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Settlement for the Bnp Paribas, Prelios and Beta retail funds

07 March, Il Sole 24 Ore

Retail funds, destined to savers, have arrived or are about to arrive at the end of their duration and they’re being liquidated. This type of instrument has been often put under accuse, even though the last settlements have demonstrated quite the contrary. Or, at least, they prove that it’s better to not generalise and that every case must be individually analysed. The most recent examples can help having a better view of the situation.

Tecla by Prelios

The Prelios Sgr management approved last Wednesday the final settlement for the alternative investment fund Tecla-Fondo Uffici, paying 14.5 million, corresponding to 22.49 euro per share. The fund has distributed total proceeds and reimbursements pro rata for 740.04 each share (equal to 146.5% of the initial capital paid by the investors). As a result, the average gross internal rate of return (Irr) on a yearly basis was equal to 6.96% at the end of the duration.

Andrea Cornetti, General Director for Prelios Sgr, commented in a memo: “The settlement of the fund Tecla with returns in terms of Irr equal to 7% can be considered a good result for a financial instrument that went through a financial and real estate crisis, especially for what concerns listed funds arrived at the end of their duration during the peak of the recession, with the consequence that this type of investments has been put aside, while on the international markets they represent an important driver for the real estate sector. Therefore, we hope in a comeback of financial instruments dedicated to retail investors, assisted by professional and transparent fund and asset managers in order to regain their important role in the asset management sector, following the Tecla example”.

Beta by Dea Capital

The Beta fund of Dea Capital Real estate Sgr is also at the end of its duration. The final settlement was communicated last Tuesday: since its launch on 1st January 2004 till the final pro rata reimbursement (which will be on 26th March), the investors will have benefited of a definitely satisfying internal rate of return equal to 7.28%.

The Bnp group

Bnp Paribas Real estate investment management Italy Sgr closed in 2017 two of its funds. On 22nd June the Board of Directors approved the settlement for Bnl Portfolio Immobiliare, distributing a final reimbursement equal to 448.225 euro pro rata. This corresponds to a negative internal rate of return for the initial investors equal to -1.39%. To determine this result, we must consider all the transactions carried out throughout the whole duration of the fund, as the company explained in a memo. “Since the launch of the fund, considering the reimbursement disclosed today – as the company communicated in June – the fund has distributed to its shareholders gross total proceeds equal to 689 euro pro rata and partial reimbursements equal to 1,446.485 euro pro rata, for a total (reimbursements and proceeds) of 2,135.485 euro pro rata against a nominal underwriting value of 2,500 euro pro rata”. “The debt towards the participants, amounting to 40,449 euro referred to 97 shares represented by certificates that haven’t been delivered yet for their validation and centralization at Monte Titoli Spa, will be shared between the 121,903 shares centralised in addition to the final reimbursement (since the right of collection results expired)”. As a result, we get to the negative Tir.

On the same date, the company approved the settlement for the fund Estense grande distribuzione communicating the distribution of a final reimbursement equal to 420.672 euro pro rata. In this case, the final results for the shareholders were definitely satisfying. “Since the launch of the fund, considering the final reimbursement approved today, – communicated the group- the fund has distributed to its shareholders total gross returns equal to 2,359.67 euro pro rata, against a nominal underwriting value of 2,500 euro each share. Taking into account the final reimbursement approved today, the total amount issued for each share is equal to 3,530.332 euro, corresponding to an internal rate of return of 3.53%”.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi



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