For Investors

The Investment

Canada Penfund Mortgage Corporation originates and manages commercial mortgages on behalf of investors. Mortgage servicing may be performed by Canada Penfund or its Service Partner, a nationally-based, accredited institution. This determination may be made by the investor.

 

Pendfund Income Fund Inc. (PIFI) is licensed to qualify parties for syndicated investment into commercial mortgage loans. Syndication of mortgage loans involving investment by Accredited Investors and others requires licensing of a firm regulated by members of the Canadian Securities Agency, or provincial Securities Commissions. Institutional and private investors buy a position in an income-bearing vehicle void of fluctuation or volatility. Mortgages bear a sound risk-adjusted rate of return and are founded on a policy of capital preservation. Investors get consistent, predictable returns with steady reporting.

 

PIFI and Canada Penfund deal mainly first mortgage security on real property in urban centres in Canada. Canada Penfund operates on overheads less than large financial institutions which allows increased yield to be passed directly to investors.

The Security

Pendfund loans are secured mainly by mature, revenue-producing commercial property and are underwritten with the same basic criteria as large financial institutions use. This class of loan is considered the lowest risk in any form of commercial debt investment product thus it bears among the lowest in losses and ranks highest in safety rating.

Net Result

Pendfund Income Fund I fills a void in the investment landscape with a secured source of annuity-type income which yields superior returns to the GIC.

Tax Information

Distributions received by Investors are treated as interest income and taxed accordingly; the Trust pays no tax.

Forward-looking Statement

This information contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding revenues and profitability of Pendfund Income Fund Inc. (PIFI). Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the PIFI’s periodic filings with Canadian securities regulators.

See PIFI’s most recent annual information form for a detailed discussion of the risk factors affecting PIFI. In addition, PIFI’s distribution policy will be reviewed from time to time in the context of the PIFI’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a distribution will always be at the discretion of the Board of Trustees of the Trust. PIFI undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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