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Information Memorandum (IM)

The document provided to investors to inform them about the facts, risks and details of an investment opportunity.

Yield

The rate of return on an investment.

Volatility

The extent to which the return on an asset fluctuates over time. It is measured by the rate at which the price of a security moves up and down. The higher the frequency of movement in the price of a security, the higher the volatility and the greater the risk.

Unsecured Loan

A loan for which no asset has been used as security. The interest rate is usually higher than for a secured loan as there is a higher risk to the lender of not getting their money back.

Units

A subdivision of the beneficial ownership of the assets in a Sub-Fund.

Unitholder

Has the same meaning as a Member.

Trustee

A person or company that holds or administers assets for the benefit of someone else.

Tranche

A tranche is one of a number of related securities offered as part of the same transaction. In the financial sense of the word, each tranche is a different slice of the deal’s risk. All the tranches together make up what is referred to as the deal’s capital structure or liability structure.

They are generally paid sequentially from the most senior (secured) to most subordinate (and generally unsecured).

Sub-Prime Loan

A loan given to a borrower who doesn’t meet the credit criteria for an ordinary loan. This may include borrowers with a poor credit history, low income earners and those with already high levels of debt. Sub-prime loans carry a higher interest rate because the risk of default is higher than that of a standard loan.

Sub-Fund

A particular Mortgage Investment into which Members can invest, which is quarantined from other investments in the Fund.