VANCOUVER, Jan. 15, 2016 /CNW/ -
2015 Fund Highlights
ACM Advisors Ltd. ("ACM") is pleased to announce for the year ended December 31, 2015, ACM Commercial Mortgage Fund (the "Fund") grew to $675.5 million. The total number of investments in the Fund increased to 80 as a result of 26 new mortgages totaling $292.0 million and 9 repayments totaling $38.2 million. This growth further diversified the Fund both by asset class and geography. The portfolio remains conservative with an overall loan-to-value ratio of 62% (61% as of December 31, 2014) and debt service coverage ratio of 1.52 times (1.43 times as of December 31, 2014). Importantly, all loans are current and being repaid as agreed.
Over the course of 2015, the yield on the 5 year Government of Canada bond decreased by 0.54% to 0.78% while the yield on the 10 year Government of Canada bond decreased by 0.34% to 1.46%. This trend of declining rates has been sustained through the start of 2016.
The Fund's total returns are comprised of two components: income (interest payments earned less Fund expenses incurred) and the change in net asset value. The net asset value of the Fund is impacted by changes in underlying bond yields and credit spreads. Credit spreads in the commercial mortgage market widened slightly during 2015, a trend experienced in the broader credit markets. The downward movement of underlying bond yields and the upward movement of credit spreads resulted in a +0.33% change in the net asset value of the Fund. Overall, the Fund's total returns, net of all fees and expenses, for the year ended December 31, 2015 were:
| Class |
Income |
Change in NAV |
Total Return |
| F and I |
4.32% |
+0.33% |
4.66% |
| A |
4.06% |
+0.33% |
4.40% |
| B, C, D, and E |
3.85% |
+0.33% |
4.19% |
Returns are compounded monthly and assume all distributions are reinvested in the Fund.
2016 Distribution Setting
As a mutual fund trust, the Fund distributes all income to its unitholders. The monthly distribution per unit is set based on an estimate of the Fund's income for the calendar year and is reflective of the portfolio, interest rates, credit spreads and anticipated Fund growth.
Given the Fund's mandate of generating stable income flows while protecting investor capital, ACM remains focused on lending opportunities that fit the Fund's conservative underwriting criteria. In order to support the Fund's current distribution level in this continued low interest rate environment, additional risk would need to be taken and we are not prepared to deviate from our lending discipline. As a result, we deem it prudent to adjust monthly distributions as of February 1, 2016 as follows:
Establishment of Independent Governance Committee
On September 30, 2015, an Independent Governance Committee (the "IGC") was formed to contribute to the governance and oversight of the Fund. The IGC's key responsibilities are to review potential conflict of interest matters relating to the Fund, review proposed material changes to the Fund's trust agreement, and receive and review the Fund's reporting and annual audited financial statements. The inaugural committee members have extensive experience in the financial services industry and include: Mr. Rob Morris, Chairperson (former Chair of Steadyhand's Independent Review Committee); Ms. Kathy Leavens (former Chief Compliance Officer of Connor, Clark & Lunn); and Mr. Paul Wagler (current member of ACM Mortgage Fund One and ACM Mortgage Fund Two's independent Investment Committees).
About the Fund
ACM Commercial Mortgage Fund is a pooled commercial mortgage fund available for investment by institutional and private investors. The Fund's objective is to generate stable income flows while protecting investor capital. The Fund is invested in a diversified portfolio of conservative mortgages secured by retail, office, industrial and multi-family properties located in urban and suburban markets across Canada.
About the Manager
ACM Advisors Ltd. is a fund management company specializing in the origination and underwriting of Canadian commercial mortgages. ACM Advisors Ltd. has over $2 billion in assets under management and administration, representing over 2,500 unitholders in four pooled investment funds. All investments in funds managed by ACM Advisors Ltd. are prudently underwritten in accordance with its comprehensive underwriting guidelines. The combination of the Manager's experience and guidelines has resulted in a 20+ year track record of never having experienced a loan loss in any of its funds.
This news release has been prepared for informational purposes only and should not be construed as a solicitation for, or offering of, an investment in securities in any jurisdiction where such offer or solicitation would be prohibited. The ACM Commercial Mortgage Fund is an exempt market security; prospective investors are advised to read the Offering documents and to consult with an independent financial advisor prior to making any investment decision based on this document. Minimum investment varies by province. The indicated rates of return are the historical compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any Unitholder that would have reduced returns. Mutual funds are not guaranteed or covered by a government deposit insurer; their values fluctuate frequently and past performance may not be repeated. The rates of return shown in the document are not intended to reflect future value of the Fund or future returns on investment in the Fund. Commission, trailing commissions, management fees and expenses all may be associated with mutual fund investments. ACM takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when presented, information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by ACM, its affiliates or any other person as to its accuracy, completeness or correctness. ACM Advisors Ltd. does not guarantee the accuracy, completeness, or timeliness of the information and documents. E&OE.
SOURCE ACM Advisors Ltd.
Image with caption: "Yield Curve: Government of Canada Bonds (Source: CanDeal, Bloomberg) (CNW Group/ACM Advisors Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160115_C4530_PHOTO_EN_599626.jpg
ACM Advisors Ltd., Lezlie Mintz, MBA, Director - Business Development, Ph: 647-748-6242 or 604-661-0663, [email protected], www.acma.ca
Share this article