Why invest in a mortgage fund with ACM Advisors Ltd.?
Many investors have included mortgage investments in their long-term fixed income portfolio because historically, mortgage investments have outperformed both bonds and GICs. A mortgage fund is an ideal vehicle for investors who want to diversify their portfolios with a real estate component but do not wish to take the equity risk. ACM Advisors Ltd. has the experience and expertise to provide secure mortgage investments with superior returns.
What types of investments are available from ACM Advisors Ltd.?
An investment in a mortgage fund offers investors the opportunity to participate in a diversified pool of mortgage loans, each comprised of a well balanced mix of mortgages that are diversified by both asset class and geography. These investments also offer a stable monthly income stream for investors. The ACM Commercial Mortgage Fund is open to both retail and institutional investors while Mortgage Fund One and Mortgage Fund Two are open to institutional investors only.
How does ACM manage default risk?
ACM Advisors Ltd. invests your money in a pool of loans secured by real estate. One risk is that the borrower is unable to make their scheduled payments to ACM Advisors Ltd., which results in a temporary loss of income from the investment. The borrower may also default on the loan altogether which means that ACM Advisors Ltd. must foreclose on the real estate. ACM Advisors Ltd. mitigates against default risk by lending money to well capitalized borrowers and on conservatively underwritten properties. Since inception, funds managed by ACM Advisors Ltd. have never experienced a loan loss.
Do any of the funds provide mortgages that are secured by properties in the United States or residential investments?
No. None of the funds have mortgage investments that are secured by properties in the United States or single-family residential real estate.
Are any of the funds exposed to sub-prime mortgages?
No. None of the funds have exposure to any sub-prime mortgages.
How do I earn income?
The income provided to investors are generated from the cash flow of the real estate properties secured by the mortgage investments. The tenants of these properties provide rent to the landlord, who then pays the expenses of the property as well as the mortgage payments. These mortgage payments are then pooled together by the fund and passed onto you, the investor, after fund expenses and management fees.
Are ACM Advisors Ltd. mortgage funds eligible for registered accounts?
Yes, the ACM Commercial Mortgage Fund is available for subscription in RRSP, RRIF, LIRA, RESP and TFSA accounts.
How do I invest in the funds?
Please click below for information on the following funds:
What is the liquidity of the funds?
Units are redeemable monthly, subject to available cash. Units can be subscribed for any time with subscriptions being converted to units on the last business day of each month. Redemption requests can be made at any time with the requested amount being returned to the unitholder within 3 business days of the following month.
Can I have my distributions deposited directly to my bank account?
Yes, investors who have elected to receive their distributions in cash can have the distribution deposited directly to their bank account (often referred to as EFT payments). Investors can make this selection whenever they are subscribing for fund units. If an investor had previously elected to receive a cheque payment they can change to EFT simply by sending us a note requesting the change and enclosing a “void” copy of a cheque for the account into which they want the distributions deposited.
Where can I find third party websites with information on the ACM Commercial Mortgage Fund?
How are the fund distributions taxed?
For investors in non-registered accounts, all distributions are classified as interest income for tax purposes.
Are there any fees or charges?
For the ACM Commercial Mortgage Fund, please refer to the Offering Memorandum. Please contact us for information on the fees for Mortgage Fund One and Mortgage Fund Two.
How can I learn more?
Private Investors should consult their investment advisor for a potential investment in the ACM Commercial Mortgage Fund. Institutional investors should consult their investment advisor and/or contact us directly for an investment in Mortgage Fund One, Mortgage Fund Two or the ACM Commercial Mortgage Fund.