Monthly Income Fund Investment Return

Regardless of the performance of the Monthly Income Fund, the maximum amount which Investors can receive is the Target Rate. The Target Rate is not guaranteed and is not cumulative.

Income earned from the Monthly Income Fund’s investments is applied firstly to meet the income distributions payable to Investors. Vertex is only paid management and performance fees if the Target Rate is distributed to Investors first.

The Target Rate is an investment return objective and not a forecast. It is merely an indication of what the Monthly Income Fund aims to achieve on the assumption that credit markets remain relatively stable. The Monthly Income Fund may not be successful in meeting this objective.

Income distribution payments are not guaranteed, and no assurance is given that any level of income distributions will be achieved. If the Target Rate is not achieved for the relevant income distribution period, an income distribution may still be paid to Investors at a rate lower than the Target Rate. Any amount of the Target Rate not achieved for the relevant income distribution period does not accrue.

Target Rates are determined by Vertex. An assessment will be made by Vertex of the returns expected from the Monthly Income Fund’s assets and will set the Target Rate from time to time based on this assessment.

The Target Rate may fluctuate during the term of the investment and may be varied by Vertex at any time. Any change to the Target Rate will be reflected immediately in income distributions made to all Investors. This change may be an increase or a decrease. The Target Rate will not fluctuate up or down by more than 1.00% in any given twelve (12) month period.

Investors will be provided with sixty (60) days’ notice in writing by Vertex of any changes to the Target Rate.

The current target rate is as displayed on this website and should be read in conjunction with the Information Memorandum.