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Due to the fact that Royal Eagle is valued in Euros, and investments mainly will take place in South African Rand, This will have an effect on the Capital Risk. As shown in Figure 1 the last 5 years the Euro/Rand exchange rate has shown an increase of 26%. This is about 5% per annum. 
   
     
 
    
The tax effectiveness of Royal Eagle is high as the Fund will be registered in Mauritius, which has a double taxation agreement with South Africa. The returns on investment will be taxable in Mauritius, with an effective taxation rate of 3%.    
      
The market variations between Mature markets (EU) and Emerging markets (SA) is quite significant: Figure 2. They amount to 25% vs 50%. In mature markets such as Europe, land is average 30% of the sales value of finished developments. In emerging countries such as South Africa 10-15% is possible. The ratios of building costs to final sales value reflect a similar pattern. We will utilize networks and structures that are already in place to take advantage of these returns.

Our objective is to deliver a total investors return of an average of at least 20% per annum - Figure 3. We will not focus on a high income return, as the Fund will target a high Capital Growth of the investment. The Capital Risk is low to medium as the fund is investing in property across the sectors which are considered low risk investment categories.