KEYS SELECTION
Mutual fund (Fonds Commun de Placement (FCP) under French law
FUND MANAGEMENT OBJECTIVE
The fund is aimed at offering a revised unit value over a long-term holding period for investors to benefit from exposure to real estate markets. Under this fund scheme, real estate will mainly, directly and indirectly consist of the following: assets that are built or under construction, fully or jointly owned, and that may be built on land subject to an emphyteutic lease, located in France or abroad.
The strategy does not directly provide for borrowing. Companies with real estate assets may use borrowing.
Reserved for professional and similar investors who meet the criteria specified in the General Regulation of the the French Financial Markets Authority (Autorité des marchés financiers [AMF]), article 423-27, in other words those whose initial subscription is 100,000€ or more.
The Keys Selection Alternative Investment Fund (AIF) is a Specialised Professional Fund (SPF) that is not authorised by the AMF and whose operating guidelines are set by the prospectus. The Keys Selection SPF was issued to the AMF on 20/12/2016 under no. FDS57507.
The Fund’s investment strategy seeks to develop corporate real estate, located in France or abroad, mainly in Europe. It largely consists of :
- assets that are built, under construction or that will be built,
- fully or jointly owned,
- land or rights on lands, potentially through emphyteutic lease or any kind of temporary occupation agreements to construct buildings.
This real estate may be acquired either directly through the Fund or a privately held company whose main activity is real estate. Where necessary, these investments may be made through co-investment with other entities managed or advised by the Asset Management Company or a related company.
The real estate is acquired with a view to leasing.
Moreover, for commercial and office assets, the SPF will mainly target buildings that are environmentally-friendly and whenever possible, buildings that showcase technical features capable of delivering an environmental performance adequate for label certification. For instance, in France, the Fund will mainly focus on assets that comply with the RT 2012(1) and RT Rénovation thermal regulations.
(1) In compliance with article 4 of the Grenelle Environmental Law 1, the RT 2012 thermal regulation aims to limit primary energy consumption for new builds to a maximum of 50 kWhEP/m²/year) on average.
LEGAL FORM
Fonds Commun de Placement (FCP) (Mutual fund) under French law
ASSET MANAGEMENT COMPANY
Keys Real Estate Investment Management, authorised by the AMF
CUSTODIAN, DEPOSITARY AND REGISTRAR
CACEIS Bank, France (Crédit Agricole Group)
STATUTORY AUDITORS
PricewaterhouseCoopers Audit, France
ISIN CODE
FR0013222544 (Unit A)
FUND CREATION DATE
1 February 2017
RECOMMENDED INVESTMENT PERIOD(2)
8 years (each investor commits to freezing their funds for at least a year, effective from subscription).
NET ASSET VALUE (NAV) CALCULATION FREQUENCY
Quarterly
ALLOCATION OF DISTRIBUTABLE AMOUNTS
Capitalisation
BENCHMARK CURRENCY
EUR
(2) Holders may only request the redemption of their units in the Fund after at least a one-year period following subscription, subject to a 30-day notice before the net asset value issue date. Thereafter, the investor will bear a penalty of 5% following initial subscription year. The following penalties will be then be borne: 4%, effective from the start of the third year following subscription, 3% effective from the start of the fourth year following subscription, 2% effective from the start of the fifth year following subscription, 1% effective from the start of the sixth year following subscription and 0% effective from the seventh year following subscription. The Fund charges company asset management fees of up to 1.5%, external administrative fees (depositary, statutory auditors, etc.) of up to 4% maximum, a performance fee of 20% for performance observed above a per annum internal return rate of 6%, net of fees.
NAV VALUE
As of 31/12/2019, the net asset value of unit A of KEYS SELECTION is 1,197.25€
LIQUIDITY RISK
Related to the difficulty of quickly selling the fund’s assets, considering that the Fund largely invests in real estate assets and that the real estate market potentially offers limited liquidity. Furthermore, requests to redeem units may be suspended when they are above 5% of the number of units.
CAPITAL LOSS RISK
Related to the lack of money-back guarantee on the capital initially invested.
REAL ESTATE RISK
Likely to cause a decline in value due to changes in real estate markets.
DISCRETIONARY MANAGEMENT RISK
This relates to poor performance by the selections made by asset (or operations) managers.
Before making an investment decision, you need to understand how the fund is managed and the specific asset management-related risks. Please see page 9 of the prospectus: section entitled “Risk profile”.
France