TORONTO--(BUSINESS WIRE)--Romspen Investment Corporation, a leading non-bank provider of commercial mortgage solutions in Canada and the United States, today announced it is launching a new Canadian-dollar feeder fund for its U.S. master mortgage fund. The Romspen US Mortgage Investment Trust will provide qualified Canadian investors with access to the master fund’s portfolio of U.S. commercial mortgages. The new fund is also designed to be a qualified investment for registered plans.
“Our decision to introduce what is essentially a Canadian-dollar version of our existing U.S.-dollar feeder fund is driven by increasing demand from Canadian investors seeking the stable net returns offered by our U.S. master fund,” says Derek Jenkin, a Romspen managing partner.
Romspen’s master U.S. fund holds a diversified commercial mortgage portfolio and has a five-year history of producing steady returns for income-seeking investors. For an overview of Romspen’s U.S.-dollar feeder fund, click here.
“2022 has been defined by economic uncertainty, with more and more investors seeking ‘safe harbours’ of the kind that Romspen has historically provided to help weather these difficult times,” says Jenkin. “Romspen’s funds don’t rely on leverage to boost returns. All our mortgage loans are carefully underwritten to ensure a margin of safety, and are well diversified across regions, sub-markets and property types.”
Romspen’s mandate is to provide consistent returns while protecting investor capital. Over the past 10 years, its flagship Romspen Mortgage Investment Fund has delivered an average annualized net yield to investors of 7.6%.
Features of the new Romspen US Mortgage Investment Trust:
- Feeder fund of the master U.S. fund, which is primarily invested in short- and medium-term (typically 6 months to 2 years) first mortgage loans in the United States across various property types, including industrial, residential development, condominiums, hospitality, office and retail
- The U.S. master fund has delivered annualized net returns of 8%-10%, since its inception in August 2017 through June 2022
- Available to qualified Canadian investors
- Denominated in Canadian dollars
- Structured to qualify for most registered plans, including RRSPs and TFSAs
- Hedged to protect against CAD/USD fluctuations
- Intended to generate monthly cash distributions for investors, with a distribution reinvestment option.
The new fund will be available through select investment advisors or by contacting Romspen at 416-966-1100 or InvestorRelations@romspen.com.
About Romspen Investment Corporation: Romspen is one of Canada’s largest private mortgage investment firms with almost $3 billion in assets under management across North America. Over its 57 years, Romspen has invested more than $10 billion in over 700 mortgage loans while consistently creating and delivering value for both investors and borrowers. Investors in Romspen’s funds include high net worth individuals, foundations, endowments, pension plans and other institutions.
This press release is for informational purposes only. It is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This press release is not, and does not constitute, an offer to sell, or the solicitation, invitation, or recommendation to purchase, any securities in any jurisdiction. An offering of units of the fund described herein will be made only pursuant to its Offering Memorandum and only to investors who qualify under certain exemptions from the prospectus requirements under applicable securities laws. Copies of the offering memorandum will be available from Romspen, which should be reviewed carefully prior to making a decision to purchase. Past performance does not guarantee future results.
This press release contains forward-looking statements or information under applicable securities laws. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of risks. The forward-looking statements and information contained in this press release are as at the date of its publication and Romspen does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.