Tired of the Stock Market Roller Coaster?
For over 30 years, Ryan Mortgage has provided its shareholders with a consistent and reliable cash flow stream.
Fund Fact Sheet September 2022 [Download]
Fund Profile
Ryan Mortgage was established in 1984 and since then has been offering its shareholders a simple and reliable stream of investment income, with an average rate of return of 9.68% over the past 5 years.
The company specializes in private mortgage financing using primarily residential real estate as collateral. It offers investors a diversified portfolio administered by Mortgage Professionals.
Through its focus on private mortgages in British Columbia, Alberta, Ontario, and Quebec over the past 10 years Ryan Mortgage has grown to $648 Million.
| Fund Inception: | 1984 |
| Minimum Investment: | $10,000 |
| Annualized Return for 2021: | 9.17% |
| Mortgage Type: | 99% Residential / 1% Commercial |
| 5 Year Historical Avg. Return: | 9.68% |
| Line of Credit: | $200 Million |
| Term of Mortgages: | 1-3 Years |
| Total Number of Mortgages: | 5,148 |
| Weighted Average LTV: | 52.6% |
| Historic High / Low Return: | 14.5% / 7.0% |
| Financial Service Fee: | 2.00% |
| Insider Holdings: | 4.4% of total shares |
| Average Mortgage Size: | $123,720 |
| Portfolio Size: | $648 Million (September 2022) |
Note: All Information are as of September 2022
RRSP1=Registered Retirement Savings Plan, RRIF2=Registered Retirement Income Fund, RESP3=Registered Educational Savings Plan, LIRA4=Locked In Retirement Account, TFSA5=Tax Free Savings Account and LTV=Loan To Value.
Investment Objectives
The primary objective of the fund is to earn preferred shareholders a steady stream of income by investing in a diversified portfolio of residential mortgages.
The fund’s investment objectives are to earn an annual return of 9.25% while maintaining a average loan to value of less than 60% for its mortgage portfolio.
Key Investment Policies
The primary objective is to provide consistent returns at reduced risk. The fund will only invest in mortgages. All mortgages are to be legally secured through mortgages on real estate. The following are some of our key investment policies:
- The loan to value on each individual mortgage investment is not to exceed 75%
- All mortgages require an independent valuation by an accredited real estate appraiser
- No individual mortgage investment is to exceed 10% of the total portfolio
Tax Treatment
The fund falls under Section 130.1 of the Canadian Income Tax Act. It is a flow through investment and as such, pays no taxes at the corporate level so long as it distributes 100% of its annual net income.
The fund distributes 100% of its annual profits to its shareholders in the form of dividends. These dividends are treated as regular income for income tax reporting.
An investment in the fund is RRSP, RRIF, RESP and TFSA eligible.
Investment Strategies
The fund is the largest purchaser of private mortgages from Alpine Credits – British Columbia, Alpine Credits – Alberta, Alpine Credits – Ontario, and Alpine Credits – Quebec, our affiliated companies. The fund receives first look at all mortgages underwritten by these mortgage origination groups (as of 2021, these four entities were projected to underwrite approximately $400 million in private mortgages [annualized]).
Because of this relationship, the fund is well positioned to take advantage of a larger percentage of this proprietary mortgage deal flow.
The fund maintains a line of credit with a major financial institution. The credit facility ensures the fund is fully invested at all times.
Our Typical Investor Is Someone Who:
- Is interested in a consistent annual return with capital preservation in mind.
- Is interested in a regular income stream with limited volatility.
- Would like to have direct contact with the experienced Fund Managers that are investing along side them.