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KV Annual Report 2014

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Portfolio of $ 37 Million Repayments of $ 28 Million $ 0 Losses REAL ESTATE SECURED Every investment by the Fund is secured by a mortgage against real estate assets located within Canada. The value of the mortgaged security is available for the Fund to recover principal, accrued interest and enforcement costs. INDEPENDENT GOVERNANCE Independent directors and lending review committee members that hold a fiduciary duty to KV Mortgage Fund are responsible to oversee the Fund's operations and investment portfolio. ASSET ALLOCATION The Fund's assets are allocated per the operating policies on the basis of geographical, borrower, zoning, term, mortgage position and loan-to-value thresholds.

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