1. This Fund Factsheet should be read in conjunction with the Brochure and Terms & Conditions. June 2016
Investment Objective
The ECUADOR RESIDENTIAL & COMMERCIAL PROPERTY FUND (ERCP) A-Share is an open-ended, actively managed investment vehicle that focuses purely on the strategic
acquisition of direct land, incomplete construction (50% complete or more), bank repossessed, and existing properties for residential and commercial rental use in Ecuador. The funds
objective is to invest in a balanced portfolio using an “added value and income strategy” by acquiring land, incomplete construction, bank repossessed and existing properties at
heavily undervalued prices predominately concentrated in Quito, Guayaquil and Cuenca, close to future or existing Government and private infrastructure projects such as; major
roads, shopping centres, leisure facilities and universities, where growth, income and sale price potential far exceeds the regional and national average. By developing land though
planning permission and sub-dividing the funds aim is to construct a mixture of low cost, affordable, single and multi-family residential dwellings and complete incomplete construction
using our third party constructor while upgrading (Where Necessary) bank repossessed and existing properties to deliver high quality new “rental ready” properties for the retail rental
market. Renting only to financially secure tenants with high rental income and yields of 8 - 10% of the property value net p.a. in US dollars and rental contracts of 1 - 3 years allowing
the fund to sell and replace ‘older’ properties with newer higher quality, rental and resale value properties continuously coupled with multiple channels of income through both rentals
and sales. The funds aim is to achieve a target return of 30 - 35% net p.a. in US dollars providing investors with liquidity and risk-adjusted returns. All underlying assets are regulated
through an independent Trust similar to a non-traded private REIT (Real Estate Investment Trust). Investors can now benefit form investing in the only country in Latin America
denominated in a base currency of US dollars mitigating currency risk.
Fees
†
Maximum Initial Entry Fee% Up to 4.00
Annual Management Charge (AMC)
2% of NAV (Charged at 0.5%
Quarterly in Arrears)
Performance Fee
10% p.a, of any Outperformance
of the Benchmark Index
^
Property Expense Ratio (PER) 0.415%
*Redemption Penalty% 11.40 - 0.00
**Partial Withdrawals Up to 10% p.a. of Initial Investment
†
The Initial Entry Fee is the maximum that might be deducted from your money
before it is invested, however lower fees may apply at the time of investment.
Current fees can be found in the Terms & Conditions and are also available from
Pegasus Property Funds upon request.
^
The Property Expense Ratio (PER) is a measure of the additional non-recoverable
costs that specifically apply to the fund that invests in actual properties and is
deducted from the fund on a quarterly basis. These include for example, costs
such as real estate agent and valuator fees, marketing, utilities, property
maintenance, property administration, security, insurances, legal fees, municipal
fees and any local taxes. The PER is variable and adjusted on a quarterly basis. A
complete list of fees can be found in the Terms & Conditions.
*The Early Redemption penalty reduces quarterly (See table in the Terms &
Conditions). The Early Redemption notice period is 30 days prior to the relevant
dealing day and processed on a QUARTERLY BASIS ONLY.
**Partial Withdrawals of 10% p.a, of your initial investment can be withdrawn ONCE
every year after the investment has been held for a certain period of time, free of
redemption penalties. The Partial Withdrawal notice period is 30 days prior to the
relevant dealing day and processed on a QUARTERLY BASIS ONLY. (See table in
the Terms & Conditions).
www.pegasuspropertyfunds.com Page 1 of 2
Fund Facts
Sector Property
Asset Class Property
Domicile Republic of Ecuador
S&P Rating B
Issuer Pegasus Property Funds
Base Currency US dollars
Minimum Timeline (Years) 5
Inception Date September 2015
Number of Assets 7
Number of Underlying Assets 25
Size ($ millions) 11.40
Liquidity% 5.00
Dealing Day 1st - 5th Business Day of Each Month
Benchmark Index S&P Global BMI (Broad Market Index)
Custodian Bank Ecuador Produbanco
S&P Rating AAA-
Minimum Initial Single Investment in $ 100,000
Minimum Additional Single Investment in $ 20,000
Performance as of 30/06/2016
2016 January February March April May June 3 Months Year-to-Date
A-Share Price in $ 1.1286 1.1654 1.2041 1.2419 1.2821 1.3274 1.3274 1.3274
*Performance% 3.09 3.26 3.32 3.14 3.23 3.54 10.24 21.25
Benchmark Index%
(6.34) (0.47) 7.64 1.67 0.23 (0.68) 1.22 1.58
IMPORTANT: *Past performance is not a reliable indicator to future results. The value of the fund and any return from it can fluctuate and is not guaranteed. Target returns indicated
are variable and you may not get back the full amount invested. Returns shown are gross and exclude charges, fees and expenses (If Applicable) incurred within the fund. Investors
may be subject to certain taxes on redemption. The Annual Management Charge (AMC) and additional fees and expenses (If any) will reduce the performance figures shown.
Source: Pegasus Property Funds.
Risk Rating & Fundamentals
Very Low Medium Very High Risk ratings only give an indication of the risk level of this fund only in relation to
Pegasus Property Funds overall range of funds. Risk is defined as Standard Deviation
calculated based on the total returns using monthly values. The Sharpe Ratio quantifies
both volatility and performance by evaluating risk vs return.1 3 4 5 6 72
Residential & Commercial Property Fund (ERCP)
A-Shares - US dollars

2. Disclaimer: This Fund Factsheet is for private circulation and information purposes for professional investors and introducers ONLY and does not constitute as a personal recommendation,
investment advice, invitation or offer to buy or sell securities in any fund. Certain performance may have been back-tested, and is not actual performance but hypothetical. Actual returns may differ
from, and be lower than, backtested returns. The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No
responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals
who are permitted to receive such information in accordance with the applicable laws, rules and regulations of your country of residence. In some countries the distribution of this information may
be restricted and it is your responsibility to find out what those restrictions are and observe them. Pegasus Property Funds cannot be held liable for a breach of such restrictions. Please always
refer to the Brochure and Terms & Conditions. If a fund holds a limited number of assets, the effect of price movements on one of more of the assets will have a more pronounced effect on the value
of your investment than if a larger number of assets are held. If a fund is invested in overseas markets or holds currencies other than US dollars, then currency exchange rate movements may
cause the value of your investment to fall as well as rise. You may not be able to redeem your investment when you want because property in the fund can’t easily be converted into cash. If this is
the case, we may have to suspend dealing meaning we cannot carry out your request to redeem your shares. The valuation of property is generally a matter of the valuer’s opinion. Property may
sell for less than valued which will reduce the funds value. Funds that invest in property related securities (Equities) can provide potentially high returns over the short to long-term, but such returns
will be subject to greater rises and falls than investing in lower-risk assets.
$188,000
$195,900
$203,800
$211,700
$219,600
$227,500
$235,400
$243,300
$251,200
$259,100
$267,000
Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16
ERCP A-Shares
www.pegasuspropertyfunds.com Page 2 of 2
Asset Allocation1 & Top 5 Assets2 as of 30/06/2016
Hypothetical Growth of $200,000 Since Inception3 vs The Benchmark Index
No. Descripition Value in US dollars %
1 Cash & Equivalents 4,580,000 36.44
2 Incomplete Residential Construction (75% Complete) 2,610,000 20.76
3 20 Bank Repossessed Residential Properties (Rented) 2,330,000 18.54
4 Residential Construction Project (Rented) 1,700,000 13.52
5 5 Commercial Properties (Rented) 1,350,000 10.74
Asset Weighting
11%
14%
19%
21%
36%
Cash & Equivalents
Incomplete Residential Construction (75% Complete)
20 Bank Repossessed Residential Properties (Rented)
Residential Construction Project (Rented)
5 Commercial Properties (Rented)
Regional Breakdown
14%
21%
29%
36%
Custodian Bank
Quito
Guayaquil
Cuenca
$265,487.47
1
Asset weighting and regional breakdown figures are rounded and may not equal 100%. Sub-divided land is
not listed in pie chart 1, however details of sub-divided land is detailed in the quarterly report for the fund.
Prime and undeveloped land may be in the process of being sub-divided. Unallocated and reserve cash is
held by our custodian bank as detailed in pie chart 2 and transferred into an independent Trust when assets
are purchased.
2
All of the assets in the fund are valued in US dollars by an independent valuer on a monthly basis, and any
valuation of property is generally a matter of valuer’s opinion and valued as “fair market value,” based on the
current market condition. The Net Asset Value (NAV) is based on the combined valuation of all of the assets in
the fund less accrued liabilities. The above chart only indicates the top 5 assets, may not equal 100% and
may differ from the I-Shares fund. All US dollar values are rounded. All US dollar values are rounded.
3
A hypothetical $200,000 investment in the fund at inception on 01/09/15 would be worth $265,487.47 gross
on 30/06/16 excluding charges, fees and expenses (If Applicable) incurred within the fund vs $205,811.10 in
the Benchmark Index. The above graph is based on the change in the share price, no partial withdrawals or
early redemptions being made and reinvestment of any dividends (If Applicable). The graph does not imply
or guarantee any future performance or returns in the fund.
S&P Global BMI Index
$205,811.10
Residential & Commercial Property Fund (ERCP)
A-Shares - US dollars