Semi-Annual Report 2013

Transcription

1 Semi-Annual Report 2013 Investment Company with variable capital under Luxembourg Law (SICAV) R.C.S. Luxembourg N B Unaudited semi-annual report as of 30 June 2013 Vision Microfinance Vision Microfinance Local Currency

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3 Unaudited semi-annual report as of 30 June 2013 Table of contents Page ISIN Management and Administration 2 Features of the Company 4 Investment Manager Report 6 11 Vision Microfinance 12 A-EUR/ LU B-CHF/ LU B-EUR/ LU I-CHF/ LU I-EUR/ LU I-USD/ LU P-CHF/ LU P-EUR/ LU Vision Microfinance Local Currency 18 A-EUR/ LU B-EUR/ LU I-EUR/ LU I-USD/ LU P-CHF/ LU P-EUR/ LU P-USD/ LU Notes to the Financial Statements 23 Sales restrictions Shares of this Company may not be offered, sold or distributed within the United States of America. 1

4 Management and Administration Registered Office 1B, rue Gabriel Lippmann, L-5365 Munsbach R.C.S. Luxembourg N B Board of Directors Manfred Kastner, Chairman of the Board Founding Partner, Registered Office: Reisnerstrasse 50/1, A-1030 Vienna Roland Dominicé, Member Director, Symbiotics SA, Registered Office: 3, place Isaac-Mercier, CH-1201 Geneva Ernst-Ludwig Drayss, Member Manager, Absolute Portfolio Management GmbH Registered Office: Braubachstrasse 36, D Frankfurt am Main Roman Mertes, Member Managing Director, Axxion S.A., Registered Office: 15, rue de Flaxweiler, L-6776 Grevenmacher Dr. Arman V. Vardanyan, Member Portfolio Manager, Absolute Portfolio Management GmbH, Registered Office: Wallnerstrasse 3/17, A-1010 Vienna Heinz-Peter Heidrich, Member Speaker of the Management Company, Bank im Bistum Essen eg Registered Office: Gildehofstrasse 2, D Essen Michael P. Sommer, Member Director, Bank im Bistum Essen eg Registered Office: Gildehofstrasse 2, D Essen Promoter Bank im Bistum Essen eg Gildehofstrasse 2, D Essen Custodian Bank and Paying Agent UBS (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg Domiciliary, Legal and Corporate Agent Axxion S.A., 15, rue de Flaxweiler, L-6776 Grevenmacher Representative and Paying Agent in Austria (for the subfund Vision Microfinance) Erste Bank der oesterreichischen Sparkassen AG Graben 21, A-1010 Vienna Central Administrative Agent, Registrar, Transfer and Listing Agent UBS Fund Services (Luxembourg) S.A., 33A, avenue J.F. Kennedy, L-1855 Luxembourg Auditor KPMG Luxembourg S.à r.l., 9, allée Scheffer, L-2520 Luxembourg 2

5 Investment Advisor Symbiotics S.A., 3, place Isaac-Mercier, CH-1201 Geneva Bank im Bistum Essen eg Gildehofstrasse 2, D Essen Investment Manager Absolute Portfolio Management GmbH, Stubenring 2, A-1010 Vienna Distributor Absolute Portfolio Management GmbH Stubenring 2, A-1010 Vienna Fiscal representative in Austria KPMG Austria GmbH Porzellangasse 51, A-1090 Vienna The sales prospectus and the articles of association of the company, the annual and semi-annual reports as well as the portfolio movements of the company mentioned in this annual report are available free of charge at the sales agencies, at the custodian bank/paying agent and at the registered office of the company. 3

6 Features of the Company (the Company ) is an investment company organized under the laws of the Grand Duchy of Luxembourg as a Société d Investissement à Capital Variable with several separate subfunds (the subfunds ). The Company was incorporated on 29 November 2005 and is governed by the Law of 10 August 1915 on commercial companies, as amended, and by the Law of 17 December The Company s objective is to invest 20% or more of the net assets of each subfund in assets other than the transferable securities and/or liquid assets provided for in Article 41 (1) of the Law of 17 December 2010 on undertakings for collective investment, as amended (the Law of 17 December 2010 ); the Company is consequently registered pursuant to the provisions of Part II of the Law of 17 December The Articles of Incorporation of the Company (the Articles ) were published in the Mémorial C, Recueil des Sociétés et Associations (the Mémorial ) of 23 December 2005 and have been filed with the Chancery of the District Court of Luxembourg. In accordance with the Articles, the Board of Directors of the Company (the Board of Directors ) may issue shares in each subfund. A separate portfolio of assets is maintained for each subfund and is invested in accordance with the investment objective applicable to the relevant subfund. As a result, the Company is an Umbrella Fund enabling investors to choose between one or more investment objectives by investing in one or more subfunds. The Company is offering shares (the shares ) on the basis of the information contained in the sales prospectus (the Prospectus ). An amendment or updated sales prospectus shall be provided, if necessary, to reflect material changes to the information contained therein. The Board of Directors may, at its discretion, issue several share classes within each subfund, each class corresponding to a specific denomination currency. Currently the Company offers the subfunds Vision Microfinance (hereafter called Vision Microfinance or VM ) and Vision Microfinance Local Currency (hereafter called Vision Microfinance Local Currency or VMLC ) to subscribers. In case additional subfunds will be launched the sales prospectus will be updated accordingly. The subfunds offer accumulating share classes I and P and distributing share classes A and B with three different currencies (EUR/USD/CHF). The share capital of the Company will be equal, at any time, to the total value of the net assets of all the subfunds. Notice of any general meeting of shareholders (including those considering amendments to the Articles or the dissolution and liquidation of the Company or of any subfund) shall be published to the extent required by Luxembourg law in the Mémorial and in any Luxembourg and other newspaper(s) that the Board of Directors may determine. Mailings to the shareholder are not required in case of bearer shares. The annual general meeting of shareholders takes place in Luxembourg City at a place specified in the notice of meeting on the first Monday in the month of May at a.m. If such day is a legal or a bank holiday in Luxembourg, the annual general meeting shall be held on the next following Luxembourg bank business day. The shareholders of any subfund or any class of shares within a given subfund may be convened to hold, at any time, general meetings to decide on any matters which relate exclusively to such subfund or class of shares. The shares of the subfunds are listed on the Luxembourg Stock Exchange. Any interested person may inspect the sales prospectus at the Chancery of the District Court of Luxembourg; copies are available on request from the registered office of the Company. 4

7 The Board of Directors has taken all reasonable care to ensure that the facts stated in the sales prospectus are true and accurate in all material respects and that there are no other material facts the omission of which would make misleading any statement in the sales prospectus, whether of fact or opinion. The Board of Directors takes for this the responsibility. Investors should inform themselves and should take appropriate advice on the legal requirements as to possible tax consequences, foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of their citizenship, residence, or domicile and which might be relevant to the subscription, purchase, holding, redemption, if applicable, or disposal of the shares of the Company. Only the information contained in the sales prospectus and in one of the documents referred to therein shall be deemed to be valid. The annual and semi-annual reports as well as the sales prospectuses are available free of charge to shareholders at the registered office of the Company and the Custodian Bank. No subscription may be accepted on the basis of the financial reports. Subscriptions are accepted only on the basis of the current sales prospectus accompanied by the latest annual report and the latest semi-annual report if available. 5

8 Investment Manager Report 1. Market Overview The Microfinance Market overall has evolved in a stable environment since the beginning of No major issue has come up, although some concerns are still raised in terms of pockets of over-indebtedness in some countries. That being said, most of the negative media coverage has continued to come from the State of Andhra Pradesh in India, where a High Court decision early this year has prevented MFIs to resume loan recovery. In Mexico, the new Government has resumed the operations of the public microfinance lenders (PRONAFIN, FIRA and others) which had stalled during the transition period. This allowed MFIs to resume normal operations with no significant refinancing risk. A general trend observed for some time now is the regular up-grade of Microfinance regulations. During the last year and over the first half of 2013, new regulatory rules have been set among others in India, Kyrgyzstan, Tajikistan, Kazakhstan, Cambodia, Nicaragua, Nigeria and to some extent in Zambia, Kenya, Ghana and Tanzania. In most of these cases, the new regulatory framework tries to address issues of supervisory body, legal status of MFIs, over-indebtedness, KYC processes, credit bureaus set up, minimum capital requirements and improved prudential ratios. Several of these countries had no or very weak regulation and these improvements will bring more stability and trust into the sector. South America is mostly absent of this list as the biggest microfinance markets already have very strong and efficient regulatory frameworks, like in Peru, Ecuador or Bolivia. Another general trend that can be observed is the increasing number of local funding sources that are currently available to MFIs. As a result of large liquidities available in capital markets worldwide, fast growing economies in emerging and frontier markets, growing appetite for microfinance that has become a well-known and trusted asset class, increasing number of deposit taking institutions and finally a never declining volume of subsidized funding, MFIs have more and more access to new and diverse sources of funding. In addition, the current low-interest environment has finally benefited MFIs who managed to decrease their borrowing rates in a substantial manner. This is particularly true for Latin America, but is increasing a reality worldwide. The first semester of 2013 has witnessed an unusually substantial number of mergers and acquisitions. The largest transactions include the merger in Peru of Caja Nuestra Gente and Financiera Confianza which makes it a USD 600mm assets business and one of the market leader after Mi-Banco, Edyficar and three Cajas Municipales. In Ecuador, the micro-consumer lender Unibanco merged with Banco Solidario totalling together almost USD 800 million in assets. In Pakistan, the US-based microfinance network FINCA International bought a majority stake into KASHF Microfinance bank, therefore expanding operations in South Asia where the network was not yet present. In Kenya, mainstream insurer Old Mutual announced the acquisition of a majority stake into Faulu Kenya, one of the Kenyan microfinance market leaders. And finally, Japanese leasing company Orix bought a 15% share of the Mongolian Tenger Financial Group, the holding that owns XacBank. Next to that, several smaller deals have taken place, including secondary sales of minority stakes. In the first semester of 2013, Luxembourg registered Microfinance Investment Vehicles (MIVs) recorded a relatively slow asset growth: +3.55% for total assets and 3.95% for microfinance portfolio. Total assets (USD 4.3 billion) represent 49.6% of the estimated global MIV market registering a +3% increase compared to the first semester of 2012 (estimation based on Symbiotics 2013 MIV survey). According to the survey, the annual forecast for global total asset growth remains positive (+14%) for the end of the year. Luxembourg MIVs Source: Symbiotics 2013 On the side of MIV performances, the MIV Debt-Index recorded lower returns for the period January-June 2013 in comparison to the same period in The average returns are the following: in USD, 0.88% as of Jun-13 vs. 1.89% one year earlier; in EUR, 0.98% as of Jun -13 vs. 2.28% one year earlier; and in CHF, -0.01% as of Jun-13 vs 1.35% one year earlier. In terms of MIVs target investments trend, according to the European Responsible Investing Fund Survey 6

9 2013 published in May by the Association of the Luxembourg Fund Industry, European MIVs are moving to impact investments by widening their target to include small and medium enterprises and other bottom of the pyramid topics. The regional portfolio allocation remains mainly similar to as of the end of 2012, with South America, Russia, Caucasus and Central Asian regions concentrating the majority of investments. 2. Fund Investments Overview Vision Microfinance Subfund The Dual Return Fund Vision Microfinance enables investors to have an involvement in the microfinance industry. The fund is dedicated to the concept of responsible investment and is committed to develop and implement environmental, social and governance (ESG) principles contributing to increasing transparency in the microfinance industry. Portfolio: During the first semester the Dual Return Fund Vision Microfinance reached and passed the level of EUR 100 million. As of June 2013, the Fund amounts to around EUR 112 million, of which about EUR 87 million were invested in microfinance. The number of investees increased to 71 MFIs and the Fund has maintained a good country diversification with 26 countries. Prasac, a leading Cambodian MFI, is still the largest exposure in the Fund. The Dual Return Fund Vision Microfinance portfolio is well positioned in comparison to Symbiotics 50 Benchmark (SYM50), outperforming the SYM50 particularly in terms of portfolio at risk, debt to equity and return on equity indicators. The Fund s investee MFIs demonstrate strong performance overall, including stable profitability and portfolio quality across most regions. Ecuador and Cambodia, showing dynamic microfinance environments, are the largest country concentrations each with less than 10% of all investments. 7

10 Social Impact Throughout the first semester of 2013, the Dual Return Fund Vision Microfinance followed its strategy to promote a sustainable delivery of financial services to the working poor. The fund endorses the SMART Campaign s basic Client Protection Principles: appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution, and implements the Principles in its daily investment management activity. The Fund s investments enabled many micro-entrepreneurs in 26 countries to organize their income generating business activities, which contributed to an improvement of their living conditions and strengthening of their position in society. The Fund investments reach out to an estimated more than 250,000 micro entrepreneurs including their families, through the provision of credit and financial services. 54% are women, 45% are men, while 1% are legal entities. Regarding social inclusion and outreach, the underlying investments are in a slight majority directed towards women. 8

11 Vision Microfinance Local Currency Subfund Dual Return Fund Vision Microfinance Local Currency enables investors to have an involvement into a diversified portfolio of loans to MFIs denominated only in the local currencies of the developing countries of Latin America, Eastern Europe, Asia and Africa. The policy of the Vision Microfinance Local Currency Fund is to contribute to sustainable growth of microfinance institutions in emerging and frontier markets and to provide investors with competitive financial and social returns derived from a portfolio of investments broadly diversified across many currencies, MFIs and micro-entrepreneurs. The fund s net return for investors since the beginning of 2013 was 1,29% in the USD (I) Share Class. Portfolio and Social Impact: As of June 2013, the Dual Return Fund Vision Microfinance Local Currency amounts around USD 52 million, of which about USD 37 million were invested in microfinance. The Fund s strategy of lending in local currencies is very important within the microfinance world. It contributes to the process of sustaining the MFIs access to private money in local currencies and developing local financial markets. The Fund fulfils a strong social mission by providing funding to small and medium size microfinance institutions and by not focusing on large MFIs. Thus, more than half of all MFIs that received loans from the Fund had assets under USD 50 million. As of the end of June, the Fund is invested in 44 MFIs in 20 countries with 21 currencies, something that would have been very difficult for a fully hedged currency strategy. The growth and diversification potential of that Fund within the microfinance world is very important. 9

12 The Fund has built its portfolio with smaller size institutions than the benchmark offering better financial performances. Financial indicators are stable compared to December Regarding social inclusion and outreach, the underlying investments are directed towards women in 55% of cases. The average loan is much smaller and indicates that the Fund is mostly financing lower segments of the market. 10

13 Consolidated Statement of Net Assets EUR Assets Investments in securities, cost Investments in securities, unrealized appreciation (depreciation) Total investments in securities (Note 1) Cash at banks, deposits on demand and deposit accounts Receivable on subscriptions Interest receivable on securities Interest receivable on Loans/Microcredits Loans/Microcredits (Note 1) Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Payable on redemptions Provisions for Investment Advisory fees (Note 2) Provisions for custodian bank fees (Note 2) Provisions for audit fees, legal and economic advice (Note 2) Provisions for publications, printing costs and publicity (Note 2) Provisions for other commissions and fees (Note 2) Total provisions Total Liabilities Net assets at the end of the period Consolidated Statement of Operations EUR Income Interest on liquid assets Interest on securities Interest on Loans/Microcredits Total income Expenses Investment Advisory fees (Note 2) Custodian bank fees (Note 2) Government fees (Note 2) Audit fees, legal and economic advice (Note 2) Publications, printing costs and publicity (Note 2) Other commissions and fees (Note 2) Interest on cash liquidity and bank overdraft Total expenses Net income (loss) on investments Realized gain (loss) (Note 1) Realized gain (loss) on forward foreign exchange contracts Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Realized gain (loss) on Loans/Microcredits Total realized gain (loss) Net realized gain (loss) of the period Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments Unrealized appreciation (depreciation) on forward foreign exchange contracts Unrealized appreciation (depreciation) on Loans/Microcredits Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations The notes are an integral part of the financial statements. 11

14 Vision Microfinance Most important figures Date ISIN Net assets in EUR Class A-EUR LU Shares outstanding Net asset value per share in EUR Class B-CHF 1 LU Shares outstanding Net asset value per share in CHF Class B-EUR LU Shares outstanding Net asset value per share in EUR Class I-CHF 2 LU Shares outstanding Net asset value per share in CHF Class I-EUR LU Shares outstanding Net asset value per share in EUR Class I-USD 3 LU Shares outstanding Net asset value per share in USD Class P-CHF 4 LU Shares outstanding Net asset value per share in CHF Class P-EUR LU Shares outstanding Net asset value per share in EUR Initial subscription: Initial subscription: Initial subscription: Initial subscription: Structure of the Securities Portfolio Geographical Breakdown as a % of net assets Luxembourg 1.93 United States 0.11 Total 2.04 Economic Breakdown as a % of net assets Finance & holding companies 1.93 Miscellaneous unclassified companies 0.11 Total The notes are an integral part of the financial statements.

15 Vision Microfinance Statement of Net Assets EUR Assets Investments in securities, cost Investments in securities, unrealized appreciation (depreciation) Total investments in securities (Note 1) Cash at banks, deposits on demand and deposit accounts Receivable on subscriptions Interest receivable on securities Interest receivable on Loans/Microcredits Loans/Microcredits (Note 1) Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Payable on redemptions Provisions for Investment Advisory fees (Note 2) Provisions for custodian bank fees (Note 2) Provisions for audit fees, legal and economic advice (Note 2) Provisions for publications, printing costs and publicity (Note 2) Provisions for other commissions and fees (Note 2) Total provisions Total Liabilities Net assets at the end of the period Statement of Operations EUR Income Interest on liquid assets Interest on securities Interest on Loans/Microcredits Total income Expenses Investment Advisory fees (Note 2) Custodian bank fees (Note 2) Government fees (Note 2) Audit fees, legal and economic advice (Note 2) Other commissions and fees (Note 2) Interest on cash liquidity and bank overdraft Total expenses Net income (loss) on investments Realized gain (loss) (Note 1) Realized gain (loss) on forward foreign exchange contracts Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Realized gain (loss) on Loans/Microcredits Total realized gain (loss) Net realized gain (loss) of the period Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on forward foreign exchange contracts Unrealized appreciation (depreciation) on Loans/Microcredits Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations The notes are an integral part of the financial statements. 13

16 Vision Microfinance Statement of Changes in Net Assets EUR Net assets at the beginning of the period Subscriptions Redemptions Total net subscriptions (redemptions) Dividend paid (Note 4) Net income (loss) on investments Total realized gain (loss) Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Net assets at the end of the period Changes in the Number of Shares outstanding Class A-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class B-CHF Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class B-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class I-CHF Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class I-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class I-USD Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class P-CHF Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class P-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period The notes are an integral part of the financial statements.

17 Vision Microfinance Statement of Investments in Securities and other Net Assets as of 30 June 2013 Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) Transferable securities not listed on an official stock exchange and not traded on another regulated market Bearer shares United States USD MFX SOLUTIONS LLC Total United States Total Bearer shares Notes, fixed rate USD USD MICRO SMALL AND MEDIUM ENTERPRISE BONDS % USD MICRO SMALL AND MEDIUM ENTERPRISE BONDS % Total USD Total Notes, fixed rate Total Transferable securities not listed on an official stock exchange and not traded on another regulated market Total investments in securities Loans/Microcredits COP COP COOMULDESA LTDA LOAN % COP CORPORACION NARINO EMPRESA LOAN % COP CREZCAMOS LOAN % Total COP EUR EUR FINANCIAL DEVELOPMENT SA BENIN LOAN % EUR FINANCIAL DEVELOPMENT SA BENIN LOAN % EUR INICJATYWA MIKRO SP. Z O.O LOAN % EUR JSC BANK CONSTANTA LOAN % EUR MICRO CREDIT COMPANY»MICROFIN LOAN % EUR MICRO CREDIT COMPANY»MICROFIN LOAN % EUR MICROCREDIT FOUNDATION SUNRISE LOAN % EUR MIKROFIN MIKROKREDITNA ORG EKI LOAN % Total EUR IDR IDR MITRA BISNIS KELUARGA VENTURA, PT % Total IDR KZT KZT LLC MICROCREDIT ORGAN LOAN % KZT LLP MCO ARNUR CREDIT LOAN % KZT MICROCREDIT ORG KAZMICROFINANCE LOAN % Total KZT MXN MXN SOLUCION ASEA S.A. DE C.V. SOFIPO LOAN % Total MXN PEN PEN ASOCIACION FONDO DE DESARROLLO LOAN % PEN EDPYME NUEVA VISION SA LOAN % PEN EDPYME RAIZ SA LOAN % PEN EDPYME RAIZ SA LOAN % PEN EMPRESA FINANCIERA EDYFICAR SA LOAN % PEN FINANCIERA CONFIANZA SA LOAN % PEN FINANCIERA CREDITOS AREQUIPA LOAN % PEN FINANCIERA PROEMPRESA S.A. LOAN % PEN PRO MUJER INC LOAN % Total PEN PHP PHP ALALAY SA KAUNLARAN (ASKI) LOAN % PHP TAYTAY SA KAUSWAGAN INC LOAN % Total PHP The notes are an integral part of the financial statements. 15

18 Vision Microfinance Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) RUB RUB CLOSED JOINT STOCK COMPANY LOAN % RUB FINCA RUSSIA % RUB FINCA RUSSIA % Total RUB THB THB HATTHA KAKSEKAR LTD LOAN % Total THB USD USD AMRET CO LTD LOAN % USD ASOCIACION CRE CON EDUCACION RURAL LOAN % USD ASOCIACION CRE CON EDUCACION RURAL LOAN % USD BAI TUSHUM AND PARTNERS LLC LOAN % USD BANCO DEL EXITO LOAN FLR USD BANCO PARA LA A C FINCA S.A LOAN % USD BANCO SOLIDARIO SA LOAN % USD BANCO SOLIDARIO SA LOAN % USD BCO PARA LA ASISTENCIA COMUNITARIA FINC % USD CLOSED JOINT ST CO FINCA MICRO CR LOAN % USD CLOSED JOINT ST CO FINCA MICRO CR LOAN % USD CLOSED JOINT ST CO FINCA MICRO CR LOAN % USD COOPERATIVA AHORRO CREDIT RIOBAMBA LOAN % USD COOPERATIVA AHORRO CREDIT RIOBAMBA LOAN % USD COOPERATIVA AHORRO CREDITO S FR LOAN % USD COOPERATIVA AHORRO CREDITO S FR LOAN % USD COOPERATIVA DE AHORRO Y CREDITO PR LOAN % USD COOPERATIVA DE AHORRO Y CREDITO PR LOAN % USD COOPERATIVA DE AHORRO Y CREDITO R LOAN % USD COOPERATIVA MIXTA MUJERES UNIDAS % USD COOPERATIVA NACIONAL DE EDU RL LOAN % USD COOPERATIVE DE AHORRO Y CR PAB MUN LOAN % USD FINANCIERA NICARAGUENSE DESARROLLO LOAN % USD FINCA AZERBAIJAN LOAN % USD FINCA MICROFIN ORG GEORGIA LOAN % USD FINCA UNIVERSAL CREDIT ORG % USD FONDO DE LA COMUNIDAD S.A. F.F.P LOAN % USD FUNDACION ALTERNATIVA PARA DESARR LOAN % USD FUNDACION ALTERNATIVA PARA DESARR LOAN % USD FUNDACION BOLIV PARA EL DES DE LA MUJER % USD FUNDACION CAMPO LOAN % USD FUNDACION DE LA MUJER LOAN % USD FUNDACION MUNDO MUJER PN LOAN % USD HATTHA KAKSEKAR LTD LOAN % USD IMON INTERNATIONAL LOAN % USD IMON INTERNATIONAL LOAN % USD IMON INTERNATIONAL LOAN % USD INECOBANK LOAN % USD INECOBANK LOAN % USD INSOTEC LOAN % USD JSC BANK CONSTANTA LOAN % USD JSC BANK CONSTANTA LOAN % USD JSC BANK CONSTANTA LOAN % USD JSC LAZIKA CAPITAL LOAN % USD JSC MFO CRYSTAL LOAN % USD JSC MICROFINANCE ORGANIZ FINCA LOAN % USD KOMPANION FINANCIAL GROUP MICROFIN LOAN % USD KOMPANION FINANCIAL GROUP MICROFIN LOAN % USD KREDIT MICROFINANCE INSTITUTION LOAN % USD LAZIKA CAPITAL LOAN % USD LLC MICROFINANCE ORGANIZATION CREDO % USD LOLC MICRO CREDIT LIMITED % USD MICRO LENDING COMPANY»FRONTIERS LOAN % USD MICRO LENDING COMPANY»FRONTIERS LOAN % USD MICROFINANCE ORGANIZATION CREDO LOAN % USD MICROFINANCE ORGANIZATION CREDO LOAN % USD MICROFINANCE ORGANIZATION CREDO LOAN % USD OJSC BANK ESKHATA LOAN % USD OJSC BANK ESKHATA LOAN % USD ORGANIZATION ARVAND LOAN % USD ORGANIZATION ARVAND LOAN % USD ORGANIZATION ARVAND LOAN % USD OXUS MICRO FINANCE, PT % USD OXUS MICRO FINANCE, PT LOAN % The notes are an integral part of the financial statements.

19 Vision Microfinance Description Quantity/ Valuation in EUR as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) USD PRASAC MICROFINANCE INSTITUTION LOAN % USD PRASAC MICROFINANCE INSTITUTION LOAN % USD PRASAC MICROFINANCE INSTITUTION LOAN % USD PROMOTION OF RURAL INIT&DEV ENTERP LOAN % USD SATHAPANA LTD % USD SEEDFINANCE CORPORATION LOAN % USD THANEAKEA PHUM (CAMBODIA) LOAN % USD THANEAKEA PHUM (CAMBODIA) LOAN % USD VIATOR MICROCREDIT AZERBAIJAN LLC LOAN % USD VISION BANCO SAECA % USD VISION BANCO SAECA LOAN % USD VISION BANCO SAECA LOAN % USD VISION FUND AZERCREDIT LLC LOAN % USD VISION FUND AZERCREDIT LLC LOAN % USD XACBANK PLC LOAN % USD XACBANK PLC LOAN % Total USD Total Loans/Microcredits Forward Foreign Exchange contracts Forward Foreign Exchange contracts (Purchase/Sale) USD COP USD PHP USD COP USD PEN USD IDR USD KZT EUR THB USD PEN USD KZT EUR RUB USD PEN USD PEN USD KZT USD PEN USD COP EUR MXN EUR RUB EUR RUB USD PEN USD PEN USD PEN EUR USD USD PEN EUR USD USD EUR CHF EUR Total Forward Foreign Exchange contracts (Purchase/Sale) Cash at banks, deposits on demand and deposit accounts and other liquid assets Other assets and liabilities Total net assets The notes are an integral part of the financial statements. 17

20 Vision Microfinance Local Currency Most important figures Date ISIN Net assets in USD Class A-EUR LU Shares outstanding Net asset value per share in EUR Class B-EUR 1 LU Shares outstanding Net asset value per share in EUR Class I-EUR LU Shares outstanding Net asset value per share in EUR Class I-USD LU Shares outstanding Net asset value per share in USD Class P-CHF 2 LU Shares outstanding Net asset value per share in CHF Class P-EUR LU Shares outstanding Net asset value per share in EUR Class P-USD 3 LU Shares outstanding Net asset value per share in USD Initial subscription: Initial subscription: Initial subscription: Structure of the Securities Portfolio Geographical Breakdown as a % of net assets Mexico 0.79 Total 0.79 Economic Breakdown as a % of net assets Countries & central governments 0.79 Total The notes are an integral part of the financial statements.

21 Vision Microfinance Local Currency Statement of Net Assets USD Assets Investments in securities, cost Investments in securities, unrealized appreciation (depreciation) Total investments in securities (Note 1) Cash at banks, deposits on demand and deposit accounts Receivable on subscriptions Interest receivable on Loans/Microcredits Loans/Microcredits (Note 1) Unrealized gain (loss) on forward foreign exchange contracts (Note 1) Total Assets Liabilities Payable on redemptions Provisions for Investment Advisory fees (Note 2) Provisions for custodian bank fees (Note 2) Provisions for audit fees, legal and economic advice (Note 2) Provisions for publications, printing costs and publicity (Note 2) Provisions for other commissions and fees (Note 2) Total provisions Total Liabilities Net assets at the end of the period Statement of Operations USD Income Interest on liquid assets Interest on Loans/Microcredits Total income Expenses Investment Advisory fees (Note 2) Custodian bank fees (Note 2) Government fees (Note 2) Audit fees, legal and economic advice (Note 2) Publications, printing costs and publicity (Note 2) Other commissions and fees (Note 2) Total expenses Net income (loss) on investments Realized gain (loss) (Note 1) Realized gain (loss) on forward foreign exchange contracts Total realized gain (loss) on investments Realized gain (loss) on foreign exchange Realized gain (loss) on Loans/Microcredits Total realized gain (loss) Net realized gain (loss) of the period Changes in unrealized appreciation (depreciation) (Note 1) Unrealized appreciation (depreciation) on market-priced securities without options Unrealized appreciation (depreciation) on yield-evaluated securities and money market instruments Unrealized appreciation (depreciation) on forward foreign exchange contracts Unrealized appreciation (depreciation) on Loans/Microcredits Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations The notes are an integral part of the financial statements. 19

22 Vision Microfinance Local Currency Statement of Changes in Net Assets USD Net assets at the beginning of the period Subscriptions Redemptions Total net subscriptions (redemptions) Dividend paid (Note 4) Net income (loss) on investments Total realized gain (loss) Total changes in unrealized appreciation (depreciation) Net increase (decrease) in net assets as a result of operations Net assets at the end of the period Changes in the Number of Shares outstanding Class A-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class B-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class I-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class I-USD Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class P-CHF Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class P-EUR Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period Class P-USD Number of shares outstanding at the beginning of the period Number of shares issued Number of shares redeemed Number of shares outstanding at the end of the period The notes are an integral part of the financial statements.

23 Vision Microfinance Local Currency Statement of Investments in Securities and other Net Assets as of 30 June 2013 Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) Transferable securities listed on an official stock exchange Treasury bills, zero coupon MXN MXN MEXICAN, UNITED STATES OF TB % Total MXN Total Treasury bills, zero coupon Total Transferable securities listed on an official stock exchange Total investments in securities Loans/Microcredits AMD AMD FINCA UNIVERSAL CREDIT ORG % AMD FINCA UNIVERSAL CREDIT ORG LOAN % AMD SEF-SMALL ENTERPRISE FOUND ARMENIA % Total AMD AZN AZN FINCA AZERBAIJAN LOAN % AZN INKISHAF UCHUN MALIYYE LOAN % AZN VIATOR MICROCREDIT AZERBAIJAN LLC LOAN % AZN VISION FUND AZERCREDIT LLC LOAN % Total AZN BOB BOB FONDACION PRO MUJER PN LOAN % Total BOB COP COP COOMULDESA LTDA LOAN % COP CORP NARINO EMPRSA Y FUTURO CONT LOAN % COP CORP NARINO EMPRSA Y FUTURO CONT LOAN % COP CREZCAMOS LOAN % Total COP CRC CRC COOCIQUE R.L LOAN % CRC COOPERATIVA NACIONAL EDUCADORES LOAN % Total CRC DOP DOP ASOCIACION PAR INVERSION Y EMPLEO LOAN % Total DOP GEL GEL JSC BANK CONSTANTA LOAN % GEL JSC MICROFINANCE ORGANIZ FINCA LOAN % GEL LLC MICROFINANCE ORGANIZATION CREDO % Total GEL HNL HNL COOPERATIVA MIXTA MUJERES UNIDAS % Total HNL IDR IDR MITRA BISNIS KELUARGA VENTURA, PT LOAN % Total IDR KES KES FAULU KENYA (DTM) LTD LOAN % Total KES KGS KGS BAI TUSHUM AND PARTNERS LLC LOAN % KGS BAI TUSHUM AND PARTNERS MICROFIN LOAN % KGS KOMPANION FINANCIAL GROUP MICROFIN LOAN % KGS MICRO LENDING COMPANY FRONTIERS LOAN % Total KGS The notes are an integral part of the financial statements. 21

24 Vision Microfinance Local Currency Description Quantity/ Valuation in USD as a % Nominal Unrealized gain of net (loss) on Futures/ assets Options/Forward Exchange Contracts/ Swaps (Note 1) KHR KHR KREDIT MICROFINANCE INSTITUTION LOAN % KHR SATHAPANA LTD % Total KHR KZT KZT LLP MCO ARNUR CREDIT LOAN % KZT MICROCREDIT ORG KAZMICROFINANCE LOAN % Total KZT MNT MNT CREDIT MONGOL LLC LOAN % MNT TRANSCAPITAL NBFI LLC LOAN % MNT XACBANK PLC LOAN % Total MNT MXN MXN SOLUCION ASEA S.A. DE C.V. SOFIPO LOAN % Total MXN PEN PEN EDPYME ALTERNATIVA SA LOAN % PEN EDPYME ALTERNATIVA SA LOAN % PEN EDPYME RAIZ SA LOAN % PEN EMPRESA FINANCIERA EDYFICAR SA % Total PEN PHP PHP ALALAY SA KAUNLARAN (ASKI) LOAN % Total PHP PYG PYG VISION BANCO SAECA LOAN % Total PYG RUB RUB FINCA CLOSED JOINT STOCK COMPANY LOAN % RUB FORA - OPPORTUNITY RUSSIAN BANK LOAN % Total RUB THB THB PRASAC MICROFINANCE INSTITUTION LOAN % THB THANEAKEA PHUM (CAMBODIA) LOAN % THB VISION FUND (CAMBODIA) LTD LOAN % Total THB TJS TJS IMON INTERNATIONAL LOAN % TJS ORGANIZATION ARVAND LOAN % TJS OXUS MICRO FINANCE, PT % Total TJS TZS TZS FINCA TANZANIA LTD LOAN FLR Total TZS Total Loans/Microcredits Forward Foreign Exchange contracts Forward Foreign Exchange contracts (Purchase/Sale) CHF USD EUR USD Total Forward Foreign Exchange contracts (Purchase/Sale) Cash at banks, deposits on demand and deposit accounts and other liquid assets Other assets and liabilities Total net assets The notes are an integral part of the financial statements.