Investor A - Diverse Portfolio of Performing Loans
Investor A is a new investor who joined Estateguru recently. They have invested in multiple loans, all currently performing and on schedule, with a total performing outstanding principal of €1000.
Monthly AUM fee calculation (0.05% of €1,000): €0,50
Investor A's monthly return from investments: €10
25% of monthly return: €2,50
Investor A's monthly return from investments is €10 and 25% of that is greater than the calculated AUM fee (2,5€ › 0,50€). As a result, a 0,50€ fee will be charged.
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Investor B - Diverse Portfolio with Defaulted Loans
Investor B has a diversified portfolio of €30 000 invested, which includes both performing and defaulted loans. Investor B has €25 000 outstanding performing principal and €5 000 principal is invested into defaulted loan. Investor B has also invested into a few full-loans and is receiving interest payments once a year from those. So, we start with by taking the total performing principal balance of €25,000 and apply the following formula.
Monthly AUM fee calculation (0.05% of €25,000): €12.50
Investor B's monthly return in a particular month: €40
25% of monthly return: €10
In this case, no fee will be charged as Investor B's 25% of monthly return (€10) is less than the calculated AUM fee of €12.50.
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Investor C - Investing since 2022 and has loans in portfolio issued before November 1st, 2023, and also has done investments after 1 November 2023.
Investor C has a well-diversified portfolio of performing loans as well as some late and default loans with a total principal balance of €10,000. Out of it, €8,000 principal is invested in the loans during the year 2022 and the beginning of 2023 and Investor C has only invested €2,000 since 1. November 2023. These €2,000 are all currently performing loans. Investor C consistently receives interest payments from his/her investments. This leads to the AUM fee calculation to take into account only €2,000 performing principal amount.
Monthly AUM fee calculation (0.05% of €2,000): €1
Investor C's monthly return from investments: €5
25% of monthly return: €1,25
Since 25% of Investor C's monthly return (€1,25) is greater than the calculated AUM fee (€1), the AUM fee will be charged to Investor C.
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Investor D - Investing since 2019 and has loans in portfolio issued before 1.November 2023, and also has done investments after 1 November 2023.
Investor A has a well-diversified portfolio of performing loans with a total principal balance of €300,000. Out of it, €90,000 principal is invested in the loans during the previous years and the beginning of 2023 and Investor D has also invested €210,000 since 1. November 2023. Investor D has €200,000 outstanding performing principal and €10 000 principal is in a late loans. This leads to taking a total performing principal balance of €200,000. Investor D consistently receives interest payments from his/her investments. This leads to the AUM fee calculation taking into account only €200,000 performing principal amount (not counting the investments before 1. November 2023).
Monthly AUM fee calculation (0.05% of €200,000): €100
Investor D's monthly return from investments: €2,000
25% of monthly return: €500
Since 25% of Investor D's monthly return (€500) is greater than the calculated AUM fee (€100), the AUM fee will be charged to Investor D. However, as the fee is capped at €50 per month, then the Investor D would be charged only €50 euro.
*The AUM fee will only apply to investments made after the 1st of November 2023.