Balanced Mortgage Fund II

Bancorp’s Balanced Mortgage Fund II is the mortgage fund of choice for risk-adverse individuals looking to invest in real estate. Primarily a first mortgage investment, this medium-risk mortgage fund is great for those who can make a mid- to long-term investment.

Highlights

  • Established in October 2009
  • Primarily a first mortgage fund
  • Quarterly income – fund pays dividends by cash or DRIP on a quarterly basis
  • Focused on asset repositioning, land, and development loans
  • Fund manager has long-term proven track record
  • Target yield is the yield on two-year Government of Canada Bonds + 4%
  • Balanced Mortgage Fund ll Fact Sheet – Class D September 31, 2017

Historic Yield Balanced II

Annualized Fund Yield Jan-Mar 2017 Apr-Jun 2017 Jul-Sept 2017 Oct-Dec 2017
Class D Shares 5.88% 6.01% 6.20%
Annualized Fund Yield Oct-Dec 2009 Jan-Dec 2010 Jan-Dec 2011 Jan-Dec 2012 Jan-Dec 2013 Jan-Dec 2014 Jan-Dec 2015 Jan-Dec 2016
Class D Shares 5.50% 6.50% 6.59% 6.43% 6.41% 6.55% 6.07% 6.17%

Investment Strategy

The fund primarily provides interim first mortgages to finance the acquisition of land as well as the construction, development, redevelopment, or renovation of residential, commercial, office, or industrial properties.

Risk/Reward Profile

While new development, redevelopment, and renovations are an integral part of a growing economy, there is always an additional element of risk in these projects compared to financing-established, income-producing properties.

Our lending criteria cites that:

  • Loans do not exceed 75% of appraised value
  • Maximum loan to any one borrower is 15% of capital
  • Maximum loan to any one property is 10% of capital
  • All loans are made to arm’s-length borrowers

How to Invest

Please contact Wendy Herdin at (604) 609-7101 if you are interested in this mortgage investment fund.

At Bancorp, we have an established process to invest. You can choose from the following methods:

  1. Review Offering Memorandum. Following the review of the offering memorandum, we require a subscription agreement to be completed.
  2. You can also invest by purchasing shares and holding them in your Self Directed RRSP/RRIFs / TFSA plans or in a NO FEE Bancorp RRSP/RRIF plan. You will still need to complete a subscription agreement to invest
  3. Note: Minimum initial MIC purchase is $10,000 per fund
    Minimum subsequent purchases are $5,000 per fund