The equity portfolio increased by 26.6% from EUR 32.5 million to EUR 41.2 million and represents 18.7% of the net assets of the fund at December 31, 2014 (19.9% at December 31, 2013).

The partial equity sale in February 2014 of 1.02% of the shares in ACLEDA Bank in Cambodia and the sale of the entire stake of 0.72% in Peruvian Mibanco resulted in a significant decline of the equity portfolio to below 15%. Through new equity investments, particularly in MFIs in Central Asia and the Caucasus, in the second half of the year, the fund has largely succeeded in compensating for both divestments.

Furthermore, the fund also participated in a capital call for India Financial Inclusion Fund (IFIF). The total exposure to ACLEDA Bank was reduced to 10.7% of the net asset value of the fund on December 31, 2014 (year-end 2013: 15.6%). The fund remains involved in Mibanco through a subordinated loan.

New equity investments

AccessHolding is a German holding company that provides financial services to micro and small and medium-sized enterprises. AccessHolding has a leading network, which includes six MFIs in Sub-Saharan Africa and two in Central Asia, and has a net loan portfolio of EUR 721 million. Through the investment, the fund will support AccessHolding’s growth by enabling it to scale up current operations and expand into new countries. A senior representative of Triodos will join the board of directors.

Microcredit Deposit-Taking Organisation Arvand LLC (Arvand) in Tajikistan is the fund’s first equity investment in Central Asia. The microfinance market opportunity is clearly present, as evidenced by low banking sector penetration (22%) and a high percentage of (micro-)entrepreneurs without access to credit. A senior co-worker of Triodos represents Triodos Microfinance Fund on the Board of Directors of Arvand.

Together with Triodos Fair Share Fund, AccessHolding and ResponsAbility, Triodos Microfinance Fund has acquired the ownership of Microfinance Organization Credo in Georgia. Credo is the leading microfinance organization in Georgia, with a nationwide network of 48 branches, a net loan portfolio of USD 149 million and 153,000 clients. Triodos Microfinance Fund holds a 9.9% equity stake and will join the board of directors.

Triodos Microfinance Fund has taken a 6.8% equity stake in Microcredit Organization KMF LLC and will play an active role in the governance of the institution. KMF is the largest microfinance organization in Kazakhstan, with a wide regional network of 74 subdivisions and offices and 16 branches, and has a net loan portfolio of USD 118 million and over 98,000 clients. The additional funds will allow KMF to implement its development plan for the next five years aimed at offering a more diversified range of services to clients in Kazakhstan.

In anticipation of the microfinance licence for Early Dawn Microfinance, a new microfinance company in Myanmar, the fund also made a small equity investment in a Singapore holding company. The investment in Early Dawn is expected to materialize in the first quarter of 2015.

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