Under a pooled model the investors (along with other investors) risk of default is spread amongst multiple loans. Therefore, risk is not compounded by a single borrower. Future Asset Management International will hold first mortgage and title deed to property and liquidate assets to recoup investor funds as quickly as possible in the event of a default.
Under a contributory model the investor has chosen a specific commercial opportunity / borrower. Therefore, the single borrower has defaulted. The specific fund therefore takes a loss. Future Asset Management International holds title deed and will initiate steps to liquidate assets to recoup funds as quickly as possible.
For more detailed information on how the Future Mortgage Income Fund operates please read the PDS