Performance Report 2007
| Letter to investors and partners | Evaluation Principles |
Evaluation Principles
| The evaluation principles on which the seventh annual reportof König & Cie. GmbH & Co. KG, Hamburg, as per the closingdate of 31 December 2007 is based are explained below. The data of the “Annual Report 2007” of König & Cie. GmbH& Co. KG, Hamburg, were audited by the chartered accountantsHansetreuhand GmbH, Hamburg. The annual report was prepared in accordance with the VGFguidelines as adopted on 27 June 2007 and last amended on11 December 2007. The data from the individual annual accounts of the fund companieswere used as the basis to determine the current figures.All of the fund companies, with the exception of the realestate funds, have engaged accountants to audit their annualaccounts. Annual reports, issue prospectuses, issueprospectus supplements, prospectus audit reports, annualaccounts from affiliated companies, actuarial reports, listsprepared by the administrators of policy portfolios showingthe surrender values of insurance policies, loan agreementsand minutes from partners’ meetings and Advisory Boardmeetings were used as supplementary documentation. Thedata were compared with the data contained in the prospectusesand, if necessary, translated at the official EUR/DM exchangerate (1:1.95583). The basis for the data of the prospectusesis the investment prospectus as most recently revised,taking into account prospectus addenda. The first step was the compilation of the data of the individualfund companies in the cumulative model portfolio. Thedebt of the fund companies in the appropriate currency isshown in the loans overview below. It is followed by detailedinformation on the issuing fund companies. There will be adiscussion of the sold fund elements in the section “Exits”.The section Current Projects lists the fund companies forwhich issues are planned for 2008 and whose issue prospectuseshave already been approved by the BaFin. The model portfolio shows the development of an investmentin the amount of €100,000, plus premium as appropriate,from the investor’s viewpoint and enables a comparison withother investments. In addition to the capital lockup, the capitallockup with respect to unscheduled amortisations isshown. Details will be found in the explanatory comments onthe model portfolio. The loans overview shows the original value, the repayment ofthe principal and the status of the loans as per 31 December2007, broken down into the relevant currencies of the loans.Moreover, the currency translation rate at the time of the loanvaluation and as per 31 December 2007 is shown. The presentation of the individual funds begins with anoverview of the fund data. The list includes, for example, themajor technical data, tax information and the major contractualpartners. Information about investments and financing, loan development,course of business, disbursements and tax results incomparison with the data of the prospectus follows. The figuresfor 2007 are shown along with the cumulative values. The investment volume is defined as the total of fund capital,initiator capital, premium, outside capital and current accountcredit line. The fund capital and the initiator capital includeany silent participations along with the limited liability capitalAny premium which is to be paid amounts to 3% or 5% on thefund capital and, as applicable, initiator capital. The loan development shows the development of the mortgageloans in euros from the point in time they were set up to31 December 2007 in comparison with the prospectus. Loansand repayments in foreign currencies are also translated intoeuros for the prospectus values at the actual valuation exchangerate when taken out. The cumulative profits/lossesfrom exchange rates are shown separately. The net sales, operating expenses, other costs and interestpaid to silent partners follow. The other costs contain essentiallythe administrative expenses, the interest expenses andexchange rate differences affecting liquidity. The total of theseitems is the operating results. The operating results do not includein particular the start-up expenses of the specific fund,nor the expenditures and earnings, e.g., from depreciationand the creation and reversal of provisions for imminent losses,which are not effective on payments. The operating resultsless the repayments give the liquidity result. The liquidity resulttherefore shows whether the disbursements shown immediatelythereafter were realised. Furthermore, the liquidity reserve, including liquidity carriedforward, and the current account credit line contained thereinare shown. The liquidity reserve data are related to theclosing date and were derived from the balance sheet of the 67König & Cie. Annual Report 2007 Performance Record 2007 | Performancepertinent fund company. Liquidity was determined from theincome statements for companies which have not concludedthe investment phase. In addition, the utilisation days areshown. This is followed by disbursements in percent, losses whichcan be equalised (taking into consideration Sections 15a or15b EStG) and the taxable profits. The losses which can beequalised, which can be related to a number of years, are theequivalent of the tax results of the fund company in the investmentphase. The profit calculated as a lump sum in accordancewith Section 5a EStG was shown for the shipping companieswhich have already opted for tonnage taxation; the incomefrom commercial operations in accordance with Section15 EStG was shown for the other companies. The real estatefunds »Amsterdam-Zaanstad«, »Amsterdam-West«, »Amsterdam-Nord« and »Pakhuis-Amsterdam« are in part subject toDutch tax laws. The funds »Britische Leben« I to III are in partsubject to British tax laws. The fund »Mezzanine-OpportunityUS I« is in part subject to American tax laws. If significant information about business operations of individualfunds was available by 30 June 08, it was included in theexplanatory comments. Any cases of warranty which occurred are described in the reportson the individual funds. König & Cie. Treuhand GmbH is the trustee of the fund companieswith the exception of the companies MS »StadtMünchen« T + H Schiffahrts GmbH + Co. KG, W. BockstiegelGmbH & Co. Reederei KG MS »Atlantic Carrier« and W. BockstiegelGmbH & Co. Reederei KG MS »Atlantic Island«. SaxoniaTreuhand GmbH is the trustee for this latter group. The MS »Montania« Schiffahrtsgesellschaft mbH & Co. KGand the MS »Wehr Ottensen« Schiffahrtsgesellschaft mbH &Co. KG were initiated by the Ahrenkiel SeeschiffsbeteiligungenGmbH & Co. (ASB) under the management of TobiasKönig. In the meantime, Tobias König has withdrawn from themanagement of ASB and is also not represented in the managementof the respective investment companies. At the requestof the main shareholder of ASB, the Reederei ChristianF. Ahrenkiel, it was decided, in consultation with respected investmentprotectors, that this fund would no longer be includedin the annual report of König & Cie. GmbH & Co. KG.However, the usual information of the companies is availableto the participating shareholders.The fund MS »Canso Strait« GmbH & Co. KG was initiated incooperation with the ship management company AlnwickHarmstorf & Co. The funds MS »Dolphin Strait« GmbH & Co.KG and MS »Victoria Strait« GmbH & Co. KG were initiated incooperation with Carsten Rehder Schiffsmakler und ReedereiGmbH & Co. The fund MS »Vega Diamond« GmbH & Co. KGwas initiated jointly with Vega-Reederei Friedrich DauberGmbH + Co. KG. All four funds were sold as private placementand are therefore not included in the performance record atthe request of the specific company. A prospectus was prepared for the MS »Cape Saunders«Schiffahrts GmbH & Co. KG in 2001 and the sales began. Theship was not accepted by the fund company due to defectswhich were not properly remedied by the seller. The participatinginvestors participated in other projects at that timeand did not suffer a loss. Due to the condition of the buildings at the time of thetakeover and the construction measures for both buildings ofthe Real Estate Fund V »Salzburg« which were still to be expected,the initiator refused acceptance due to lack of performancein conformity with the contract. The fund and all ofthe related contractual relationships were then completelyreversed with the agreement of the project partner. The involvedinvestors participated in other projects at that timeand did not suffer a loss. As a consequence of the bankruptcy of the charterer, the shipfunds MS »STADT ROSTOCK« T + H Schiffahrts GmbH + Co.KG and MS »STADT WISMAR« T + H Schiffahrts GmbH & Co.KG issued at the beginning of 2005 were taken off the marketat the beginning of 2006. The ships were included in newfunds in 2006 and placed under the changed conditions. Theoffer for investment in the MT »KING DEAN« TankschiffahrtsGmbH & Co. KG was withdrawn in 2006 due to the increaseof the financing interest rate and the weakening of the US dollarwith respect to the euro during the placement; it has beendecided to issue a new prospectus. The existing investmentswere reversed without any losses. |