Fund Structure

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EFSE is a closed-ended investment company, established on 15 December 2005, under the laws of the Grand Duchy of Luxembourg as a public limited company that qualifies as a "société d'investissement - capital variable" ("SICAV"). The Fund was set up for an unlimited duration and is open to institutional investors only.

The Fund is structured as an umbrella fund (Fund of Funds) with different national/regional sub-funds. Further, EFSE issues various classes of Shares and Notes (A Shares & Notes, B Shares and C Shares), each evidencing a different risk level.

Private institutional investors will primarily invest in the form of A Shares or Notes. C Shares are exclusively reserved for public donors. B Shares will only be issued to a limited extent. A Shares and Notes are issued with maturities between 5 and 10 years. C Shares have an unlimited maturity.

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The sub-funds group their assets to invest in different pools that are dedicated to a specific nation/national entity or a certain group of countries. Each sub-fund is responsible for its own liabilities, commitments and obligations. Each national pool has its own subordination waterfall. Investments from the different sub-funds in the pools are protected in proportion and according to the different risk classes invested in these pools.

The C Shares bear the first net loss risk incurred in the respective national or regional pool. The B Shares - owned by the regional A & B sub-fund - will only suffer a net loss to the extent that the C Shares are depleted, being followed by the A Shares and Notes.