Growth Mortgage Fund II

Bancorp Growth Mortgage Fund II primarily invests in second mortgages to qualified real estate developers and owners for residential, commercial and industrial projects on properties located in British Columbia and Alberta. This Fund is rated as a Medium-High risk fund and is suitable for mid to long term investors.

HIGHLIGHTS

  • Target yield is two-year Government of Canada Bonds +7%
  • Established in October 2009
  • Primarily a Second Mortgage Fund
  • Quarterly income — funds distributes its income quarterly by way of cash or DRIP (Reinvestment in additional shares of the funds)
  • Fund manager has a long-term proven track record
  • Growth Mortgage Fund ll Fact Sheet – Class D June 30, 2020

Historic Yield Growth II

Annualized Yields to June 30, 2020

Investment Strategy

This mortgage fund provides interim second mortgage financing with typical loan term of 12-24 months to finance the construction, development, redevelopment, or renovation of residential, retail, office, or industrial properties and land acquisition for development. The Fund also invests in some 1st mortgages from time to time.

As set in the Offering Memorandum our lending criteria states that:

  • Loans shall not exceed 85% of appraised value (typically 80% or less)
  • Maximum loan to any one property is 10% of capital
  • Maximum loan to any one borrower is 15% of capital
  • All loans are made to arm’s-length borrowers

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.

How to Invest

Please Review the Offering Memorandum to determine if you are interested in this investment. Contact a BISL Dealing representative at (604)608-2717 or an independent dealer of your choice for further information about investing in Bancorp Growth Mortgage Fund.

Investments in BFSI offered shares in Growth II are eligible investments for RRSP/RRIF/TFSA plans. Bancorp offers NO FEE RRSP/RRIF plans.