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F.A.Q.
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Frequently Asked Questions

1. Who is qualified to invest in the Fund?
To purchase units of the Romspen Mortgage Investment Fund, investors must qualify as “accredited investors”. To be eligible as such, investors must satisfy one of the requirements of the applicable securities legislation (found in Schedule A of our Subscription Agreement).

2. When can I invest in the Fund?
Pursuant to the Offering Memorandum, purchases take place the first business day of each month.

3. Can I hold units in my registered account(s) (RRSP/RRIF/LIRA/LIF)?
Yes.

4. Will the Fund pay a fixed distribution?
No, but the Fund intends to distribute all of its income to unitholders annually. The distribution amount generally reflects the actual income the Fund has produced.

5. Does the Fund have a target for its rate of return?
No. Over the past 10 years, Romspen's mortgage portfolio has been highly predictable year-to-year and has averaged approximately 8-10% return per annum.

6. When will distributions be paid?
Income distributions will be paid on or about the fifteenth day of every month, or the first business day following if the fifteenth falls on a weekend or holiday.

7. How will the units be priced?  Will the unit price fluctuate?
Pursuant to the Offering Memorandum, the purchase price is $10/unit. After the initial purchase, the fair market value of the Fund is determined on a monthly basis which may result in a fluctuation in the price per unit. Fluctuations in price are only relevant when redeeming units. 

8. What is the minimum number of units that an investor may purchase?
The minimum initial subscription is 15,000 units or $150,000.

9. Can I withdraw money from the Fund?
Pursuant to the Offering Memorandum, units may be redeemed on a monthly basis at their fair market value.  Redemption forms must be created by Investor Relations, then signed and initialed by the investor.  Redemption Forms are time stamped with date of receipt by Investor Relations.  The trustees of the Fund meet on the 14th of the month to determine eligible redemptions for the following month and have the right to limit redemptions to 1% of the outstanding units of the Fund.  Special provisions may apply if the redemption queue exceeds 3%.

10. What fees are associated with the Fund?
There is a 1% management fee. If investors wish to redeem units that have been held for less
than one year, a 2% redemption fee will be applied.

11. Are the monthly distributions taxable?
Distributions are fully taxable as interest income.

12. How will I know how the Fund is performing?
The trustees report to investors on a quarterly basis similar to what a public company would provide to shareholders. This report summarizes the activities of the Fund, including financial statements. The annual report, which includes audited financial statements, is also produced, and discussed during the annual investor meeting. For investor convenience, a monthly overview is sent out by email and comprehensive and timely information is available on our website at: www.romspen.com.

13. Who will answer investor questions on an ongoing basis?
The Investor Relations Department at 416-966-1100.

14. Is the Fund audited?
 Yes, the Fund has been audited since inception by KPMG LLP.


These frequently asked questions and answers are provided for explanatory purposes only. They are not intended to be a complete description of the Fund. For a complete description of the Fund, please refer to the Offering Memorandum.

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