Viager Life Fund SA Innovative and Unique

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2 Viager Life Fund SA Innovative and Unique CODE ISIN FOR QUALIFIED INVESTORS (CLASS A) : LU CODE ISIN FOR INSTITUTIONAL INVESTORS (CLASS I): LU

3 THE FOUNDER The entity at the origin of Fonds Viager Life SICAV-SIF SA is Turquoise Finances SA, an independent asset manager located in Geneva/Switzerland Early in 2005 Turquoise Finances SA took part in a project to create an investment company in the field of viagers (the sale of real estate under a lump-sum payment and a life annuity system). Actuaries and experts in taxes and real estate assisted Turquoise Finances SA in this project and the study conducted before the Fund was set up. During the past five years Turquoise Finances SA has managed more than 150 transactions according to the life annuity system in France. Fonds Viager Life SICAV SIF is the first regulated investment fund investing in Life Annuities as been registered in Luxembourg on 18 August

4 ELDERLY PEOPLE IN EUROPE According to all demographic forecasts, the population in Europe is ageing. This ageing is leading to a radical social and economic upheaval. The declining number of active persons and the increasing number of pensioners will deeply modify the equilibrium of the labour market, the pension and health systems as well. At present, within the EU there are four people of working age for each person over 65 years old. In 2050, this ratio will be two of working age for each pensioner. The EU in 2050: one big retirement home The average age of a European citizen is 39 years old. In 2050 it is expected to be 49 years old, with 11.4% of people aged over 80 years old. In fact life expectancy is increasing due to significant social, economic and medical progress. Consequences of this social time bomb are foreseeable. Pension plans in Europe compel nowadays workers of today to finance pensions of yesterday s workers at more than 7% of GDP. This figure could increase twice by Pension plans are going to collapse. 3 3

5 ELDERLY PEOPLE IN FRANCE According to the Centre de Recherche pour l Etude et l Observation des Conditions de Vie (Research Centre for the Study and observation of Life Conditions) 13.4 million people living in France were aged 60 and over, representing 21.1% of the population. 5.2 million were aged 75 and over, constituting 8.3%. Their number is constantly increasing. 3 million pensioners live alone. For the past ten years, the number of those aged 75 and over has increased by an average of more than 3% per year. 75% of them are women. 76% of elderly people are owners. According to INSEE, in 2010 the average monthly pension was 1216, 822/month for women and 1455/month for men, taking in consideration that the poverty line is 960/month, constituting 60% of medium standard of living Priorities for pensioners are: - to remain in their home - to find a way to increase their standard of living and finance their health care. - to pass on an inheritance. 4 4

6 VIAGER, LIFE-ANNUITY REAL-ESTATE KEY POINTS Viager Lump sum Lifeannuity 5 5

7 WHY THE VIAGER? The crédirentier or annuitant, who sells his real estate property improves his pension by the initial lump sum bouquet payment receives the life-annuity benefits from tax advantages continues to occupy lifelong his real estate property in the case of a couple, the property is only released on the death of the surviving spouse. The life-annuity is determined according to various variables: the age of the vendor(s) average life expectancy mortality tables used by actuaries of the relevant countries. 6 6

8 CALCULATION OF AN OCCUPIED VIAGER CONTRACT BASED ON THE 2012 DAUBRY SCALE Man and woman aged 75 Market value 500,000 Occupied value 246,000 Bouquet lump sum 73, % 30 % 246,000 73,800 = 172, ,200/14.5/12 months = 989 Capitalisation coefficient 14.5 Annuity 989(total 11,868 /year) Types of products sought: -Average unoccupied value: 500,000 - Average age of the vendor : 78 years -Couple or a person alone -Sectors: Paris, major European cities The annual annuity represents 2.37% of the Market Value The bouquet lump sum represents 14.79% of the Market Value Lump sum + annual annuity represents 17.13% of the Market Value The life expectancy of a man is 82.4 years and of a woman 85.9 years(eurostat) 8 7

9 EUROPEAN UNION MARKET Territory Population Householders Retired population UE membres (28) or 23% (UE at 27) France Sources: INED, Insee, Statistique mondiale, Eurostat, Démographie et vieillissement en Europe, press. 11

10 EUROPEAN UNION MARKET UE Retired people over sixty-five or 17% (Insee) UE countries having the highest householders rate UE countries having the lowest householders rate Romania : 97,5% Germany: 53,2% Lithuania : 93,1% Austria : 57,4% Slovakia : 90,0% France : 62,0% The number of owners inside of European Union increased from 65 to 70,7% during the years 2007 to 2010, that means 5,7% increase during the crisis Sources: Eurostat, EU-SILC. 12

11 FRENCH MARKET FRANCE Retired households Retired real estate owners Viager transactions in '400 There are 2 million retired people in Ile de France region. 70% of them have less than 750 /month. Sources: Le Monde, Insee. 13

12 CHARACTERISTICS OF THE FUND Legal form Management company Depository bank Net asset value Investment strategy Size- objective Share categories Issue costs SICAV SIF registered in Luxembourg Turquoise Finances (Luxembourg) SARL ABN AMRO BANK Quarterly Purchase of occupied real estate property under life annuity system 100 million Class A (private clients) Class I (institutional) 3 % max Management costs 2 % Minimum subscription 125,000 Supervisory body Commission de Surveillance du Secteur Financier (CSSF Financial Sector Supervisory Commission) Taxation Code ISIN Category A According to the taxation of the country where the investor is a resident for tax purposes (securities) LU Code ISIN Category I LU Please refer to the prospectus for the terms and conditions of the Sicav-SIF. 15

13 PARTNERS Fund Distribution Real Estate Expert Custodian Bank Fund Auditor Actuaries Fund Administrator Fund Manager