Global Market Update & Why Portland Private Income Fund?
The global market has been very volatile especially the last few months and many may ask what is driving this turmoil?
Some key issues are the following:
- Fears about a weaker than expected Chinese economy
- Sluggish global growth
- Uncertainty about timing and impact of the Fed rate hike
- Major global capital market regime changes:
- Downward spiral in crude
- Shift in Chinese economy from fixed asset spending to a consumer driven model
- Global theme of currency devaluation
There are many factors to assess in the public market today therefore many of the wealthy look to invest into private investments.
Being mutual fund representatives at Mandeville, this gives us access to the Portland Private Income Fund which currently consists primarily of mortgages in the Greater Toronto Area, Southwestern and Central Ontario. The Fund manager remains mindful of the over-supply of residential real estate projects in certain areas. The Fund currently has no exposure to the condo market in downtown Toronto but has exposure in Ontario’s retirement market.
The Fund has an agreement with a Mortgage Administrator, who continues to focus on dynamic geographies and niches which have been underserved by traditional lenders, where it draws on its business experience in the commercial finance and real estate realm.
In May, the Private Capital Markets Association named Portland Private Income Fund as 2015 Investment Fund Deal of the year. As at August 31, 2015, the Fund has delivered a return since inception in 2013 of 9.3% net of fees.
For more information, contact us to evaluate if this Fund would be a possible fit for your investment portfolio. Further details regarding the Fund, including recent Fund Brief and commentary, can be found under the below link:
Performance is for Series F Units.
Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions [dividends] and does not take into account sales, redemptions, distributions or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
The Manager believes the following risks are key to the Fund’s performance: nature of investments, credit, interest rate, general economic and market conditions, liquidity, marketability and transferability of units. Please read the “Risk Factors” section in the Offering Memorandum for a more detailed description of all the relevant risks.
The PORTLAND PRIVATE INCOME FUND (the “Fund”) is not publicly offered. It is only available under Offering Memorandum and other exemptions to investors who meet certain eligibility or minimum purchase requirements such as “accredited investors”. Information herein pertaining to the Fund is solely for the purpose of providing information and is not to be construed as a public offering in any jurisdiction of Canada. The offering of Units of the Fund is made pursuant to an Offering Memorandum and the information contained herein is a summary only and is qualified by the more detailed information in the Offering Memorandum.