The value in euro of a traded real estate fund, defined as the product of the number of traded units and their official market price.

This indicator is a geometric average annual return over a given period. It provides the investor with a calculation of the annual return net of taxes and commissions.

Acronym indicating the Italian Securities and Exchange Commission, established in June 1974. This commission is made up of a President and four members (experts in the financial market) who are appointed by the Italian Council of Ministers and remain in office for 5 years.

The Commission has the power to: regulate Stock Exchange contracts, set minimum amounts to be traded on the Stock Exchange, define the prerequisites for admission to the Stock Exchange, identify price fixing methods, approve prospectuses for the admission of new companies to the Stock Exchange or for the placement of new mutual investment fund units or SICAVs (Open-Ended Investment Companies).

In order to ensure a regular market trend, the Commission may also impose sanctions on those who do not act correctly and expel financial advisers, suspend the activities of SIMs (stockbrocking companies), etc.

A fund built up through the contribution of real estate assets, real estate rights or shareholdings in real estate companies on the part of a grantor. In contribution funds, units may be subscribed through the contribution of assets. The fund may be public or private according to the grantor.
The real estate fund units that investors receive in exchange for the contribution made are subsequently re-placed on the market by the SGR. This type of funds enable investors to know the list of properties making up the fund before subscription, so that they can evaluate the fund assets, its potential profitability, development and revaluation and make a conscious decision.

A service regulated by the Legislative Decree 58/98 and consisting of a) the promotion, establishment and organisation of mutual investment funds and the management of relationships with investors; b) the management of own or third-party OICRs (Italian Collective Investment Undertakings), by carrying out investments in financial instruments, credits or other movable or real estate assets.

Capital loss deriving (in the case of real estate funds) from the purchase and sale of real estate assets and equal to the negative difference between the property’s sales price and purchase price, net of any matured interests or expenses.

The charges that the fund, the investor or the SGR are subject to, as set out in the management regulations of the various real estate funds.

Realised gains from the sale of an asset at a higher price than the acquisition price posted on the financial statements. Capital gains can also derive from the evaluation carried out by independent experts based on market value, and not from the actual sale of an asset.

A service regulated by the Legislative Decree 58/98 and consisting of a) the promotion, establishment and organisation of mutual investment funds and the management of relationships with investors; b) the management of own or third-party OICRs (Italian Collective Investment Undertakings), by carrying out investments in financial instruments, credits or other movable or real estate assets.

Code defining how operations carried out by persons who – by virtue of their function – have access to confidential information and involving closed-end real estate (and security) fund units traded on regulated markets, are notified to the market.

Starting from 1 January 1999, listed securities have ceased to exist in paper format. Thanks to the Monte Titoli centralised system, rights are guaranteed by the book-keeping entries kept by the financial intermediary (SIM, Bank) where investor’s securities are deposited.

Investigation aimed at evaluating a property from a technical/construction, town-planning, environmental, administrative, market and financial point of view, normally carried out before an investment is made. This process is mainly based on a comparison between the property’s actual state and the relevant documents.

The commission retained by the SGR upon redemption of fund units (rarely applied in case of real estate funds).

The integral management of real estate assets, necessary for the correct running of the buildings. It is mainly based on the planning of maintenance and requalification activities and on the management of relationships with suppliers

The Fund Manager is appointed by the SGR to identify strategies aimed at maximising fund returns while minimising risks.

Management regulations envisage the following types of charges (please refer to the prospectus, listing information and Management Report for official data):

· SGR annual management commission, equal to a percentage of the fund’s total asset value or net assets, as defined in the management report, net of unrealised capital gains on real estate assets and on shareholdings against their purchase value

· annual commission paid to the Depository Bank for controlling the SGR in relation to any harm suffered by individual investors and due to the SGR’s non-compliance with its obligations.

· commission paid to independent experts for their evaluation of property assets

· charges deriving from the purchase and divestiture of the Fund's assets (real estate brokerage commissions and taxes, legal and notary fees, etc.)

· administration, maintenance and renovation costs relating to fund properties

· other charges (insurance premiums, publication costs, audit fees, financial expenses for fund loans, legal fees, taxes, supervision fees)

· overperformance commission (carried interest), commission due to the SGR based on the performance achieved at the expiration of the fund.

The fund value is given by all fund assets net of liabilities. It is calculated by the Board of Directors within 60 days of the end of the financial year and within 30 days of the publication of the half-yearly report.
The evaluation of individual fund components is based upon the criteria established by the Supervisory Authorities in compliance with Legislative Decree no. 58 of 24.02.98 (Italian Consolidated Law on Finance). The unit value is published twice a year in the newspapers as specified in the Prospectus and Fund Regulations.

Bank or SIM (Stockbroking company) that coordinates the placement and oversees the offer process of a company’s financial instruments.

Initial Public Offering, i.e. the first offering of shares to the public by a privately-owned company. The Italian acronym is OPV.

Any type of offer, invitation for offer or advertising message directed to the public and aimed at the sale of financial products.

Management regulations envisage the following types of charges (please refer to the prospectus, listing information and Management Report for official data):

· subscription fees, fixed or calculated as a percentage of the sum invested

· fixed charges

· reimbursement of out-of-pocket expenses incurred by the SGR

A measure of return on an investment that takes into account the invested capital as well as the size and timing of cash flows. Technically it is the discount rate whereby the actual value of expected net cash flows is equal to the value of generated assets.

Management of all the necessary activities for the planning, performance and monitoring of maintenance interventions on the properties.

Management of all the necessary activities for the planning, performance and monitoring of maintenance interventions on the properties.

Monte Titoli S.p.A. a joint stock company and the Italian central securities depository (shares and bonds). The company was established in 1978 on the initiative of the Bank of Italy, of a group of banks and professional associations belonging to the CIPA (Interbanks Convention for Automation–Related Problems) and of stockbrokers. Law no. 289 of 19.06.1986 transformed Monte Titoli from a trust company into a service company, with a view to rationalising the deposit and management of securities.

The total number of units exchanged daily on the markets regulated by Borsa Italiana S.p.A.

The net asset value of a real estate fund, defined in the half-yearly reports and financial statements and equal to the difference between the real estate fund's assets and liabilities, taking into account technical investigations carried out by independent experts. This is also the reference data that is used for redemption upon unit liquidation.

The assets making up a real estate investment fund, net of liabilities. Basically, the capital managed by the SGR on behalf of fund investors.

A Fund established through the subscription of units by savers. Financial resources collected from the public are then used by the SGR to purchase real estate assets, real estate rights or shareholdings in real estate companies.

Undertaking for Collective Investment in Assets. The Italian Consolidated Law on Finance introduced the acronym OICR, which replaced the OICVM (undertaking for collective investment in transferable securities).

Document approved by the Italian Stock Exchange and by Consob, whereby the SGR gives the investor all the necessary information on the product's characteristics and which the sale of mutual fund units depends upon. The prospectus must be provided to the client before the latter purchases fund units. It must contain all the necessary information for the investor/saver to get a clear view of the investment being proposed.

Organisations that periodically have at their disposal large sums to invest. “Qualified Investors” – as defined by art. 1, par. 1/h of Ministerial Decree 228/99 – are:

· Investment companies, banks, stockbrokers, asset management companies (SGR), open-ended investment companies (SICAV), pension funds, insurance companies, parent holding companies of bank groups and persons listed in articles 106, 107 and 113 of the Italian Consolidated Law on Banking;

· foreign persons authorised to perform the above-mentioned activities, in compliance with relevant national laws;

· banking foundations;

· natural and legal persons and other bodies with specific competence and experience in operations with financial instruments, as explicitly stated in writing by the natural person or by the legal representative of the legal person or body;

Funds in which capital gains (deriving from the sale of properties or from fund profits) are – entirely or partially – regularly distributed to investors.

A financial instrument whereby real estate assets are managed directly or indirectly – through shareholdings in real estate companies. For the fund to belong to this category, at least two thirds of its total value must be invested in real estate. Italian real estate funds are generally closed-end. In other words, units are only redeemed at set intervals, given the limited amount of liquidity characterising this type of investment. Legislative Decree no. 351 of 2001 and Ministerial Decree no. 47 of 2003 introduced the possibility of successive issue of units and early redemption, with a view to increasing fund liquidity.
These funds may be classified according to the category of potential subscribers (retail or qualified investors), the property acquisition method (contribution or non-contribution) and dividend payout policy (distributing or non-distributing fund).

A financial instrument whereby real estate assets are managed directly or indirectly – through shareholdings in real estate companies. For the fund to belong to this category, at least two thirds of its total value must be invested in real estate. Italian real estate funds are generally closed-end. In other words, units are only redeemed at set intervals, given the limited amount of liquidity characterising this type of investment. Legislative Decree no. 351 of 2001 and Ministerial Decree no. 47 of 2003 introduced the possibility of successive issue of units and early redemption, with a view to increasing fund liquidity.
These funds may be classified according to the category of potential subscribers (retail or qualified investors), the property acquisition method (contribution or non-contribution) and dividend payout policy (distributing or non-distributing fund).

The return target is the result above which an overperformance commission may be acknowledged to the SGR. In other words, the “minimum” result is the reference point for the calculation of the above-mentioned commission, and not a realistic return parameter investors can expect upon the expiration of the fund.
Performance evaluations of real estate funds must take into account the fact that return targets derive from economic estimates and offer no guarantee of future profits. Furthermore, units may only be redeemed upon expiration of the fund and upon the conditions set out in the fund management regulations

The investment in real estate funds, by its very nature, has a mid to long-term time scale of about 10-15 years. In any case, the lifetime of a real estate fund cannot exceed 30 years.

Asset class including investments in property or in companies and investment instruments that conduct real estate transactions or invest in real estate.

Document that completes the information contained in a fund Prospectus. A fund’s Regulations must be approved by the Bank of Italy and contain all the rules defining how the fund works and what the roles of the parties involved are, and governing the relationships with fund investors.

Returns are profits generated by the fund – excluding unrealised capital gains – indicated in the fund half-yearly report and financial statements.
They can be distributed periodically to unit holders (as provided for by the SGR’s Board of Directors based on fund management regulations) or accrued and paid out upon liquidation of the fund.

The return of a real estate fund is made up of the profits deriving from financial and property investments and from their professional management. The two factors give the following results: the capital gain and the return from rental contracts.

È la caratteristica di una particolare tipologia di Fondo Immobiliare, il cui patrimonio viene raccolto presso gli investitori mediante più emissioni di Quote (il cui valore corrisponderà al valore unitario stabilito nell’ultimo rendiconto/relazione disponibile) . Tali nuove emissioni di Quote avverranno in corrispondenza dei nuovi periodi di sottoscrizione che la SGR può aprire nell’arco di vita del Fondo, fino al raggiungimento del valore massimo dello stesso.
Non è prevista la possibilità per i Partecipanti di richiedere il rimborso anticipato delle Quote possedute, neppure in coincidenza con le nuove emissioni.
L’unico fondo gestito da Fimit SGR con tali caratteristiche è Gamma, Fondo Immobiliare di Tipo Chiuso riservato ad Investitori Qualificati.

The commission paid by fund participants at the time of the first subscription and (where applicable), when subscriptions are reopened. No subscription or entry commissions apply for funds managed by Fimit SGR.

Italian acronym standing for Società di Gestione del Risparmio (Asset Management Companies): i.e. companies that are authorised to carry out collective management of financial products (mutual funds) in conformity with the Italian Consolidated Law on Finance. Company assets are separated from fund assets. Authorised SGRs in Italy are entered on a specific register held by the Bank of Italy.

Method used by a company to split its operations and assets by creating a new company. It proportionately distributes shares in the new company to its own shareholders.

An intermediary that cooperates with the issuer for the listing approval of financial instruments and undertakes to guarantee the quality information provided by the issuer.

A segment of the Telematic Stock Market on the Italian Stock Exchange (operative from 1 July 2002) dedicated to the listing and trading of closed-end mutual investment funds, indexed open-end mutual investment funds and ETFs (Exchange Traded Funds). On this segment, real estate fund units are traded exactly like shares:
The trading timetable is as follows:

· 08.00 - 10.50 opening auction, pre-trading period;

· 10.51 -10.55 opening auction, validation period;

· 10.55 -11.00 opening auction, opening period;

· 11.00 -16.35 closing auction, pre-trading period;

· 16.36 -16.40 closing auction, validation and closing periods.

The unit value of fund units is calculated by dividing the total fund value by the number of circulating units. This unit book value should be taken into consideration while calculating an investor’s total fund assets.