Secured Mortgage Income Fund Are your investments secured and predictable?
Fund Mandate u To provide investors with consistent monthly income secured by real property mortgages that are prudently written to safeguard capital. u Statesman Capital and its affiliates will always have at least $3 million of their own capital invested directly along with you thereby ensuring a continued alignment of our interests with yours.
Fund Description u The Statesman Capital Secured Mortgage Income Fund (“SMIF”) is a pool of capital that provides loans secured by short-term first and second mortgages of residential and commercial real estate. ? BEST RISKY u The SMIF generates Derivatives Aggressive Growth predictable and secured 12 Potential Return (%) monthly income because Large Cap Stock Funds 9 its borrowers make Balanced Funds SMIF monthly interest LESS RISKY WORST 6 payments which we Bond Funds distribute to you on a Money Markets 3 monthly basis. GIC GOC 0 0 10 30 100 Risk (%)
Fund Objectives u High yields: The SMIF outperforms bonds and GICs. We target net yields in the range of 6% to 7% per year. u Security: Unlike stocks and bonds, the SMIF's income and capital is secured by real property. The loan portfolio is also diversified across several markets and types of mortgages. u Predictable income: We distribute income monthly.
Fund Objectives u Liquidity: You may access your capital early in the event you need it*; your investment is not tied to the maturity date of individual mortgages owned by the SMIF. u Wealth preservation: Mortgages can preserve your wealth because they have a low correlation with traditional assets such as volatile stocks and bonds. u Low volatility: Our mortgages are short term (typically 6 to 18 months) which acts as a hedge against interest- rate risk and real estate market conditions. * Typical investment term is 1 year minimum, see Redemp6on Sec6on of LP Agreement for full details
What We Do: Statesman Capital u Statesman Capital underwrites and manages all of the mortgages in the SMIF. u Statesman Capital and its affiliates have been involved in real estate development, management, construction and business enterprises for over 30 years. Our extensive real estate and business experience provides us with a thorough understanding of the markets into which we lend.
What We Do: Statesman Capital u Over the past 20 years we have been directly and actively involved in over $150 million of real estate development, investment and financing transactions. More importantly, each was and remains profitable for ourselves and our investors. u Statesman and its affiliates currently administer approximately $20 million of first and second mortgage loans and development financing.
Fund Performance The SMIF delivered predictable and consistent net returns of 8.42%, 8.43% , 8.54%, 7.84%, 6.87% and 6.78% from 2011 to 2016, respectively 25 20 15 10 5 0 2011* 2012 2013 2014 2015 2016 -5 -10 SMIF 1 YR GIC 1 YR GOC Bond S&P/TSX -15 * 2011 returns include the first 10 months as a syndicate and not a Limited Partnership ** 2014 results and onward assume par6cipa6on in the Distribu6on Reinvestment Plan *** Statesman Data is net of fees and Annualized, as fund started in 2011 **** All Data (other than SMIF) provided by MoneyCentral.com
Fund Performance Value of $100,000 invested in SMIF, GIC, GOC Bond and S&P/TSX $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 SMIF 1 YR GIC 1 YR GOC Bond S&P/TSX $40,000 $20,000 $- 2010 2011* 2012 2013 2014 2015 2016 * 2011 returns include the first 10 months as a syndicate and not a Limited Partnership ** 2014 results and onward assume par6cipa6on in the Distribu6on Reinvestment Plan *** Statesman Data is net of fees and Annualized, as fund started in 2011 **** All Data (other than SMIF) provided by MoneyCentral.com
Fund Distribution u The fund distributes income every month based on 5% per annum INVESTMENT EXAMPLE (0.4167 cents per unit per month), a $100,000 investment in the SMIF currently yields $416.67 with 100% of the balance per month. In 2016, you would distributed by way of a top-up have received an annual top-up payment of $1,780.00 given the upon completion of the annual net annualized return of 6.78%. audit. u The top-up is based on a weighted average return to Unitholders. The top-up shown in the table (next page) is an estimate of the average top-up distribution paid. Unitholders invested less than a full one year period will receive a prorated allocation.
Fund Distribution (per Unit) Total Monthly Total Annual September November December February October January Top Up August March Year April May June July 2011* .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ 7.2¢ 1.20¢ 8.42¢ 2012 .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ 7.2¢ 1.20¢ 8.42¢ 2013 .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ 7.2¢ 1.34¢ 8.54¢ 0.64¢ 2014 .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ .6¢ 7.2¢ 7.84¢ 2015 .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ .5¢ 6.0¢ 1.84¢ 6.87¢ 1.78¢ 2016 .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ 5.0¢ 6.78¢ 1.50¢ 2017 .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ .416¢ 5.0¢ 6.50¢ All figures based on proforma of fund payment schedule, as detailed in this presenta6on. * Prior to November 2011, the fund operated as a syndica6on. ** 2017 November – December are predic6ons *** Beginning in 2014, Total Annual Return is based on par6cipa6on in the Distribu6on Reinvestment Plan
Fund Recent Transactions • $1,550,000 loan secured by a first mortgage on a building site in Vancouver which is to developed into 2 strata-titled townhouse units. Monthly interest payments. • $625,000 loan secured by a first mortgage on an existing commercial strata unit and residential strata unit in Victoria. Monthly interest payments. • $1,300,000 loan secured by a first mortgage on an existing single family house in Vancouver which is being purchased. Monthly interest payments. • $575,000 construction loan secured by a first mortgage on a new single family house in Duncan. Interest payments received from an interest reserve.
Fund Recent Transactions • $1,080,000 loan secured a by a first mortgage on a new townhouse in Burnaby which is being purchased. Monthly interest payments. • $1,400,000 loan secured by a first mortgage on a residential subdivision in South Surrey. Monthly interest payments. • $625,000 loan secured by a first mortgage on an existing apartment building in Nanaimo which is being purchased. Monthly interest payments. • $435,000 construction loan secured by a first mortgage on a new single family house in Victoria. Interest payments received from an interest reserve.
Fund Recent Transactions • $200,000 loan secured by an inter alia second mortgage on 2 existing single family houses in North Vancouver. Monthly interest payments. • $970,000 loan secured by a first mortgage on an existing house in West Vancouver which is being purchased and renovated. Monthly interest payments. • $1,400,000 construction loan secured by a first mortgage on a new single family house in Vancouver. Interest payments received from an interest reserve. • $1,670,000 construction loan secured by a first mortgage on a new single family house in Vancouver. Interest payments received from an interest reserve.
About Us – Daniel Lipetz Daniel Lipetz's daily responsibilities at Statesman Capital include u researching, negotiating and approving all new loans. Over the past fifteen years, Mr. Lipetz has structured and managed a variety of real estate financings, acquisitions and dispositions. One of Mr. Lipetz's notable transactions was the purchase, development planning, subdivision and subsequent sale of a 17.5 acre portion of the 43 acre Canfor Eburne Saw Mill site in Vancouver, BC to the Greater Vancouver Transportation Authority. Mr. Lipetz is a graduate of the University of British Columbia with a u Bachelor of Laws and also studied at the UBC Faculty of Commerce, Department of Urban Land Economics. Mr. Lipetz practiced income tax litigation with McCarthy Tetrault prior to embarking on his business career.
About Us – Christopher Kape Christopher Kape’s daily responsibilities at Statesman Capital u include all aspects of regulatory compliance, investor communications, fund raising and maintenance of subscriber records. Over the past 20 years, Mr. Kape has been actively involved in numerous private and publicly traded businesses. As a result, and as testimony to his track record, Mr. Kape maintains numerous officer and director positions with private and public firms engaged in a cross section of industries. Mr. Kape holds a Diplome d’Etudes Collegiales in Commerce from u Marianopolis College, a Bachelor of Arts in Administrative and Commercial Studies from the University of Western Ontario and a Master’s in Business Administration from the John Molson School of Business. He further holds securities designations such as the Canadian Securities Course, Exempt Market Products Course, Options Licensing Course, Officers’, Partners’, and Directors’ Course and Conduct and Practices.
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