Sounds dodgy, btw 7% return and 7% distribution is different. I think there is some misunderstanding.

If the 7% is coming from the fund to you then actually is your own money. 7% return means you invested 100 and it becomes 107 at the end of the year is 7% return.

This trust sounds like invest 100, and I get 7 the year but my value in the trust becomes 93