DALLAS, Oct. 27, 2015 /PRNewswire/ -- Behringer Advisors, LLC ("Behringer"), the interim adviser to Vertical Capital Income Fund (ticker VCAPX; the "Fund"), announced today the Fund produced an unaudited total return of 8.86% (3.97% after the maximum sales charge of 4.50%), compared with a total return of 3.43% for the benchmark MBS Index (Barclays Capital U.S. MBS Index) for the Fund's fiscal year of operations ended September 30, 2015.
During the same 12-month period, the Fund declared regular monthly distributions that totaled $0.438 per share, and anticipates declaring a special distribution prior to December 31, 2015 (based on the number of shares outstanding on September 30, 2015), representing the amount of the Fund's net, long-term capital gains from asset sales and loan settlements during its fiscal year.
Since inception, the Fund has produced a total return of 8.35%, or 7.04% with the sales load, compared with a total return of 2.33% for the MBS index. The Fund's SEC annual yield was 0.35% as of September 30, 2015.
"We are pleased with the performance of the Fund," said Michael Cohen, President of the Fund and President of Behringer Harvard Holdings, LLC—parent company of Behringer Advisors. "The Fund has performed well since Behringer became the interim adviser in June. We believe the Fund can continue to produce positive, competitive returns with a primary focus on current yield."
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. 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 and Extraordinary Expenses), subject to possible recoupment from the Fund in future years. Without these waivers, the Fund's estimated unaudited total annual operating expenses for the year would have been 2.46%, as per the Fund's prospectus supplement dated July 23, 2015. Investment company shares involve risk including the possible loss of principal, the risk that issuers will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. 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 call toll-free 866-277-VCIF (8243).
About the Fund
The 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.
Behringer creates and manages real estate investments through public and private fund structures, joint ventures and separately managed accounts. The company also offers strategic advisory, asset management, tax-deferred exchange and capital markets solutions. Investments sponsored and managed by the Behringer group of companies have invested into more than $11 billion in assets. For more information, call 214.655.1600 or visit behringerinvestments.com.
There is no assurance that the Fund will achieve its investment objective.
The Barclays Capital U.S. MBS Index measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of GNMA, FNMA, and FHLMC. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
SEC Yield calculated according to SEC form N-1A. Behringer and the Fund have entered into an expense limitation agreement. The Fund's unaudited SEC Yield without the expense limitation is 0.06% as of September 30, 2015.
The Fund's distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund's distribution rate at a future time. The Fund's distribution amounts were calculated based on the ordinary income received from the underlying investments, and in certain cases short-term capital gains realized from the disposition of investments. Long-term capital gains realized from dispositions of assets will be paid out annually. A portion of the distributions may consist of a return of capital based on the character of the distributions received from the underlying holdings.
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. 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.
Investment company shares involve risk including the possible loss of principal. There is a risk that issuers 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 issuer, such as an individual's economic situation, the Fund's net asset value may be more volatile because it invests in notes of individuals. Securities may be subject to prepayment risk because issuers 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.
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 1-866-277-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. Vertical Capital Income Fund, Behringer Advisors, LLC and Provasi Capital Partners LP are not affiliated with Northern Lights Distributors, LLC.
SOURCE Behringer Advisors, LLC