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Frequently Asked Questions

1. Who is qualified to invest in the Fund?
Investors must generally qualify as “accredited investors” as defined in applicable securities laws.

2. When can I invest in the Fund?
Purchases take place the first business day of the month.

3. Can I hold units in a registered plan?
Yes. RRSP, RRIF, RESP, TFSA and other registered plans.

4. Will the Fund pay a fixed interest rate?
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 7-10% return per annum.

6. When will distributions be paid?
Distributions will be paid on or about the 15th day of every month, or the first business day following, if the fifteenth falls on a weekend or holiday.

7. How are units priced? Will the unit price fluctuate?
The purchase price is net asset value per unit. The net asset value of the Fund is determined on a monthly basis.

8. What is the minimum number of units that an investor may purchase?
The minimum initial purchase is $150,000 for investors purchasing through Romspen Investment Corporation. For investors purchasing through an investment professional via the FundSERV network, the minimum is $50,000.

9. Can I withdraw money from the Fund?
Units may be redeemed on a monthly basis at their net asset value. Redemption forms must be received before the 15th of the month for redemption the following month, and are processed in order of receipt. The trustees of the Fund have the right to limit redemptions to 1% of the outstanding units of the Fund. Special provisions may apply if redemption requests exceed 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 is applied.

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

12. How will I know how the Fund is performing?
The trustees report to investors on a quarterly basis, just as a public company would to its shareholders. The report summarizes the activities of the Fund and includes full financial statements, MD&A and notes. The annual report, which includes audited financial statements is also provided and is 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 the Fund website: 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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