For Investors

The Investment

The Fund provides direct participation into a pool of investment grade commercial mortgage loans. Institutional and private investors buy Trust Units in an income-bearing vehicle void of fluctuation or volatility. The Fund bears a sound risk-adjusted rate of return and is founded on a policy of capital preservation. Investors get steady, predictable returns without the assumption of undue risk.


The Fund is comprised of mainly first mortgage security on real property in urban centres in Canada. Units can be conditionally redeemed throughout the term of the investment and free of fees after the third anniversary of the investment.


The manager operates with overheads less than large financial institutions which allows a substantial increased yield to be passed directly to the investor. The investor does not relinquish its returns to a costly intermediary. Pendfund Income Fund I is to investment what ‘Amazon’ is to retail. The expensive middleman is removed.


This field of investment has traditionally been the domain of institutional lenders such as pension funds, credit unions and banks. The investment model of the Fund is patterned for institutional investment; ‘retail’ investors can now invest along side institutional investors and enjoy the same undiluted rates of return.

Conventional GIC format:

GIC – 1% rate of return to Investor;

Intermediary’s Loan Return – 5%;

4% spread goes to Intermediary (GIC Issuer).

Pendfund Income Fund I:

*Blended Gross Fund Yield – 6%;

Gross Fund Expenses – not greater than 1.5%;

100% of balance goes to Investor.

*not intended to be a forecast or guarantee of return, for illustration purposes only.

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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