The I-Series of our private offerings provides institutional investors with the ability to participate in above-average, risk-adjusted yields from investments in commercial mortgage pools with enhanced liquidity. Our institutional clients include many trade unions, foundations and endowments and Canadian pension funds, including three of the top ten largest pension funds in Canada.
Commercial mortgages share many characteristics of high-yield, interest-bearing bonds, yet are secured by real property. Our institutional clients recognize that the predictable income and unique diversification characteristics of Trez mortgage pools are an attractive fixed income alternative. The short term to maturity along with the floating rate feature of the Canadian mortgages, provide unit holders with very low volatility as the manager aims to maintain a steady $10 NAV.
Trez Capital employs a variety of investment strategies and fund structures to create conservative portfolios of high-yield commercial mortgages. Combining our expertise in mortgage sourcing, underwriting and structuring with rigorous due diligence, we create opportunities for institutional investors to invest through a trust with the following features:
- Focused strategy. We achieve superior risk-adjusted returns, while minimizing exposure to interest-rate risk by funding short-term, commercial mortgages on quality properties.
- Attractive returns. We target investment returns from 5-10%, within a trust structure available for transacting via FundServ, which provides for enhanced liquidity.
- Investment oversight. Governance and compliance with investment policies is provided through an investment committee and external board of governors.
We have three investment strategies for institutional investors to consider.