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KanAm grundinvest FondsThe Fund
Feri rating
Investment opportunities
Fund management report
Properties
At a glance
Income tax treatment of the 2008 distribution
Risk management methodsEligibility for trust investments
KanAm US-grundinvest Fonds
KanAm SPEZIAL grundinvest Fonds

 

Our risk management methods     
Investor information in accordance with section 121(4) of the InvG

KanAm Grund regards its risk management system, which serves as a supervisory and early-warning system, as a means to make key risks transparent, to actively manage them, and to implement suitable risk mitigation measures and controls.

KanAm Grund’s risk management system is a comprehensive system designed to manage, monitor, and control all risks that affect the financial situation of the Company and its investment funds. In addition to IT-based quantitative methods, the Company applies qualitative risk controls and methods that focus on the respective responsible risk managers. KanAm Grund performs a risk assessment of all its processes. This results in an end-to-end risk management system that is based on statutory requirements and has been tailored to reflect KanAm Grund’s risk profile.

The system identifies, assesses, manages, and monitors all risks associated with the investment fund and the business operations, in particular counterparty, interest rate, currency, and other market risks, as well as operating and liquidity risk. In addition,

  • risk concentrations are minimized using a limit system,
  • the investment company has a procedure and systems in place for the early detection of risks, allowing it to initiate the necessary countermeasures in good time,
  • the risk management system is adjusted rapidly to reflect changing conditions and reviewed at least once a year,
  • a risk report prepared by the management in accordance with these rules is presented at appropriate intervals, and at least quarterly,
  • a suitable stress test is performed at least once every quarter to identify unusually large losses in value incurred by the investment fund; this covers all risks that have a significant impact on the investment fund’s value.


In accordance with section 80b(2) sentence 1 of the “Investmentgesetz” (InvG – German Investment Act), the investment funds’ risk management function must be assigned to a unit within the investment company that is organizationally independent of portfolio management up to management level.

The risk management process is defined by the risk management contol loop, which comprises the following subprocesses:

  • risk identification
  • risk assessment
  • risk management
  • risk monitoring
  • risk communication

This iterative process allows KanAm Grund’s risk management system to be constantly enhanced and adjusted in line with new risk situations. This enables KanAm Grund to implement a risk management system that identifies risks at the level of the investment company and the investment fund, regardless of the organizational unit in which the risk originated.

The information below shows recent risk and return developments for KanAm grundinvest Fonds´ key asset categories.

 

Investment performance* as of December 31, 2009
  1 year 3 years 5 years  
     
Performance in % 4.0 16.2 30.9  
         
Average performance in % 4.0 5.1 5.5  

*
Calculated according to the BVI method. Basis of calculation: unit value (front-end charge is not included); distribution is reinvested. The historical performance of the investment fund is not indicative of future performance.
Source: BVI

Investment ratio as of December 31, 2009

Real estate and real estate companies accounted for

84.0% of KanAm grundinvest Fonds´ gross assets      
according to the Semi Annual Report as of December 31, 2009.

Diversification by location

As of December 31, 2009

 

Earnings components

Return ratios as of June 30, 2009

 
France in %
Nether–lands
in %
United Kingdom in %
Canada in %
Other excluding Germany* in %		 Total direct investments in %
Equity interests in %

Total in %
I. Properties
Gross return 6.0 6.4 5.3 6.1 4.3 5.61) 5.82) 5.7
Management costs –0.5 –0.6 –0.1 –0.5 –0.7 –0.41) –0.62) –0.5  
Net return 5.5 5.8 5.2 5.6 3.6 5.21)   5.22) 5.2
Changes in value 3.9 0.6 –4.6 1.5 –4.0 0.21) –3.42) –0.6
Foreign income taxes 0.1 –0.2 –0.6 0.0 0.2 –0.11) 0.0 2) –0.1
Foreign deferred taxes ´2.0 1.7 0.0 0.4 0.9 1.11) 4,52) 1.8
Return before borrowing costs 11.5 7.9 0.0 7.5 0.7 6.41) 6.32) 6.3
Return after borrowing costs 15.3 12.5 –3.2 5.9 –2.5 7.23) 4.54) 6.6
Exchange rate differences 0.0 0.0 –1.0 0.0 0.6 –0.13) 0.34) 0.0
Overall return* 15.3   12.5   –4,2   5.9   –1.9   7.13)   4.84)   6.6  
II. Liquidity 3.45)
 
III. Total fund return before fund costs 6.06)
 
Total fund return after fund costs (BVI method) 5.0
* Spain, Luxembourg, heritable building right in Belgium, Latvia and the USA
1) based on average real estate assets
2) based on the average real estate assets of the real estate companies as a proportion of the equity interest held
3) based on average equity–financed real estate assets
4) based on the average equity–financed real estate assets of the real estate companies
5) generated with the average proportion of fund assets invested in the liquidity portfolio during the fiscal year
6) based on the average fund assets

Leasing

 
Vacancy rate as of December 31, 2009: 1.4 %  
     
Leased rate as of December 31, 2009 98.6 %  

As of December 31, 2009


Fund return as of June 30, 2009

Investment performance*  5.0%  
     
Tax-free portion of investment performance** 100%  
     
Tax-free portion of the distribution** 100%  
     
Total expense ratio (TER)
   excluding performance-based remuneration
   including performance-based remunerationg
0.99%
1.04%		  
* Calculated according to the BVI method. Basis of calculation: unit value (front-end charge is not included); distribution is reinvested. The historical performance of the investment fund is not indicative of future performance.
** Units held as private assets. Tax treatment depends on the investor´s personal situation and is subject to change going forward.

Volatility as of December 31, 2009

 
over 1 year: 0.6 % p.a.  
     
over 3 years: 0.8 % p.a.  
     
over 5 years: 0.9 % p.a.  

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