ADDISON, Texas, Oct. 18, 2016 /PRNewswire/ -- Vertical Capital Income Fund's (ticker VCAPX; the "Fund") board of directors has released Fund performance data for the fiscal year, and calendar quarter, ending September 30, 2016.
The Fund produced a total return of 15.10% for fiscal year 2016—or 9.94% including 4.50% sales load—which includes a net capital gain distribution made in the fourth calendar quarter of 2015. The Fund produced a total return of 0.77% for the third calendar quarter of 2016—or -3.77% including 4.50% sales load.
"We are pleased by the Fund's ability to generate attractive income, both in terms of yearly and quarterly performance," said Robert J. Chapman, Chairman of the Fund's board of directors. "The Fund, which maintains a conservative approach to investing and management of its capital structure, continues to generate returns in excess of its market benchmark."
Since inception, the Fund has produced a total annual return of 9.74%—or 8.69% including sales load—compared to a total annual return of 2.60% for the Barclays Capital Mortgage Backed Securities Index, which reflects the performance of investment grade fixed-rate mortgage-backed pass-through securities. The Fund's total assets under management currently exceed $180 million.
Past performance is neither indicative nor a guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until 1/31/17, to ensure that the net annual Fund operating expenses will not exceed 1.85% (excluding Acquired Fund Fees and Expenses), subject to possible recoupment from the Fund in future years. Results shown reflect the Fund's expense ratio, without which the results could have been lower. Without these waivers, the Fund's total annual operating expenses would be 2.88%, and returns would have been lower. Please review the Fund's prospectus for more information regarding the Fund's fees and expenses. For performance information current to the most recent month-end, please go to provasicapital.com or call toll-free 866.277.VCIF
About Vertical Capital Income Fund
Vertical Capital Income Fund is a closed-end, continuously offered interval fund that primarily invests in residential whole mortgage loans and residential whole loans secured by deeds of trust. As a closed-end interval fund, it provides limited liquidity on a quarterly basis. The investment objective of the Fund is to seek income.
This release contains forward-looking statements relating to the business and financial outlook of Vertical Capital Income Fund that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. There is no assurance that the Fund will achieve its investment objective. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release.
Investing involves risk including the possible loss of principal.
The Fund invests substantially all its assets in groups or packages of income-producing loans secured by real estate, which are difficult to value. Up to 10% of the loans in the group or package may be delinquent or in default. The Fund will not purchase loans that currently are in foreclosure; however, loans acquired by the Fund may go into foreclosure subsequent to acquisition by the Fund. The Fund will acquire loans of borrowers with varying credit histories and may invest up to approximately 10% of its assets in loans that were classified as "sub-prime" at the time of origination.
Securities may be subject to prepayment risk because borrowers are typically able to prepay principal. The Fund will not invest in real estate directly, but, because the Fund will invest the majority of its assets in securities secured by real estate, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a more diversified portfolio. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's net asset value.
There is a risk that borrowers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In general, the price of a fixed income security falls when interest rates rise. A specific security can perform differently from the market as a whole for reasons related to the borrower, such as an individual's economic situation.
Investors should carefully consider the investment objectives, risks, charges and expenses of Vertical Capital Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866.277.VCIF (866.277.8243). The prospectus should be read carefully before investing. Vertical Capital Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Wholesale distribution services are provided by Provasi Capital Partners LP, member FINRA/SIPC. Provasi Capital Partners LP not affiliated with Northern Lights Distributors, LLC.
For Vertical Capital Income Fund
SOURCE Vertical Capital Income Fund