Page 94 - Annual Report 2010

ANNUAL REPORT 2010

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CHF: 0.1% DKK: 0.8%

GBP: 18.0%

SEK: 3.1% USD: 2.6%

EUR: 75.4%

(as % of the total fair value, EUR 194.4 m)

Impact in EUR GBP increase of 15% vs. EUR GBP decrease of 15% vs. EUR

31.12.2010 5 684 746 (4 201 769) 31.12.2009 4 581 704 (3 386 477)

Foreign exchange rate risk

3.5.3.2.A. Private Equity

On the PE side, at 31 December 2010, currency exposure for the PE funds can be broken down as follows:

For 2010, changes due to foreign exchange rates for shares and other variable income amount to EUR 2 499 130, of which EUR 2 294 406 has been posted to the fair value reserve (2009: respectively EUR 2 358 344 and EUR 1 320 601).

The sensitivity analysis is performed for all currencies representing more than 5% of the total exposure. As of year end, only Pound Sterling falls into this category and has been stress tested with an increase / decrease of 15% vs. the Euro.

It should be noted however, that these impacts are measured at a fund level (impact on the net asset values denomi-nated in out-currency). Accordingly, they do not take into account indirect potential effects on the underlying portfolio companies which could be in out-currencies. In practice fund managers try to hedge any positions they hold in currency other than the fund’s main currencies.

In addition, the underlying investments are also diversified and the indirect exposure of EIF broadly follows the exposure at fund level, as illustrated by the graph below:

NOK: 0.8%

US Zone: 5.9%

Asia: 0.1% CEE: 5.3%

Israel: 0.6%

Other: 1.5%

GBP: 20.2%

SEK: 8.5%

DKK: 1.9%

CHF: 2.3%

EU Zone: 52.8%