E-Delivery

Kv Mortgage Fund Inc. For the fiscal year ended the last day of February The Fund's Net Assets per Class B Preferred Share Net Assets, beginning of period 2013 $ 10.00 2012 $ - 2011 $ - 2010 $ - Increase (decrease) from operations: Total income - 1.12 Total expenses - - Unrealized gains (losses) for the period - - - - (0.25) Realized gains (losses) for the period - - - - - - 0.87 - - - (0.87) Total increase (decrease) from operations: - - - Distributions: From Income From Dividends - - - - From Capital Gains - - - - Return of Capital - Net Assets, at end of period (0.87) - - - - Total Distributions for the period - - $ 10.00 $ - $ - $ - $ 1,271,298 $ - $ - $ - Ratios and Supplemental Data: Total net asset value(1) Number of shares outstanding 127,172 Management expense ratio(2) Portfolio turnover rate Redemption value - - - 2.66% (1) - - - - 1.62 (3) $ 10.00 $ - $ - $ - This information is at the period end of the year shown. Management Expense Ratio is based on total expenses and amortized share issue costs for the stated period and is expressed as an annualized percentage of the daily weighted average redemption value of the Share Class presented. (3) The Fund's portfolio turnover rate indicates how actively the Fund Manager managed the portfolio investments. A portfolio turnover rate of 1.00 is equivalent to the Fund advancing and receiving repayment of all mortgage investments once in the course of the year. There is not necessarily a relationship between a high turn over rate and the performance of the Fund. (1) (2) 19

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