The Trust is designed with a view to capital preservation and to provide a steady income stream to investors. Investors receive a greater than GIC return and participate directly in a portfolio of commercial mortgage loans secured by revenue-producing commercial property. The mandate of the Trust is ‘safety of capital with a functional return’.
The Trust Manager and members of the Board of Trustees are long standing participants in the field of commercial mortgage lending in Canada with over 175 years of combined investment, legal and business experience.
With today’s interest rates, the Trust is able to reasonably forecast a gross return of over 6%. Operating expenses of the Fund are forecast at a maximum of 1.5%, with 100% of the balance going to the Investor. This is based on general industry pricing and current Government of Canada benchmark bond pricing but is in no way meant to represent any type of guarantee of return.
The objective of the Fund is to provide for direct investment by institutional and private Investors into a pool of quality mortgage loans secured by real property. Mortgage investments are primarily ‘investment grade’ first mortgage loans secured by property such as apartments, retail plazas, warehouse and office buildings. Investment grade loans are those which bank, credit unions and other ‘A’ lenders routinely invest in. These loans have the highest probability of timely repayment and zero capital loss.
The Fund competes with institutional lenders by providing sharp pricing and timing. Loans will be dispersed across Canada, mainly in the Provinces of British Columbia, the Prairie Provinces and Ontario. These loans are closely scrutinized by the Manager and the Board of Trustees to maintain a high industry-standard quality.
The balance of the Trust, not more than 35% of the pool, may invest in niche cases such as bridge and short term financing, development, residential and other types of loan cases where rapid deployment of capital is necessary. The Fund will not invest directly in real property.
Canada Penfund Mortgage Corporation is a specialized Asset Manager focused on commercial real estate loans. Through Pendfund Income Fund I, it provides access to a low-risk* portfolio of commercial mortgages to qualified individuals, institutions, trusts, endowment funds and discretionary investment advisors. Canada Penfund has an unlimited capacity to manage commercial mortgage assets through its various vehicles and invests exclusively in commercial mortgage debt.
Canada Penfund believes that attractive investment returns are achieved by being an active manager in lending and investment. The Officers managing the Fund have spent careers providing key financial, legal, valuation and other services to their clients.
*Low-risk refers to an industry-standard context and is not meant to imply the investment is without risk. Prospective investors should refer to the Offering Memorandum for a full description of risk associated with this investment.
The Trustee for Pendfund Income Fund I is a federally registered entity. Business is spread across the country in various economic regions, mainly in urban area in the Provinces of British Columbia, the Prairie Provinces and Ontario. Loans are placed with the help of trusted correspondents and associates of Canada Penfund. Canada Penfund and Pendfund Income Fund I are strategically focused to provide the stability, confidence and support its investors, borrowers and governors can rely on.