This fund is suited for long-term investors. As with all higher risk investments, there is greater potential for higher returns.
- 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%||8.66%|
|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%|
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.
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
- Review Offering Memorandum. Following the review of the offering memorandum, we require a subscription agreement to be completed.
- 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.
- Note: Minimum initial MIC purchase is $10,000 per fund
Minimum subsequent purchases are $5,000 per fund