When are investor distributions made, and what determines the amount?
Investor distributions are made in December. Scholarship distributions are made in July prior to the start of the Fall semester.
Annual Distributions are determined by the general formula: Fund Income minus Fund Expenses
(Loan Interest + Dividends + Option Income) – (Fund Expenses) = Investor Distribution
How can investors track the fund's performance?
Investors have a login portal where the Fund value is available on demand. The Fund's price is updated monthly and performance is calculated quarterly.
As a Fund investor, where is my money held?
There are two capital allocations within Student Loan Impact Fund: a diversified pool of education loans, and a diversified portfolio of dividend stocks hedged with covered call options. Loan payments from borrowers are made monthly to the Federal loan servicer, called Launch. Every month, loan payments are consolidated and transferred securely to Charles Schwab. Schwab is the independent custodian for Student Loan Impact Fund's dividend stock portfolio managed by the investment team at Capital Wealth Planning, LLC..
How does the Fund earn scholarships for social impact?
The Fund has a stated income target of 3% -4% per year. When Fund profits exceed this target, the excess return split via gain-sharing, as follows:
- 50% to Fund investors
- 50% to scholarships
Investors may elect to donate up to 100% of the excess return, if they choose.
What is the Fund management fee?
The advisory fee is 1.25% per year, calculated as a percentage of the total fund assets under management, and billed quarterly prorata.
If I refinance my loan with ICF, how long does it take to be approved?
To check your rate takes only 5-10 minutes. However, when you formally apply for your refinance loan, you will need to upload things like your W-2, your driver's license, and the pay-off from your current loan(s). Once you have uploaded everything needed for the decision, you generally receive an answer within 1-2 days.
When a loan is refinanced, is the money for the new Impact Capital loan sent directly to pay off the original lender?
Your new loan will be wired directly to your former loan service provider(s). This assures your former loan balance is fully paid off.