Benefits of Investing in the Pooled Fund

The benefits of investing in the Pooled Fund include:-

• subject to the Pooled Fund's performance, it provides a steady, reliable income stream, above cash rates;
• the minimum initial investment is only $1,000;
• additional investments are accepted at any time (minimum $500, or $250 as part of a Regular Savings Plan);
• there is no entry fee;
• the anticipated minimum return (the "Declared Rate") is set in advance by VMIL each quarter;
• the Declared Rate is paid to you monthly in priority to VMIL's Management Fee and Expense Recoveries;
• you receive a Bonus Return, paid within 21 days of the end of the quarter, if the Pooled Fund's income is greater than the aggregate of the Declared Rate, Management Fee and Expense Recoveries;
• you can withdraw all or part of your investment at any time, subject to a minimum account balance of $1,000 and payment of any withdrawal fee. Generally the Pooled Fund will pay withdrawals within a business day of receiving the request (subject to the liquidity of the Pooled Fund, and VMIL's right to delay redemptions up to 60 days if VMIL considers delay prudent);
• you benefit from the services of an experienced team of commercial mortgage and investment management professionals;
• your investment is pooled with those of other Investors in the Pooled Fund and collectively each Investor achieves greater diversification of investment and gains access to a broader range of investment opportunities;
• you receive regular reports and have ready access to information about the investment.

Objectives

The Pooled Fund has been designed for Investors seeking returns greater than cash rates with a relatively low level of risk, and aims to provide you with secure, regular monthly income from the Fund’s investments in registered first mortgage loans. The Pooled Fund will invest primarily in a portfolio of registered first mortgages over a diversified selection of non-specialised residential, commercial, retail and industrial properties in Australian capital cities and major regional centres (having a permanent population base of at least 25,000).

No loans governed by consumer credit legislation will be made by the Pooled Fund.

Investors' Security

VMIL only makes investments which provide adequate security for Investors in accordance with the Pooled Fund’s investment policy [hyperlink]. Authorised investments are primarily first mortgages, cash and short term liquid investments.

VMIL has appointed Trust Company Fiduciary Services Limited as Custodian to hold application moneys and securities and assets on behalf of Investors in the Pooled Fund. All mortgages are registered in the name of Trust Company Fiduciary Services Limited as Custodian.

Investor Returns

VMIL will at the commencement of each quarter declare a rate of return (the Declared Rate) which VMIL has calculated and expects to pay Investors for the ensuing quarter. In setting the Declared Rate, VMIL will aim to outperform similar types of investments such as term deposits and cash management trusts. The Declared Rate will be set on the basis of the estimated returns of the Pooled Fund, and the market for similar investments.

As this is not a guaranteed product, the payment of the Declared Rate is subject to adequate performance by the Pooled Fund, however the Declared Rate is set by VMIL each quarter with its knowledge of the market and the performance of the Pooled Fund.

The Declared Rate is not subject to the deduction of the Management Fee or Expense Recovery.

You are entitled to payment of a Bonus Return if the Pooled Fund’s return exceeds the aggregate of the Declared Rate, Management Fees and Expense Recoveries. The Bonus Return paid to you is half of the Surplus Return, with an equal amount paid to VMIL, as the Performance Fee.

Management Fees

VMIL is paid a fee (the Management Fee) for managing the Pooled Fund if returns exceed the Declared Rate, and can potentially earn a Performance Fee if the Pooled Fund's return is greater than the aggregate of the Declared Rate, Management Fee and Expense Recoveries.

Payment of any fees to VMIL only occurs after you have been paid the Declared Rate.

Payment of Income

You receive monthly distributions of income, paid either by electronic transfer to your nominated Australian bank account or by automatic reinvestment in the Pooled Fund. Distributions of the Declared Rate are calculated at month-end and paid within 14 days of the end of the month.

Where a Bonus Return is payable, it is calculated within five days of the end of the quarter and paid within 21 days of the end of the quarter. The Bonus Return, as with the Declared Rate, is pro-rated to the number of days in the quarter that you have held Units.

Payments are made to your nominated account. In the event any payment is returned to VMIL by your financial institution, the funds will be automatically reinvested after 60 days.

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