2016 Fund Highlights
ACM Advisors Ltd. (“ACM”) is pleased to announce for the year ended December 31, 2016, ACM Commercial Mortgage Fund (the “Fund”) grew to $1.02 billion. Over the year, the total number of investments in the Fund increased to 96 as a result of 30 new mortgages totaling $389.4 million and 14 repayments totaling $53.8 million. This growth further diversified the Fund both by asset class and geography. The portfolio remains conservative with an overall loan-to-value ratio of 62% (62% as of December 31, 2015) and debt service coverage ratio of 1.61 times (1.52 times as of December 31, 2015). Importantly, all loans are current and being repaid as agreed.
Over the course of 2016, the yield on the 5 year Government of Canada bond increased 38 basis points to 1.11% while the yield on the 10 year Government of Canada bond increased 33 basis points to 1.72%.
The Fund’s total returns are comprised of two components: income (interest payments earned less Fund expenses incurred) and the change in net asset value. The net asset value of the Fund is impacted by changes in underlying bond yields and credit spreads. Credit spreads in the commercial mortgage market tightened during 2016, a trend experienced in the broader credit markets. The upward movement of underlying bond yields and the downward movement of credit spreads resulted in a -0.93% change in the net asset value of the Fund. Overall, the Fund’s total returns, net of all fees and expenses, for the year ended December 31, 2016 were:
|Class||Income||Change in NAV||Total Return|
|F and I||+3.73%||-0.93%||+2.76%|
|B, C, D, and E||+3.24%||-0.93%||+2.28%|
Returns are compounded monthly and assume all distributions are reinvested in the Fund.
2016 Special Year-End Distribution
ACM Advisors Ltd. is pleased to announce that the ACM Commercial Mortgage Fund will provide December 31, 2016 unitholders of record with a special year-end distribution of $0.242 per unit, in addition to their regular monthly distribution. This special distribution represents additional interest and fee income generated by the Fund over the year.
2017 Distribution Setting
As a mutual fund trust, the Fund distributes all income to its unitholders. The monthly distribution per unit is set based on an estimate of the Fund’s income for the calendar year and is reflective of current and anticipated interest rates, credit spreads and Fund growth. As a result of these projections, the current monthly distribution levels will be maintained:
|Class I and Class F||32.5 cents per unit|
|Class A||30.0 cents per unit|
|Class B, Class C, Class D, and Class E||28.0 cents per unit|