Investment Approach


The mandate of Pendfund Income Fund Inc. is to provide Investors fixed-income annuities, a functional return and secured capital. The PIFI qualifies investment-grade commercial mortgage files secured by commercial real property on behalf of syndicated investors. This institutional strategy is designed to maximize return, protect investor capital and maintain a high probability of annuity-type income.

Income Stream

The investment goal of Pendfund Income Fund Inc. is to preserve capital and create dependable annuity income with best-possible pricing policies for borrowers. The simple formula is the higher the calibre of mortgage investment, the greater the probability of timely annuity income for investors.

Risk Management

The Pendfund Income Fund Inc. investment scope is based on a low-risk model that focuses on capital preservation and timely loan performance. It achieves this with vigilant loan underwriting of premium-grade loans and real property security. Loans are priced against a spread above Canada Mortgage Bonds (CMB) or Government of Canada Bonds (GOC) and other parameters based on industry criteria. Bond prices together with competition in the marketplace determines the risk-adjusted rate of return. Reputation and speedy delivery of a good loan product ensures the Fund has a wide array of loans to choose from.

Capital Loss

Solid lending practice is an intense, hands-on process from application to payout. The goal is to maintain the industry statistical probability that arrears will occur in less than 1% of the portfolio and capital losses in a small fraction of that amount. Close scrutiny and strict risk assessment procedure in underwriting reduce potential for capital loss.

These are some of the practical ingredients in the program:

The Mortgage Manager and Trustees have extensive expertise assessing risk in real property and covenant; they are patient and analytical and cannot be fooled.


We ensure the market knows about our loan products; we then pick the best borrowers and securities.


Borrowers know from experience that when they come to us, they will be dealt with quickly, fairly and with the best deliverable loan product.


We know borrower profiles and we know real estate; we keep our ear to the ground for events and trends that can improve our performance.


In the interpretation of appraisal, credit, environmental, financial and other reports, we look beneath the surface.


We thoroughly examine each property and borrower, and underwriting ratios are kept well within industry standard margins.

Once a loan is advanced, we regularly monitor the borrower and the property until the mortgage is repaid.


We apply common sense when implementing industry rules and guidelines.


We are not reluctant to syndicate loans with known partners to keep risk and exposure within acceptable guidelines.


We strive to maintain a proper mix according to asset class and location so as to avoid over-concentration of investment in a certain area.


We lend with various terms to suit the product to maintain versatility for borrowers and investors alike, review property, borrowers and market in process of renewal terms.


A clear understanding of the source of timing and repayment is established prior to advance of funds.

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