December 30, 2011
Mortgages are sold by an originator as either mortgage-backed securities or as whole loans. When you buy a MBS you are purchasing a security that is backed by mortgage loans. Buyers of whole loans are purchasing the actual loan, the note, and mortgage and therefore have control over the servicing and direct recourse to the property in the event of a default.
The Fund’s investment objective is to seek income.
The fund invests substantially all of its assets in income-producing first lien whole loans secured by residential real estate.
Prior to purchase, each mortgage note goes through a due diligence process that includes considerations such as underwriting borrower credit, employment history, property valuation, and delinquency history with an overall emphasis on repayment of the mortgage notes. The purchase price of the mortgage notes reflects the overall risk relative to the findings of this due diligence process.
The Fund intends to make a dividend distribution each month to its shareholders of the net investment income of the Fund after payment of Fund operating expenses. Distributions from investment income, if any, are declared and paid monthly and are recorded on the ex-dividend date. The Fund will declare and pay net realized capital gains not previously distributed, if any, annually.
The board’s decision to declare distributions will be influenced by its obligation to ensure that the Fund maintains its federal tax status as a Registered Investment Company. In order to qualify as a Registered Investment Company, the Fund must derive a minimum of 90% of its income from capital gains, interest or dividends earned on investments and must distribute a minimum of 90% of its net investment income in the form of interest, dividends or capital gains to its shareholders.
The fair value of the investments of the Fund are determined on the last business day of each month.
The full extent of the pandemic’s impact on the portfolio is not yet known. However, the economic stresses homeowners across the country are experiencing are likely to impact their ability to make mortgage payments to some extent. The fund’s adviser, Oakline Advisors, and their dedicated team of professionals along with our valued partner companies are diligently monitoring the existing portfolio and the whole loan marketplace to identify areas of potential impact, and will provide updates as conditions warrant.
May 30, 2019
Many investors evaluate the difference, whether a premium or a discount, between the fund’s daily trading price and the fund’s underlying net asset value over time as an important factor in their investment considerations, particularly for closed-end funds. That being said, VCIF utilizes an independent third party to arrive at the monthly reported Net Asset Value for the fund whose proprietary methodology for valuation involves inputs from over a 100 economic variables.
The adviser for VCIF is based in Dallas, Texas.