Growth Mortgage Fund II

This fund is suited for long-term investors. As with all higher risk investments, there is greater potential for higher returns.

HIGHLIGHTS

  • Established in October 2009
  • Quarterly income — fund pays dividends by cash or DRIP on a quarterly basis
  • Primarily a second mortgage fund
  • Fund manager has a long-term proven track record
  • Target yield is the yield on two-year Government of Canada Bonds +7%
  • Growth Mortgage Fund ll Fact Sheet – Class D March 31, 2017

Historic Yield Growth II

Annualized Fund Yield Jan-Mar 2017 Apr-Jun 2017 Jul-Sept 2017 Oct-Dec 2017
Class D Shares 8.47%
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 3.21% 7.61% 9.24% 8.41% 8.32% 8.28% 8.39% 8.75%

Investment Strategy

This mortgage fund provides financing with higher ratio first and second mortgages, and finances the acquisition of land as well as the construction, development, redevelopment, or renovation of residential, retail, office, or industrial properties.

Risk/Reward Profile

Higher ratio first and second mortgages have the potential to provide higher yields but also have a higher risk profile. Yields associated with this fund will also be more volatile than with our Balanced Mortgage Fund ll.

Our lending criteria cites that:

  • Loans do not exceed 85% 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

  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