Unitholders in the Fund will soon get a special dividend in addition to their 7% annual preferred earnings after another strong performance in 2022
After a record year of strong returns, unitholders in Sterling Mortgage Income Fund – Canadian Trust, who Sterling Financial Group Inc. is the Investment Manager of, will soon get a special dividend in addition to their 7% annual preferred earnings that have been consistently paid quarterly throughout the life of the Fund.
The Sterling Mortgage Income Fund – Canadian Trust posted a total yearly net return to unitholders of 12.3%, another strong showing by the Fund that has achieved consistently solid returns for investors and exceeded volatile capital markets and economic shifts.
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David Kosoy, Sterling’s Chairman and Founder, said it’s just the latest example of the Fund protecting investor capital while boasting a stable and attractive income stream. As a result of the Fund’s strong performance in 2022, investors are now set to receive a special distribution of 5.3%*.
“We’re pleased to declare a special distribution for investors of the Sterling Mortgage Income Fund – Canadian Trust,” Kosoy added. “Through volatile capital markets and dramatic economic shifts, our portfolio weathered the changes of 2022 and once again added up to an impressive return for our investors.”
The strong performance and healthy portfolio of the Fund, which actively invests in mortgages in the United States, Canada, the United Kingdom, The Bahamas and other select Caribbean countries, can be credited to Sterling’s focus on investing only in properties and sectors in which it has strong operational and construction capabilities. That focus, as well as the team’s proven expertise in real estate, has added up to profitable growth.
Slate Securities, an investment management platform specializing in real estate investing, is the Manager and Trustee of the Sterling Mortgage Income Fund – Canadian Trust.
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“As Manager and Trustee of the Fund, we’re pleased with the performance of the Fund in 2022 against a challenging macroeconomic backdrop, and we remain resolutely confident in the team at Sterling to continue executing on the Fund’s strategy and delivering value to investors,” said Fraser McEwen, Partner at Slate Securities.
The current rising interest rate environment will increase interest rates charged on the majority of the Fund’s loans as they are floating rate loans with a floor.
While investors can now look forward to a special distribution as a result of the robust portfolio performance in 2022, they can also opt to reinvest this dividend back into the Fund with the intent to compound their returns and set themselves up for a potential increased total return in the long run.
For example, because of a 10.75% net return since inception of the Fund in June of 2016, someone who invested $100,000 at the fund’s inception and chose to reinvest their dividends would now have an investment worth more than $194,291.
The investment period is open and subscriptions are accepted monthly, with a minimum $25,000 investment for eligible Canadian accredited investors.
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