TLIM
Triodos Microfinance Fund
Audited annual report 2011
Microfinance
is the provision of financial
services to low-income
people in developing
countries. An inclusive
financial sector, where the
majority of people have
access to financial services,
provides a sustainable basis
for balanced socio-economic
development.
Société d’Investissement à Capital Variable organised
under the laws of the Grand Duchy of Luxembourg
The value of the investments may fluctuate. Past performance is no
guarantee of future results.
No subscription can be accepted on the basis of financial reports.
Subscriptions are only valid if they are made on the basis of the latest
published prospectus accompanied by the latest annual report and the
most recent semi-annual report, if published thereafter. The prospectus
is available free of charge at the registered office of Triodos SICAV II in
Luxembourg and from Triodos Bank: www.triodos.com.
Triodos Investment Management is a 100% subsidiary of Triodos Bank.
Triodos Investment Management is the Investment Manager of Triodos
Microfinance Fund and manages the assets on a day-to-day basis.
Triodos SICAV II -
Triodos Microfinance
Fund
Audited annual

report 2011
4
Key figures
(amounts in euros) 2011 2010 2009
Total net asset value at year-end 91,679,563 59,977,763 39,330,771
Income 4,844,089 3,062,474 1,226,263
Expenses -1,598,322 -1,181,811 -595,737
Net operating income 3,245,767 1,880,663 630,526
Realised and unrealised results on investments,
swaps and foreign exchange contracts 1,337,110 616,267 -252,222
Net result 4,582,877 2,496,930 378,304
Total Expense Ratio per share class*
I-cap (EUR) 2,11% 2.35% 2.20%
I-dis (EUR) 2.13% 2.25% 2.17%
B-cap (EUR) 3.05% 2.92% 3.97%
B-dis (EUR) 2.62% 2.88% 3.86%
R-cap (EUR) 2.84% 3.00% 2.92%
R-dis (EUR) 2.81% 2.95% 2.68%
KI-cap (GBP) 2.02% 2.19% 2.18%
KI-dis (GBP) 2.12% 2.20% 2.19%
KB-cap (GBP)** 2.85% 2.41% n.a.
KB-dis (GBP)*** 2.86% 2.65% n.a.
KR-cap (GBP)**** 2.83% 3.28% n.a.
KR-dis (GBP) 2.85% 2.95% 3.08%
* The total expense ratio (TER) includes all the costs that are charged to the result during the reporting period.
The costs of securities transactions and the interest charges are disregarded.
** This share class was launched on April 1, 2010
*** This share class was launched on June 1, 2010
**** This share class was launched on November 1, 2010
Net asset value per share

Share class 31.12.2011 31.12.2010 31.12.2009
I-cap (EUR) EUR 28.06 EUR 26.45 EUR 25.29
I-dis (EUR) EUR 26.54 EUR 25.91 EUR 25.31
B-cap (EUR) EUR 27.50 EUR 26.11 EUR 25.14
B-dis (EUR) EUR 26.35 EUR 25.80 EUR 25.14
R-cap (EUR) EUR 27.43 EUR 26.04 EUR 25.08
R-dis (EUR) EUR 26.39 EUR 25.77 EUR 25.08
KI-cap (GBP)* GBP 22.31 GBP 21.10 GBP 20.20
KI-dis (GBP)* GBP 19.71 GBP 20.97 GBP 20.19
KB-cap (GBP)* GBP 21.07 GBP 20.06 n.a.
KB-dis (GBP)* GBP 20.65 GBP 19.77 n.a.
KR-cap (GBP)* GBP 21.12 GBP 20.08 n.a.
KR-dis (GBP)* GBP 19.76 GBP 20.81 GBP 20.18
* The GBP share classes are hedged against the euro.
5
Return
1
based on net asset value per share
Share class Start date 1 year
Average since
inception p.a.
I-cap (EUR) 01-04-2009 6.1% 4.4%
I-dis (EUR) 02-03-2009 6.1% 4.3%
B-cap (EUR) 02-06-2009 5.3% 3.9%
B-dis (EUR) 02-06-2009 5.4% 3.9%
R-cap (EUR) 01-07-2009 5.3% 3.9%
R-dis (EUR) 01-07-2009 5.3% 3.9%
KI-cap (GBP)
2
02-03-2009 5.7% 4.1%

KI-dis (GBP)
2
02-03-2009 5.7% 4.1%
KB-cap (GBP)
2
01-04-2010 5.0% 3.1%
KB-dis (GBP)
2
01-06-2010 4.5% 2 .1%
KR-cap (GBP)
2
01-11-2010 5.2% 4.8%
KR-dis (GBP)
2
02-03-2009 5.1% 3.6%
Source: RBC Dexia and vwd group
1
The return includes reinvestment of dividends and costs.
2
The GBP share classes are hedged against the euro.
6
Table of Contents Page
Introduction 7
Report of the Board of Directors 8
General information 22
Summary of annual accounts 2011 24
Report of the réviseur d’entreprises agréé 43
Management and administration 45
Colophon 47
7

An estimated 2.7 billion people, or close to half the
world’s population, have no access to formal
financial services. They are unable to open a bank
account, negotiate a loan to start a business or buy
insurance. Having access to these financial services
has a fundamental impact on the lives of millions of
people. It enables them to build their assets
gradually, develop micro-enterprises and improve
their income earning capacity to help them save for
school fees and provide a financial cushion for the
future.
While there is still a long way to go to make sure that
everyone everywhere has access to a diverse range
of financial services, the past ten years have seen
tremendous growth in financial services being
offered to poorer people by an increasing number
and variety of financial institutions. The industry has
proved that low income populations are bankable
and can be offered financial services in a
sustainable way. On the back of the microfinance
industry's success, commercial banks in developing
countries have partnered with microfinance
institutions to reach lower income customers. In
some markets, microfinance institutions (MFIs) have
transformed into licensed banks, enabling them to
further expand their services to small and
medium-sized enterprises or provide mortgages.
Significant challenges remain however, not least
because millions of people are still excluded. As the
microfinance sector becomes integrated into

mainstream financial systems, it also inherits many
of the industry’s existing problems. This means that
as the industry matures it must address its
challenges in a balanced way in order to shape an
inclusive financial services industry that keeps the
interests of its low-income clients at its core.
Mission
Triodos SICAV II - Triodos Microfinance Fund (Triodos
Microfinance Fund) has been designed to offer
investors the opportunity to actively contribute to
the development of the microfinance sector into an
inclusive financial sector in which the majority of
people have access to financial services. The fund
provides loans and equity to banks and microfinance
institutions (MFIs) that demonstrate a sustainable
approach toward providing financial services to
underserved client groups.
Triodos Microfinance Fund is an initiative of Triodos
Investment Management, a wholly-owned
subsidiary of Triodos Bank NV. Triodos Investment
Management started investing in developing
countries in 1994 because it recognised that
sustainable development, and addressing poverty
issues in particular, was a global issue. Since 1994,
assets under management in the microfinance
sector have increased to EUR 362 million, making
Triodos Investment Management one of the leading
investors in the industry. As an investor it wishes to
contribute to the development of a sustainable
financial sector in developing countries based on

fair pricing, transparency, access for all and care for
the earth.

Introduction
8
Triodos SICAV II - Triodos Microfinance Fund’s net
assets grew by 52.8% to EUR 91.7 million at the end
of 2011, while its portfolio reached a value of
EUR 71.2 million (77.6% of the fund’s net assets).
The fund increased the number of its investments
to 28 microfinance institutions (MFIs) and one
investment fund and further diversified its
geographical spread by adding three new countries
to its portfolio, which now totals 19 countries in
Latin America, Asia, Africa and Eastern Europe.
Market Developments
The quality of loan portfolios held by microfinance
institutions (MFIs) stabilised or improved in 2011,
leading to an increasing demand for funding. The
sustained economic growth in many developing
countries played a distinct role in this. A growing
number of institutions aim to provide a broad range
of services including savings and insurance
products and are using innovative distribution
channels to reach their clients. MFIs are also
increasingly aiming their services at small and
medium-sized enterprises. This is because
successful micro-entrepreneurs have expanded into
this sector, which is also frequently the driving force
for jobs in the economy.

52.8%
growth of net
assets in 2011
All the players in the sector are increasingly aware of
the growing pains that accompany the maturing of
the microfinance sector. Overindebtedness among
microfinance clients remains a major concern.
Microfinance institutions, microfinance banks,
investors, legislators and network organisations are
working hard and often collaborating to ensure that
the sector develops vigorously and sustainably, with
the interests of the end-clients at its core. Keying
into individual end clients’ needs and circumstances,

motivating them to save in combination with offering
responsible loans, transparent services, balanced
growth and effective regulation and supervision are
crucial in all this. The challenge for all parties
including Triodos Microfinance Fund is continuing to
maintain this balance. It is encouraging to see that
microfinance is increasingly reaching people that
were previously unbanked. It is important to guard
against financial return becoming an end in itself,
rather than an instrument for safeguarding the
continuity and improvement of services. The aim
remains to improve these clients’ living conditions.
Their interests are the focal point. The sometimes
stormy development of the microfinance sector in
recent years with over-stretched growth and profit
targets may come along with the risk that such

interests fade into the background. When MFIs fail
to align their credit methods and services with the
needs of their clients, these clients can find
themselves saddled with irresponsible and large
debts. This is exactly the opposite of what
microfinance stands for: offering financial services
responsibly and transparently to people on low
incomes in a way that enables them to improve their
living conditions.
Microfinance Transparency, the Smart Campaign
and the Principles for Investors in Inclusive Finance
1

are examples of sector-wide initiatives that take the
interests of microfinance clients as their starting
point. Triodos Microfinance Fund wholeheartedly
endorses these initiatives and is actively involved in
them. The same applies to the Social Performance
Taskforce of the Consultative Group to Assist the
Poor (CGAP)
2
that focuses on further
standardisation of indicators and ratios in order to
clearly and unambiguously analyse the social impact
of MFIs.
Report of the
Board of Directors
1
For more information: www.mftransparency.org; www.smartcampaign.org and www.unpri.org/piif
2

For more information: www.sptf.info and www.cgap.org
9
A growing number of MFIs were able to make use of
a credit bureau in 2011. Centralised credit
registration prevents microfinance clients from
taking on too great a debt burden by making it easy
for MFIs to see which financial liabilities the client
has already taken on. This is a clear indication that
microfinance is becoming embedded in the
legislation and regulations of a growing number of
developing countries.
By 2011 the microfinance industry has established
itself more firmly on a global scale. Nonetheless,
there is still a long way to go before everyone in the
world has access to formal financial services, such
as opening a bank or savings account, taking out a
loan to start a business or taking out insurance. An
estimated 2.7 billion people, almost half of the
world’s population, is excluded from such services.
Triodos Microfinance Fund wants to make a
contribution as an investor to offer a growing
number of people access to these financial services
in a responsible and transparent manner.
Investments
Triodos Microfinance Fund’s investment portfolio
expanded to EUR 71.2 million in 2011 or 77.6% of the
fund’s net assets (2010: EUR 50.8 million and
84.7%). The fund made 31 disbursements of both
debt and equity in 2011 (2010: 26). By the end of
2011, Triodos Microfinance Fund had invested in 28

MFIs (2010: 21) and one microfinance investment
fund in 19 different countries (2010: 17) across Latin
America, Asia, Africa and Eastern Europe. At
year-end 2011, the fund had outstanding
commitments in relation to five loans and two equity
investments. The committed loans are to AMRET in
Cambodia, IMON in Tajikistan, Credinka in Peru,
AzerCredit in Azerbaijan and the disbursement of
the second and third tranches of a loan to Credo in
Georgia. The committed equity participations are
follow-on investments in shares of ACLEDA Bank in
Cambodia and the India Financial Inclusion Fund
(IFIF).
The quality of the fund’s loan portfolio remained
high and the fund made no provisions for
non-performing loans in 2011.
The equity portfolio increased from EUR 11.1 million
in 2010 to EUR 15.5 million in 2011, EUR 2.8 million of
which related to amounts invested during the year.
The fund finalised one new equity investment in
Mibanco in Peru during the last quarter of 2011.
Mibanco is a successful microfinance bank that
plays an innovative role in the Latin American
microfinance sector. The institution issues working
capital and loans to micro-entrepreneurs and small
and medium-sized businesses. In addition, it offers
current accounts, savings and deposit accounts to
private individuals. A few years ago, Mibanco also
added insurance products to its product range.
The fund’s equity investment in ACLEDA Bank

performed well, as the Cambodian institution
Portfolio data, 31 December 2011
Net Asset Value EUR 91.7 million
Microfinance portfolio EUR 71.2 million
Number of MFIs 28
Number of investment funds 1
Number of loans 39
Number of subordinated loans 3
Number of equity investments 4
Number of countries 19
Source: Triodos Investment Management
Portfolio allocation by assets (as % of NAV),
31 December 2011
56%
DEBT
22%
LIQUIDITY
17%
EQUITY
5%
SUBORDINATED DEBT
Source: Triodos Investment Management
10
Overview of micronance institutions nanced by Triodos Micronance Fund
as per 31 December 2011 and 2010
Number of borrowers Percentage women Loan portfolio (EUR x 1,000) Average loan (EUR)
Percentage
clients
in rural areas
Number of saving clients

Micronance Institution Country 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
AccèsBanque Madagascar Madagascar 20,883 ** 56% ** 14,397 ** 689 ** 16% ** 71,183 **
AccessBank Azerbaijan 117,817 120,147 25% 27% 292,903 254,157 2,486 2,111 11% 12% 154,608 152,991
ACLEDA Bank Cambodia 272,316 265,937 54% 55% 778,323 556,758 2,858 2,094 85% 86% 821,900 703,151
AMRET Cambodia 247,006 ** 82% ** 76,624 ** 310 ** 98% ** 34,973 **
Bai Tushum Kyrgyzstan 35,833 ** 44% ** 42,710 ** 1,192 ** 81% ** **** **
Banco Ademi Dominican Republic 121,813 103,181 40% 41% 167,022 143,905 1,371 1,393 4% 4% 151,681 136,916
Banco D-MIRO* Ecuador 39,561 36,463 59% 62% 31,419 22,307 794 612 0% 0% **** ****
Banco FIE Bolivia 175,579 146,816 54% 55% 452,227 311,983 2,576 2,125 1% 0% 557,763 461,591
Bank Sahabat Purba Danarta Indonesia *** 151,589 *** 73% *** 39,277 *** 259 *** 22% *** 44,895
Bhartiya Samruddhi Finance India 1,126,337 1,721,427 74% 73% 111,742 271,158 99 157 92% 91% **** ****
BRAC Bank Bangladesh 160,492 36,655 8% 9% 858,708 894,679 5,350 5,619 30% 27% 674,652 586,573
Centenary Bank Uganda 129,659 97,434 30% 30% 160,577 128,354 1,238 1,156 39% 66% 690,203 731,191
Commercial Leasing Company Sri Lanka 56,361 ** 20% ** 153,482 ** 2,723 ** 48% ** **** **
Credo Georgia 64,526 43,172 39% 42% 42,549 24,958 659 578 54% 57% **** ****
Edpyme Raíz Peru 87,876 ** 51% ** 128,808 ** 1,466 ** 8% ** **** **
Financiera Crear* Peru 106,401 87,076 51% 50% 138,183 97,916 1,299 1,122 0% 0% 7 ****
FINCA Azerbaijan Azerbaijan 119,867 ** 32% ** 90,627 ** 756 ** 61% ** **** **
Financiera Edycar* Peru 356,099 284,825 48% 49% 391,867 266,631 1,100 933 0% 0% **** 1,717
FMM Popayán Colombia 417,479 352,592 66% 67% 267,294 205,708 640 583 21% 18% **** ****
KazMicronance Kazakhstan 45,995 ** 75% ** 41,044 ** 892 ** 60% ** **** **
Kenya Women Finance Trust DTM Kenya 280,959 416,813 100% 100% 105,530 119,623 376 287 70% 71% 432,136 426,066
Kompanion Kyrgyzstan 137,310 ** 84% ** 46,175 ** 336 ** 100% ** **** **
LOLC Micro Credit Sri Lanka 108,494 45,094 48% 44% 81,089 41,911 747 929 91% 89% **** ****
Mibanco Peru 435,531 394,915 55% 54% 1,194,786 969,692 2,743 2,412 13% 12% 479,730 384,680
PRASAC Cambodia 125,127 112,872 71% 60% 117,289 78,722 937 697 91% 94% 7,868 1,864
Prizma Mikro Bosnia Herzegovina 68,949 54,495 54% 60% 50,738 47,109 736 864 54% 47% **** ****
Sathapana Cambodia 57,001 43,565 63% 67% 73,197 43,192 1,284 991 48% 44% 30,468 32,414
Visión Banco Paraguay 109,041 84,966 39% 38% 361,579 249,353 3,316 2,893 6% 15% 93,495 78,686
XacBank

Mongolië 79,414 86,760 54% 57%
304,080 197,481 3,829 2,252 41% 37% 221,751 178,002
Grand Total 5,103,726 4,686,794 6,574,966 4,964,874 4,422,418 3,920,737
* This MFI focuses on urban areas only
** Not financed in 2010
*** Repayment in 2011
**** Not applicable
11
Overview of micronance institutions nanced by Triodos Micronance Fund
as per 31 December 2011 and 2010
Number of borrowers Percentage women Loan portfolio (EUR x 1,000) Average loan (EUR)
Percentage
clients
in rural areas
Number of saving clients
Micronance Institution Country 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
AccèsBanque Madagascar Madagascar 20,883 ** 56% ** 14,397 ** 689 ** 16% ** 71,183 **
AccessBank Azerbaijan 117,817 120,147 25% 27% 292,903 254,157 2,486 2,111 11% 12% 154,608 152,991
ACLEDA Bank Cambodia 272,316 265,937 54% 55% 778,323 556,758 2,858 2,094 85% 86% 821,900 703,151
AMRET Cambodia 247,006 ** 82% ** 76,624 ** 310 ** 98% ** 34,973 **
Bai Tushum Kyrgyzstan 35,833 ** 44% ** 42,710 ** 1,192 ** 81% ** **** **
Banco Ademi Dominican Republic 121,813 103,181 40% 41% 167,022 143,905 1,371 1,393 4% 4% 151,681 136,916
Banco D-MIRO* Ecuador 39,561 36,463 59% 62% 31,419 22,307 794 612 0% 0% **** ****
Banco FIE Bolivia 175,579 146,816 54% 55% 452,227 311,983 2,576 2,125 1% 0% 557,763 461,591
Bank Sahabat Purba Danarta Indonesia *** 151,589 *** 73% *** 39,277 *** 259 *** 22% *** 44,895
Bhartiya Samruddhi Finance India 1,126,337 1,721,427 74% 73% 111,742 271,158 99 157 92% 91% **** ****
BRAC Bank Bangladesh 160,492 36,655 8% 9% 858,708 894,679 5,350 5,619 30% 27% 674,652 586,573
Centenary Bank Uganda 129,659 97,434 30% 30% 160,577 128,354 1,238 1,156 39% 66% 690,203 731,191
Commercial Leasing Company Sri Lanka 56,361 ** 20% ** 153,482 ** 2,723 ** 48% ** **** **
Credo Georgia 64,526 43,172 39% 42% 42,549 24,958 659 578 54% 57% **** ****

Edpyme Raíz Peru 87,876 ** 51% ** 128,808 ** 1,466 ** 8% ** **** **
Financiera Crear* Peru 106,401 87,076 51% 50% 138,183 97,916 1,299 1,122 0% 0% 7 ****
FINCA Azerbaijan Azerbaijan 119,867 ** 32% ** 90,627 ** 756 ** 61% ** **** **
Financiera Edycar* Peru 356,099 284,825 48% 49% 391,867 266,631 1,100 933 0% 0% **** 1,717
FMM Popayán Colombia 417,479 352,592 66% 67% 267,294 205,708 640 583 21% 18% **** ****
KazMicronance Kazakhstan 45,995 ** 75% ** 41,044 ** 892 ** 60% ** **** **
Kenya Women Finance Trust DTM Kenya 280,959 416,813 100% 100% 105,530 119,623 376 287 70% 71% 432,136 426,066
Kompanion Kyrgyzstan 137,310 ** 84% ** 46,175 ** 336 ** 100% ** **** **
LOLC Micro Credit Sri Lanka 108,494 45,094 48% 44% 81,089 41,911 747 929 91% 89% **** ****
Mibanco Peru 435,531 394,915 55% 54% 1,194,786 969,692 2,743 2,412 13% 12% 479,730 384,680
PRASAC Cambodia 125,127 112,872 71% 60% 117,289 78,722 937 697 91% 94% 7,868 1,864
Prizma Mikro Bosnia Herzegovina 68,949 54,495 54% 60% 50,738 47,109 736 864 54% 47% **** ****
Sathapana Cambodia 57,001 43,565 63% 67% 73,197 43,192 1,284 991 48% 44% 30,468 32,414
Visión Banco Paraguay 109,041 84,966 39% 38% 361,579 249,353 3,316 2,893 6% 15% 93,495 78,686
XacBank
Mongolië 79,414 86,760 54% 57%
304,080 197,481 3,829 2,252 41% 37% 221,751 178,002
Grand Total 5,103,726 4,686,794 6,574,966 4,964,874 4,422,418 3,920,737
* This MFI focuses on urban areas only
** Not financed in 2010
*** Repayment in 2011
**** Not applicable
12
continued its strong growth.
In India, the microfinance sector continues to face a
number of challenges triggered by legislation
implemented in the state of Andhra Pradesh in 2010.
This legislation restricted MFIs in their ability to
effectively engage with their clients to collect
outstanding loans, resulting in deterioration of the

quality of their loan portfolios. The situation in
Andhra Pradesh gave rise to concerns also in other
parts of the country and made it more difficult for
the Indian microfinance sector to attract funding for
(re-)financing the loan portfolio. In 2011, nation-wide
legislation brought increased clarity for the sector.
While it could not revive the sector in Andhra
Pradesh, it led to renewed access to funding for the
national microfinance sector and to improving
performance of some MFIs outside of Andhra
Pradesh. Triodos Microfinance Fund revalued its two
equity investments in India. Bhartiya Samruddhi
Finance, mainly active in Andhra Pradesh, was hit
the hardest. The India Financial Inclusion Fund
(IFIF), which holds a more diversified portfolio of
new and established MFIs and other organisations
that provide financial services to low-income people
in India, proved more resilient.
A quantitative description of the activities of the
MFIs in the Triodos Microfinance Fund portfolio can
be found in the table on pages 10 and 11. The table
shows the loan portfolio, number of loan clients,
average loan amount, number of saving clients,
percentage of women and rural outreach of each
MFI. A short description of all MFIs in the fund’s
portfolio can also be found under the header ‘Know
where your money goes’ at www.triodos.com.
19
number of
countries

in the
portfolio
13
CENTENARY BANK IN UGANDA
Centenary Bank is the market leader in microfinance in Uganda and is also
active in rural areas. At year end 2011, the bank had 130 thousand loan clients
and 700 thousand clients with savings accounts. One of them is Kakembo
Florence Najjuka, who has been able to expand her poultry farm with a new
shed and a well thanks to a loan from Centenary Bank.
14
Exposure by country (as % of NAV),
31 December 2011
Country Percentage

Cambodia 18.5%
Peru 15.9%
Azerbaijan 8.3%
Sri Lanka 6.5%
Mongolia 3.7%
Paraguay 3.6%
Bolivia 2.9%
Kyrgyzstan 2.9%
Uganda 2.4%
Colombia 2.1%
India 2.0%
Bangladesh 1.8%
Dominican Republic 1.4%
Kenya 1.2%
Kazakhstan 1.1%
Bosnia Herzegovina 1.1%

Georgia 1.1%
Ecuador 0.6%
Madagascar 0.5%
Source: Triodos Investment Management
Exposure by currency (as % of NAV),
31 December 2011
48.3% USD
98.9% is hedged
1.1% is unhedged

29.9% EURO
21.8% LOCAL CURRENCY
53.5% is hedged
46.5% is unhedged
Source: Triodos Investment Management
Five largest outstanding positions (as % of NAV),
31 December 2011
Institution Country Percentage
ACLEDA Bank Cambodia 12.4%
Financiera Crear Peru 7.0%
Mibanco Peru 5.1%
AccessBank Azerbaijan 4.2%
FINCA Azerbaijan Azerbaijan 4.1%
Source: Triodos Investment Management
Triodos Microfinance Fund is committed to keeping
individual investments below 15% of the fund’s
assets. The largest investment represents 12.4% of
the fund’s assets and is in ACLEDA Bank in
Cambodia.
Financial results

The net result of Triodos Microfinance Fund for 2011
is EUR 4.6 million (2010: EUR 2.5 million).
Triodos Microfinance Funds’ largest source of
income is the interest generated on loans. Interest
on loans amounted to EUR 4.3 million in 2011 (2010:
EUR 2.7 million). The growth of interest income is in
line with the growth of the fund’s loan portfolio. In
addition, Triodos Microfinance Fund received
EUR 250,000 in dividend from one of its equity
participations (2010: EUR 0). The increase in the
value of investments (as a result of changes in
equity valuation and/or foreign exchange rate
fluctuations) was EUR 2.8 million in 2011 (2010:
EUR 1.2 million). The fund made losses of EUR 1.6
million on foreign exchange contracts during the
same period in 2011 (2010: a loss of EUR 739,000).
Foreign currencies in the fund’s portfolio tend to
depreciate against the euro. Triodos Microfinance
Fund therefore adds a premium on the interest rate
charged on foreign currency loans to compensate
for the expected depreciation loss. When investing
in equity the fund takes the expected depreciation
into account and assesses whether the investment
15
meets a minimum expected return in euro.
Total expenses were EUR 1.6 million in 2011 (2010:
EUR 1.2 million). The bulk of these expenses
comprise management, distribution and service
fees, which rose to EUR 1.3 millon (2010:
EUR 926,000). This rise is in line with the increase in

the fund’s net assets under management.
The returns on all Triodos Microfinance Fund share
classes continued to improve in 2011. Differences in
financial performance between share classes are
mainly attributable to the different cost base, as
explained in the section on ‘Costs’ below.
Triodos Microfinance Fund aims to retain 10% in
cash or cash equivalents for liquidity management
purposes. The fund received sizeable investor
inflows during the last quarter of 2011, which
explains the relatively large cash position at year
end.
Sustainability as core value
Triodos Microfinance Fund makes use of its
Sustainability Management System to effectively
and unambiguously analyse and assess how the
MFIs in the fund’s portfolio have embedded its
mission and social objectives in their organisations.
The system clearly sets out MFIs’ social and
environmental performance and shows their
attitude to issues such as transparency and
preventing overindebtedness.
The table on pages 10 and 11 assigns a number of
social indicators to each financial institution in the
Triodos Microfinance Fund portfolio, such as the
number of loan and savings clients, average loan
and the percentage of female clients and clients in
rural areas. These and other indicators are shown at
fund level in the table on the next page.
The system also provides information on the range

and diversity of products that MFIs offer, the sectors
in which their loan clients are active, which activities
Return
1
based on net asset value per share, 31 December 2011
Share class Start date 1 year
Average since
inception p.a.
I-cap (EUR) 01-04-2009 6.1% 4.4%
I-dis (EUR) 02-03-2009 6.1% 4.3%
B-cap (EUR) 02-06-2009 5.3% 3.9%
B-dis (EUR) 02-06-2009 5.4% 3.9%
R-cap (EUR) 01-07-2009 5.3% 3.9%
R-dis (EUR) 01-07-2009 5.3% 3.9%
KI-cap (GBP)
2
02-03-2009 5.7% 4.1%
KI-dis (GBP)
2
02-03-2009 5.7% 4.1%
KB-cap (GBP)
2
01-04-2010 5.0% 3.1%
KB-dis (GBP)
2
01-06-2010 4.5% 2 .1%
KR-cap (GBP)
2
01-11-2010 5.2% 4.8%
KR-dis (GBP)

2
02-03-2009 5.1% 3.6%
Source: RBC Dexia and vwd group
1
The return includes reinvestment of dividends and costs.
2
The GBP share classes are hedged against the euro.
16
the MFI initiates in order to make care for the
environment a priority and the way they pursue
transparency and fair pricing. More information and
examples from the portfolio are given below.
Group loans in combination with supplementary
training courses are a good way for low-income
people to enter the financial system for the first
time. In the Triodos Microfinance Fund portfolio,
Small Enterprise Foundation in South Africa and
Kenya Women Finance Trust DMT are among those
offering such loans, especially to women. Triodos
Microfinance Fund considers it important that MFIs
grow at the same pace as these micro-
entrepreneurs so that the latter can take on
individual loans tailored to their needs and ability to
repay. In many countries, small and medium-sized
enterprises are the driving force for jobs in the
economy. Triodos Microfinance Fund finances a
growing number of banks that serve this sector,
such as BRAC Bank in Bangladesh.
Trade traditionally forms a large part of MFIs’
portfolios and this is also true of the MFIs in the

Triodos Microfinance Fund portfolio. However, the
fund greatly values a diversified portfolio with the
agricultural sector as focal point. This sector is
often regarded as more risky and clients are in areas
that are sometimes difficult to reach. Nonetheless,
this is just the sector a number of MFIs in the
portfolio are focusing on. The Colombian institution
FMM Popayán received an award in 2011 for being
the ‘best rural microfinance institution’ in Latin
America. This institution has developed an
agricultural loan for small-scale farmers. At
Centenary Bank in Uganda, 16% of its loan portfolio
is invested in agriculture, while national banks
allocate only 6% of total lending to this sector. This
is a conscious choice by the bank, as over 50% of
the population depends on agriculture for their
livelihood.
Portfolio allocation to lending methodologies
56%
INDIVIDUAL LENDING
20%
SME LENDING
19%
GROUP LENDING
4%
CONSUMER LENDING
1%
OTHER
Source: Triodos Investment Management
Portfolio allocation to sectors

43%
TRADE & COMMERCE
20%
AGRICULTURE
17%
SERVICES
14%
OTHERS
6%
MANUFACTURING
Source: Triodos Investment Management
Key social indicators on fund level
2011 2010
Total number of loan clients reached by MFIs in the portfolio 5.1 million 4.7 million
Total number of saving clients reached by MFIs in the portfolio 4.4 million 3.9 million
Average loan EUR 1,288 EUR 1,027
Percentage of female loan clients 61% 65%
Percentage of clients in rural areas 43% 48%
Number of people employed by MFIs in the portfolio 50,482 NA
17
% of MFIs providing other financial services
Saving products 59%
Insurance products 52%
Money transfer services 52%
The transformation into fully-licensed banks is an
important step for MFIs, as it opens up the
opportunity to offer savings products. Access to
reliable savings can help people on low incomes to
reduce their vulnerability to major budget shocks
and invest in the education of their children.

Introducing savings allows MFIs to diversify their
funding base to include less expensive, more stable
funding with no foreign exchange risk. Among the
MFIs in the portfolio of Triodos Microfinance Fund
are some that reach more savings clients than loan
clients, including AccèsBanque Madagascar, BRAC
Bank in Bangladesh, Banco FIE in Bolivia and
XacBank in Mongolia.
A broad range of financial services is important
because clients are in great need of ways to save,
transfer money and take out insurance. ACLEDA
Bank in Cambodia, for example, introduced a service
in 2006 to enable domestic and international
transfers of funds. In a few years the number of
domestic transfers grew from 230,000 to 2 million a
year: an increase of over 700%.
61%
percentage
of female
loan clients
% of MFIs focusing on the environment
Green credit products 44%
Environment training to
clients 15%
Green office procedures 41%
Environmental donations 7%
Exclusion list 78%
A growing number of MFIs are focusing on the
environment. Kompanion in Kyrgyzstan, for
instance, gives training courses in sustainable

farming practices that lead to healthier crops and
better harvests. PRASAC in Cambodia offers a
special loan for purchasing small biogas
installations and Mibanco in Peru considers
sustainability to be of paramount importance when
offices are being remodeled.
Responsible Finance
All MFIs in the portfolio have sufficient or even many
measures in place to limit the risk of
overindebtedness. The majority of these measures
focus on acquiring clarity about clients’ ability to
repay their loans and on setting the amount of the
loan accordingly. All the MFIs also train their loan
officers to communicate clearly, correctly and
completely about loan conditions. 86% of the MFIs
have signed the Client Protection Principles, which
describe the minimum protection microfinance
clients should expect from their financial service
providers.
7
7
For more information: www.smartcampaign.org
18
MICROFINANCE PORTFOLIO
TRIODOS MICROFINANCE FUND
31 DECEMBER 2011
BOSNIA
HERZEGOVINA
l
Prizma Mikro

DOMINICAN
REPUBLIC
l
Banco Ademi
ECUADOR l
Banco D-MIRO
PERU l
Edpyme Raíz
Financiera Crear
Financiera Edycar
Mibanco
BOLIVIA
l
Banco FIE
PARAGUAY
l
Visión Banco
COLOMBIA l
FMM Popayán
19
UGANDA l
Centenary Bank
KENYA
l
KWFT DMT
BOSNIA
HERZEGOVINA
l
Prizma Mikro
GEORGIA l

Credo
AZERBAIJAN
l
AccessBank
FINCA Azerbaijan
INDIA l
Bhartiya
Samruddhi
Finance Ltd.
India Financial
Inclusion Fund
SRI LANKA
l
LOLC Micro
Credit
Commercial
Leasing
company
CAMBODIA
l
ACLEDA Bank
PRASAC
Sathapana
Amret
KYRGYZSTAN
l
Bai Tushum
Kompanion
MONGOLIA l
XacBank

BANGLADESH l
BRAC Bank
MADAGASCAR
l
AccèsBanque
Madagascar
KAZAKHSTAN
l
KazMicroFinance
20
Costs
Management fee
The largest item in the cost structure of Triodos
Microfinance Fund is the management fee paid to
the investment manager, Triodos Investment
Management. Triodos Investment Management uses
this fee primarily to cover staff costs, including
travel expenses incurred in connection with
providing new finance facilities and managing
existing finance facilities. This is generally quite an
intensive process, especially the management of the
fund’s equity investments, requiring frequent trips
to the countries where investments are made.
Triodos Investment Management receives an annual
fee for investment management and support
services, calculated as a percentage of the net
asset value of the relevant share class. For
institutional share classes this management fee
amounts to 1.75%. For the other share classes, this
management fee amounts to 2.5%, of which a

maximum of 0.75% can be granted to distributors.
Total Expense Ratio
The total expense ratio (TER), which includes the
management fee, ranged from 2.02% to 2.13% for
institutional share classes and from 2.62% to 3.05%
for the other share classes. More detailed
information can be found on page 41.
Risk
Triodos Microfinance Fund has a relatively high risk
profile, mainly due to its sector-specific focus. The
main risks as identified are described in detail in the
fund’s prospectus. Some of the risks are highlighted
below.
Country and political risk
Triodos Microfinance Fund invests in countries that
sometimes entail substantial political risks,
countries that might be in an economic recession,
with perhaps high and rapidly fluctuating inflation,
countries that often have a poorly developed legal
system and countries where the standards for
financial auditing and reporting may not always be
in line with internationally accepted standards. The
risk of unfavourable political intervention
materialised in Andhra Pradesh, India in the fourth
quarter of 2010 and had a negative impact on the
value of most Indian microfinance assets in 2010
and 2011. To limit the country risk, Triodos
Microfinance Fund has set an upper limit of 30% of
its assets for investments in one particular country.
Please refer to the table on page 14 for the

diversification across different countries.
Liquidity risk
Triodos Microfinance Fund invests in assets that are
not listed on a stock exchange and that are relatively
illiquid. In view of its open end structure (enabling
subscription and redemption of shares on a monthly
basis), this could potentially lead to a situation in
which the fund needs to temporarily close for
redemptions. There is also the risk that at some
point in time the fund may be unable to obtain
sufficient resources to fulfil its financial obligations.
This risk is limited by the fund’s commitment to
invest at least 10% of its capital in liquid assets or
arrange sufficient other guarantees.
Credit risk and market risk
The global economic downturn combined with
competitive pressures in key microfinance markets
led to the quality of MFI loan portfolios deteriorating
in most countries up to 2010. MFI Portfolio At Risk or
PAR ratios (the percentage of non-performing loans
over the total loan portfolio) typically stabilised or
improved in 2011, aided by continued economic
growth in many developing markets and solid credit
management by the MFIs in the fund’s porfolio.
Credit risk continues to be closely monitored as it
remains the most fundamental risk to which the
lending industry in general and the microfinance
industry in particular is exposed.
21
Currency risk

Triodos Microfinance Fund is exposed to possible
losses as a result of fluctuations in the value of or
income from assets denominated in foreign
currencies. The fund may invest up to 90% of its
total assets in non-euro denominated investments
with a maximum exposure of 60% in unhedged local
currency investments. Triodos Microfinance Fund
actively manages its currency exposure risk by
hedging its net foreign currency exposure to the
extent deemed appropriate and possible. At the end
of December 2011, 21.8% of the fund’s net assets
were invested in local currencies while only 10.7% of
the fund’s net assets were exposed to open currency
risk.
The British Pound Sterling share classes are hedged
against the euro. It should be noted, however, that
share class returns and investor inflows are hedged
with a time difference, which may lead to
performance differences between British Pound
Sterling share classes and their equivalent Euro
share classes.
Outlook
The outlook for 2012 is generally positive. MFI loan
portfolios are expected to grow further, although
there will be differences between regions and
countries. The greatest growth is expected to be in
Asia.
Competition from other microfinance investment
vehicles is expected to remain strong and the fund
expects interest rates to remain under pressure in

2012 and the return on loans to remain the same or
become a little lower than in 2011. Exchange rates
are expected to remain volatile.
Triodos Microfinance Fund intends to increasingly
finance non-traditional MFIs such as leasing
companies or specialist banks that focus on the
lower income segments in the market and have
sustainability as a driving force.
Triodos Microfinance Fund expects to be able to
grow to EUR 110 million in 2012. The fund expects a
positive return in 2012 comparable to the return in
2011. This will partly depend on the change in value
of participations, provisions and exchange rate
results on un-hedged local currencies. The total
expense ratio is expected to remain at the same
level as in 2011.
Luxembourg, April 5, 2012
The Board of Directors of Triodos SICAV II
Mr Jan Ariëns (Chairman, until April 27, 2011)
Mr Pierre Aeby (Chairman as of April 27, 2011)
Ms Marilou van Golstein Brouwers
Mr Patrick Goodman
Mr Olivier Marquet
Mr Alexander Schwedeler (as of April 27, 2011)
22
Structure
Triodos Microfinance Fund was launched in March
2009 as a sub-fund of Triodos SICAV II, the first
Luxembourg investment company to be launched by
Triodos Bank. The fund has an open end fund

structure and is not quoted on any stock market.
Triodos Microfinance Fund has Euro as well as
British Pound Sterling share classes for retail,
private banking and institutional investors.
Triodos Microfinance Fund is managed by Triodos
Investment Management BV, which is a
wholly-owned subsidiary of Triodos Bank NV.
Triodos Microfinance Fund was awarded the
LuxFLAG Microfinance Label in September 2010.
The purpose of the Label is to promote the raising of
capital for microfinance by reassuring investors that
the MIV (Management Investment Vehicle) actually
invests in microfinance. The LuxFLAG Microfinance
Label is intended for MIVs with a commercial
objective.
The Annual General Meeting of Shareholders takes
place in the city of Luxembourg, at a place specified
in the notice of the meeting, each year on the last
Wednesday in April. If that day is not a business day
then the meeting will be held on the next business
day. Notice of any General Meeting of Shareholders
will be mailed to each registered Shareholder at
least eight days prior to the meeting and will be
published to the extent required by Luxembourg law
in the Mémorial. Triodos SICAV II publishes an
integrated detailed audited report annually in
Luxembourg. Triodos SICAV II also publishes an
integrated detailed semi-annual report in
Luxembourg. Separate reports for each sub-fund of
Triodos SICAV II are published by Triodos Investment

Management. Copies may be obtained free of charge
from the registered office of Triodos SICAV II and can
be downloaded from Triodos Bank:
www.triodos.com.
Investment policy
Triodos Microfinance Fund invests, directly or
indirectly, in microfinance institutions (MFIs) and
other applicable financial institutions with a track
record that have gone through the first phase of
rapid growth and are financially sustainable. The
fund is also allowed to invest in greenfield MFIs. In
most cases these institutions will be supervised by
relevant local government authorities.
Triodos Microfinance Fund invests in equity,
subordinated debt, convertible debt, senior debt and
debt instruments in qualifying investments. The
fund investment amount per investment project is
assumed to be typically between EUR 1 million and
EUR 10 million, but is bound by single client
exposure and other investment restrictions as
presented in the prospectus. The fund will generally
take minority equity positions in its investees.
Triodos Microfinance Fund will mainly invest in
non-listed securities and investment instruments
other than transferable securities. However, the
fund may also, on an ancillary basis, invest in stock-
listed companies. The equity investments of Triodos
Microfinance Fund will primarily be in local currency,
i.e. any currency other than US dollars and euros.
For debt financing, the investments will be a mixture

of local currency and investments in US dollars and
euros. Investments in euros and in US dollars will be
hedged to a large extent against the share classes’
reference currencies (perfect hedges of the interest
and principal flows may not be economical).
Investments in local currencies may be hedged
where possible and where deemed appropriate.
Cash and liquid assets will be mainly invested in
euros or US dollars.
Triodos Microfinance Fund may enter into
syndicated finance agreements with other funds
managed by Triodos Group or managed by other
entities.

General information
23
Fiscal aspects
According to the law in force and current practice,
Triodos Microfinance Fund is not subject to any
Luxembourg tax on income and capital gains.
Dividends paid by Triodos Microfinance Fund are not
subject to any Luxembourg withholding tax. Since
January 1, 2010 Triodos Microfinance Fund is no
longer subject to any subscription tax. In addition,
the issue of shares in the SICAV is not subject to any
registration duties or other taxes in Luxembourg.
Some dividend and interest income from Triodos
Microfinance Fund’s portfolio may be subject to
withholding taxes at variable rates in the countries
of origin.

As holders of shares in Triodos Microfinance Fund,
shareholders do not have to pay any income and
capital gains tax, any withholding tax, or any other
form of tax in the Grand Duchy of Luxembourg
(except with regard to (I) shareholders domiciled,
resident or having a permanent establishment in
Luxembourg, (II) some non-residents of Luxembourg
who own 10% or more of the capital of the fund and
who sell all or part of their shares within six months
of their acquisition and (III) in some limited cases,
some categories of former residents of Luxembourg
if they own 10% or more of the capital of the SICAV).
The above information is based on the law in force
and current practice and is subject to change.
Investors should be aware that income or dividends
received or profits realised may lead to additional
taxation in their country of origin, residence or
domicile.
Triodos sustainability reporting
Triodos Microfinance Fund is managed by Triodos
Investment Management BV, which is a
wholly-owned subsidiary of Triodos Bank NV.
All investment funds report separately on their
financial performance in an annual report. The
co-workers involved in the management of these
funds are employed by Triodos Bank. All social policy
aspects, including the remuneration policy, are
described in Triodos Bank’s annual report.
The 2011 Annual Report of Triodos Bank is an
integral sustainability report produced in line with

the Global Reporting Initiative (GRI) sustainability
reporting guidelines. These guidelines provide an
internationally consistent format for information
about a company’s performance, particularly with
regard to social and environmental issues.
For reporting in 2011, Triodos Bank used the third
generation of GRI guidelines published in October
2006 and the GRI Financial Services Sector
Supplements published in 2008. More about the GRI
and its reporting guidelines can be found at
www.globalreporting.org.
Further information on the social and environmental
performance of Triodos Bank and its investment
funds can be found in the Annual Report of Triodos
Bank.
Triodos Investment Management BV became a
member of the Stichting Klachteninstituut
Financiële Dienstverlening (KiFiD) in 2011.
Climate-neutral operations
Triodos Bank takes responsibility for its CO
2

emissions. The bank’s environmental policy
comprises a three-step approach: firstly, to reduce
energy consumption as much as possible, secondly,
what cannot be saved is sourced from renewable
energy providers, and thirdly, residual emissions
(from gas consumption, paper usage, business
travel and commuting) are compensated for by
buying CO

2
credits. CO
2
emissions in 2011 will be
compensated for by renewable energy projects. The
use of volatile organic compounds and compounds
that destroy the ozone layer are avoided.
The management of funds, including Triodos
Microfinance Fund, that invest worldwide involves a
lot of travelling, including intercontinental flights.
This has a direct impact on the environment. The
resulting CO
2
emissions were fully compensated for.
24
Statement of net assets 25
Statement of operations 26
Statement of changes in net assets 27
Cash flow statement 29
Statement of changes in the number of shares outstanding 30
Notes to the financial statements 32

Summary of annual accounts 2011 Page
25
Statement of net assets
as at December 31, 2011

(amounts in EUR)
Notes December 31,
2011

December 31,
2010
December 31,
2009
Assets
Fixed assets
Investment in financial assets 2 71,218,642 50,818,591 21,892,499
Historic cost: EUR 67,297,688 as at December 31,
2011 (December 2010: EUR 49,689,060)
Current assets
Cash and cash equivalents 20,292,718 9,820,400 17,017,472
Formation expenses 3 75,833 110,833 145,833
Interest receivable 2 1,592,300 931,730 552,486
Subscriptions receivable 1,569,085 – –
Total assets
94,748,578 61,681,554 39,608,290
Liabilities
Liabilities due within one year
Net unrealised loss on swap contracts 11 325,822 – –-
Net unrealised loss on forward foreign
exchange contracts 10 2,008,484 1,361,998 25,599
Investment management, distribution and
service fees payable 6 401,852 278,018 178,500
Redemptions payable 266,664 – –
Accounts payable and accrued expenses 9 66,193 63,775 73,420

Total liabilities
3,069,015 1,703,791 277,519
Net assets
91,679,563 59,977,763 39,330,771

The accompanying notes form an integral part of these financial statements.