009
Text Triple Jump
Concept, design and production
Tangerine Design, Rotterdam
Cartography BosmaGrafiek.NL
Printing Veenman Drukkers


This Annual Report is printed on FSC paper
from mixed sources.
Microfinance

Microfinance is the provision of comprehensive financial services to micro-
entrepreneurs. The vast majority of the population in emerging economies works in
the informal sectors of urban and rural areas. The income of these entrepreneurs
frequently depends on the success of a small business to which they devote their
often impressive skills, creativity and energy.


Like everyone else, these micro-entrepreneurs, traders, artisans and farmers need
access to financial services in order to develop their businesses, invest in home
improvements, and use savings and loans to help meet seasonal expenses. However,
banks traditionally view working with these poor people as financially unviable.


Through the 1980s and 1990s, microcredit programmes throughout the world
improved upon the original methodologies and challenged conventional wisdom
about financing the poor. First, they showed that poor people, especially women, had
excellent repayment rates – rates that were better than the repayment rates of banks
in most developing countries. Secondly, the poor were willing and able to pay interest
rates that allowed microfinance institutions (MFIs) to cover their costs.


These two features – high repayment and cost-recovery interest rates – allowed some
MFIs to achieve long-term sustainability and reach large numbers of clients.


Microfinance today reaches out to over 150 million people at the bottom of the
pyramid around the world. Triple Jump works together with 132 MFIs in 51 countries.




                                                    53 Triple Jump Annual Review 2009
Triple Jump Team




Ab Engelsman                Bart Hartman                Esha van der Hulst
Chairman                    Board Member                Board Member




Mark van Doesburgh          Steven Evers                Ulco Seinstra                Ed Spek                     Peter Driessen              Juan Nieto Solis
Managing Director           Managing Director           Controller                   Financial Administrator     Financial Administrator     Financial Administrator




Jeanette Bouman             Josefina Aguilera           Gabriela Bustamante          Erik Geurts                 Luis Guerra                 Michaël van den Berg
Administrator / HR          Administrator / PR          Legal Officer                Senior Investment Officer   Senior Investment Officer   Senior Investment Officer
                                                                                     / Equity                    / Equity                    / Regional Manager
                                                                                                                                             ECA / Asia Team




Luca Paonessa               Anthony Randazzo            Jessie Greene                Orsolya Farkas              Clemens Gerteiser           Eelco Mol
Senior Investment Officer   Senior Investment Officer   Senior Investment Officer    Investment Officer          Investment Officer          Regional Manager
ECA / Asia Team             ECA / Asia Team             Africa / MENA Team           Africa / MENA Team          Africa / MENA Team          Latin America




Todd Mason                  Javier Leon                 Gustavo Santivañez           Yasmin Shoaib               Carol Caruso                Marnix Mulder
Investment Officer          Investment Officer          Investment Officer           Investment Officer          Managing Director TJAS      Senior Advisor
Latin America Team          Latin America Team          Latin America Team           Latin America Team                                      Latin America




                                                              Board of Directors
                                                              Head Office
                                                              Macedonia Office
                                                              Peru Office
                                                              Triple Jump Advisory Services (TJAS)
Tiphaine Crenn              Gerlof de Korte
Senior Advisor              Senior Advisor
West-Africa                 Caucasus




                                                                                    54 Triple Jump Annual Review 2009
55 Triple Jump Annual Review 2009
Triple Jump
Nachtwachtlaan 20
1058 EA Amsterdam
The Netherlands


T +31 (0) 20 512 06 20
F +31 (0) 20 512 06 29


info@triplejump.eu
www.triplejump.eu

								
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