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Dear Investor,

All fund managers must analyze risk and financial performance, and we at Global Partnerships (GP) put a great deal of effort and detailed analysis into this work. However, perhaps even more challenging is the work we do in evaluating social performance, as this requires a framework for determining what constitutes “poor,” “good,” or “exceptional” performance, and a relentless pursuit of data to fit into that framework.

On a recent trip to Peru and Bolivia, we met with eleven partner or prospective partner organizations to better understand their business models, the services being delivered, and the impact of those services on individual clients.

We have met many organizations that prefer to focus only on financial services, arguing that their business models demand that they do “what we do well.” Our thesis, as described in my last quarterly letter, is that the financial service platform in developing countries is an extremely advantageous delivery system to provide additional non-financial services that can dramatically improve the lives of people at the bottom of the pyramid. On our recent trip we visited only organizations that are integrating non-financial services with their credit services, all using different but effective models.

For example, in Bolivia and Peru, we visited four organizations with different but effective approaches to helping farmers increase incomes. One microfinance institution (MFI), Idepro, studies the various business models for value chains in several different agricultural products, identifies the problems that prevent the model from functioning properly, and then provides both financial products and complementary technical services to solve those problems. This helps to create a well-oiled value chain that increases incomes for producers and other participants. Meanwhile Sembrar Sartawi has a similar value chain approach, but directly provides only limited services and relies on third party alliances to provide market access. A third organization, FONDECO, provides producers of certain crops with a micro warrant financial product to solve the problem of lower prices routinely occurring at harvest time, and provides its non-financial assistance through a combination of loan officer agronomists and basic agricultural training. You can read more about FONDECO in our Partner Profile on page 5 of this report . Finally, a Peruvian credit and savings cooperative known as CrediFlorida provides technical assistance on improving plant productivity and diversification, while working closely with member cooperatives that separately provide fair trade and organic certification and access to specialty markets where higher prices can be obtained.

We will continue to learn from these models, develop more informed opinions about which models work best and align our investment allocation with those partners whose models provide the most effective services for improving lives and increasing incomes.

Mark Coffey, Chief Investment Officer

Social Investment FundsInvestors Report

First Quarter 2012

Global PartnershiPs by the numbers As of March 31, 2012

De Enitel Villa Fontana 2C arriba 30 varas al lago, Edificio OPUS, II Nivel

Managua, Nicaragua

505.2277.1453

1932 First Avenue, Suite 400 Seattle, WA 98101 USA

206.652.8773

www.globalpartnerships.org

For more inFormation

ContaCt: Jason Henning Director of Investor Relations

jhenning@globalpartnerships.org 206.456.7832

72,096Number of people served by Global Partnerships

$42.1 MillionFund capital at work

442,742Number of microloans funded since 2004

Number of partner organizations

31

Number of countries where Global Partnerships works

10

May 15, 2012

2

Microfinance Fund

2008 Global Partnerships | First Quarter 2012 | As of March 31, 2012

Fund manaGer’s Comments

Microfinance institution (MFI) performance remains strong and all partners in the Fund continue to make principal and interest payments in a timely manner. The Fund’s loan to DMIRO matured during the first quarter and was renewed based on strong performance. With several loans scheduled to mature during the second and fourth quarters of 2012, the Social Investment Team remains busy at work identifying candidates to absorb the capital freed-up by anticipated repayments. Through the ongoing management of new disbursements, Global Partnerships looks to strengthen both the risk profile and social performance of the portfolio. In turn GP continues to conduct rigorous due diligence on both the financial and social performance of current and potential partners.

While GP makes every effort to ensure that data are accurate, 2012 numbers are currently unaudited. Impact measures are based on the best available data.

GroWth

PortFolio Quality

Fy11Fy09 Fy10

Fy11Fy09 Fy10

Fy11Fy09 Fy10

Fy11Fy09 Fy10

Fy11Fy09 Fy10

Fund FaCts

Fund manager: Global Partnerships

Inception date: October 31, 2008

Investment currency: US$ and fully hedged local currency

Total fund capital: $20,000,000

Capital invested as of 3/31/12: $20,134,960

Type of fund: Debt

soCial imPaCt

Outstanding number of partners: 15

Average loan size: $737

Percentage of borrowers served who are women: 78%

Percentage of borrowers served living in rural areas: 46%

US dollars in millionstotal Partner loan PortFolio

100

200

300

400

500

Fy12

In thousandstotal borroWers serVed

300

400

500

600

700

Fy12

Fy12

02468

10

aVeraGe Par >30Loans past due greater than 30 days as a %

Fy12

Asset amount charged to loss as a %aVeraGe WriteoFFs

0

1

2

3

4

90

120

150

Total revenues/total expenses as a %

aVeraGe oPerationalselF suFFiCienCy

Outstanding positions, please see page 4

3

Fund manaGer’s Comments

It has been another busy quarter of due diligence and disbursements as all partners in the Fund continue to make principal and interest payments in a timely manner. As of March 31, the Fund’s outstanding loan balance was $21.7 million deployed to 22 mission-aligned organizations in nine countries across Latin America and the Caribbean. The Fund continues to have investment opportunities as a result of regularly scheduled amortizations and repayments. During the first quarter the Fund disbursed $1.9 million to four existing partners while roughly $542,000 was repaid via amortizations. The ongoing management of renewals and disbursements allows GP to target organizations that show strong financial performance and provide access to critical non-financial services such as business education, agricultural technical assistance, and healthcare.

Social Investment Fund

2010 Global Partnerships | First Quarter 2012 | As of March 31, 2012

GroWth

PortFolio Quality

While GP makes every effort to ensure that data are accurate, 2012 numbers are currently unaudited. Impact measures are based on the best available data.

Fund FaCts

Fund manager: Global Partnerships

Inception date: October 21, 2010

Investment currency: US$ and fully hedged local currency

Total fund capital: $25,000,000

Capital Invested as of 3/31/12: $21,723,354

Type of fund: Debt

soCial imPaCt

Outstanding number of partners: 22

Average loan size: $685

Percentage of borrowers served who are women: 80%

Percentage of borrowers served living in rural areas: 41%

Outstanding positions, please see page 4

Fy11

US dollars in millionstotal Partner loan PortFolio

0

100

200

300

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Fy12

In thousandstotal borroWers serVed

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Fy11 Fy12

Total revenues/total expenses as a %

aVeraGe oPerationalselF suFFiCienCy

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150

Fy11 Fy12

Loans past due greater than 30 days as a %aVeraGe Par >30

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3

4

Fy11 Fy12

Asset amount charged to loss as a %aVeraGe WriteoFFs

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4

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4

Outstanding PositionsGlobal Partnerships | First Quarter 2012 | As of March 31, 2012

bolivia (20.6)Pro Mujer in Bolivia (6.3)Sembrar Sartawi (6.3)CRECER (4.2)FONDECO (3.9)

Colombia (12.5)Fundación Amanecer (6.3)Contactar (6.3)

dominican rep. (1.3)Esperanza (1.3)

ecuador (9.9)ESPOIR (4.2)Banco D-MIRO (3.6)Fundación Faces (2.1)

el salvador (10.4)Fundación Campo (6.3)ENLACE (4.2)

bolivia (26.4)CRECER (9.8)Pro Mujer in Bolivia (9.8)FUBODE (6.8)

ecuador (29.8)FINCA Ecuador (9.8)FODEMI (9.8)Banco D-MIRO (4.9)Fundación Alternativa (2.9)Fundación Faces (2.4)ESPOIR (0.0)

el salvador (9.8)Apoyo Integral (9.8)

mexico (2.4)FRAC (2.4)

nicaragua (15.1)FDL (9.8)Pro Mujer in Nicaragua (5.4)

Peru (14.8)Credivisión (6.3)Pro Mujer in Peru (6.1)Arariwa (2.4)FONDESURCO (0.0)PRISMA (0.0)

Cash (1.6)

microfinance Fund

2008distribution by institution and Country

% of investable assets

% of investable assets

social investment Fund

2010distribution by institution and Country

5

Partner Organization Profile:

FONDECOFONDECO is a nonprofit MFI that fits within the GP Rural Livelihoods thesis by special-izing in providing affordable financial and non-financial services to more than 14,000 rural clients in Bolivia, with a focus on underserved farmers and women. FONDECO promotes sustainable economic development and social empowerment through innovative credit products aimed at increasing incomes for those at the bottom of the economic pyramid. Indeed, 70% of FONDECO clients are reached through the village bank model, indicative of an organization truly dedicated to serving the poorest segment of the population.

Global Partnerships recently visited FONDECO and their clients to get a closer look at their innovative approach. Among their innovations, FONDECO designs their credit products to increase rural farmers’ incomes. Often, rural farmers have no choice but to sell their crops during harvest time when there is a surplus in the market and prices are low. However, FONDECO offers ‘micro-warrant’ services to rice farmers so they can warehouse their products until the prices are more favorable. Rural farmers using FONDECO’s ‘micro-warrant’ service have seen a substantial increase in income and are now able to obtain pricing similar to that received by larger rice farmers. FONDECO is exploring similar warrant products to serve farmers working in garlic, peanut, and corn production.

In a creative way to mitigate risk, FONDECO is also engaged in a pilot program to provide contract-backed credit to associations of sesame and bean producers in which their crops serve as collateral. FONDECO extends pre-harvest financing to the group, and then receives payment directly from an export company which has a buying contract with the producer group. FONDECO also has credit products for the purchase and raising of cattle and the production of beef and milk in which the cattle act as collateral for the loan, as well as longer term credit lines for the purchase of mecha-nized farm equipment.

FONDECO packages technical assistance and various educational tools with its credit products to help increase incomes. Many of their loan officers are agronomists who focus on crop diversification strategies. Educational materials are produced and distributed on topics such as proper cattle feeding, creating livestock facilities, and genetic improvement. Much of the material from these primers is now being broadcast via radio into rural Bolivia, and clients can complete certified coursework by listening to the shows in the evenings and completing the materials.

By tailoring credit to meet the needs of their clients and providing technical assistance to producers, FONDECO is helping thousands of poor and underserved Bolivians access credit and expand their incomes. Global Partnerships is proud to partner with FONDECO and support this important work.

In an ongoing effort to share with our investors the methods and impact of GP’s Social Investment Funds, we highlight one partner from our family of funds each quarter and share the stories of entrepreneurs who, like thousands of other clients, have used microcredit and their own hard work to improve the lives of their families.

1995Year founded

BoliviaCountry

126 Number of employees

$1,116 Average loan size

14,551 Activeborrowers

$16,237,460Outstanding gross loan portfolio

Key FiGures As of March 31, 2012

66% Percentwomen

100% Percentrural

Photo: CIAT International Center for Tropical Agriculture, Creative Commons