An income asset allocation strategy in a single vehicle, the Fund offers five potential benefits:
- Income potential derived from investing primarily in income-producing mortgage loans secured by residential real estate
- Non-correlation through a portfolio of highly collateralized real estate assets that is not designed to track major income indices
- Capital appreciation potential as a result of selling assets at or near the full face value
- Limited liquidity* through the Fund’s interval fund structure, which permits buying back a stated portion of VCIF’s shares every quarter
- Socially responsible investing by participating in an investment strategy that helps keep families in their homes
What is the Vertical Capital Income Fund?
The Vertical Capital Income Fund (VCIF) is a continuously offered, diversified, closed-end management investment commonly known as an “Interval fund”
Interval funds are classified as closed-end funds, but they are very different from traditional closed-end funds in that:
- Their shares typically do not trade on the secondary market. Instead, their shares are subject to periodic repurchase offers by the fund at a price based on net asset value (NAV).
- They are permitted to (and VCIF does) continuously offer their shares at a priced based on the fund’s net asset value.
- An interval fund will make periodic repurchase offers to its shareholders, generally every three, six, or twelve months, as disclosed in the fund’s prospectus and annual report. VCIF offers repurchases every quarter, however, it is on a limited basis.
Why a diversified income strategy is important
Recent market volatility has underscored the importance of maintaining diversified strategies on both the equity and income sides of a portfolio.
Vertical Capital Income Fund (VCIF) management believes today’s investors are looking for income with less correlation to traditional market movements. Simple yet sophisticated, VCIF seeks to help you keep pace with your changing income needs as you pursue your investment goals.
Historically, stocks have outperformed other common investment categories over time. And bonds have outpaced short-term investments and inflation while smoothing out the investment ride over the long term. This chart illustrates how you can use VCIF as a potential income-generating vehicle that may help improve your income outlook while maintaining your other investment goals.
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*Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the shares outstanding at net asset value. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
