Principles for calculating the performance record of EuroSelect Fonds:
Below are listed the principles for calculating the 2010 performance record.
INVESTMENT PHASE
INVESTMENT COSTS:
Investment costs include, among other things, the purchase price of the property/properties, any bro-ker charges and other ancillary acquisition costs. In addition, there are fund-related costs such as the costs for raising capital, conception costs, legal expenses, tax advice, control of use of funds and mar-keting costs. Details of some of the costs mentioned can be found in the respective prospectuses. The actual-investment costs are determined on the basis of the report submitted by the comptroller for the application of funds.
LIQUIDITY RESERVE:
This item reflects the consolidated, available funds, with the course of the investment running accord-ing to plan. Accordingly, the liquidity reserve covers all free and liquid funds of the company which are not earmarked for direct payouts. The funds involved here are exclusively financial assets.
DEBT DISCOUNT:
The dept discount describes the margin between the nominal amount of a loan and the amount paid out.
PREMIUM:
A premium of five percent of subscribed capital is charged which is used to finance the investment.
LIMITED LIABILITY CAPITAL:
The limited liability capita (subscribed capital) represents the capital of the investors. It contains the share of the founding shareholder IVG Private Funds Management GmbH. The managing partner is authorised to permit a slight over-subscription. The admissible percentage amount of the over-subscription depends on the partnership agreement.
BORROWED CAPITAL:
Borrowed capital refers to the amount of the gross third-party capital furnished by financial institutions including the debt discount at the time the loan is taken up.
TAX result (Inv. Phase):
This percentage amount refers to the domestic result of the fund company compared with the limited liability capital or equity capital excluding the premium.
MANAGEMENT PHASE
RENTAL INCOME:
Rental income (net rental income excluding ancillary costs) from letting the property/properties are taken into account as liquidity inflow in the respective year.
GUARANTEE PAYMENT:
Rental guarantee payments and their amounts are only reported if effected.
OTHER INCOME (NET):
Other income contains mainly interest income.
EXPENSES EXCLUDING REPAYMENT:
The item expenses excluding amortisation payment for borrowed capital contains the sum of all expenses. This amount covers (if they occur) interest, property management costs, tax advice, fond management costs, maintenance costs, risk of loss of rental income, subsequent letting costs, foreign exchange losses, and miscellaneous expenses.
INTEREST:
Interest related to loan agreements for (long-term) financing to lending banks. The amount of interest differs from fund to fund. The individual percentages can be seen in the fund prospectuses. Overdraft interest is not reported.
REPAYMENT:
Repayment of borrowed funds depends on the binding payment plans agreed with the banks. The amounts to be repaid therefore vary from fund to fund.
MANAGEMENT COSTS:
Management costs include costs for managing the property, i.e. maintenance costs, operating costs which cannot be apportioned to the tenants and the costs for managing the property. To increase cost transparency, these are also reported separately.
LIQUIDITY RESULT:
The liquidity result is determined by the adding rental income, guarantee payment and other income and subtracting the items Expenses without repayment and Repayment.
PAYOUT (ABSOLUTE):
The payout is reported as an aggregate amount for the year for which it is paid (financial year).
PAYOUT PERCENTAGE:
The payout effected each year is reported for each investor as a percentage of the equity capital with-out the premium.
TAX RESULT IN PERCENT:
This percentage reflects the domestic result of the fund company in the reporting year compared with the limited liability capital and/or equity without the premium.
LIQUIDITY RESERVE:
This item on the debit side results from the addition of the liquidity reserve of the previous year or – if dealing with the first reporting year – the liquidity carry-over from the investment phase and the li-quidity result of the current year less the payout.
The actual figure is determined on the basis of the annual financial statements in which the receiv-ables in the year are added to the account balance and the reserves and liabilities which must be paid within a year are deducted. This also includes the payouts not effected to the investors as of reporting date. Also taken into account are the deferred revenue and accruals.
STATUS: BORROWED CAPITAL:
This is the aggregate amount of all long-term borrowed funds at the redemption amount on the date the performance record is drawn up. Loans in foreign currency are converted to EURO according to the rate stated in the prospectus.
FIXED CAPITAL:
Fixed capital is the capital originally paid in by investors without the premium less all capital outflows to investors, in particular through payouts, withdrawals and tax savings. In the reporting year 2010, the fixed capital has been calculated with the inclusion of the premium for the first time.The figure is based on an investment of € 100,000 and a tax rate of 50%. Foreign income is disregarded.
OVERALL TREND:
The overall trend, as seen by IVG covers the performance of the fund so far up to the end of2009 fi-nancial year and the foreseeable future performance of the fund in the following year in comparison with the target figures projected in the prospectus in an overall assessment which takes all important criteria for judging a fund's performance into account such the development of income, expenses, the liquidity result, the liquidity reserve, payouts, debt service and the status of borrowed capital.
CALCULATION DISCREPANCIES:
Minor IT-related calculation and rounding discrepancies between figures in the prospectus and the performance record may occur.
