Fee Exemption: If 25% of an investor's return (interest, bonus interest and penalties) from the previous month is either equal to or less than the calculated AUM fee, then the fee will not be applied.

For greater clarity, let's look at some examples below:

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.

Investor B - Diverse Portfolio with Defaulted Loans
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Investor B has a diversified portfolio of €30 000 invested, including performing and defaulted loans. Investor B has €25 000 outstanding performing principal and €5 000 principal is invested into defaulted loans. Investor B has also invested in a few full bullet loans and is receiving interest payments once a year from those. So, we start by taking the total performing principal balance of €25,000 and apply the following formula.

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.

Maximum Fee: Even if performing outstanding principal is 100 000 EUR or more, the AUM fee will in any case not exceed €50.

*The AUM fee will only apply to investments made after the 1st of November 2023.