FGP Mortgage Fund Celebrates Three-Year Anniversary With Benchmark-Beating Performance

TORONTO, Sept. 24, 2024 /CNW/ - Three years ago, Foyston, Gordon & Payne Inc. (FGP) launched the FGP Mortgage Fund. The concept was straightforward: use our experience and expertise to create a solution well-suited for the coming market environment.

"It was a perfect time to build a brand-new mortgage strategy," said Ryan Domsy, the head of FGP's fixed income team and the Fund's lead portfolio manager. "Inflation was high, the job market was remarkably strong, and it appeared higher interest rates were just around the corner. It was a great opportunity to build a short-duration mortgage solution that would improve our clients' interest rate exposure in preparation for the coming environment."

As we look back at the first three years, we see benchmark-beating returns and a portfolio positioned for the future.

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That was August 31, 2021. Today, as we look back at the first three years of the Fund, we see benchmark-beating returns: an annualized 2.81% since inception for the Fund compared with 1.18% for the FTSE Canada Short Term Bond Index. We also see a portfolio positioned for the future: "Our mortgage exposure is in high-quality, low-indebted properties, and is broadly diversified by region," said Domsy. "We continue to focus on deploying capital to segments of the commercial mortgage market such as multi-family housing and retail as we view the risk versus return from those segments as much more positive than other parts of the commercial mortgage market."

The FGP Mortgage Fund offers diversified investments in mortgages that are originated and serviced by third parties such as banks, life insurance companies, and other credit intermediaries. Investors can use the Fund to add meaningful diversification to a balanced portfolio since mortgages have a low correlation to other asset classes, with a potential for significant yield enhancement.

For more details about the FGP Mortgage Fund, please click here.

For further information: Gabriel Lopezpineda, [phone], [email protected] 

Investment returns are expressed in Canadian dollars, gross of investment management fees, net of fund expenses, and include reinvestment of dividends and income. Performance returns are time weighted, values change frequently and past investment performance may not be repeated. This is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The information herein should not be relied upon as investment advice and does not consider the investment objectives, risk tolerance, financial situation, or specific needs of any particular person.

SOURCE Foyston, Gordon & Payne Inc