Vertical Capital Income Fund VCAPX">, an entity created a year ago to invest in loans backed by real estate, declared a dividend of 4.81% on an annual basis at the end of September, meeting its expectations for the first year.
The fund, which trades on the Nasdaq, generates returns on investments in residential mortgage notes.
The fund said Thursday it outperformed the Barclays U.S. Mortgage-Backed Securities Index, which is the benchmark for performance in the sector.
The entity invests in real estate debt while also providing limited liquidity.
"The fund's performance since inception (12/31/11) surpassed the results of the index both at net asset value, 7.70% to 2.80%, and at the fund's maximum 4.50% sales charge, 2.87% to 2.80%, respectively," Vertical Capital said in a press release.
The fund requires a minimum investment of $5,000 or $1,000 when dealing with retirement accounts. The fund operates under the Vertical Capital Markets Group.