General Information
The following information applies to all of our leveraged/geared funds.
The loan in each fund is non-recourse.
The cost of funds is approximately 1.25% over three month EURIBOR.
The management fee is charged on the net asset value of the fund, i.e. there is no charge on the bank’s capital.
Definitions
Loan to Value
A lending risk assessment ratio defined as loan balance minus cash in the fund, divided by the current value of equities in the fund. Each fund’s mandate specifies a maximum LTV ratio.
Equity Exposure Ratio
This ratio indicates the total exposure to equities, incorporating both asset allocation and gearing (if present). A fund invested entirely in equities, with no cash and no gearing, would have an EER of 100%. A fund with 10% in cash would have an EER of 90%. A fund invested entirely in equities with 50% gearing would have an EER of 150%.
